Daktronics_Inc_Table_of_Contents 1 Daktronics_Inc_Additional_Information 2 Daktronics_Inc_Form_A 37 Daktronics_Inc_Form_B 38 Daktronics_Inc_Form_C 39 Daktronics_Inc_Form_D 56 Daktronics_Inc_Form_E 168 Daktronics_Inc_Form_F.1 169 Daktronics_Inc_Form_F.2 183 Daktronics_Inc_New_Jersey_-_State_Forms 184 AEPA IFB #016–I INTERIOR AND EXTERIOR LED SCOREBOARDS, MARQUEE, EQUIPMENT & INSTALLATION Bid Proposal Table of Contents

Bidder ______Daktronics, Inc. Name of Authorized Representative ______Tom Coughlin Office Address ______201 Daktronics Drive, Brookings, SD 57006 Time Zone: ! Eastern !X Central ! Mountain ! Pacific Telephone______605-692-0200 Fax ______605-697-4746 [email protected] Website ______www.daktronics.com Instructions: Please complete the table below with the information for the documents included in this bid proposal. The bidder is reminded that two identical copies of this material on electronic media, either two (2) CDs or two (2) flash drives, are required. Document Title on CD Format (i.e., Word, Form Folder Notes or Flashdrive PDF, Excel) Table of Contents A Daktronics Inc Table of Contents PDF FORM A Signature and A PDF and hard copy Bid Affidavit Daktronics Inc Form A notarization required. FORM B Signature required. A PDF and hard copy Acceptance of Bid & Daktronics Inc Form B Contract Award FORM C A PDF Signature required Questionnaire Daktronics Inc Form C FORM D Signature required A PDF Company Info Daktronics Inc Form D Letter of Line of Credit or Annual A Included in Daktronics Inc Form D, PDF Report per Part A, Page 7 FORM E A PDF Signature required Exceptions Daktronics Inc Form E FORM F.1 A PDF Signature required Compliance Daktronics Inc Form F.1 FORM F.2 A PDF Signature required Deviation Daktronics Inc Form F.2 State Specific Daktronics Inc Bid Security - KCDA Required Forms (See A Daktronics Inc MI Iran Sanctions... PDF Part A) Daktronics Inc New Jersey State Forms FORM G Signature required B PDF Discount & Pricing Daktronics Inc Form G Schedules Excel Workbook- FORM G Discount B Daktronics Inc Form G (Excel) Excel & Pricing Schedules G.5 Warranties, B PDF Additional Services N/A

G.6 Additional B PDF Discounts (Optional) N/A Catalogs/price lists B Daktronics Inc Product Catalog PDF Daktronics Inc Pricelist

AEPA IFB #016-I Scoreboards Marquees Signage Page 2 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms AEPA Additional Information – Daktronics, Inc.

Additional Information Requested in Part A, Terms and Conditions:

 Per Part A, Terms and Conditions, page 18, we are asked to submit copies of licenses, registrations and/or other documentation to substantiate that we hold the appropriate licenses/registration required by individual jurisdictions covered by this solicitation. Please see copies of our licenses attached below.

 Per Part A, Terms and Conditions, page 86, we are asked to state whether or not we are a resident bidder in the state of Oregon. Daktronics is a resident bidder in the state of Oregon.

 Per Part A, Terms and Conditions, page 99, we are asked to state whether or not we are a Minority and Women Business Enterprise. Daktronics is not an MWBE.

 Per Part A. Terms and Conditions, page 95, we are to submit a Public Works Employment Verification Form for the Commonwealth of Pennsylvania. Attached is a sample of this document. The actual document will include project-specific information and will be completed at the time of project.

Additional Information Requested in Part B, Scoreboards & Marquee Signage:

 Per Page 3, item 5.5, ‘vendors must maintain a reasonable stock in inventory for prompt delivery to the buying member.’ Most Daktronics products are made to order, and manufacturing lead times can vary based on product and current demand. Ship dates are determined and provided to the customer at order time. We do offer a stock program of scoreboard models that can be shipped immediately for customers needing product quickly. Please see our In-the-Box Scoreboard & Timing Products Stocking Program flier attached.

 Per Page 12, item 8, Required Categorical Response:

a. Since 1968, Daktronics has been reinventing the way you display. We are the world's industry leader in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays. It's our passion to continuously provide the highest quality standard display products as well as custom-designed and integrated systems.

Every day, our spirit is reflected in the products we build and in the way we interact with our customers. We believe that technological innovation isn't just judged by the electronic signs we build today, but by what we'll build tomorrow.

Here are just a few reasons businesses continue to choose our people, products and services:

 Financially stable - Publicly traded under the symbol DAKT  More than 40 years of experience - 75,000 displays installed worldwide  One of America's Most Trustworthy Companies - Daktronics made the Forbes list in 2012, 2013, 2014, and 2015  World leader in LED signage systems - We hold more market share than any competitor  $25 million in R&D investments in 2010 - 4% of sales each year  Product Reliability Lab - Located at our headquarters and dedicated to rigorously testing our products  720,560 square feet - Manufacturing facilities in South Dakota and Minnesota  Large network - Trained technical service specialists ready to support you  Sign Code Department - Support to improve the regulatory environment  Creative Services - Professional display advertising and consultation at your fingertips  Help Desk - Troubleshooting over the phone; control software training

No other manufacturer offers such a complete line of electronic scoreboards and numeric digit displays for sports, commercial and transportation applications available in nearly any size and configuration. Please see the attachments below for additional information about our markets and product lines.

Daktronics utilizes subcontractors in many geographic areas for installation services. b. References

Cypress College Scope of work: Supply Daktronics GP4 110x308-16-RGB-2V without Venus 1500 software but customized with a Daktronics VIP-5160 processor so the customer could communicate with the GP4 unit using their own third party software. Manufacturer’s product: GP4 110x308-16-RGB-2V without Venus 1500 software but customized with a Daktronics VIP-5160 processor. Total Cost: $122,500 Institution Information: Cypress Community College 9200 Valley View St. Cypress, Ca 90630 Contact Person: Albert Miranda – 714.484.7394 Timeline of project: October 2014-January 2015 Brief narrative of the pre-sale and follow-up: Architect and School wanted to upgrade the existing "small" 20mm Daktronics AF-3550 Full Color Display with a much larger full color display with a much better resolution that could be accessed and content downloaded with a 3rd Party Software that the School was purchasing to communicate through their School Networking System. I worked with Chris Westerman at Daktronics to provide this equipment to meet the Schools’ needs. The product was installed by the Owner's Contractor and commissioned by a Daktronics Technician after installation.

Bedford High School Scope of work: Replace an existing scoreboard Manufacturer’s product: DVX-1101-15HD-HC-288x504-120-BR-MT-MR-CNTLRM-None with Installation Total Cost: $270,938 Institution Information: Bedford City School District 475 Northfield Rd Bedford, OH 44146 440-786-9419 Contact Person: Jerry Zgrabik, CFO – 404.439.4333 Timeline of project: Project is currently complete except for trim around the board, it is fully operational. Brief narrative of the pre-sale and follow-up: After several meetings and two presentations to the school board and audience, it was decided Daktronics was the best choice for the display and to go through AEPA. This was a very successful project and a great community to work with.

Town of Cary Scope of Work: Video display and sound system for a soccer park for the city stadium Manufacturer’s product: DVX-503-15HD-HC-432x768-120BU-MT-MR-CNTLRM-None, SS2000 HD with Installation, Truss and Ad panels Total Cost: $655,738 Institution Information: 201 Soccer Park Drive Cary, NC 27511 Contact Person: Keith Jenkins – 919.270.9182 Timeline of project: June 2013 – October 2013 Brief narrative of the pre-sale and follow-up: The town had known for years that they wanted to purchase a video board and once they were able to get it approved in the budget, they decided a coop was the best way to go. Daktronics was able to take them to different sites to show other video boards and sound systems and walk hand in hand on the project with the town. Daktronics was decided to be the best provider and Daktronics worked closely every step of the way to make sure they kept to their timeline and all expectations were met. Installation went well and on site one on one training with the group was done. They were very happy with the outcome of the project and are enjoying their video board.

Smith-Cotton High School Scope of work: Providing a Football Scoreboard to a brand new school Manufacturer’s product: FB-2021-A-PV-120-F, DVX-1101-20MT-HC-126x216, SportSound SS1500HD, DOG Clocks TI-2003-A-PV-120 and Filler Panels Total Cost: $142,796 Institution Information: Smith-Cotton High School 2010 Tiger Pride BLVD Sedalia, MO 65301 Contact Person: Harriet Wolfe – Superintendent/Campus Restoration - 660.829.6455 Time line of project: February 2013 – February 2015 Brief narrative of the pre-sale and follow-up: Daktronics had the opportunity to do a video and sound demo on site for the booster club and school board once the facility was known to be opening. They decided to go with Daktronics and the installation went really well. After install, webinars with Daktronics were done to work on installation for content.

Westfield High School Scope of work: Stadium for baseball and softball fields Manufacturer’s product: FB-2024, AF-3550-80x160-20-RGB-SF, BA-2125 & BA-2026 Total Cost: $114,687 Institution Information: Westfield High School 4700 Stonecroft Blvd Chantilly, VA 20151 Contact Person: Michelle Pratt – County Purchaser Paul Scott – 571.423.3571 Time line of project: October 2014 – December 2014 Brief narrative of the pre-sale and follow-up: Fairfax is a Daktronics only county and have a contract that Westfield High School went through. This county has done thousands of dollars of business over the past year through Daktronics and have been very pleased with the results. Everything is up and running with this project and have been using it for the past season and been very happy with it.

Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses

Permit Number 30651300 is Valid Owner Name: DAKTRONICS INC. Business Name: Address: 331 32ND AVE BROOKINGS SD

Start Date: 06/01/1975

Seller's permit verification is available to help you determine if a seller's permit account number included on your customer's resale certificate is currently valid. As a seller, you are responsible for ensuring the resale certificate is properly completed. Please refer to Regulation 1668, Resale Certificates. Part A, Page 18, Licenses

Legal Name Registration Number License Type/Number(s) Registration Date Expiration Date DAKTRONICS, INC. 1000001564 CSLB:801759 06/30/2016 DAKTRONICS, INC. 1000001564 CSLB:801759 06/16/2015 06/30/2016 Part A, Page 18, Licenses

Colorado Tax ID: 08041538-004-USR and we are a monthly taxpayer. Certificates will be made on a project by project basis. Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses

Sam Brownback, Governor Nick Jordan, Secretary

www.ksrevenue.org

ISSUE DATE

TRANSACTION ID CONFIRMATION NUMBER CU54-99SS-ADEP

TAX CLEARANCE VALID THROUGH

Verification of this certificate can be obtained on our website, www.ksrevenue.org, or by calling the Kansas Department of Revenue at 785-296-3199 Part A, Page 18, Licenses

Commonwealth of Kentucky Elaine N. Walker, Secretary of State

Elaine N. Walker Secretary of State P. O. Box 718 Certificate of Authorization Frankfort, KY 40602-0718 (502) 564-3490 http://www.sos.ky.gov

Authentication number: 115267 Visit https://app.sos.ky.gov/ftshow/certvalidate.aspx to authenticate this certificate.

I, Elaine N. Walker, Secretary of State of the Commonwealth of Kentucky, do hereby certify that according to the records in the Office of the Secretary of State, DAKTRONICS, INC.

, a corporation organized under the laws of the state of South Dakota, is authorized to transact business in the Commonwealth of Kentucky, and received the authority to transact business in Kentucky on July 14, 2004. I further certify that all fees and penalties owed to the Secretary of State have been paid; that an application for certificate of withdrawal has not been filed; and that the most recent annual report required by KRS 14A.6-010 has been delivered to the Secretary of State. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Official Seal at Frankfort, Kentucky, this 30th day of June, 2011, in the 220th year of the Commonwealth.

Elaine N. Walker Secretary of State Commonwealth of Kentucky 115267/0590356 Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses Part A, Page 18, Licenses AEPA Part A, page 95, Sample of Public Works Employment Verification Form Requirement This is a sample form. The actual form will include project information and completed at time of project. AEPA Part B, Page 3, Item 5.5

daktronics DAKTRONICS BALL STRIKE OUT GUEST HOME HOME PERIOD GUEST INNING

BA-2518-R BB-2101-PV

IN-THE-BOX SCOREBOARD & TIMING PRODUCTS STOCKING PROGRAM

In-The-Box scoreboards and products are kept in stock and shipped as they are ordered, providingdaktronics a solution to those customers presenting a need for very short turnaround times. If the product is not in stock there is a minimum lead time of two weeks and one day from the time the order is placed to its shipment, based on availability. The product may be shipped earlier if it is inventory. Products considered In-The-Box are limited to the lists below and are painted semi-gloss black with white striping and captions. Ad panels and logo/sponsor panels ordered with In-The-Box scoreboards will be shipped separately and lead times will be based on the manufacturing lead times. HOME PERIOD GUEST (2 weeks + 1 day minimum lead time) BB-2101-PV BB-2122-13 (Stripe not included) GOAL LIGHTS (PRO) BB-2103-PV WR-2103-13 GOAL LIGHTSB (VARSITY) B BB-2114-13 TI-2031 42" LIGHT STRIPS BB-2115-13 48" LIGHT STRIPS

(2 weeks + 1 day minimum lead time) BA-2515-R TI-2003-R CAPT. OPT. VB, MS-2013 BA-2518-R TI-2003-A CAPT. OPT. BA, MS-2013 BA-2618-R TI-2025-R COVER OPTION, MS-2013 MS-2013-11 W/RC-100 TI-2026-R

(Due to current demand and capacity, contact master scheduler for lead time) T-7060 FT-7240 PC-2001-21 (OUTDOOR)daktronics T-7078 DOMESTIC TP CART PC-2001-13 (INDOOR)

HOME PERIOD GUEST

B B

WWW.DAKTRONICS.COM E-MAIL: [email protected]

201 Daktronics Drive, PO Box 5128, Brookings, SD 57006 Phone: 1-800-325-8766 or 605-692-0200 Fax: 605-697-4746 SL-08460 062315 Page 1 of 1 Copyright © 2013-2015 Daktronics, Inc. AEPA Part B, Page 12, Item 8a

COMMERCIAL

BILLBOARD ADVERTISING Revolutionizing the electronics signage industry, Daktronics billboard customers schedule multiple clients per day and sell more advertising space to one location.

