X0306 4 2017-01-03 0 0001069258 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. KTOS 0001509412 Carter David M 4820 EASTGATE MALL SAN DIEGO CA 92121 0 1 0 0 President, DRSS Division Common Stock 2017-01-03 4 M 0 20000 0 A 95876 D Restricted Stock Units 2017-01-03 4 M 0 20000 0 D Common Stock 20000 0 D Restricted Stock Units 2017-01-04 4 A 0 30000 0 A Common Stock 30000 30000 D Common Stock issued to reporting person pursuant to settlement of vested shares under Restricted Stock Unit (RSU) granted on January 3, 2012, which vest 100% on the five year anniversary of the date of grant, unless earlier vested pursuant to the terms of the RSU agreement. 15,000 RSUs vest 100% on the five year anniversary of the date of grant, unless earlier vested or terminated pursuant to the terms of the RSU agreement. The other 15,000 RSUs vest 20% upon each 10% increase in the closing market price of the Issuer's common stock measured from the RSU grant date through the 10-year anniversary of the RSU grant date, unless earlier vested or terminated pursuant to the terms of the RSU agreement (provided that such increase in the closing market price of common stock is sustained for twenty consecutive trading days). Each RSU represents a contingent right to receive one share of Issuer's common stock. Includes 10,551 shares purchased through Issuer's Employee Stock Purchase Plan and 11,466 shares held in Issuer's 401(k) Plan. David M. Carter, by Eva Yee, Attorney-In-Fact 2017-01-05