DAKTRONICS INC /SD/

Under the 2027 Compensation Program, the Covered NEOs received long-term incentive awards (the“2027 Long-Term Incentive”) with aggregate target award amounts, expressed as a percentage of base salary, as follows:

Under the 2027 Long-Term Incentive, 65% of the target award amount will be granted in the form of time-based restricted stock units (“RSUs”) and 35% of the target award amount will be granted in the form of performance stock units (“PSUs”).

RSUs awarded under the 2027 Long-Term Incentive vest pro-rata over a four-year period beginning on the date set forth in the applicable award notice, so long as the recipient remains continuously employed by the Company or a subsidiary of the Company through each such vesting date.

PSUs awarded under the 2027 Long-Term Incentive are earned based on the attainment of certain performance goals (the“PSU Performance Goals”) related to the Company’s (i) cumulative operating income for fiscal 2027-2029 (weighted at 60%) and (ii) cumulative revenue for fiscal 2027-2029 (weighted at 40%). The portion of the awards granted in PSUs have a threshold payout of 25% of the target and a maximum payout of 150% of the target. No PSUs will be earned for a given

PSU Performance Goal if the attainment for such goal falls below the threshold level. For performance results between threshold and target levels, and between target and maximum levels, the number of PSUs earned will be determined by linear interpolation. Earned PSUs cliff vest (if at all) three years following the date of the grant (or other date determined by the Board) upon (i) the Covered NEO’s satisfaction of continued employment or service requirements and (ii) the certification of the level of achievement of the PSU Performance Goals by the Compensation Committee of the Board.