NATIONAL ACCOUNTS Daktronics LED displays maximize retailer locations, offering a powerful and cost-effective advertising solution.

RESELLERS Digital signage offers a powerful, cost-effective advertising solution that moves customers to purchase.

LIVE EVENTS

INTERNATIONAL Ninety thousand customers have chosen Daktronics scoreboards and display systems to communicate with millions of people in more than 100 countries on six continents.

LARGE SPORT VENUE Daktronics is the world’s leading designer and manufacturer of large-screen electronic scoreboards and display products.

MOBILE AND MODULAR Daktronics clients use innovative portable video systems for a variety of rental, staging and touring purposes.

SCHOOLS AND THEATRES

HIGH SCHOOL PARK AND RECREATION A complete line of scoring and timing, sound and display products are coupled with unmatched technical expertise, installation supervision and local service.

THEATRE AND ARENA Daktronics designs and manufactures automated rigging solutions for theatrical, architectural and arena applications.

TRANSPORTATION

AVIATION Daktronics displays give travellers useful directions, advertisements and flight status information and instantly improve customer service and boost revenue.

INTELLIGENT MESSAGE SYSTEMS ITS Dynamic Message Signs keep traffic moving with toll rates, travel times and road status information.

MASS TRANSIT AND PARKING Easily integrated, vandal-resistant LED displays inform passengers for facility entrances and exits, interiors and space counting.

AUDIO SYSTEMS High-quality audio systems seamlessly integrate with dynamic scoring and video displays in indoor and outdoor sport facilities.

BILLBOARD ADVERTISING Revolutionizing the electronics signage industry, Daktronics billboards are the respected choice among outdoor advertising companies.

CREATIVE SERVICES Daktronics Creative Services provides customers with animation solutions for commercial displays, sports venues and content in HD video and more.

MESSAGE DISPLAYS LED electronic message centers give the most flexible solution available for a dynamic advertising medium or a source of community information, whether it’s for your local elementary school or Interstate traffic.

SCORING AND TIMING SYSTEMS

From major international sports competitions to your community little league game, Daktronics scoring and timing systems communicate with millions of people in more than 100 countries on six continents around the world.

STATISTICS SOFTWARE

Designed to complement scoreboards and take youroring sc system to a new level, DakStats sports software is the ult imate tool for managing game, season and career statistics.

VIDEO DISPLAYS

As a pioneer in the video display industry, Daktronics is the world’s leading designer and manufacturer of large-screen, customizable, reliable display solutions.

AEPA FORM C: SERVICE QUESTIONNAIRE FOR BIDDER AEPA IFB #016 – I INTERIOR AND EXTERIOR L ED SCOREBOARDS, MARQUEE, EQUIPMENT & INSTALLATION

NAME OF BIDDER ______Daktronics, Inc. _

Instructions: Please respond to Yes/No and choice questions by using an (X). If a text reply is required, respond in the space below. Scan this form and any attachment pages into a single document and convert to a PDF file. Follow the instructions for titling the file and file organization under Part A, Section II Bid Procedures, F. Bid Submission, 2. Format of Bid Submittal. Note: As part of evaluating the Bidder’s qualifications, the following is being requested and the Bidder is forewarned failure to respond and/or meet the minimum specifications in these areas, may deem their response as non-responsive. 1. The following chart indicates which AEPA Member States intend to participate in this bid category. Please place an “X” in response to questions in the last three (3) columns. Note: A Bidder must be willing and able to deliver the proposed products and/or services to ninety (90%) of the participating AEPA Member States. Has your comp- If awarded a Indicate which any sold these contract, which states your Participate AEPA Member products/services states does company has in this bid States in these states for your company sales reps, category? the PAST THREE PROPOSE TO distributors or YEARS? SELL IN? dealers in. California Yes X X X Colorado Yes X X X Connecticut Yes X X X Florida Yes X X X Indiana Yes X X X Iowa Yes X X X Kansas Yes X X X Kentucky Yes X X X Massachusetts Yes X X X Michigan Yes X X X Minnesota Yes X X X Missouri Yes X X X Montana Yes X X X Nebraska Yes X X X New Jersey Yes X X X New Mexico Yes X X X North Dakota Yes X X X Ohio Yes X X X Oregon Yes X X X Pennsylvania Yes X X X Texas Yes X X X Virginia Yes X X X Washington No X X X West Virginia Yes X X X Wisconsin Yes X X X Wyoming Yes X X X AEPA IFB #016-I Scoreboards Marquees Signage Page 5 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms 2. e-commerce: Does this company have an e-commerce website? ______X YES ______NO If YES, what is the website? ______www.daktronics.com

3. Customer and Support Service: It is understood depending on the type, kind and level of products and/or services being proposed in response to this bid will impact and determine the type and level of services required and these are identified in Part B Bid Specifications of this IFB. a. Does this company have online customer support option? ______X YES ______NO b. Does this company have a toll-free customer support phone option? ______X YES ______NO c. Does this company offer local customer and support service options? ______X YES ______NO d. Describe the type, level, available and location(s) of your customer and support service options, including number of dedicated customer/support staff and hours of operation. ______Please see Form C Supplement attached. ______

4. Training: If applicable, does this company offer customer training for the products and services sold? ______X YES ______NO If YES, describe what types/kinds of training you offer, the venues where training occurs and the location(s) of your trainers, include number of staff dedicated to training and their qualifications and hours of operation. ______Please see Form C Supplement attached. ______

5. Pricing: a. Is your pricing methodology guaranteed for the term of the contract? ______X YES ______NO b. Will you offer customized price lists to Participating Entities as required per the Pricing terms of Part A? _____X YES _____ NO

c. Will you offer hot list pricing (optional) as described in the Pricing terms of Part A? _____ YES _____X NO d.Will you offer Volume Price Discounts as described in the Pricing terms of Part A? _____ YES _____X NO

6. Competitiveness: In order for your bid to be considered, your company must offer AEPA prices that are equal to or lower than what your company offers to individual customers and/or cooperatives with equal to or lower volume. Is the pricing that is proposed to AEPA equal to or lower than pricing offered to individual customers and/or cooperatives with equal to or lower volume? ______X YES ______NO Indicate which of the following apply and the level of competitive range you are offering in response to this IFB. _____X Pricing offered to AEPA is EQUAL TO pricing offered to individual customer and/or cooperatives. _____ Pricing is LESS THAN individual customer and/or cooperatives. Lower by _____ %

7. Cooperative Contracts: Does your company currently have contracts with other cooperatives (local, regional, state, national)? ______X YES ______NO If YES, identify which cooperatives and the respective expiration date(s). ______Please see Form C Supplement attached. ______

AEPA IFB #016-I Scoreboards Marquees Signage Page 6 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms If YES and your company is awarded an AEPA Contract, which contract will you lead with in marketing and sales representative presentations (sales calls)? ______AEPA

8. Administrative Fee: Which of the following best reflects how your pricing includes the individual AEPA Members’ administrative fee. a. _____ The pricing for the products and/or services are the same for each AEPA Member Agency, shipping, handling administrative fee and other specific state costs are added to arrive at total price offered to the Individual AEPA Member Agency. b. _____X The pricing for the products and/or services is inclusive of the administrative fee and therefore the pricing is the same for all AEPA Member Agencies. Shipping, handling and other state specific costs are added to adjusted the AEPA Member Agency’s price. c. _____ The pricing for the products and/or services includes all (shipping, handling, administrative fee, other) costs to arrive at a single price for all AEPA Member Agencies.

9. Shipping & Handling: Orders that are $50.00 or more shall include free shipping and handling. What is the flat rate your company will charge, regardless of where shipped in the continental United States, for orders less than $50.00? $ ______Not applicable, as all items exceed $50. 10. Product Returns: Does your company have a return policy?______X YES ______NO If YES, describe your return policy and if you charge a restocking fee, what is it? (AEPA allows up to 15% for supplies and up to 25% for equipment). Please see Form C Supplement attached.

11. Payment Terms: Will you offer AEPA Buyer’s a quick pay discount? ______YES ______X NO If YES, what is the discount? ______% Net ______

12. Leasing: Do you offer leasing or other alternative payment arrangements under this bid?______X YES ______NO Please see Leasing Information attached. If YES, remember to indicate the rate factor and other cost factors on the Pricing spreadsheet(s).

13.If an AEPA contract is approved and awarded by the Member Agencies, as a Vendor Partner, I agree to:

No. Responsibilities of an AEPA Vendor Partner Yes No

1 Designate and assign a dedicated senior-level contract manager (one authorized to make decisions) to each of the Member Agency accounts. This X employee will have a complete copy and must have working knowledge of the contract. 2 Train and educate sales staff on what the AEPA cooperative contract is including pricing, who can order from the contract (by state), terms/conditions X of the contract and the respective ordering procedures for each state. It is expected that Vendor Partners will lead with AEPA contracts. 3 Develop a marketing plan to support the AEPA contract in collaboration with respective AEPA Member Agencies. Plan should include, but not be limited X to, a website presence, electronic mailings, sales flyers, brochures, mailings, catalogs, etc.

4 Create an AEPA-specific sell sheet with a space to add a Member Agency X logo and contact information for use by the Member Agencies and the Vendor AEPA IFB #016-I Scoreboards Marquees Signage Page 7 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms

AEPA Form C Supplement - Daktronics, Inc. Form C. Question 3.d.

Daktronics Customer Support includes many resources, located both at the Corporate Office in Brookings, South Dakota as well as locally, out in the field. We currently are able to provide onsite service and support to all 50 states. The HSPR Corporate Service Group consists of seven full-time Service Coordinators, four Account Service Managers, and one student support staff. These team members are supported by one Supervisor and one Service Manager. The HSPR Service group has available phone coverage from 8am-5pm CST, M-F. There is also technical phone support available for troubleshooting from 7am-7pm CST, M-F.

Form C. Question 4.

Twelve dedicated Daktronics trainers are located in Brookings, SD, with hours of operation from 8:00am‐5:00pm CST, Monday‐Friday. Additionally, the Daktronics help desk is available for trouble-shooting from 7:30am‐7:00pm CST, Monday‐Friday. All trainers are qualified to train, operate and trouble‐shoot Daktronics software systems.

Training options offered include:

 Show Control System Web Seminar o Sports applications o Classroom (group) environment via the Web and phone that is interactive and includes both hands on and presentation methods  Show Control One on One Webinar Training o Sports applications o One on One session via the Web and phone that is personalized to the customer’s needs  All Sport One-on-One Webinar o Sports applications o One on One session via the Web and phone that is personalized to the customer’s needs  DakStats One-on-One Webinar o Sports applications o One on One session via the Web and phone that is personalized to the customer’s needs  Standard Video with Show Control One-on-One Webinar Training o Sports applications o One on one sessions via the Web and phone that is personalized to the customer’s needs  Standard Video with Show Control or Tricaster On-Site Training o Sports applications o On-site in customer’s control room  Venus 1500 Web Seminar Training o Marquee applications o Classroom (group) environment via the Web and phone that is interactive and includes both hands on and presentation methods  Venus 1500 One on One Webinar Training o Marquee applications o One on One session via the Web and phone that is personalized to the customer’s needs  Venus 1500 One Day Workshop o Marquee applications; Users should have some prior software knowledge o Offered on a quarterly basis at Daktronics Corporate Headquarters in Brookings, South Dakota  Venus 1500 On-Site Training o Marquee applications o On-site at customer’s location  DVNMC One on One Webinar Training o Sports applications o One on one session via the Web and phone that is personalized to the customer’s needs

Form C. Question 7.

 Association of Educational Purchasing Cooperatives (2/28/2016)  BuyBoard (3/31/16)  Costars (4/13/2016)  Kentucky Purchasing Cooperative (12/31/15)  Mohave (7/7/16)  Middlesex Regional Educational Services Commission (5/8/16)  The Cooperative Purchasing Network (6/30/16)  The Interlocal Purchasing System (11/20/2016)  1 Government Procurement Alliance (4/16/16)

Form C. Question 10.

Most products are made to order and therefore not returnable. Select stock items in original unopened packaging may be returned if agreed upon in writing. A restocking fee of 15% plus freight and handling cost will be applied. AEPA Form C Item 3 Customer Support

SAVE Time. Delivering Call the service solutions as team directly. quickly as possible

Daktronics maintains the most 877-605-1115 comprehensive network of service Press 1 technicians in the scoring and for a technician display industry. This means we have to troubleshoot factory trained local technicians across the country who are ready to Press 2 assist you if you have a problem. for customer service to report an issue Other benefits of our service include: ›› Parts exchange ›› Technical support ›› Protection plans ›› Online resources ›› Remote assistance ›› Product tutorials ›› Training

Phone support

Daktronics also offers support by telephone for immediate service assistance. The number for locations in the United States and Canada is 1-800-325-8766.

daktronics.com 13 AEPA Form C Item 3

DAKTRONICS SUPPORT Customer Service Services Mission The services team recognizes the needs and expectations of the customer and works together to deliver services that enhance customer satisfaction, with focus on providing a value-added solution to complement Daktronics dynamic audio-video display solutions.

