> l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1Courier New1Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)60%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0) + ) , * Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~4#܈ ~~3#܈ ~~7#܈ ~~<#܈ ~~83ffff̙̙3f3fff3f3f33333f33
Mercury Systems Inc&cImportant Notice Regarding the $TABLE OF CONTENTS&8Corporate Governance Highlights&GHow often did the Board and Com&
@
l O$
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems IncTABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$ }m)
MERCURY SYSTEMS INCDEF 14A
09/05/2017kcImportant Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholde
*
"By Order of the Board of DirectorsChristopher C. Cambria
Secretary$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h=1%
uTH<=PF0*8X>
@
l 0|37
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the !Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }U5}
0
MERCURY SYSTEMS INCDEF 14A
09/05/2017TABLE OF CONTENTS
Page/'QUESTIONS AND ANSWERS ABOUT THESE PROXY~
MATERIALS AND VOTING4,PROPOSAL 1: ELECTION OF ONE CLASS I DIRECTOR~
$AND THREE CLASS II DIRECTORSCORPORATE GOVERNANCE~
"DIRECTOR COMPENSATION~
>!EQUITY COMPENSATION PLANS~
F.&PROPOSAL 2: ADVISORY VOTE ON EXECUTIVE~
J#COMPENSATION ("SAY-ON-PAY")2*PROPOSAL 3: ADVISORY VOTE ON THE FREQUENCY~
J*"OF HOLDING FUTURE SAY-ON-PAY VOTES/'PROPOSAL 4: RATIFICATION OF APPOINTMENT~
N3+OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRMVOTING SECURITIES~
REXECUTIVE OFFICERS~
Z,$COMPENSATION DISCUSSION AND ANALYSIS~
b,$REPORT OF THE COMPENSATION COMMITTEE~
%REPORT OF THE AUDIT COMMITTEE~
0(INDEPENDENT REGISTERED PUBLIC ACCOUNTING~
Dylwk_G/lDtM cS( !"#$%&'()*+,-./ FIRM-!%COMPENSATION COMMITTEE INTERLOCKS AND~
!"INSIDER PARTICIPATION4#,SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING~
#$
COMPLIANCE2%*SHAREHOLDER PROPOSALS FOR THE 20 18 ANNUAL~
%&MEETING'
OTHER MATTERS~
'"(ANNUAL REPORT ON FORM 10-K~
())4*,Appendix A ? Reconciliation between adjusted*+EBITDA and GAAP,$-____________________________1.)Created by Morningstar Document Research.0/(http://documentresearch.morningstar.com/$,J4j&=PF0*8X>
@//..--
l F
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }0.}I }$4}
MERCURY SYSTEMS INCDEF 14A
09/05/2017'Corporate Governance Highlights (
Board and Governance Information
(
Board and Governance Information
&Size of the Board of Directors~
&.&Board Meetings Held During Fiscal 2017~
'Number of Independent Directors~
"Poison Pill
No
Average Age of Directors~
Proxy Access
NoAverage Director Tenure6 years3+Code of Conduct Business Conduct and EthicsYesWomen Board Members22%0(Stock Ownership Guidelines for DirectorsYesand CEO%Classified Board of DirectorsYes*"Anti-Hedging and Pledging PoliciesYes-%Majority Voting in Director ElectionsYes$Compensation Clawback PolicyYes.&Plurality Voting in Contested DirectorYes!Separate Chairman and CEOYes Elections$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6ui]Q!9k
=PF0*8X>
@
l W
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }-}<}$ }<}$ }}$ }
MERCURY SYSTEMS INCDEF 14A
09/05/2017G?How often did the Board and Committees meet during fiscal 2017?
Name
Audit
Compensation
Nominating
Ad HocCommittee(1) Committeeand Governance
M&A Review Committee Committee
James K. Bass
X
AlternateMichael A. DanielsChairman X XGeorge K. Muellner XChairmanMark S. Newman X XWilliam K. O?BrienChairman X X
Vincent Vitto XChairman-%Number of Meetings During Fiscal 2017~
*~
"~
~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6aUI=1LMZo}=PF0*8X>
@
l c
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }1}$ }
MERCURY SYSTEMS INCDEF 14A
09/05/2017D<Cash Compensation for Non-Employee Directors for Fiscal 2017 )
!Independent Chairman of the Board~
"
per annum'Chairman of the Audit Committee~
( per annum.&Chairman of the Compensation Committee~
b per annum1
)Chairman of the Nominating and Governance~
per annum Committee$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*uhdXL@4fp=PF0*8X>
@:
l ,s
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }a}$
MERCURY SYSTEMS INCDEF 14A
09/05/20176.Non-Employee Director Compensation Fiscal 2017
Name
Fees Earned
Restricted Stock
Total
Awards ($)(1)
James K. Bass~
b[~
r ~
{
Michael A. Daniels~
JY
~
r
~
y
George K. Muellner~
b[~
r ~
{ Mark S. Newman~
b[~
r ~
{ William K. O?Brien~
~
r ~
"
Vincent Vitto~
n~
r ~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2rfZNBFrjf=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }0.}}$ }U}$ } y}
$ }U
MERCURY SYSTEMS INCDEF 14A
09/05/2017#16EQUITY COMPENSATION PLANS
Plan Category
Number of~
Weighted-Average
Number of SecuritiesSecurities to beExercise Price of Remaining Available forIssuedOutstanding Future Issuance under
upon Exercise of
Options, Warrants
!
