X0306 4 2017-01-04 0 0001069258 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. KTOS 0001243621 ANDERSON SCOTT I C/O KRATOS DEFENSE & SECURITY SOLUTIONS 4820 EASTGATE MALL SAN DIEGO CA 92121 1 0 0 0 Restricted Stock Units 2017-01-04 4 A 0 10000 0 A Common Stock 10000 10000 D 5,000 Restricted Stock Units (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 5,000 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. Scott I. Anderson, by Eva Yee, Attorney-In-Fact 2017-01-05