Available 7:30 a.m. to 7 p.m. Technical Phone Support 1-877-605-1115

Each operator/technician has extensive experience with Daktronics products, operation and troubleshooting. When you call in, our technical support has access to a comprehensive customer data base with a detailed record of your equipment and history. Since many events are scheduled during the weekend, technicians are on call from Friday evening until Monday morning.

Event Support We’ll support your system with qualified technical personnel from our numerous field service offices, backed up by support from the corporate technical operations. Offering both on-site and remote event support.

Operator Training Give your production staff the foundation for a great presentation. Training on the operation of different control system components provides the foundation for a well-run operations staff, and a high quality presentation. Daktronics offers a variety of training options to make sure your staff is well prepared to put on a great show, and to keep your system running at optimum levels.

Tiered Service Plans In addition to our standard one-year warranty, Daktronics offers extended service plans for additional security with the sale of the equipment. As the plan expires, choose a Daktronics renewable service agreement to continue or expand your coverage.

201 Daktronics Drive, PO Box 5128, Brookings, SD 57006 Phone: 1-800-325-8766 or 605-697-4300 Fax: 605-697-4746 www.daktronics.com E-mail: [email protected] AEPA Form C Item 12

DAKTRONICS LEASING SOLUTIONS AEPA Form C Item 12 SPECIALIZED FINANCING FOR ACQUIRE A $35,000 PIECE OF EQUIPMENT FOR A MONTHLY PAYMENT AS LOW AS $657.00

PNC Equipment Finance offers leasing to municipalities and public and private Institutions. We work with you to develop a payment structure that satisfies your budget and cash flow requirements. A creative financing solution can be achieved with terms from 24 to 60 months with monthly, quarterly, semi-annual, annual or customized payment schedules. Benefits of using tax-exempt leasing:

1. Provides maximum flexibility and streamlined approvals 2. Addresses appropriation issues 3. May be better than a bond offering 4. Operating budget solutions

Financing is available for transactions of $25,000 and above.

Match the timing of advertising revenues with the timing of costs, in the form of a monthly payment. Payment solutions enable the equipment to pay for itself over time and creates a natural budget and cash flow solution.

KEY POINTS FOR PUBLIC INSTITUTIONS:

• Municipal lease includes appropriations. • The payments are fixed throughout the lease term. Capital asset acquisitions, software, services, and hardware are leased over their useful life rather than requiring a 100% up-front payment.

KEY POINTS FOR PRIVATE INSTITUTIONS:

• No down payment • Match advertising revenues to the monthly payment • Low fixed payment AEPA Form C Item 12 PUBLIC & PRIVATE SCHOOLS EXAMPLE OF CASH PURCHASE VS. PAYMENT SOLUTIONS

Equipment needed $75,000 Purchase with Cash 60 Monthly Payments ($1 Buyout) Year 1 Year 2 Year 3 Year 4 Year 5 Annual budget allowance $50,000 Annual budget allowance $50,000 $50,000 $50,000 $50,000 $50,000

Purchase equipment now $75,000 Annual Payments for $16,980 $16,980 $16,980 $16,980 $16,980 equipment ($1,415/month x 12) Budget deficit [$25,000] Budget surplus $33,020 $33,020 $33,020 $33,020 $33,020

Customer still has 66% of five-year budget available Assumptions: This is an example of a cash purchase vs. a 60-month term (applicable sales and use taxes additional). This is for informational purposes only. Please consult your PNC equipment finance representative for more information on your particular needs.

Equipment needed $400,000 Purchase with Cash 60 Monthly Payments ($1 Buyout) Year 1 Year 2 Year 3 Year 4 Year 5 Annual budget allowance $300,000 Annual budget allowance $300,000 $300,000 $300,000 $300,000 $300,000

Purchase equipment now $400,000 Annaul Payments for $90,581 $90,581 $90,581 $90,581 $90,581 equipment ($7,550/month x 12) Budget deficit [$100,000] Budget surplus $209,419 $209,419 $209,419 $209,419 $209,419

Customer still has 68.5% of five-year budget available

Assumptions: This is an example of a cash purchase vs. a 60-month term (applicable sales and use taxes additional). This is for informational purposes only. Please consult your PNC equipment finance representative for more information on your particular needs.

CHOOSE AN OPTION THAT FITS YOU. ONE DOLLAR BUYOUT • Most commonly-used option • Own the sign for $1 after payments are completed

MUNICIPAL PAYMENT SOLUTIONS • Similar to One Dollar Buyout • Solution for city, state, county entities and facilities including state colleges and universities, and K-12 schools. • Municipal payment solutions meet annual budget appropriation requirements AEPA Form C Item 12 FREQUENTLY ASKED QUESTIONS

Why are payment solutions of an LED system better than a cash purchase? • Upgrade your venue even though the price isn’t covered in your budget. • Pay a minimum monthly amount. • Match the expense of the display to its use as an advertising medium. • Preserve your credit line availability. • Continue to use the system years after payments are complete.

How long does approval take? 48 hours for most transactions.

How do I get my display system? Your system is delivered and installed in the same way as if it was purchased.

Do I have to pay taxes? Yes. You are responsible for all sales and use taxes and property taxes, just as if you had purchased the digital display. But taxes can be added to your payment schedule. Am I required to provide insurance? Yes. You must provide evidence of insurance coverage and name PNC Equipment Finance on the policy as an additional insured and loss payee in case of loss.

Can I pay off my payment solutions early? Yes. However, there is no real value in prepayment. Your payoff is calculated by the sum of your remaining payments plus any accrued late charges and any purchase option.

How do I apply for payment solutions? THE PROCESS: PAYMENT SOLUTIONS CONTACTS 1. You receive your payment quote. Scott Glass 2. You fill out an application. Daktronics Finance Program Manager 3. PNC Equipment Finance approves your credit and 503 -747- 6 581 prepares the documents. for your review. [email protected] 4. You endorse the documents and return them to PNC. Russell Munson 5. PNC issues a purchase order. PNC Equipment Finance 6. Daktronics ships your equipment. 714-267-7603 7. PNC confirms the acceptance and funds the project. [email protected]

PROPOSAL LETTER

October 7, 2015

Oakland Schools 2111 Pontiac Lake Road Waterford, MI 48328‐2736

Re: BID NUMBER AEPA IFB #016

PNC Equipment Finance (“PNCEF”) is pleased to present the following draft proposal and Preliminary Term Sheet to Oakland Schools for the municipal Lease purchase financing of equipment described in Daktronic’s bid response to Bid # AEPA IFB # 016.

This letter and the Preliminary Term Sheet merely constitute a statement of suggested terms for the Lease Financing, do not contain all matters upon which agreement must be reached in order for the transactions contemplated hereby to be consummated and, therefore, do not constitute a binding commitment or offer to finance with respect to these transactions. A binding commitment with respect to the Lease Financing will result only from execution and delivery by all of the parties of a commitment letter or a definitive agreement relating to the Lease Financing, and will be subject to the conditions contained therein. We may terminate discussions regarding the proposed Lease Financing at any time.

This letter and the Preliminary Term Sheet are delivered to Oakland Schools on the condition that they be kept confidential and not to be shown to, or discussed with, any third party, including any financial institution (other than on a confidential or need‐ to‐know basis with Oakland Schools directors, officers, employees, counsel and other advisors, or as required by law) without PNCEF’s prior approval.

Oakland Schools acknowledges that PNCEF may obtain, and by signing below Oakland Schools provides written authorization to PNCEF, in its sole discretion, to obtain customer, vendor and credit reference checks as well as tax liens, litigation and judgment searches, and background reports on Oakland Schools. AEPA Form C Item 12

This authorization extends to obtaining a credit profile in considering this Lease Financing and any update, renewal or extension of such credit or additional credit.

Oakland Schools, represents that, to the best of its knowledge, all information prepared or furnished to PNCEF by Oakland Schools or any of its representatives concerning Oakland Schools or the transactions contemplated by this letter will be complete and correct in all material respects and will not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading. Oakland Schools understands and acknowledges that PNCEF will be using and relying on all such information without independent verification.

We appreciate the opportunity to provide this proposal and look forward to working with you on successfully completing this transaction. To instruct us to proceed with the proposed credit and due diligence inquiry, please sign and return this letter to PNCEF by October 30, 2015

Sincerely,

PNC Equipment Finance

By: ______Russell I Munson Vice President PNC Equipment finance [email protected] 714‐267‐7603 office

The undersigned agrees to and accepts the authorization to obtain credit reports and confidentiality provisions set forth above:

Oakland Schools

By: ______

Name: ______

Title: ______AEPA Form C Item 12

Preliminary Term Sheet

LESSOR: PNC Equipment Finance (“PNCEF”) or its assignee

LESSEE: Oakland Schools

STRUCTURE: Municipal lease‐purchase

TOTAL EQUIPMENT COST: TBD

EQUIPMENT: Daktronics

PROPOSED TERM: Various term options are presented below.

STRUCTURE: Oakland Schools may choose options for monthly, quarterly or annual payments.

Payments will be calculate based on monthly, quarterly or annual payment factors calculated as a percentage of 1,000.

 SIXTY (60) – MONTHLY PAYMENTS ‐ FINANCING at 2.5% equals a monthly payment factor of .17470

 TWENTY ( 20 ) – QUARTERLY PAYMENTS ‐ FINANCING at 2.4% equals a quarterly payment factor of .05301

 FIVE ( 5) – ANNUAL PAYMENTS ‐ FINANCING at 2.3% equals an annual payment factor of .20968

EXAMPLES: Based on $ 1,000,000 the following payments would be calculated using today’s interest rate:

 60 monthly payments of $ 17,470.00

 20 quarterly payments of $ 53,010.00

 5 annual payments of $ 209,680.00

INTEREST RATE The payment factor is derived from the current Interest Rate ADJUSTMENT: which is indexed to a spread over the like term U.S. SWAP Interest Rate as published by the US Federal Reserve Statistical Release H.15. For reference, base SWAP rates utilized in payment calculations above were as of September 10, 2015. If the Base Rate should change on or prior to the Commencement Date, the Interest Rate shall be adjusted accordingly by adding the same spread, to the then current Base Rate. Once the New Lease has AEPA Form C Item 12

commenced the interest rate, payment factor and resulting payment amount shall be fixed for the entire term of the Lease.

INTERIM FINANCING: PNC’s escrow funding provides a convenient and manageable solution to project financing which allows Oakland Schools to monitor, manage and approve timely escrow fundings for deposits, progress payments and milestone payments as may be required by the manufacturer and/or installer during the order, delivery and installation process.

PAYMENT FREQUENCY: As noted above.

PREPAYMENT: After the second anniversary of the lease commencement, so long as there is no event of default, on any Rent Payment due date, Lessee shall have the option to purchase all, but not less than all, of the equipment financed by paying to Lessor all Rent Payments and any other amounts then due plus the Termination Value set forth in the Agreement. The Termination Value reflects the outstanding principal balance plus a three percent premium.

ADVANCE PAYMENT: The first payment (plus applicable taxes) will be due at closing.

END OF TERM: Full Payout ‐ At Lease expiration, Lessee will own the equipment.

LEGAL TITLE/SECURITY This transaction is secured by the equipment being financed. INTEREST: Legal title to the equipment during the lease term shall vest in the lessee; with Lessor perfecting a first security interest through uniform commercial code filing or any other such instruments as may be required by law. Upon performance of the terms and conditions of the lease agreement, the lessee shall have the option to purchase all equipment for $1.00.

Fixture filings related to the installed equipment will be required to close. Lessee will provide legal descriptions of the properties included in the project.

ESCROW FUNDING: At lease closing, Lessor will fund loan proceeds into an escrow account from which disbursements will be made to the equipment provider(s) and installation contractor upon receipt of a Requisition Request and Certificate of Acceptance from Lessee. Escrow agent will either be Lessor or third-party provider selected by Lessor and approved by Lessee. All escrow earnings will be for the benefit of Lessee. The escrow agent will assess a $500.00 account set up fee payable at closing.

COMMENCEMENT DATE: The Lease is expected to commence on or about TBD. AEPA Form C Item 12

CLOSING/DOC FEE: Waived.

ESCROW FEE: $500.00

TYPE OF FINANCING Lease agreement shall be a net Lease whereby Lessee is responsible for all costs of operation, maintenance, insurance and taxes.

DOCUMENTATION: This transaction is subject to Municipal Lease documentation in mutually agreeable form.

CONDITIONS PRECEDENT: The closing of this transaction is subject to several conditions precedent, including but not limited to the following:  Final approval by PNCEF  Lessee to carry insurance in an amount and with a carrier acceptable to PNCEF  Lessees Opinion of Counsel validating that Oakland Schools is legally authorized to enter into the lease‐ purchase contract, validating that an authorized signer has authority to sign the documentation and Certification that Transaction qualifies for Tax Exempt Municipal lease treatment in accordance with IRS regulations AEPA FORM D: COMPANY INFORMATION AEPA IFB #016 – I INTERIOR AND EXTERIOR L ED SCOREBOARDS, MARQUEE, EQUIPMENT & INSTALLATION

NAME OF BIDDER______Daktronics, Inc.