Equity Compensation PlansOutstanding
and Rights (excluding securitiesOptions,& reflected in the first column)Warrants andRights-%Equity compensation plans approved by~
~
(\+@~
~
shareholders (2).&Equity compensation plans not approved ? ? ?
by shareholders
TOTAL~
(\+@~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< ymaU5/#mO|! =PF0*8X>
@
l 6
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANSBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }}y}$ } }$
MERCURY SYSTEMS INCDEF 14A
09/05/2017+#Who owns more than 5% of our stock?
Name of Beneficial Owner
Number of
PercentShares
ofBeneficially
Class
OwnedBlackRock, Inc. (1)~
w<%@ %The Vanguard Group (2)~
@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.}qeYMu4MA5
=PF0*8X>
@R
l !K
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our sto!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }a/}
}$ }U}$
!
MERCURY SYSTEMS INCDEF 14A
09/05/2017Beneficial Ownership -
%Name and Address of Beneficial Owner*
Number of
PercentShares
ofBeneficially Class (1)
Owned (1)Mark Aslett (2)~
F ? %James K. Bass (3)~
R
**Michael A. Daniels (4)~
b
**Lisa S. Disbrow (5) ?
** Mary Louise Krakauer (6) ?
**George K. Muellner (7)~
&
**Mark S. Newman (8)~
F
**William K. O?Brien (9)~
z
**Vincent Vitto (10)~
ޗ
**#Christopher C. Cambria (11)~
** Gerald M. Haines II (12)~
"
** Charles A. Speicher (13)~
A
** Didier M.C. Thibaud (14)~
Z
**/'All directors and executive officers as~
e@ %!a group (13 persons) (15)$____________________________1)Created by Morningstar Document Research.Dh
lth\w2T1qJu 0 (http://documentresearch.morningstar.com/H=PF0*8X>
@R
l l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$ }U5
MERCURY SYSTEMS INCDEF 14A
09/05/2017-%Who are Mercury s executive officers?
Name
PositionMark Aslett-%President and Chief Executive OfficerChristopher C. Cambria2*Executive Vice President, General Counsel,
and SecretaryGerald M. Haines II1)Executive Vice President, Chief FinancialOfficer, and TreasurerCharles A. Speicher4,Vice President, Controller, Chief Accounting( Officer, and Assistant TreasurerDidier M.C. Thibaud1)Executive Vice President, Chief OperatingOfficer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6[{ocWK'?tmB6*=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }'}$ }1}$ }y#
MERCURY SYSTEMS INCDEF 14A
09/05/2017/'How We Determine Executive Compensation
ADTRAN, Inc.
Ducommun Incorporated
Netgear Inc.AeroVironment, Inc.
Gigamon, Inc.NetScout Systems, Inc.Analogic Corporation)!Novanta Inc. (fka GSI Group Inc.)%Progress Software Corporation
Astronics Corporation
Infinera Corporation
Qualys, Inc.Brooks Automation, Inc.InvenSense, Inc.Ruckus Wireless, Inc.CalAmp Corp.iRobot CorporationShore Tel, Inc.Cognex CorporationIxiaSonus Networks, Inc.( Comtech Telecommunications Corp.1)Kratos Defense & Security Solutions, Inc.
Sparton Corp.
Cray, Inc..&M/A-COM Technology Solutions Holdings,Vicor Corp.Inc.Digi International Inc.MKS Instruments, Inc.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8^ymaUI
23RZSG;=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive CompBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$4}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017Base Salary )
!Named Executive Officer and Title-
%Fiscal 2017 Salary (effective October1, 2016)2*Mark Aslett, President and Chief Executive~
."
