X0306 4 2014-03-20 0 0001069258 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. KTOS 0001243621 ANDERSON SCOTT I 4820 EASTGATE MALL SAN DIEGO CA 92121 1 0 0 0 Restricted Stock Units 2014-03-20 4 A 0 10000 0 A Common Stock 10000 10000 D Each Restricted Stock Unit (RSU) represents a contingent right to receive one share of Issuer's common stock. 5,000 of the RSUs vest 100% on the five year anniversary of the grant date, 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 the first vesting shall not occur until the first anniversary of the RSU grant date, at which time that percentage of RSUs shall vest based on increases in the closing market price measured from the RSU grant date through the first anniversary. Vested shares will be delivered to the reporting person on the first date which is administratively practicable for the distribution of the vested shares after termination of service with the Issuer. Scott I. Anderson, by Eva Yee, Attorney-In-Fact 2014-03-24