COMPANY CONTACT INFORMATION Company Name: ______Daktronics, Inc. Website: www.daktronics.com______Company Address: ______201 Daktronics Drive City: ______Brookings State: ______SD Zip: ______57006 Contact Person: ______Tom Coughlin Title: ______Sales Manager Contact Phone: ______605-692-0200 Contact Email: [email protected]

BACKGROUND Note: Generally, AEPA will not accept an offer from a business that is less than five (5) years old or which fails to demonstrate and/or establish a proven record of business. If the bidder has recently purchased an established business or has proof of prior success in either this business or a closely related business, provide written documentation and verification in response to the questions below. AEPA reserves the right to accept or reject newly formed companies based on information provided in this response and from its own investigation of the company. This business is a £X public company £privately owned company. In what year was this business started under its present name? ______1968 Under what other or former name(s) has your business operated? ______None ______Is this business a corporation? £No £X Yes. If yes, please complete the following: Date of incorporation:______12/9/1968 State of incorporation: ______South Dakota Name of President: ______Reece Kurtenbach Name(s) of Vice President(s): ______Please see Form D Supplement attached. Name of Secretary: ______Carla Gatzke Name of Treasurer: ______Sheila Anderson Is this business a partnership? £X No £ Yes. If yes, please complete the following: Date of organization:______State founded: ______Type of partnership, if applicable: ______Name(s) of general partner(s): ______Is this organization individually owned? £X No £ Yes. If yes, please complete the following: Date of organization:______State founded: ______Name of owner: ______This organization is a form other than those identified above.£XNo £ Yes. IF THE ANSWER IS YES, describe the company’s format, year and state of origin, and names and titles of the principals.

AEPA IFB #016-I Scoreboards Marquees Signage Page 9 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms COMPANY HEADQUARTER LOCATION

Company Address: ______201 Daktronics Drive City: ______Brookings State: ______SD Zip: ______57006 Main Phone Number: ______605-692-0200 How long at this address? ______47 Years (Since 1968)

COMPANY BRANCH LOCATIONS

Branch Address: ______Please see Form D Supplement attached for branch locations. City: ______State: ______Zip: ______

Branch Address: ______City: ______State: ______Zip: ______

Branch Address: ______City: ______State: ______Zip: ______If more branch locations, insert information here or add another sheet with above information.

SALES HISTORY

Provide your company’s annual sales for 2012, 2013 and 2014 YTD in the United States by the various public segments: 2012 2013 2014 YTD

K-12 (public & private), Educational Service Agencies $ 47,270,089 $ 44,563,543 $ 50,915,941 Higher Education Institutions $ 84,752,268 $ 69,167,312 $ 62,250,175 Counties, Cities, Townships, Villages $ 5,042,654 $ 5,493,317 $ 4,368,170 States $ 26,024,851 $ 26,903,020 $ 24,049,091 Other Public Sector & Non-profits $ 0 $ 0 $ 0 Private Sector $ 0 $ 0 $ 0 TOTAL $ 163,089,862 $ 146,127,192 $ 141,583,377

WORK FORCE Please see Form D Supplement attached.

1. Key Contacts and Providers: Provide a list of the individuals, titles, and contact information for the individuals who will provide the following services on a national and/or local basis: Function Name Title Phone Email Contract Manager Please see Form D Supplement attached for all contacts and providers. Sales Manager Customer & Support Manager

AEPA IFB #016-I Scoreboards Marquees Signage Page 10 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms Function Name Title Phone Email Distributors, Dealers, Installers, Sales Reps Consultants & Trainers Technical, Maintenance & Support Services Quotes, Invoicing & Payments Warranty & After the Sale Financial Manager

2. Sales Force: Provide total number and location of salespersons employed by your company in the United States by completing the following: (To insert more rows, hit the tab key from the last field in the State column.) Number of Sales Reps City State Please see Form D Supplement attached.

3. Service/Support and Distribution Centers: Provide the type (service/support or distribution) and location of centers that support the United States by completing the following:(To insert more rows, hit the tab key from the last field in the State column.) Center Type City State Please see Daktronics Service Partner Map attached for locations of our Service/Support centers.

4. In-house Resources: Describe the business’s current in-house workforce, equipment and facilities available to perform under this solicitation. Please see attached information on our company, our history and our company organization structure. MARKETING

1. Key Marketing Contact(s): List the name(s), title(s) and contact information of the business’s key national and regional marketing office(s).(To insert more rows, hit the tab key from the last field in the State column.)

Name Title Phone Email Jen Kneeland Marketing 605-692-0200 [email protected] Jody Huntimer Marketing Strategist 605-692-0200 [email protected]

AEPA IFB #016-I Scoreboards Marquees Signage Page 11 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms 2. Marketing Activities: Describe how this company marketed its products and services to schools and other public sector audiences in Fiscal Year 2013 – 2014 (July 1 – June 30). List all conventions, conferences and other events at which this company exhibited. ______Daktronics attends 100+ conventions for the High School market each year. These are targeted at ______Athletic Directors, Coaches and Business Officials. Please see Form D Supplement attached for list of events attended. A list of events that we sponsor is also included. 3. Cooperative Marketing: Describe ways in which this business can collaborate with Member Agencies in marketing the bid. ______Daktronics creates a marketing handout for each state, with specific contact and bid information. ______We also advertise in a variety of magazines (see Form D Supplement attached for list), via direct mail and on our website. See attached example of brochure for KCDA. 4. Sales Training: Explain how your company will education your sales staff on the AEPA contract including timing, methods, etc.

______If awarded as an AEPA vendor again, we will hold an initial webinar and conference call to kick off the new contract. Our sales ______staff is currently trained on the AEPA contracts, and we continue to provide additional support for this via monthly staff-wide sales meetings, weekly regional sales meetings and bi-weekly individual meetings between sales representatives and sales managers. ENVIRONMENTAL INITIATIVES 1. Describe how your products and/or services support environmental goals. ______Please see attached information on Corporate Sustainability and Green LED Technology. ______

2. Describe the company’s “green” objectives (i.e. LEED, reducing footprint, etc.). ______Please see attached information on Corporate Sustainability and Green LED Technology.

INDEPENDENT SUBCONTRACTORS, DISTRIBUTORS, INSTALLERS, ETC. If the Bidder is not the sole provider of all goods and services provided under this contract, the following must be answered: Please see Form D Supplement attached. 1. Selection Criteria for Independent Providers: Describe the criteria and process by which the business selects, certifies and approves subcontractors, distributors, installers and other independent services. 2. Current Subcontractors, Distributors, Installers, Etc.: Provide a list of current subcontractors, distributors, installers and other independent service providers who are contracted to perform the type of work outlined in this bid in the member agency states (listed in Part A of this IFB). Include, if applicable, contractor license information and the state(s) wherein they are eligible to provide services on behalf of this business.

DISCLOSURES

1. Letter of Line of Credit or Annual Financial Report (REQUIRED): Attach a letter from the business’s chief financial institution indicating the current line of credit available in its name and evidence of financial stability for the past three calendar years (2012, 2013 and 2014). This letter should state the line of credit as a range (ie., “credit in the low six figures” or “a credit line exceeding five figures”). If company is a publicly traded company a complete Annual Financial Report is required in place of Line of Credit Letter. Please see Annual Financial Report attached. 2. Legal: Does this business have actions currently filed against it? £No £X Yes.

IF YES, AN ATTACHMENT IS REQUIRED: List and explain current actions such as Federal Debarment (on US General Services Administration’s “Excluded Parties List”), appearance on any state or federal delinquent taxpayer list, or claims filed against the retainage and/or payment bond for projects. Please see Form D Supplement attached.

AEPA IFB #016-I Scoreboards Marquees Signage Page 12 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms

AEPA Form D Supplement - Daktronics, Inc. BACKGROUND

 Name(s) of Vice President(s): o Brett Wendler o Rich Hintz o Brad Wiemann o Matt Kurtenbach o Dan Chase o Jay Parker o Judd Guthmiller o Pete Egart o Sarah Rose o Seth Hansen

COMPANY BRANCH LOCATIONS

 Subsidiaries: o 10105 Broadway Street o Daktronics Installation, Inc. San Antonio, TX 78217 201 Daktronics Drive Brookings, SD 57006 o 5249A Langfield Road Houston, TX 77040  Additional Manufacturing o 3557 National Drive, Suite C Locations: Norman, OK 73069 o 1425 E Bridge Street Redwood Falls, MN 56283 o Shunpike Business Center 1275 Cromwell Avenue, Suite 600 E 54th Street North o F5 Sioux Falls, SD 57104 Rocky Hill, CT 06067

 Additional Sales Offices: o 3001 Executive Drive, Suite o 4132 Shoreline Drive, Suite H 370 Earth City, MO 63045 Clearwater, FL 33762

o 797 Busch Court o 1501 Broadway, Suite 400 Columbus, OH 43229 New York, NY 10036

o 701 E Ball Road, Suite 103 o Data Display USA Anaheim, CA 92805 1330-2M Lincoln Avenue Holbrook, NY 11741 o 309 S Cloverdale Street, Suite B27 Seattle, WA 98108  International Subsidiaries: o Daktronics France, SARL o Daktronics Canada, Inc. 17 Allee Rosa Luxembourg 1130 Levis Street, Unit 4 Hyde Park – Westminster Terrebonne, QC J6W 5S6 Building Canada 95610 Eragny Sur Oise France o Daktronics GmbH Borsigstrasse 20 o Daktronics, Inc. (Dubai Wiesbaden, D-65205 Branch) Germany PO Box 213465 Unit 116 & 118 o Daktronics UK Limited Dubai, UAE Unit B1, Ashville Park Short Way o Daktronics Australia Pty Ltd Thornbury Bristol, BS35 3UU (Registered Office) United Kingdom Level 10 68 Pitt Street o Daktronics Hong Kong Sydney, NSW 2000 Limited Australia 18/F Edinburgh Tower the o Daktronics Australia Pty Ltd Landmark Suite 108, Ground Floor 15 Queen’s Road Central 18 Rodborough Road Hong Kong Frenchs Forest, NSW 2086 Australia o Daktronics Shanghai Co., Ltd. No. 99 Lane 2891 o Daktronics Japan, Inc. South Qilianshan Road Level 7, Wakamatsu Building Putou District Shanghai 3-3-6 Honcho, Nihonbashi, Shanghai, China Chuo-ku Tokyo 103-0023, Japan o Daktronics Shanghai Co., Ltd. (Beijing Branch) o Daktronics HK Limited 10B No. 5 Hau Teng Intl Plaza Room 1902, 19/F 4th Ring East, Chaoyang Asia Orient Tower District 33 Lockhart Road Beijing 10002 P.R. Wan Chai, Hong Kong China o Daktronics (International) o Daktronics Trading Limited Limited (Macau Branch) Rua Norte Do Patane Rua Norte Do Patane No. 176-182, Edificio No. 176-182, Edificio Industrial Industrical Wang Kai Wang Kai 3 ander A 3 andar A Macau Macau o Daktronics Singapore Pte. o Daktronics Ireland Holdings Ltd. Limited 15 Jalan Kilang Barat, Deer Park Ind Est, #04-01 Frontech Centre Ennistymom, Co Clare, Singapore, Singapore 159357 Ireland

o Daktronics Do Brasil o Daktronics Ireland Co. Comércio De Painéis Limited Displays E Equipoamentos Deer Park Ind Est, Electrônicos LTDA Ennistymom Co Clare, Ireland Rua Niteroi, 362 – Sala 36 Sao Caetano Do Sul – SP – o Societe Eridan (Data Display Brasil France) CEP 09510-200 10 Rue Enrico Fermi Parc De l’Esplanade o Daktronics Spain S.L.U. 77400 St Thibault des Vignes C/ Ayala, 66 28001 Madrid, Spain o Data Display UK Ltd. The Meadows o Daktronics Belgium N.V. Waterberry Drive (formerly OPEN N.V.) Waterlooville PO7 7XX Gelaagstraat 53 B-9150 Rupelmonde, Belgium

WORK FORCE

1. Key Contacts and Providers:

 Contract Manager Michael Johnson Project Manager 605.692.0200 Ext. 57884 [email protected] Please see attached biography.

 Sales Manager Tom Coughlin National Sales Manager 605.697.4494 [email protected] Please see attached biography.

 Customer & Support Manager Taylor Nilson Services Manager 605.691.1435 [email protected] Please see attached biography.

 Distributors, Dealers, Installers, Sales Reps Marlo Jones Regional Sales Manager 206.612.9666 [email protected] Please see attached biography.

Matt Lundberg Regional Sales Manager 704.791.1268 [email protected] Please see attached biography.

Bryan Nagel Regional Sales Manager 605.692.0200 Ext. 81830 [email protected] Please see attached biography.

Darrell Thiner Regional Sales Manager 515.577.4053 [email protected] Please see attached biography.

Paul Wildeman Regional Sales Manager 210.602.5995 [email protected] Please see attached biography.

 Consultants & Trainers Connie Hackett Software Services Supervisor 605.692.0200 Ext. 45068 [email protected]

Carol Sprenger Services Manager 605.695.4271 [email protected]  Technical, Maintenance & Support Services Clark McAdams Services Manager 860.922.8646 [email protected] Please see attached biography.

 Quotes, Invoicing & Payments Lauren Cloud Sales Coordinator 605.692.0200 Ext. 56669

 Warranty & After the Sale Taylor Nilson Services Manager 605.691.1435 [email protected] Please see attached biography.

 Financial Manager Larry Gerjets Credit Manager 605.692.0200 Ext. 57847 [email protected] Please see attached biography.