Officer1)Gerald M. Haines II, EVP, Chief Financial~
Officer, and Treasurer1)Didier M.C. Thibaud, EVP, Chief Operating~
bOfficer2*Charles A. Speicher, VP, Controller, Chief~
BB3+Accounting Officer, and Assistant Treasurer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4}qe5gT1=PF0*8X>
@J
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base Salary!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }6}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017Base Salary )
!Named Executive Officer and Title-
%Fiscal 2018 Salary (effective October1, 2017)2*Mark Aslett, President and Chief Executive~
$
Officer5-Christopher C. Cambria, EVP, General Counsel,~
"
and Secretary1)Gerald M. Haines II, EVP, Chief Financial~
"Officer, and Treasurer1)Didier M.C. Thibaud, EVP, Chief Operating~
Officer2*Charles A. Speicher, VP, Controller, Chief~
r3+Accounting Officer, and Assistant Treasurer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8}qe5gTw(Z=PF0*8X>
@R
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }6}U}$}$ }U}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017/'Executive Bonus Program for Fiscal 2017 )
!Named Executive Officer and Title
Target Bonus as
Portiona Percentage ofRelated to CorporateBase SalaryFinancial Performance
Objectives2*Mark Aslett, President and Chief Executive~
%~
%Officer5-Christopher C. Cambria, EVP, General Counsel,~
~
and Secretary1)Gerald M. Haines II, EVP, Chief Financial~
~
Officer, and Treasurer1)Didier M.C. Thibaud, EVP, Chief Operating~
.~
Officer2*Charles A. Speicher, VP, Controller, Chief~
~
3+Accounting Officer, and Assistant Treasurer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<ymaUIG9&u=PF0*8X>
@R
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for FisFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$4}+}$ }a
MERCURY SYSTEMS INCDEF 14A
09/05/2017-%Fiscal 2017 First Half Payout Formula 3
+ Adjusted EBITDA/ Revenue Target (for first'
Percentage to be Paid for Bonus
Threshold, Target,half of fiscal year)and Maximum
Less than 21%
?%Below Threshold
21%
50%
Threshold*"Greater than 21% but less than 23%,$Proportionate % between 50% and 100% ?23%100%TargetGreater than 23%100%Maximum$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{ocWK@
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FOverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }U5}+}$ }0.
MERCURY SYSTEMS INCDEF 14A
09/05/2017-%Fiscal 2017 First Half Payout Formula 4
, Adjusted EBITDA/ Revenue Target (for second'
Percentage to be Paid for Bonus
Threshold, Target,half of fiscal year)and Maximum
Less than 21%
?%Below Threshold
21%
50%
Threshold*"Greater than 21% but less than 23%,$Proportionate % between 50% and 100% ?23%100%TargetGreater than 23%100%.&Maximum; above 23% credited toward anyunearned H1 bonus$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2"{ocWK?;SG;=PF0*8X>
@
l 8
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }}}}}0.
MERCURY SYSTEMS INCDEF 14A
09/05/2017Over-Achievement Awards 4
,Fiscal 2017 Executive Bonus Plan Performance-%July 1, 2016 - December 31, 2016 (H1),$January 1, 2017 - June 30, 2017 (H2).&Full Fiscal 2017 Over-Achievement Pool Adjusted EBITDA/ Revenue Adjusted EBITDA/ Revenue Adjusted EBITDA/ Revenue
Threshold
Target
Threshold
Target
Above Target - Maximum/'Company Financial Performance (AdjustedEBITDA % of Revenue)21%23%21%23% 23% - 24%% Payout of Bonus50%100%50%100%
Up to 100%87.5% H1 Actual PayoutKC100% H2 Actual Payout + 12.5% H1 Catch Up0% FY17 Actual'for Achieving Full-Year Results!H1 (Paid in January 2017) H2 (Paid in August 2017)Unearned$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:}qeYRvC#a6*=PF0*8X>
@
l ,
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }6}*}$ }0.}$ }a/}$ }
MERCURY SYSTEMS INCDEF 14A
09/05/2017-%32Fiscal 2017 Restricted Stock Awards )
!Named Executive Officer and Title+
#Annual Performance-Based Restricted
.
&Annual Time-Based Restricted Shares (#
/
'Integration Incentive Performance-Based
Total (# of shares) Shares (# of shares) (1)
of shares)+#Restricted Shares (# of shares) (2)2
*Mark Aslett, President and Chief Executive~
r
~
r
~
~
r Officer5-Christopher C. Cambria, EVP, General Counsel,~
I~
I~
~
and Secretary (3)1)Gerald M. Haines II, EVP, Chief Financial~
j~
j~
~
mOfficer, and Treasurer2*Didier M.C. Thibaud, EVP , Chief Operating~
)~
)~
S~
Officer2*Charles A. Speicher, VP, Controller, Chief~
>K~
>K~
~
z3+Accounting Officer, and Assistant Treasurer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<? {ocWKZm*vcWZ=PF0*8X>
@
l %:
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock Vesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I"}2}
MERCURY SYSTEMS INCDEF 14A
09/05/2017IAVesting of Prior Period Performance-Based Restricted Stock Awards $
Fiscal 2015-2017 Performance
Vesting %
Threshold/Cap"(Adjusted EBITDA/ Revenue)
Less than 12%
0%Below Threshold
Equal to 12%
66.67%
ThresholdBetween 12% and 18%2*Straight line interpolation between 66.67%and 100%Equal to 18%100%Target and CapGreater than 18%100%Capped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2p_SG;/MK=PF0*8X>
@
l RG
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I"}2}
MERCURY SYSTEMS INCDEF 14A
09/05/2017IAVesting of Prior Period Performance-Based Restricted Stock Awards $
Fiscal 2016-2017 Performance
Vesting %
Threshold/Cap"(Adjusted EBITDA/ Revenue)
Less than 12%
0%Below Threshold
Equal to 12%
66.67%
ThresholdBetween 12% and 18%2*Straight line interpolation between 66.67%and 100%Equal to 18%100%Target and CapGreater than 18%100%Capped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2p_SG;/MK=PF0*8X>
@
l ,T
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I"}0.}
MERCURY SYSTEMS INCDEF 14A
09/05/2017IAVesting of Prior Period Performance-Based Restricted Stock Awards
Fiscal 2017 Performance
Vesting % (2)
Threshold/Cap$Pro Forma Revenue Growth (1)"Less than or equal to 6.5%
0%Below Threshold
Between 6.5% and 10%.