2. Sales Force:

Number of Sales City State Reps 1 Little Rock AR 1 Chandler AZ 1 Gilbert AZ 1 Oro Valley AZ 1 Phoenix AZ 1 Calabasas CA 1 Ceres CA 1 La Puente CA 1 Ladera Ranch CA 1 Los Gatos CA 1 San Dimas CA 3 Denver CO 1 Fort Collins CO 1 Lakewood CO 1 Pueblo CO 1 Wilmington DE 1 Brandenton FL 1 Groveland FL 1 Miramar FL 1 Tallahassee FL 1 Tampa FL 1 Yalaha FL 1 Atlanta GA 1 Canton GA 1 Polk City IA 1 West Des Moines IA 1 Coeur d'Alene ID 1 Chicago IL 1 Fishers IN 1 Fort Wayne IN 1 Ossian IN 1 Eudora KS 1 Kansas City KS 1 Lexington KY 1 Loranger LA 1 Boston MA 1 Hanson MA 1 New Windsor MD 1 Pasadena MD 2 Alanson MI 1 Grand Rapids MI 1 Pentwater MI 1 Rochester Hills MI 1 Royal Oak MI 1 Cold Spring MN 1 Maple Grove MN 1 Minneapolis MN 1 Savage MN 1 St Peter MN 1 Chesterfield MO 1 Marshfield MO 1 St Peters MO 1 Winfield MO 1 Pearl MS 1 Cary NC 3 Charlotte NC 2 Huntersville NC 1 Las Vegas NC 1 Fargo ND 1 Lincoln NE 1 Cranford NJ 1 Albuquerque NM 1 Chester NY 1 Hicksville NY 1 Middle Island NY 1 New York NY 1 Port Jefferson Station NY 1 Canton OH 1 Columbus OH 1 New Albany OH 1 Uniontown OH 1 Worthington OH 1 Mustang OK 1 Norman OK 1 Oklahoma City OK 1 Olmsted Township OK 1 Wilsonville OR 1 Alburtis PA 1 Brookhaven PA 1 Harrisburg PA 1 Wakefield RI 1 Aiken SC 1 Charleston SC 1 Mt. Pleasant SC 1 Bath SD 45 Brookings SD 2 Mitchell SD 15 Sioux Falls SD 3 Murfreesboro TN 1 Nashville TN 1 Carrollton TX 2 Dallas TX 1 Fresno TX 1 Frisco TX 1 Houston TX 1 Lewisville TX 1 Morgan TX 1 Plano TX 1 Rockwall TX 1 Salado TX 4 San Antonio TX 1 Terrell TX 1 Willis TX 1 Clinton UT 1 Layton UT 1 Alexandria VA 1 Arlington VA 1 Blacksburg VA 1 Charlottesville VA 1 Poquoson VA 1 Richmond VA 1 Auburn WA 1 Kent WA 1 Seatac WA 1 Spokane Valley WA 1 Tacoma WA 2 Madison WI 1 Charleston WV

MARKETING

2. Marketing Activities:

 Events Attended in Fiscal Year 2013-2014

Event Location Date GAEL ‐ GA Association of Education Leaders Jekyll Island, GA July 14, 2013 SDHSAA / SDHSCA ‐ South Dakota High School Coaches Clinic Aberdeen, SD July 15, 2013 AHSAA ‐ Summer Conference and All‐Star Week Montgomery, AL July 16, 2013 MAC ‐ Missisippi Association of Coaches Jackson, MS July 16, 2013 TSMCA ‐ Texas 6‐Man Coaches Association Clinic Lubbock, TX July 17, 2013 AASBO ‐ Arizona Association of School Business Officials Annual Conference Exposition Tucson, AZ July 17, 2013 FACA ‐ FL Athletic Coaches Summer Clinic Daytona Beach, FL July 18, 2013 NCCA ‐ NC Coaches Clinic Greensboro, NC July 22, 2013 LHSCA ‐ LA HS Coaches Association Baton Rouge, LA July 23, 2013 NDHSCA/AA ‐ North Dakota Coaches Convention Mandan, ND July 23, 2013 CASE ‐ Colorado Association of School Executives Annual Convention Breckenridge, CO July 24, 2013 WYCA ‐ Wyoming Coaches Association Summer Clinic Casper, WY July 25, 2013 SCACA ‐ SC Coaches Clinic Greenville, SC July 28, 2013 THSCA ‐ TX High School Coaches Association Coaching School Fort Worth, TX July 28, 2013 OCA ‐ Oklahoma Coaches Association Tulsa, OK July 28, 2013 MCA ‐ Montana Coaches Association Great Falls, MT July 31, 2013 SAI ‐ School Administrators of Iowa Des Moines, IA August 7, 2013 ASBSD/SASD ‐ Association School boards of South Dakota / School Admin of SD Sioux Falls, SD August 8, 2013 FRPA ‐ FL Rec & Park Association Orlando, FL August 27, 2013 AZPRA ‐ Arizona Parks & Recreation Association Scottsdale, AZ August 28, 2013 September 5, NCSA/NASB ‐ Labor Relations Lincoln, NE 2013 AIAAA ‐ Arizona Interscholastic Athletic Administrators Association Annual September 8, Conference Prescott, AZ 2013 September 10, NDRPA ‐ North Dakota Park & Recreation Association Valley City, ND 2013 September 12, TISCA ‐ TX Interscholastic Swim Coaches Association Austin, TX 2013 September 16, WRPA ‐ Wyoming Recreation & Parks Association State Conference Casper, WY 2013 September 16, MRPA ‐ MS Rec & Park Association Tupelo, MS 2013 September 20, Council of Educational Facilities Planners International Indianapolis, IN 2013 September 24, CPRA ‐ Colorado Parks & Rec Association Annual Convention Vail, CO 2013 September 25, NCPSMA ‐ North Carolina Public School Maintenance Association Morehead City, NC 2013 September 27, TASA / TASB ‐ Texas Association of School Administrators/Boards Dallas, TX 2013 September 29, NYSSBGA ‐ NY State School Building and Grounds Association Saratoga Springs, NY 2013 SDPRA ‐ South Dakota Park & Recreation Association Pierre, SD October 1, 2013 DAAD ‐ Delaware Association of Athletic Directors Dover, DE October 2, 2013 MSBA ‐ MO School Boards' Association Tradeshow Osage Beach, MO October 4, 2013 NRPA ‐ National Recreation & Parks Association Houston, TX October 8, 2013 KCDA Vendor and Technology Expo Kent, WA October 10, 2013 NMAA ‐ New Mexico Activities Association Annual Meeting Albuquerque, NM October 14, 2013 ESSC ‐ Eastern States Swim Clinic Cherry Hill, NJ October 19, 2013 AAEA ‐ AR Association of Education Administrators Little Rock, AR October 24, 2013 NYSSBA ‐ New York State School Boards Association Rochester, NY October 24, 2013 NDSBA ‐ North Dakota School Boards Association Bismarck, ND October 25, 2013 GASFA ‐ Georgia Association of School Facility Administrators Savannah, GA October 27, 2013 GISA ‐ Georgia Independent School Association College Park, GA November 4, 2013 GRPA ‐ Georgia Recreation & Park Association Columbus, GA November 5, 2013 TSBA ‐ Tennessee School Boards Association Nashville, TN November 9, 2013 NSIAAA ‐ Nebraska State Athletic Administrators Association Kearney, NE November 9, 2013 November 10, WADA ‐ WI Athletic Directors Association 47th Annual Conference Wisconsin Dells, WI 2013 November 11, OSBA ‐ OH School Board Capital Conference Columbus, OH 2013 November 17, OIAAA ‐ OH Interscholastic Athletic Administration Association Columbus, OH 2013 November 20, NASA/NASB ‐ State Education Conference La Vista, NE 2013 November 22, IASB/IASA/IABO ‐ Illinois Joint Annual Conference Chicago, IL 2013 December 15, NIAAA/NFHS ‐ National Interscholastic Athletic Administrators Association Anaheim, CA 2013 TPPC ‐ TX Public Pool Council San Antonio, TX January 7, 2014 FACA ‐ FL Athletic Coaches Winter Clinic Daytona Beach, FL January 9, 2014 MHSAA ‐ Mississippi HS Activities Association Natchez, MS January 15, 2014 AZBCA‐Arizona Baseball Coaches Association Phoenix, AZ January 18, 2014 MHSA ‐ Montana High School Association Great Falls, MT January 19, 2014 IPRA ‐ IL Park and Rec Chicago, IL January 23, 2014 South Padre Island, CPFC ‐ City of Palms Football Clinic TX January 24, 2014 TASA Mid‐Winter Conference and Expo Austin, TX January 26, 2014 LHSAA ‐ LA High School Athletic Association Baton Rouge, LA January 29, 2014 OPRA ‐ Ohio Parks and Recreation Association Sandusky, OH February 3, 2014 NASSP ‐ National Association of Secondary School Principals Dallas, TX February 6, 2014 TRAPS ‐ TX Rec & Parks Society Institute and Expo Corpus Christi, TX February 19, 2014 WIAA ‐ Mat Classic Tacoma, WA February 21, 2014 THSADA ‐ TX HS Athletic Directors Association Houston, TX March 2, 2014 CADA ‐ California Association of Directors of Activities Reno, NV March 6, 2014 ARPA ‐ AR Recreation & Parks Association Fort Smith, AR March 12, 2014 NYSAAA ‐ New York State Athletic Administrators Association Saratoga Springs, NY March 12, 2014 WACA ‐ WA Activitiy Coordinators Association Kennewick, WA March 12, 2014 MIAAA ‐ MI Interscholastic Athletic Administration Association Traverse City, MI March 15, 2014 AHSAAA ‐ AR High School Athletic Administrators Association Hot Springs, AR March 16, 2014 SCAAA ‐ SC Athletic Admininstrators Association Charleston, SC March 16, 2014 MASA/MOSPRA Spring Conference Lake Ozark, MO March 19, 2014 PSADA ‐ Pennsylvania State Athletic Directors Hershey, PA March 19, 2014 NRCSA ‐ NE Rural Community Schools Association Kearney, NE March 19, 2014 NCADA ‐ NC Athletic Directors State Conference Asheville, NC March 22, 2014 IIAAA ‐ IN Interscholastic Athletic Administration Association Indianapolis, IN March 23, 2014 GADA ‐ Georgia Athletic Directors Association Annual Conference Savannah, GA March 24, 2014 MNIAAA ‐ MN Interscholastic Athletic Administrators Association St. Cloud, MN March 25, 2014 DAANJ ‐ Directors of Athletic Association of NJ Atlantic City, NJ March 26, 2014 VIAAA ‐ VA Interscholastic Athletic Administrators Association State Conference Norfolk, VA March 26, 2014 IHSADA ‐ IA High School Athletic Directors Association Convention Coralville, IA March 30, 2014 South Dakota Interscholastic Athletic Administrators Association Deadwood, SD April 2, 2014 NSBA ‐ National School Board Association New Orleans, LA April 5, 2014 MIAAA ‐ MO Interscholastic Athletic Administrators Association Osage Beach, MO April 6, 2014 NDIAAA ‐ ND Interscholastic Athletic Administrators Association Fargo, ND April 6, 2014 IAAA ‐ ID Athletic Administrators Association Conference Boise, ID April 7, 2014 TSSAA ‐ TN secondary School Athletic Association Murfreesboro, TN April 7, 2014 CSADA ‐ CA State Athletic Directors Association San Diego, CA April 10, 2014 MSADA ‐ Maryland State Athletic Directors Association Ocean City, MD April 11, 2014 KIAAA ‐ KS Interscholastic Athletic Administrators Association State Conference Wichita, KS April 11, 2014 UIAAA ‐ UT Interscholastic Athletic Administrators Association State Conference St. George, UT April 11, 2014 OADA ‐ OR Athletic Directors Association State Conference Sunriver, OR April 13, 2014 NJSBGA ‐ New Jersey School Building and Grounds Association Atlantic City, NJ April 14, 2014 MoASBO ‐ Missouri Association of School Business Officials Lake Ozark, MO April 22, 2014 Kentucky High School Athletic Directors Association Louisville, KY April 23, 2014 WVADA ‐ West Virginia Athletic Directors Association Charleston, WV April 26, 2014 CADA ‐ CO Athletic Directors Association Broomfield, CO April 27, 2014 WSSAAA ‐ Washington Secondary School Athletic Administrators' Association Spokane, WA April 28, 2014 Northeastern Ohio Interscholastic Athletic Adminstrators' Association Cuyahoga Falls, OH April 28, 2014 Florida Interscholastic Athletic Administrators Association Orlando, FL May 4, 2014 Midwest Regional Conference Gillete, WY May 4, 2014 Ohio School Council Vendor Fair Westlake, OH May 13, 2014 Central States Swim Clinic Oak Brook, IL May 16, 2014 Cooperative Council for Oklahoma School Adminstration Norman, OK June 4, 2014 ASA ‐ Arizona Administrators Annual Summer Conference Tucson, AZ June 8, 2014 Florida Athletic Coaches Summer Clinic Daytona Beach, FL June 12, 2014 Confederation of Oregon School Administrators Seaside, OR June 18, 2014 Arkansas High School Coaches Association Conway, AR June 25, 2014 St. Simon's Island, Georgia Athletic Coaches Association GA June 26, 2014

 Events Sponsored

Daktronics Sponsorships State/Province Organization Fiscal Year NJ DAANJ FY16 DE Delaware Assocation of Athletic Directors FY16 ID Idaho Athletic Administrators Association FY16 IN IIAAA ‐ Indiana Interscholastic Athletic Administrators Association FY16 KS KIAAA ‐ Kansas Interscholastic Athletic Admin Association FY16 MD MIAA ‐ MD Interscholastic Athletic Association FY16 MO MIAAA FY16 MI MIAAA FY16 MI Michigan High School Athletic Association FY16 MD MSADA ‐ MD State Athletic Directors Association FY16 National NATYCAA ‐ National Alliance of Two Year College Athletic Administrators FY16 ND NDIAAA FY16 NY NYSAAA ‐ New York State Athletic Administrators Association FY16 OR OADA ‐ Oregon Athletic Directors Association FY16 OH OIAAA FY16 OH OIAAA FY16 TX THSADA ‐ Texas High School Athletic Directors Association FY16 VA VIAAA ‐ Virginia Interscholastic Athletic Admin Association FY16 WA WSSAAA ‐ Washington Secondary School Athletic Administrators Association FY16 AR AAA ‐ Arkansas Activities Association FY15 DE DAAD ‐ Delaware Association of Athletic Directors FY15 NJ DAANJ ‐ Directors of Athletic Association of NJ FY15 ID IAAA ‐ ID Athletic Administrators Association FY15 IL IHSA‐Illinois High School Association FY15 IN IIAAA ‐ IN Interscholastic Athletic Administrators Association FY15 KY KHSADA ‐ KY High School Athletic Directors Association FY15 MI MHSAA ‐ Michigan High School Athletic Association FY15 MD MIAA ‐ MD Interscholastic Athletic Association FY15 MI MIAAA ‐ MI Interscholastic Athletic Administrators Association FY15 MO MIAAA ‐ MO Interscholastic Athletic Administrators Association (Golf FY15 Tournament) MD MSADA ‐ MD State Athletic Directors Association FY15 NC NCHSAA ‐ NC HS Athletic Association FY15 ND NDIAAA ‐ ND Interscholastic Athletic Administrators Association 2013‐2015 FY15 NY NYSAAA ‐ New York State Athletic Administration Association FY15 OR OADA ‐ OR Athletic Directors Association FY15 OH OIAAA FY15 SD SDIAAA FY15 TX THSADA ‐ TX High School Athletic Directors Association FY15 VA VIAAA ‐ Virginia Interscholastic Athletic Admin Association FY15 WA WSSAAA ‐ WA Secondary School Athletic Administrators Association FY15 AR AAA ‐ Arkansas Activities Association FY14 DE DAAD ‐ Delaware Association of Athletic Directors FY14 NJ DAANJ ‐ Directors of Athletic Association of NJ FY14 IN IIAAA ‐ Indiana Interscholastic Athletic Admin Association FY14 KY KHSADA ‐ KY High School Athletic Directors Association FY14 KS KIAAA ‐ KS Interscholastic Athletic Admin Association FY14 MI MHSAA ‐ Michigan High School Athletic Association FY14 MD MIAA ‐ MD Interscholastic Athletic Association FY14 MI MIAAA ‐ MI Interscholastic Athletic Administrators Association FY14 MD MSADA ‐ Maryland State Athletic Directors FY14 ND NDIAAA ‐ ND Interscholastic Athletic Administrators Association 2013‐2015 FY14 NIAAA ‐ National Interscholastic Athletic Administrators Association FY14 NE NSIAAA ‐ NE State Athletic Adminstrators Association FY14 NY NYSAAA ‐ New York State Athletic Administration Association FY14 OR OADA ‐ OR Athletic Directors Association FY14 OH OIAAA FY14 SD SDIAAA ‐ SD Interscholastic Athletic Administrators Association FY14 SD Spring Classic Softball Tournament 2013 FY14 VA VIAAA ‐ Virginia Interscholastic Athletic Admin Assoc FY14 WA WSSAAA ‐ Washington Secondary School Athletic Administrators' Association FY14 WY Wyoming Coaches Association FY14 AR AAA ‐ Arkansas Activities Association FY13 AZ AIAAA ‐ Arizona Interscholastic Athletic Administrators Association Annual FY13 Conference LA Boys and Girls Club of Greater Baton Rouge FY13 NJ DAANJ ‐ Directors of Athletic Association of NJ FY13 TX Garland Sports Hall of Fame Golf Tournament FY13 SD Howard Wood Dakota Relays FY13 IL IADA‐Summer Retreat FY13 IA IHSADA FY13 IN IIAAA ‐ Indiana Interscholastic Athletic Admin Association FY13 IN IIAAA ‐ Indiana Interscholastic Athletic Admin Association FY13 KY KHSADA ‐ KY High School Athletic Administration FY13 KS KIAAA ‐ Kansas Interscholastic Athletic Administrators Association FY13 MI MHSAA ‐ Michigan High School Athletic Association FY13 MD MIAA ‐ MD Interscholastic Athletic Association FY13 MD MSADA ‐ Maryland State Athletic Directors FY13 NC NCHSAA ‐ North Carolina High School Athletic Association FY13 ND NDIAAA ‐ ND Interscholastic Athletic Administrators Association 2013‐2015 FY13 NE NSIAAA ‐ NE State Athletic Adminstrators Association FY13 OR OADA ‐ OR Athletic Directors Association FY13 SD SDIAAA ‐ SD Interscholastic Athletic Admin Association FY13 TX Texas State Swim Meet (t‐shirts) FY13 TX THSADA ‐ TX High School Athletic Directors Association FY13 TX THSADA/PBK Banquet Sponsorship FY13 FY13 TX THSADA‐Texas High School Athletic Directors Association FY13 VA VIAAA ‐ East Virginia Athletic Directors Association FY13 WA WSSAAA ‐ Washington Secondary School Athletic Administrators' Association FY13 WY Wyoming Coaches Association FY13

 Publications Advertised In

Local Advertisement Fiscal State Year Name of Publication Oregon FY16 OADA eNews Oklahoma FY16 OK Coaches Ad Ohio FY15 OIAAA News Texas FY15 THSADA eNews New Jersey FY15 NJ AD Directory Michigan FY15 Gladwin American Legion Baseball Championship Program North Dakota FY15 NDRPA Directory Louisiana FY15 LHSCA Coaches Directory Maryland FY15 MSADA Newsletter New York FY15 NYSPHSAA State Championship Program Oklahoma FY15 OK Coaches Magazine Washington FY14 WSSAAA News Oklahoma FY14 OK Coaches Magazine Oregon FY14 OADA E‐Zine and conference program 2013 New York FY14 NYSAAA News New York FY14 New York State Football Championship Program North Carolina FY14 NCHSAA E‐Newsletter New Jersey FY14 DAANJ Program Ad Illinois FY14 Football State Program New York FY13 NYSAAA Electonic Magazine 2013 Maryland FY13 MSADA Newsletter Oklahoma FY13 OK Coaches Magazine Washington FY13 WSSAAA News Illinois FY13 IHSA March Madness Tournament Program/Web/LED Board New Jersey FY13 DAANJ Program Ad FY13

INDEPENDENT SUBCONTRACTORS, DISTRIBUTORS, INSTALLERS, ETC.

Daktronics, Inc. utilizes the following dealers, who are authorized to distribute our products in their respective geographic areas:

 Industrial Electronic Service o Located in Carlisle, OH o Serves Ohio  Sievert Electric Sales & Service o Located in Forest Park, IL o Serves Illinois  AIM Electronics o Located in Edina, MN o Serves Minnesota and Wisconsin  Scoreboard Enterprises, Inc. o Located in Mansfield, MA o Serves Massachusetts Daktronics hires installers and subcontractors on a per project basis, based on availability of local installers. Daktronics confirms and certifies that all installers and subcontractors hired have the necessary trade licenses to perform the installation and support work in the scope of our contracted projects. They are chosen strategically by location to provide our customers with delivery, installation and support of all our product lines.

DISCLOSURES

2. Legal:

 Daktronics has not been involved in any litigated matters which allege material breach of contract related to the provision of equipment and services. As with any company of its size, Daktronics is involved in various litigated matters arising in the ordinary course of business, including without limitation employment issues and collection of outstanding receivables. There are no current legal actions that will impair Daktronics’ ability to perform its obligations and duties under any order or proposed order. AEPA Form D, Work Force Item 1

Daktronics Live Events Biography

Michael Johnson Michael Johnson is a project manager for the Southeast region in the Live Events market. In this position, he is responsible for managing projects, working with sales, completing bids and working with subcontractors.

Johnson started at Daktronics in 2007 after working for the City of Moorhead, Minn., as an engineering technician. He graduated from Minnesota State University - Moorhead with a degree in Construction Management.

Projects Johnson has worked on while at Daktronics include: • Pepsi Center - Colorado • Calgary Flames - Alberta, Canada • Central Washington University • Dixie State College of Utah • University of Wyoming - Wyoming • Brigham Young University - Utah • University of Montana • Tacoma Rainiers - Washington • Weber State University - Utah • University of Portland - Oregon • University of Colorado • Southern Utah University • Allen Event Center - Texas • North Carolina State University • Starrs Mill High School - Georgia • Samford University - Alabama • US Military Academy Preparatory School - New York • Milton High School - Georgia

201 Daktronics Drive PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-692-0200 fax 605-697-4700 www.daktronics.com email [email protected] Copyright©2008 Daktronics DD1367006 Rev 02 100511 AEPA Form D, Work Force Item 1

Daktronics Biography

Tom Coughlin Tom Coughlin is the National Sales Manager of the High School Park/Recreation (HSPR) and Daktronics Sports Marketing (DSM) departments. He is responsible for the sales efforts of over 100 people which include HSPR region managers, DSM development directors, HSPR and DSM regional sales, retired athletic directors, independent sales representatives, independent dealers and numerous re-sellers.

Coughlin first worked for Daktronics as a student at South Dakota State University and re-joined the company in 2004 as the North Central Region Manager for Daktronics Sports Marketing. He became the manager of DSM in 2008 and was named HSPR Sales Manager in 2010.

Prior to joining Daktronics, he spent 13 years in the broadcasting business serving as general manager of properties for Radio One Broadcasting, Sorenson Broadcasting and Waitt Radio. He was also an account executive for WCCO radio in Minneapolis.

Coughlin earned a bachelor’s degree in broadcast journalism from South Dakota State University in Brookings, S.Dak. He was named a Distinguished Alumnus of the department in 1998.

201 Daktronics Drive PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-697-4300 fax 605-697-4700 www.daktronics.com email [email protected] Copyright©2011 Daktronics DD2016313 Rev 00 5 May 2011 AEPA Form D, Work Force Item 1

Daktronics Biography

Taylor Nilson

Before joining the Daktronics team in 2004, Taylor Nilson graduated from Central Washington University, cum laude, in 2003. Nilson received a bachelor of science degree in business administration, a specialization in finance, and a minor in economics. His first position with Daktronics as a Service Sales Representative gave him the opportunity to handle service requests from customers, assess customer needs and service level expectations, and provide service agreement proposals to customers.

Since then, Nilson has held positions as the Service Sales Team Supervisor, Technical Support Supervisor and Account Service Management Supervisor. Nilson also acted as the lead sales representative on some of Daktronics' largest service projects for Times Square customers and Major League Sports teams.

Currently, Nilson is the Commercial Reseller Services Manager in Brookings, South Dakota, providing leadership to:

• Call Center • Account Management • Technical Support • Software Support • Service Sales functions

This team provides parts, service and technical support to the Daktronics Commercial distribution channel of over 2,600 commercial resellers. Additionally, Nilson manages the service efforts for high-profile spectacular display installations in Times Square, Las Vegas and other metro locations.

331 32nd Avenue PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-697-4300 fax 605-697-4700 www.daktronics.com e-mail [email protected] Copyright©2006 Daktronics DD1810464 Rev 02 072611 AEPA Form D, Work Force Item 1

Daktronics Biography

Marlo Jones Marlo Jones manages the Daktronics Sales & Service ofﬁce in Seattle, WA.

Jones began working at Daktronics while in college at South Dakota State University in March 1985. Jones graduated from SDSU with an electrical engineering technology degree in 1986. He went on to receive his master's degree in marketing from City University in Bellevue, WA.

As manager of the Seattle Daktronics Sales & Service ofﬁce, Jones is responsible for the sales and marketing of Daktronics products to the state of Washington. Prior to joining the Seattle ofﬁce, he worked in customer service. Major Daktronics projects that Jones has been involved with include: • 1987 All Africa Games (Nairobi, Kenya) • 1988 Winter Olympics (Calgary, Alberta,Canada) • Key Arena (Seattle, WA) • Safeco Field (Seattle, WA) • Port of Seattle • Washington State Department of Transportation • B.C. Place Stadium (Vancouver, BC,Canada) • Tacoma Dome (Tacoma, WA) • Tacoma Rainiers (Tacoma, WA)

Jones is also on the EET Advisory Board for Western Washington University and a member of the American Marketing Association.

“I enjoy working with a team that provides leading edge technology, products and services to customers that genuinely appreciate them,” says Jones.

In his spare time, Jones enjoys traveling, hiking, reading, canoeing, general aviation and history..

331 32nd Avenue PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-697-4300 fax 605-697-4700 www.daktronics.com e-mail [email protected] Copyright©2005 Daktronics SL-03356 Rev 00 051606 AEPA Form D, Work Force Item 1

Daktronics Biography

Matt Lundberg Matt Lundberg joined the Daktronics team in 1997. He is sales manager in the Daktronics Sales and Service ofﬁce in Concord, NC, as well as acting manager of the Daktronics Sales and Service ofﬁce in Lexington, SC. Lundberg also is the Commercial market sales representative in the state of North Carolina.

Lundberg began at Daktronics in manufacturing, and then became a sales intern in the High School, Park, and Recreation department. In 2001, Lundberg helped open the Daktronics Sales and Service ofﬁce in Concord, NC.

In 2000, Lundberg graduated from South Dakota State University in Brookings, SD, with a degree in Economics.

Some of the major projects Lundberg has been involved with include: • Charlotte Bobcats Arena - Charlotte, NC • Hickory Crawdads - Hickory, NC • Durham Bulls - Durham, NC • UNC-Charlotte - Charlotte, NC • Greensboro Coliseum - Greensboro, NC • UNC-Greensboro - Greensboro, NC • Adams Outdoor Advertising - Charlotte, NC • NC Department of Transportation - Asheville, NC and Raleigh, NC • James F. Byrnes High School - Duncan, SC • Winthrop University - Rock Hill, SC • Carolina Panthers - Charlotte, NC

In his spare time, Lundberg enjoys playing golf and spending time with his friends.

Daktronics Biography

Bryan Nagel Bryan Nagel has been the manager of the Daktronics Sales & Service office in Linthicum, MD since 1993. His territory includes Maryland, Washington, D.C. and lower Delaware.

In May of 1991, Nagel began working at Daktronics in Subassembly. He also worked in customer service for one year. Nagel received an electrical engineering technician degree from South Dakota State University in 1992.