&Straight line interpolation between 0%
and 100%Equal to 10%100%CapGreater than 10%100%Capped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0_SG;/?D8,=PF0*8X>
@
l oe
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }6}*}$ }0.}$ }a/}$ }
MERCURY SYSTEMS INCDEF 14A
09/05/2017-% Fiscal 2018 Restricted Stock Awards )
!Named Executive Officer and Title+
#Annual Performance-Based Restricted
.
&Annual Time-Based Restricted Shares (#
/
'Integration Incentive Performance-Based
Total (# of shares) Shares (# of shares) (1)
of shares)+#Restricted Shares (# of shares) (2)2
*Mark Aslett, President and Chief Executive~
.M
~
.M
~
Z
~
4Officer5-Christopher C. Cambria, EVP, General Counsel,~
w~
w~
~
and Secretary1)Gerald M. Haines II, EVP, Chief Financial~
w~
w~
~
2Officer, and Treasurer2*Didier M.C. Thibaud, EVP , Chief Operating~
F~
J~
<~
yOfficer2*Charles A. Speicher, VP, Controller, Chief~
r(~
r(~
~
P3+Accounting Officer, and Assistant Treasurer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<; {ocWKZm.zg[^=PF0*8X>
@
l $̇
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }U5}}%$
$&&&&&&&&&& &
&&&
&&&&&&&&&&&&&&&&&&&MERCURY SYSTEMS INCDEF 14A
09/05/2017Summary Compensation
! " # $ %#
Name and Principal Position
Fiscal
Salary
Bonus
Stock
Option
Non-Equity
Change in
All Other
"TotalYear
Awards (1)AwardsIncentive PlanPensionCompensation (4)
Compensation (2) Value and
Non-Qualified
Deferred
Compensation
Earnings (3)1)Mark Aslett President and Chief Executive~
~
.! ? ~
Y
?~
."
$?~
z !~
"R+$%Officer~
~
VU! ? ~
v`W ?~
J ?~
z!~
"%~
~~
/ ? ~
(B ?~
?~
ҝ!~
"%/'Christopher C. Cambria (5) EVP, General~
~
N ? ~
l ?~
?~
>t!~
"+%Counsel, and Secretary
"4,Gerald M. Haines II (6) EVP, Chief Financial~
~
: ? ~
&P ?~
b ?~
6!~
"r%Officer, and Treasurer~
~
? ~
~6 ?~
?~
!~
"Y;%~
~~
U ? ~
!0 ?~
:f ?~
!~
"gO%1)Charles A. Speicher VP, Controller, Chief~
~
" ? ~
?~
?~
!~
"g#%3+Accounting Officer, and Assistant Treasurer~
~
jU ? ~
B
?~
ʎ ?~
!~
"!%~
~~
i
? ~
?~
S ?~
!~
"U%4,Didier M.C. Thibaud (7) EVP, Chief Operating~
~
? ~
m ?~
*~
~
>!~
".%Officer~
~
? ~
~6 ?~
V ?~
!~
"/?%~
~~
? ~
B ?~
S ?~
y!~
":r;%Dlth\U\ny &!&"&#& $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
@~##%""%!!%
"$
"$
"$
"$
"$
"$
"$
"$
"$
"$
"$
"$
"#
!
!
"%
l Q
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017"Summary Compensation Table
Name
Corporate
Over-
Total FinancialAchievement
Non-EquityPerformance
Award Incentive Plan
Bonus
CompensationMark Aslett~
."
$?~
."Christopher C. Cambria~
?~
Gerald M. Haines II~
b ?~
bCharles A. Speicher~
?~
Didier M.C. Thibaud~
* ?~
*$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4znbVg*&Z=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableStock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017"Summary Compensation Table
Name
401(k) Plan
Perquisites and
TotalMatchingOther Personal
All OtherContribution(a)Benefits(b)
Compensation
Mark Aslett~
:|
~
B
~
z
Christopher C. Cambria~
>t ? ~
>tGerald M. Haines II~
6 ? ~
6Charles A. Speicher~
? ~
Didier M.C. Thibaud~
~
~
>$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2znbVCV:}qI=PF0*8X>
@
l 5P
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }a/}I }$ }
}$ }
} $ }
}$ }
$}$ }}$ }
}$ }}$ }$}$ }$})$
5********** *
***
*******************MERCURY SYSTEMS INCDEF 14A
09/05/2017Stock Option Grants
!
Name
"
Estimated Possible Payouts
"
Estimated Possible Payouts
All Other Stock
All Other
Exercise
Grant DateUnder Non-Equity
Under EquityAwards:Optionor Base
Fair ValueIncentive Plan Awards
Incentive Plan Awards Number ofAwards:Price ofof Stock
$
Shares of Stock or Units (#)
Number of
Option
and Option
SecuritiesAwards Awards(1)
Underlying($/sh)
Grant Date
Threshold ($)
Target ($)
Maximum ($)
Threshold (#)
Target (#)Maximum (#)Options (#)Mark Aslett
!"#%&()Restricted Stock (2)8/15/16 ? ?
?
? ? ?~
r ? ?~
n9!Performance Stock (2)8/15/16 ? ?
?
?~
r~
X ? ? ?~
n9!/'Acquisition Incentive Performance Stock8/15/16 ? ?
?
? ?~
~
ڬs!~
-%Corporate Financial Performance Bonus~
~
~
." ~
."
? ? ? ? ? ? ?!Over-Achievement Award~
? ? ~
."
? ? ? ? ? ? ?!Christopher C. Cambria
Restricted Stock (2)8/15/16 ? ?
?
? ? ?~
I ? ?~
6!Performance Stock (4)8/15/16 ? ?
?
?~
I~
I ? ? ?~
6!-%Corporate Financial Performance Bonus~
~
n~
ڔ ~
ڔ
? ? ? ? ? ? ?!Over-Achievement Award~
? ? ~
ڔ
? ? ? ? ? ? ?!Gerald M. Haines II
Restricted Stock (2)8/15/16 ? ?
?
? ? ?~
j ? ?~
b>!Performance Stock (2)8/15/16 ? ?
?
?~
j~
: ? ? ?~
b>!D#lui]>] -@ *!*"*#*$*%*&*'*(*)***+*,*-*.*/*0*1*2*3*4*/ 'Acquisition Incentive Performance Stock 8/15/16 ? ?
?
? ? ~
ζ ? ? ? ~
b|( !~
!-"%Corporate Financial Performance Bonus~
"""~
"2Q""~
"b"" ~
"
b"" "
?"" "?"" "?"" "?"" "?"" "?"" "?"!#Over-Achievement Award~
### #?## #?## ~
#
b## #
?## #?## #?## #?## #?## #?## #?#!$Charles A. Speicher$$$$$$ $
$$
$$$$$$$$$$$$%Restricted Stock (2)%8/15/16%% %?%% %?%% %
?%% %
?%% %?%% %?%%~
%>K%% %?%%%%~
%
%!&Performance Stock (2)&8/15/16&& &?&& &?&& &
?&& &
?&&~
&>K&&~
&&& &?&& &?&& &?&&~
&
&!-'%Corporate Financial Performance Bonus~
'''~
'B
''~
''' ~
'
'' '
?'' '?'' '?'' '?'' '?'' '?'' '?'!(Over-Achievement Award~
((( (?(( (?(( ~
(
(( (
?(( (?(( (?(( (?(( (?(( (?(( (?(!)Didier M.C. Thibaud(7))))))) )
))
))))))))))))*Restricted Stock (2)*8/15/16** *?** *?** *
?** *
?** *?** *?**~
*)** *?** *?**~
*:y*!+Performance Stock (2)+8/15/16++ +?++ +?++ +
?++ +
?++~
+)++~
+N}++ +?++ +?++ +?++~
+:y+!/,'Acquisition Incentive Performance Stock,8/15/16,, ,?,, ,?,, ,
?,, ,
?,, ,?,,~
,S,, ,?,, ,?,, ,?,,~
,6,!~
--.%Corporate Financial Performance Bonus~
...~
.F..~
.*.. ~
.
*.. .
?.. .?.. .?.. .?.. .?.. .?.. .?.!/Over-Achievement Award~
/// /?// /?// ~
/
*// /
?// /?// /?// /?// /?// /?// /?/!01$2____________________________13)Created by Morningstar Document Research.04(http://documentresearch.morningstar.com/.>:,lGR~=PF0*8X>
@=44!33!22!// .. ,, ++ ** (( '' && %% ## ""
!
!
!
!
!