Nagel has been involved in these Maryland installations: • United States Naval Academy, Annapolis • Maryland State Fair, Timonium • Jack Kent Cooke Stadium, Raljo (home of the Washington Redskins) • Ravens Stadium, Baltimore • ESPN Zone, Baltimore • Loyola College, Baltimore • Morgan State University, Baltimore • University of Maryland, Baltimore County, Baltimore • Bowie Baysox, Bowie

Nagel also provides maintenance at many high schools, college and professional venues in the area.

“The demand has been great for quality scoreboard service. We look forward to greater challenges for growth and experience,” he said.

Daktronics Biography

Darrell Thiner Darrell Thiner is the High School Park & Recreation (HSPR) Region Sales Manager for North Central, Mid-Atlantic and New England regions.

Thiner received an electronic engineering technician degree from South Dakota State University in Brookings, SD, in 1989. He earned a MBA degree with an emphasis on marketing from Iowa State University in Ames, IA, in 2008.

In 1999, Thiner moved to Ankeny, IA, to open a regional office. Previously he worked at the Daktronics corporate headquarters in Commercial market sales, customer service and in HSPR market sales.

Thiner has been involved with the following major projects:

• Indianapolis Motor Speedway, Indianapolis • Indiana State University, Terre Haute, IN • Purdue University, West Lafayette, IN • Hundreds of Indiana and Iowa high school projects • IUPUI, Indianapolis • University of Indianapolis, Indianapolis • University of Iowa, Iowa City • Iowa State University, Ames • Prairie Meadow Racetrack & Casino, Altoona, IA • University of Evansville, Evansville, IN • Indianapolis Indians, Indianapolis • Churchill Downs, Louisville, KY • Ellis Park Race Track, Henderson, KY • University of Louisville, Louisville, KY • Kent State University, Kent OH

201 Daktronics Drive PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-692-0200 fax 605-697-4700 www.daktronics.com email [email protected] Copyright©2012 Daktronics SL-04980 Rev 02 22 May 2012 AEPA Form D, Work Force Item 1

Daktronics Biography

Paul Wildeman Paul Wildeman became the manager of the Daktronics Sales & Service ofﬁce in San Antonio, TX, in September 1994. Since then the ofﬁce has grown substantially. His territory now includes all of south Texas.

Wildeman received a bachelor of science degree in mechanical engineering from South Dakota State University in Brookings, SD, in 1992. In January 1993, he joined the Daktronics team and trained in the Seattle Daktronics Sales & Service ofﬁce. In May of 2002, he earned a master of business administration degree from the University of Texas at San Antonio.

In addition to his technical expertise, Wildeman has developed a ﬁrm grasp of Daktronics’ product offerings. He has been instrumental in helping customers in all of Daktronics’ major market niches select appropriate programmable display systems.

Projects he has been involved with include: • Texas House of Representatives - voting system • Southwest Texas University - scoreboards and message centers • Judson ISD - scoreboards and message centers • Galena Park ISD - video displays • Laredo ISD - video displays • Edinburg ISD - video displays • Westlake High School - video displays

“The outstanding quality and reputation of Daktronics gives me great conﬁdence to do my job,” Wildeman

Daktronics Biography

Clark McAdams Clark McAdams is Regional Service Manager for the New England region. His work includes installation, supervision and technical support for Daktronics displays.

McAdams joined Daktronics in 1994 and previously designed electrical systems for scoring systems. He also developed an AIA-qualified program that he presents to architects for continuing education on electrical requirements for scoreboards and large screen video displays.

McAdams is a graduate of Southern Illinois University in Carbondale, Ill., with a Bachelor of Science degree in industrial engineering. He has taken addition course work through National Electric Code (NEC) seminars.

Major projects McAdams has contributed to while working at Daktronics include: • New England Patriots & New England Revolution - Gillette Stadium - Massachusetts • New York Yankees - New Yankee Stadium • New York Mets - Citi Field • Detroit Lions - Ford Field - Michigan • Cincinnati Reds - Great American Ballpark - Ohio • Boston Red Sox - Fenway Park - Massachusetts • New Meadlands Stadium - New Jersey • Minnesota Wild - Xcel Energy Center - Minnesota • Cincinnati Bengals - Paul Brown Stadium - Ohio • Cleveland Browns - Cleveland Browns Stadium - Ohio • Philips Arena - Atlanta, Georgia • Tampa Bay Buccaneers - Raymond James Stadium - Florida • Tampa Bay Rays - Tropicana Field - Forida • Arizona Diamondbacks - Chase Field - Phoenix, Arizona

Daktronics Biography

Larry Gerjets Larry Gerjets works with credit and collection in the High Schools, Parks & Recreation (HSPR) market at Daktronics. He is responsible for the extension of credit to new and existing customers and the oversee collection of amounts owed to Daktronics by HSPR customers.

Gerjets has been in his current position since 2007. Previously, Gerjets held a position with corporate accounting/ credit, responsible for the extension of credit to customers in all Daktronics markets.

331 32nd Avenue PO Box 5128 Brookings, SD 57006-5128 tel 800-325-8766 605-692-0200 fax 605-697-4746 www.daktronics.com email [email protected] Copyright © 2011 Daktronics DD2133006 Rev 00 101311 AEPA Form D, Work Force Item 3

Daktronics Service Partner Map

Specific information on service partners can be found at: Service Partner Google Map AEPA Form D, Work Force Item 4

OUR COMPANY MADE IN THE USA From conception through design and manufacture, the entire production process of scoreboards and displays occurs in the Brookings, South Dakota plant. As manufacturing processes become more efficient, Daktronics is delivering more products than ever before while maintaining the highest standards of quality. Daktronics manufacturing facilities include component assembly, electronic assembly, printed circuit board fabrication, welding, painting, final assembly and testing.

›› Founded in 1968, Daktronics has experienced 46 years of innovation and growth ›› Local service from factory certified technicians across the country ›› Complete line of scoring and timing products, sound systems and video displays ›› Financial stability with a publicly traded corporation (NASDAQ: DAKT) ›› Experience with tens of thousands of displays installed worldwide ›› Design assistance and dedicated project management ›› A history of on-time, on-budget performance ›› Ongoing research and development ›› Unmatched technical expertise ›› Installation supervision AEPA Form D, Work Force Item 4

Company History

Daktronics was founded December 9, 1968, by Drs. Aelred Kurtenbach and Duane Sander, professors of Electrical Engineering at South Dakota State University in Brookings, S.D. The original goal of the company was to offer an alternative to university graduates who were leaving the area for greater opportunities. The company has grown steadily since then. It is organized into Commercial, Live Events, Schools and Theatres, Transportation and International business units.

Daktronics began with the design and manufacture of electronic voting systems for state legislatures. The first was installed in the Utah House of Representatives in 1971. This was the first of many Daktronics legislative voting systems installed throughout the country.

With the help of wrestling coaches, Daktronics developed the patented Matside® wrestling scoreboard in the early 1970s. This three-sided scoreboard, designed for the arena floor, lets fans, referees and competitors see scores and times without turning away and without missing any action. Today, Matside® scoreboards are used at many major wrestling tournaments. The development of this unique wrestling scoreboard led Daktronics into the design of the most complete line of digital numeric scoreboards available today.

Daktronics’ next logical step forward was to manufacture time and temperature displays and computer-programmable message/animation systems using solid-state circuitry and incandescent lamps. During the 1970s, 1980s, and much of the 1990s, Daktronics systems primarily used incandescent lamp technology. Today light emitting diode (LED) technology is the superior lighting element for Daktronics displays. Many retail and service establishments, convenience stores, financial institutions, third part advertising companies and non-retail entities utilize Daktronics systems. The Commercial Business Unit works with resellers, national accounts and billboard companies to place popular Galaxy® message displays, Valo® digital billboards and other types of displays.

Daktronics offers the most complete line of large screen programmable displays available from any single manufacturer, with systems capable of showing text information to full video capability, with monochrome technologies to those with the capability to show live video in trillions of shades of color. Some of world’s most iconic displays were designed and manufactured by Daktronics, including the landmark Coca-Cola spectacular and the display system for the prominent financial institution at 745 Seventh Avenue, both in Times Square.

Large integrated scoring, timing, display and sound systems, some as part of a complete campus-wide visual communication package, were the next step in Daktronics evolution. More than 1,000 universities have installed Daktronics scoreboards and displays. Some prestigious collegiate installations include integrated super systems at the University of Minnesota, University of Florida, Oklahoma University, Clemson University and the University of Texas. Professional sports teams and facilities are also customers of Daktronics. Daktronics keeps score at Yankee Stadium, the Charlotte Bobcats Arena, Busch Stadium in St. Louis, the SuperDome in New Orleans, and many others.

In 1978, Daktronics was awarded an important contract to supply nine major scoreboards for the 1980 Olympic Winter Games in Lake Placid, New York. Since then Daktronics has supplied scoreboards at many international competitions, including Olympic events in 1988, 1992, 1994, 1996, 2000, 2002, 2004 and 2008. At thousands of locations in nearly 100 countries on six continents, Daktronics equipment is keeping the score.

(continued on the following page)

201 Daktronics Drive Brookings, SD 57006 tel 800-325-8766 605-692-0200 fax 605-697-4700 www.daktronics.com e-mail [email protected] Copyright © 2004-2009 Daktronics SL-01295 Rev 04 030210 pg. 1 of 2 AEPA Form D, Work Force Item 4

Intelligent Transportation Systems provide improved transportation safety and mobility through the use of advanced communications technologies. Daktronics assists state departments of transportation and other agencies in developing and improving their transportation systems by supplying popular NTCIP-compliant Vanguard® displays and control systems.

The Daktronics engineering and product development departments align closely with the company’s primary business units: Schools and Theatres, Commercial, Transportation and Live Events. These groups are leaders in product design and development, and continually add new features and design new products to meet the specific needs of Daktronics’ customers.

In 1997, Daktronics introduced one of the first full-color LED video systems. Since that time, the company has continually improved its display and control technologies. Today Daktronics is the premier supplier of full-color LED video displays with thousands of video screens installed at major sports venues like the Indianapolis Motor Speedway, at collegiate facilities nationwide, in Times Square in New York, in Las Vegas, and at other sites throughout the world, including Piccadilly Circus in London and at the Kuwait Stock Exchange. The flexibility of LED video technology allows for not only traditional rectangular screens, but irregular-shaped and curved displays. One of the most unique video displays in the world was designed and built by Daktronics for the Grand Lisboa Resort Hotel in Macau, in which ProPixel® freeform LED technology was used to populate the exterior of a giant egg-shaped building.

Daktronics subsidiaries permit greater control over the quality of system components and to allow for truly integrated systems from a single supplier. Star Circuits, a subsidiary acquired in 1987, designs and manufactures circuit boards used in Daktronics displays. In 2001, Daktronics acquired Keyframe® Creative Services to better serve the sports and entertainment markets. In 2005, Daktronics acquired Dodge Electronics, a sound system designer and manufacturer. In 2006, the company acquired Hoffend & Sons Inc., a leading designer and manufacturer of Vortek® hoist and rigging systems.

Daktronics has always believed in taking care of its customers. Over the years it has developed a network of company owned sales and service offices through the U.S. and other parts of the world. Along with independent resellers and authorized service companies, this service network provides technical and installation support for Daktronics customers. This large and capable network of service providers is backed by a talented group at corporate headquarters.

Daktronics primary manufacturing facilities are located in Brookings, S.D., Sioux Falls, S.D. and Redwood Falls, Minn. The company’s stock is traded on the Nasdaq National Market System under the symbol DAKT. For more information visit www.daktronics.com.

DAKTRONICS COMPANY ORGANIZATION

BOARD OF DIRECTORS

CEO & PRESIDENT

SALES & MARKETING ENGINEERING MANUFACTURING ADMINISTRATION

PRIMARY MARKETS CUSTOMER VIDEO • Purchasing ACCOUNTING SERVICE • High School PRODUCTS • Manufacturing Stores Park & Rec. • Star Circuits • Live Events PERSONNEL TECHNICAL SPORT • Metal Fabrication • Large Sports PRODUCTS • Painting SERVICES Venues INFORMATION • Electronic Assembly • Mobile & TECHNOLOGY & • Manufacturing Graphics SYSTEMS CREATIVE Modular COMMERCIAL PRODUCTS • High School Park & Rec SERVICES • Spectaculars Manufacturing ADMINISTRATION • Commercial • Live Events & Spectaculars TRANSPORTATION SALES • Resellers Manufacturing PRODUCTS NOTE: ADMINISTRATION • National • Audio Systems Manufacturing Daktronics operates and reports on its business Accounts • Commercial PRODUCT under five units: • Billboards Manufacturing • Schools and Theatres PROJECT RELIABILITY LAB • Galaxy® Product Line • Live Events MANAGEMENT • Transportation • Commercial • Billboard Product Line • Transportation • Transportation Systems • International Manufacturing • Vortek® Rigging & Hoists Manufacturing 331 32nd Avenue, PO Box 5128, Brookings, SD 57006 tel 800-325-8766 or 605-692-0200 fax 605-697-4700 • Shipping www.daktronics.com email: [email protected] Copyright © 2012 Daktronics SL-01926 Rev 11 073112 AEPA Form D, Marketing Item 3

DAKTRONICS PARTNERS WITH WASHINGTON KING COUNTY DIRECTORS' ASSOCIATION (KCDA) TO OFFER SCHOOLS GREAT SAVINGS

WHO CAN JOIN KCDA? HOW DO I PURCHASE? ››Public Schools ››Talk with your local Daktronics sales representative ››Private Schools to receive a customized quote for your project ››Charter schools/public school academies ››Reference AEPA bid #IFB 012-H ››Colleges, universities and post-secondary institutions HOW DO I GET MORE INFORMATION? ››City, townships and village government ››On products available from Daktronics www.daktronics.com ››County and state government agencies ››On King County Directors' Association: http://kcda.org WHAT’S THE BENEFIT OF PURCHASING ››Contact your local Daktronics representatives FROM DAKTRONICS THROUGH KCDA? ››SAVE MONEY! Daktronics offers discounts off its regular prices when purchased through the program KYLE WILLIAMS ››SAVE TIME! All contracts are competitively bid so there is no [email protected] need to search multiple websites for suitable contracts 206 - 612-8384

JOE RICHER

[email protected] 509-290 -1625

WWW.DAKTRONICS.COM 201 Daktronics Drive PO Box 5128 Brookings, South Dakota 57006-5128 1-800-DAKTRONICS 800-325-8766 605-692-0200 fax 605-697-4700 email [email protected] DD2850671 05262015 AEPA Form D, Marketing Item 3

SCOREBOARDS LED (light emitting diode) technology for excellent visibility.