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }@}0}
MERCURY SYSTEMS INCDEF 14A
09/05/20171)38Grants of Plan-Based Awards Fiscal 2017
Fiscal 2017-2019
Vesting %
Threshold/Cap3+Company Adjusted EBITDA/ Revenue Percentile/'Compared to Peer Group Adjusted EBITDA/
Revenue Percentile (a)&Less than 25 th percentile
0%Below Threshold=5Between 25 th percentile and 75 th percentile.&Straight line interpolation between 0% Thresholdand 200%=5Between 75 th percentile and 90 th percentile0(Straight line interpolation between 200%and 300%%Equal to 90 th percentile300%Cap)!Greater than 90 th percentile300%Capped at 300%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8wk_SG#oMrRi=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }@}0}
MERCURY SYSTEMS INCDEF 14A
09/05/20171)38Grants of Plan-Based Awards Fiscal 2017
Fiscal 2017-2019
Vesting %
Threshold/Cap2*Company Revenue Growth Percentile Compared
to Peer Group&
Less than 25 th percentile
0%
Below Threshold=5Between 25 th percentile and 75 th percentile.&Straight line interpolation between 0% Thresholdand 200%=5Between 75 th percentile and 90 th percentile0(Straight line interpolation between 200%and 300%%Equal to 90 th percentile300%Cap)!Greater than 90 th percentile300%Capped at 300%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6Nwk_SG#7OC7=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)Vesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I"}0.}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017 Performance
Vesting % (2)
Threshold/Cap$Pro Forma Revenue Growth (1)"Less than or equal to 6.5%
0%Below Threshold
Between 6.5% and 10%.
&Straight line interpolation between 0%
and 100%Equal to 10%100%CapGreater than 10%100%Capped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/05G;/#v'r, =PF0*8X>
@
l ,
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$4}}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap3+Company Adjusted EBITDA/ Revenue Percentile/'Compared to Peer Group Adjusted EBITDA/
Revenue Percentile (a)&Less than 25 th percentile
0%Below Threshold%Equal to 25 th percentile100%Threshold; Cap)!Greater than 25 th percentile100%Cappped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0BG;/#r?w=PF0*8X>
@
l 8
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }2}}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap2*Company Revenue Growth Percentile Compared
to Peer Group&
Less than 25 th percentile
0%
Below Threshold%Equal to 25 th percentile100%Threshold; Cap)!Greater than 25 th percentile100%Cappped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.G;/#sZ\PD=PF0*8X>
@
l 9Xn
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$ }$}$ }$} $ }
$}$ }
$}$ }m)}$ }y}$
9
MERCURY SYSTEMS INCDEF 14A
09/05/2017!Outstanding Equity Awards
Option Awards(1)
Stock AwardsName Number of Number of
Option
Option*"Number of Shares or Units of StockMarket Value
Securities
Securities
Exercise
Expiration That Have Not Vested (#)of Shares or
Underlying
Underlying
Price($)
Date
Units of StockUnexercisedUnexercised
That HaveOptions (#)Options (#)
Not Vested ($)Exercisable
UnexercisableMark Aslett ? ?
?
?~
>~
~
N ? ?
?
?~
f~
~
( ? ?
?
?~
f~
~
( ? ?
?
?~
j~
~
M ? ?
?
?~
~
~
t ? ?
?
?~
r~
~
g ? ?
?
?~
r~
~
g ? ?
?
?~
~
~
!Christopher C. Cambria ? ?
?
?~
I~
~
V` ? ?
?
?~
I~
~
V`Gerald M. Haines II ? ?
?
?~
~
~
2] ? ?
?
?~
&[~
~
? ?
?
?~
&[~
~
? ?
?
?~
&[~
~
? ?
?
?~
&[~
~
Dl{ocW[ -?QM_^p !"#$%&'()*+,-./012345678 ? ?
?
? ~
~
~
rY !! !?!! !?!!! !
?!! !
?!!~
!
~
!~
!~#!"" "?"" "?""" "
?"" "
?""~
"j~
"~
"$"## #?## #?### #
?## #
?##~
#j~
#~
#$#$$ $?$$ $?$$$ $
?$$ $
?$$~
$ζ~
$~
$$H$%Charles A. Speicher% %?%% %?%%% %
?%% %
?%%~
%9~
%~
%.t %&& &?&& &?&&& &
?&& &
?&&~
&
~
&~
&G&'' '?'' '?''' '
?'' '
?''~
'
~
'~
'G'(( (?(( (?((( (
?(( (
?((~
(G~
(~
(f()) )?)) )?))) )
?)) )
?))~
)j~
)~
)B)** *?** *?*** *
?** *
?**~
*>K~
*~
*^*++ +?++ +?+++ +
?++ +
?++~
+>K~
+~
+^+,Didier M.C. Thibaud, ,?,, ,?,,, ,
?,, ,
?,,~
,~
,~
,2F/,-- -?-- -?--- -
?-- -
?--~
-*h~
-~
--.. .?.. .?... .
?.. .
?..~
.*h~
.~
..// /?// /?/// /
?// /
?//~
/~
/~
/rY/00 0?00 0?000 0
?00 0
?00~
0
~
0~
0~#011 1?11 1?1111 1
?11 1
?11~
1)~
1~
10122 2?22 2?2222 2
?22 2
?22~
2)~
2~
20233 3?33 3?3333 3
?33 3
?33~
3S~
3~
3Ba345$6____________________________17)Created by Morningstar Document Research.08(http://documentresearch.morningstar.com/6$6HZYk}=PF0*8X>
@?88776633221100//..--,,++**))((''&&%%$$##""!!
l ~
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I;}2}$ }a
MERCURY SYSTEMS INCDEF 14A
09/05/2017WO43Vesting Formula for the Fiscal 2015 Performance-Based Restricted Share Awards 9
1Ratio of Adjusted EBITDA/ Revenue for Performance
Vesting %
Threshold, Target,Periodand Maximum
Less than 12%
?%Below Threshold
Equal to 12%
66.67%
ThresholdBetween 12% and 18%2*Straight line interpolation between 66.67%and 100%18% or more100%Target (Capped)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0QE9-!u4.=PF0*8X>
@
l y
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the FiscaVesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I;}2}$ }a
MERCURY SYSTEMS INCDEF 14A
09/05/2017UMVesting Formula for the Fiscal 2016 Performance-Based Restricted Share Awards 9
1Ratio of Adjusted EBITDA/ Revenue for Performance
Vesting %
Threshold, Target,Periodand Maximum
Less than 12%
?%Below Threshold
Equal to 12%
66.67%
ThresholdBetween 12% and 18%2*Straight line interpolation between 66.67%and 100%18% or more100%Target (Capped)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0SG;/#w60=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }@}0}
MERCURY SYSTEMS INCDEF 14A
09/05/2017UMVesting Formula for the Fiscal 2016 Performance-Based Restricted Share Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap3+Company Adjusted EBITDA/ Revenue Percentile/'Compared to Peer Group Adjusted EBITDA/
Revenue Percentile (a)&Less than 25 th percentile
0%Below Threshold=5Between 25 th percentile and 75 th percentile.&Straight line interpolation between 0% Thresholdand 200%=5Between 75 th percentile and 90 th percentile0(Straight line interpolation between 200%and 300%%Equal to 90 th percentile300%Cap)!Greater than 90 th percentile300%Capped at 300%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8SG;/#~K)N.E=PF0*8X>
@
l ,
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }@}0}
MERCURY SYSTEMS INCDEF 14A
09/05/2017UMVesting Formula for the Fiscal 2016 Performance-Based Restricted Share Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap2*Company Revenue Growth Percentile Compared
to Peer Group&
Less than 25 th percentile
0%
Below Threshold=5Between 25 th percentile and 75 th percentile.&Straight line interpolation between 0% Thresholdand 200%=5Between 75 th percentile and 90 th percentile0(Straight line interpolation between 200%and 300%%Equal to 90 th percentile300%Cap)!Greater than 90 th percentile300%Capped at 300%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6rSG;/#fk+=PF0*8X>
@
l &
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }I"}0.}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017 Performance
Vesting % (2)
Threshold/Cap$Pro Forma Revenue Growth (1)"Less than or equal to 6.5%
0%Below Threshold
Between 6.5% and 10%.
&Straight line interpolation between 0%
and 100%Equal to 10%100%CapGreater than 10%100%Capped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/05G;/#v'r, =PF0*8X>
@
l '
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$4}}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap3+Company Adjusted EBITDA/ Revenue Percentile/'Compared to Peer Group Adjusted EBITDA/
Revenue Percentile (a)&Less than 25 th percentile
0%Below Threshold%Equal to 25 th percentile100%Threshold; Cap)!Greater than 25 th percentile100%Cappped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0BG;/#r?w=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }2}}
MERCURY SYSTEMS INCDEF 14A
09/05/2017aYVesting Formula for Acquisition Integration Incentive Performance Restricted Stock Awards
Fiscal 2017-2019
Vesting %
Threshold/Cap2*Company Revenue Growth Percentile Compared
to Peer Group&
Less than 25 th percentile
0%
Below Threshold%Equal to 25 th percentile100%Threshold; Cap)!Greater than 25 th percentile100%Cappped at 100%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.G;/#sZ\PD=PF0*8X>
@
l I
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5) 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}}$ }
}
$
MERCURY SYSTEMS INCDEF 14A
09/05/20175-Option Exercises and Stock Vested Fiscal 2017
Option Awards
Stock AwardsName Number ofValue Realized Number of
Value RealizedShareson Exercise ($)Shares
on Vesting ($)
Acquired on
Acquired onExercise (#)Vesting (#)Mark Aslett ?
$?~
>
~
'
Christopher C. Cambria ? ? ?
?
Gerald M. Haines II ? ?~
Ҥ
~
hU
Charles A. Speicher ? ?~
.
~
C
Didier M.C. Thibaud~
~
2~
~
%p
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6 sg[OCR7JU=PF0*8X>
@
l >
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }}$}$ } }$
MERCURY SYSTEMS INCDEF 14A
09/05/2017&46Pension Benefits Fiscal 2017
Name
Plan Name
Number of Years
Present Value of
Payments DuringCredited ServiceAccumulated Benefit(1)
Fiscal 2017Didier M.C. ThibaudRetirement Indemnitiesfffff3@~
$?
Pension Plan$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(VTvj^R{=PF0*8X>
@Z
l B
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }0}
$
MERCURY SYSTEMS INCDEF 14A
09/05/2017G?Potential Payments to Mr. Aslett upon Termination of Employment
Cash Severance (1)
Health
TotalBenefits (2)-%Involuntary Termination Without Cause~
\D~
n#
~
nF
0
(or Voluntary Termination for Good Reason$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/($TaUI=1$=PF0*8X>
@R
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr AslettNonCEO Executives!What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$ }U} $
MERCURY SYSTEMS INCDEF 14A
09/05/2017kc47Potential Payments to Messrs. Cambria, Haines, Speicher, and Thibaud upon Termination of Employme
Cash
Health~
Outplacement
Total SeveranceBenefits
ServicesChristopher C. Cambria~
~
* ~
~
Gerald M. Haines II~
~
~
~
Charles A. Speicher~
BB~
~
~
(Didier M.C. Thibaud~
b~
j ~
~
r$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.=1%
AK#l`T,=PF0*8X>
@
l
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs !What were the fees of our indep!You may obtain a copy of our an56Appendix AU }$}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017Non-CEO Executives
Name
Salary/Bonus
Restricted Stock
Outplacement
Health
TotalLump SumAcceleration (1)
Services (2)Benefits (3)Mark Aslett~
~
~
"
~
n#~
Christopher C. Cambria~
2
~
:
~
"
~
>
~
Gerald M. Haines II~
2~
"" ~
"
~
~
RYCharles A. Speicher~
" ~
ZG ~
"
~
~
FUlDidier M.C. Thibaud~
<~
*O ~
"
~
~
¤$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 vj^JJy=PF0*8X>
@*%
l =+
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!You may obtain a copy of our an56Appendix AU }m}$}$ }$}$
MERCURY SYSTEMS INCDEF 14A
09/05/2017kcWhat were the fees of our independent registered public accounting firm for services rendered to us
Fiscal
Fiscal~
~
Audit~
(h~
Bm
Audit-Related~
~
փ=Tax~
¨~
All Other ? ?~
Rs~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0D=1%
UQ=PF0*8X>
@z
l 6
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep56Appendix AU }1
MERCURY SYSTEMS INCDEF 14A
09/05/2017kcYou may obtain a copy of our annual report on Form 10-K for the fiscal year ended June 30, 2017 (wi
*"By Order of the Board of Directors
Christopher C. Cambria Secretary$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|=1%
xlD=PF0*8X>
@
l E
dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??/Mercury Systems Inc!Important Notice Regarding the TABLE OF CONTENTS!Corporate Governance Highlights!How often did the Board and Com!Cash Compensation for NonEmploy!NonEmployee Director Compensati16EQUITY COMPENSATION PLANS!Who owns more than 5 of our stoBeneficial Ownership!Who are Mercury s executive off!How We Determine Executive Comp
Base SalaryBase Salary (1)!Executive Bonus Program for Fis!Fiscal 2017 First Half Payout FFiscal 2017 First Half (1)OverAchievement Awards!32Fiscal 2017 Restricted Stock !Vesting of Prior Period PerformVesting of Prior Period (1)Vesting of Prior Period (2)! Fiscal 2018 Restricted Stock Summary CompensationSummary Compensation TableSummary Compensation (1)Stock Option Grants!38Grants of PlanBased Awards Fi38Grants of PlanBased (1)!Vesting Formula for AcquisitionVesting Formula for (1)Vesting Formula for (2)Outstanding Equity Awards!43Vesting Formula for the Fisca!Vesting Formula for the Fiscal Vesting Formula for the (1)Vesting Formula for the (2)Vesting Formula for (3)Vesting Formula for (4)Vesting Formula for (5)!Option Exercises and Stock Vest 46Pension Benefits Fiscal 2017!Potential Payments to Mr Aslett!47Potential Payments to Messrs NonCEO Executives!What were the fees of our indep!You may obtain a copy of our anU }>}$
MERCURY SYSTEMS INCDEF 14A
09/05/201756Appendix A
(in thousands)
Fiscal 2017
Net income~
+# Interest expense (income), net~
o$
Tax provision (benefit)~
`
Depreciation~
.& Amortization of intangible assets~
3,$ Restructuring and other charges~
,$ Impairment of long-lived assets ?,$ Acquisition and financing costs~
V%<4 Fair value adjustments from purchase accounting~
~9/' Litigation and settlement expenses~
-% Stock-based compensation expense~
Adjusted EBITDA~
$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<|pd4H{2A=PF0*8X>
@
Root Entry FBook
F
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~