Complete line of scoreboards for indoor and outdoor sports.

DISPLAYS LED message displays show text, graphics, animations and recorded video in amazingly true-to-life images.

Various sizes and configurations so there is a perfect size and color combination for each facility.

VIDEO LED video displays show animations, statistics, advertisements and live video in 4.3 trillion colors.

Affordable solution for smaller facilities looking for a professional live video experience.

SOUND Daktronics audio systems integrate into the design of the scoreboard and can include advertising or logo panels.

Ensure excellent sound projection, clear and intelligible speech and a powerful audio experience. AEPA Form D, Environmental Initiatives Item 1 Sustainability involves much more than just creating an energy-efficient product. daktronics corporate sustainability

With more than four decades of ongoing research driving changes in our technology, Daktronics understands that sustainability involves much more than just creating an energy-efficient product—it’s an ongoing commitment that must reach all levels of a company, from its manufacturing to its customers, in order to make a true impact. Whether it’s aggressively eliminating corporate waste within our operations or actively educating customers on energy-efficient display management, the Daktronics environmental philosophy entails a multi-faceted approach to sustainability that strives to optimize our technology, educate our customers, reduce our corporate waste and stay actively involved in our community to ensure a brighter, greener tomorrow.

Our Technology • Reducing energy consumption by using the highest quality, most energy-efficient LEDs available. • Implementing Power Factor Correction (PFC) technology to maximize the efficiency of all display power connections. • Offering SunWize solar power options on select Daktronics products. • Creating RoHS-ready products completely devoid of mercury, cadmium, hexavalent chromium (Cr6+), polybrominated biphenyls (PBB), polybrominated diphenyl ether (PBDE) and other hazardous materials.

Our company • Eliminating corporate waste through automation and LEAN manufacturing principles. • Dedicating staff towards environmental stewardship and compliance. • Aggressively recycling all eligible office and industrial materials. • An ongoing commitment to developing energy-efficient, environmentally friendly products.

Our Customers • Recycling older customer systems (both Daktronics and non-Daktronics) through licensed recycling paths. • Educating display operators on energy-efficient display management techniques. • Minimizing local light pollution through advanced LED louver technology. • Strict compliance with all local, state and federal environmental and safety legislations.

Our Community • Actively participating in community sustainability efforts and recycling programs. • Partnering with the United Way to donate money and resources to community charities. • Cleaning up local highways through a partnership with the Adopt-a-Highway program. • Building a greener tomorrow by supporting and promoting community green projects.

DigitalGreen Displays LED for TechnologyMunicipalities Daktronics’ Commitment to Green Technology

oing green has never been easier than with Daktronics’ light emitting diode (LED) powered digital displays. Sign users are flocking to this energy-efficient, long-lasting, luminous technology. Daktronics’ unique pixel layout maximizes today’s extra-bright LEDs. Daktronics signs integrate all of the advantages of LED technology:

• Lower monthly power bill and tax cuts • Less maintenance • High application efficiency (see page two) • Environmental friendliness

According to Paul Gilk, head of the commercial engineering department at Daktronics, “Daktronics is committed to using the latest green technology, including the most energy-efficient LEDs from top-quality LED suppliers.”

LED lighting has been so influential in the world of sustainable technology that the inventor of light emitting diodes was awarded the world’s most prestigious technology award, the Millennium Technology Prize in 2006.

Lifetime in Hours Proof in the Numbers 100,000

The durability and energy-efficiency of LEDs is great 80,000 for your wallet as well as your conscience. A lower monthly power bill can add up to significant savings over the life of a display. 60,000 HOURS • According to Home-Electrical Suite 101. 40,000 com, “LED bulbs burn very cool, while incandescent bulbs emit 98 percent of their 20,000 energy as heat!”

• In addition to the increased conservation of 0 energy, LEDs are also longer lasting. While LED FLUORESCENT INCANDESCENT incandescent light bulbs typically last around 1,000 hours and fluorescents are good for roughly 10,000 hours, LED lights can last from 50,000 to 100,000 hours. • An article titled “Get Green” in Convenience Store News, said “It’s estimated that LED bulbs last 10 times as long as compact fluorescents and 133 times longer than incandescent bulbs.” These numbers make it easy to see that LED is the most efficient form of lighting technology commercially available today. AEPA Form D, Environmental Initiatives Item 2

DigitalGreen Displays LED for TechnologyMunicipalities Digital signageDaktronics’ offers Commitment knock-out versatility to Green andTechnology potential Application Efficiency

The United States Department of Energy conducted numerous studies comparing the efficiency of LED lighting with other light sources. According to the DOE website, one important aspect of evaluating a light source is the application efficiency.

Application Efficiency: “The desired luminance level and lighting quality for a given application achieved with the lowest practicable energy input.”

Because LEDs emit light in a specific direction, they have higher application efficiency. The DOE website states, “Fluorescent and standard ‘bulb’ shaped incandescent lamps emit light in all directions. Much of the light produced by the lamp is lost within the fixture, reabsorbed by the lamp, or escapes from the fixture in a direction that is not useful for the intended application.”

This means that LED displays incorporate the ideal amounts of brightness and energy efficiency.

Light emitted in specific direction Light emitted in all directions

What’s Your Green Reputation?

Using green LED technology will not only save money on energy, but increase sales because of consumer demand for environmentally-friendly corporate tactics. The green revolution is a largely consumer-driven effort, marked by activism and dedication from grass-roots organizations. In a survey of over 2,000 adults by the branding and marketing agency BBMG, 7 out of 10 people said a company’s environmental practices affected their decision about where to shop. These responses demonstrate the level of importance consumers hold for companies to act in a socially responsible way. Using LED technology to power your sign is a great first step to environmental friendliness.

201 Daktronics Drive PO Box 5128 Brookings, SD 57006-5128 tel 888-325-8766 605-692-0200 ext 56219 fax 605-692-0381 www.daktronics.com email [email protected] Copyright © 2008 Daktronics DD1364528 Rev 01 040208 Page 2 of 2 2015 ANNUAL REPORT

2015 LETTER TO SHAREHOLDERS

Overall, we had a successful Fiscal 2015. Sales exceeded $615 million in this 53-week fiscal year, surpassing pre-economic down turn years and setting a record sales level for the company. This sales volume reflects the health of digital system solutions in the global marketplace. Another positive milestone, our International business earned over $100 million in sales, a result of our on-going strategy and investment in growing our International market share. In August of 2014, we acquired a company in Ireland focused on the transportation market in Europe and the United States. While International sales for the newly named “Daktronics Ireland” approximated only $8 million for Fiscal 2015, the knowledge and product platforms acquired will be leveraged to further grow our transportation sales outside of the US.

Live Events sales remained strong reflecting the trend of professional and college sports arenas upgrading to new, larger, and higher resolution systems in order to attract, entertain, and inform their fans. We expect this level of sales to continue in the near-term.

Sales increased in the Commercial business unit relating to digital billboard and spectacular solutions. While our on premise solution sales were down for the year, we are optimistic for our new product line release in Fiscal 2016 and the continued positive economic conditions creating continued opportunities.

During the Fiscal 2015, we changed our name of the Schools and Theatres business unit to High School Park and Recreation (HSPR) due to the sale of the rigging and theatrical portion of the business. HSPR sales improved year over year due to inclusion of video systems in the sports side of the business, and the increased size of many of these projects. HSPR message center sales remained strong. These systems are used by schools to communicate with students, parents, and the public.

Transportation business unit sales were down mainly due to project timing and uncertainty in the federal Highway and Transportation funding Act of 2014. This is a key funding source for state projects that include intelligent transportation display and control systems. We believe sales levels will increase in the future.

While sales levels improved, our overall operating margin, while positive, declined year over year. This decrease was caused by many factors, including:  Our overall mix of business – FY2015 had a significantly higher amount of large project work, and this work had increased amounts of subcontracting which is done at a lower gross margin than our product work.  Capacity constraints experienced during our fiscal Q2. We were fortunate to win more orders than expected, but then needed to spend more to fulfill these orders to meet critical customer deadlines.  Increased operating costs.  Continued competitiveness within our business.

In all our business areas, we also have natural replacement cycles as these products have a known end a life. This combined with the general economic conditions are conducive for continued modest growth in demand from the marketplace. We match this demand with a broad range of applications, services, and solutions, offering our customers high degrees of reliability and performance. While the market is set for growth, we understand we need sustained profitability to capitalize on this opportunity. We continue to focus on improving our operating margins and growing profitably over the long-term and have continuing efforts to achieve these goals; the benefits, however, will take time to realize.

With this said, we are not alone in seeing the opportunities and we live in a competitive marketplace. Many others are seeing the positive demand picture and continue to compete aggressively in this business. Our competitive field has been stable, but in the last fiscal year there have been some consolidations and acquisitions which may have some impact on us. Also, as our international business increases, we are influenced to a greater degree by economic conditions across the globe. One such condition is the cost pressure in wages and benefits that has and will have impact on our costs in the coming quarters. While there are some regional and role variations, this is a general trend in South Dakota, the US, and many international markets. These economic conditions are a reality, but we believe our market reputation, product portfolio, and internal capabilities put us in a strong, enviable position.

We are focused on succeeding in this business and have a number of product introductions coming this next year to serve the demand for transportation solutions, higher resolution video systems, and specific customer requests – through our ongoing investment in our product and control system platforms. We are focused on continuous improvement methodologies in our manufacturing and services areas to create efficiencies which drive cost savings and improves the experience for our customers. To support our initiatives, we

Page | 1 continue to make selected capital investments to support new product lines and automation as we size our capacity to the overall market. Work also continues on forecasting and planning tools to maximize profitability as we continue to grow volumes and revenue.

We see ways to improve future profitability, although we do not believe it will be a smooth path. While we are focused on improving operating margin year over year, we believe that seasonal variability along with the influence of large projects will continue to affect individual quarters and fiscal years. The good news is our markets are growing and we have products and solutions to meet industry demand.

Overall our markets are dynamic and the underlying fundamentals are strong. While the market is competitive, we remain optimistic about the future of opportunities and expansion in our business.

Reece A. Kurtenbach Chairman of the Board President and Chief Executive Officer

Page | 2 FINANCIAL HIGHLIGHTS

Daktronics is the world’s largest supplier of large screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems, services and products. We excel in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation and video. We design, manufacture, sell and service display systems for customers around the world through five business units: Live Events, Commercial, Schools and Theatres, Transportation and International. Our customers value our products for their customer and fan experience, and the ability to generate revenues and inform their audiences. Our products have been installed in venues from grade school gyms to premier sports facilities, destination sites and in over 100 countries throughout the world. We serve our customers through a network of offices in the United States, Canada, United Kingdom, Germany, France, United Arab Emirates, Australia, China, Hong Kong, Japan, Spain, Singapore, Brazil, Australia, Belgium, Ireland and Macau.

We employ approximately 2,700 full-time and part-time employees. As a manufacturer and technical contractor, Daktronics markets standard display products and customized displays and sound systems. We believe our engineering capabilities are second to none in the industry. We are committed to on-going product development to find new applications for our products and expand the markets we serve. Daktronics stock is traded on The NASDAQ Global Select Market under the symbol DAKT.

(Dollars in thousands, except per share and share price data.)

FY2011 FY2012 FY2013 FY2014 FY2015 Net sales $441,676 $489,526 $518,322 $551,970 $615,942 Gross profit 111,484 113,437 133,894 141,710 144,579 Operating expenses 91,957 103,162 103,294 105,153 113,294 Operating income (loss) 19,527 10,275 30,600 36,557 31,285 Net income (loss) 14,244 8,489 22,779 22,207 20,882 Gross profit percentage 25.2% 23.2% 25.8% 25.7% 23.5% Operating margin percentage 4.4% 2.1% 5.9% 6.6% 5.1% Weighted average shares outstanding 42,277 42,304 42,621 43,762 44,443 Earnings per share (diluted) 0.34 0.20 0.53 0.51 0.47 Cash dividend per share 0.60 0.62 0.73 0.39 0.40

Working capital $128,160 $119,833 $125,456 $140,532 $149,075 Total assets 327,847 315,967 319,418 357,451 379,478 Shareholders' equity 203,102 190,805 188,246 203,119 212,039 Backlog 131,000 123,000 141,000 172,000 190,507

Product design and development $18,949 $23,507 $23,131 $23,375 $24,652 Capital expenditures 9,386 16,524 9,674 13,519 21,837 Depreciation & Amortization 19,641 17,518 15,607 14,501 14,968 Cash flow from operations 41,346 20,038 50,749 36,199 53,168 Regular Dividend per share 0.10 0.22 0.23 0.39 0.40 Special Dividend per share 0.50 0.40 0.50 - -

Employees as of year-end: Full-time 2,141 2,300 2,213 2,278 2,419 Part-time and students 481 519 404 387 363 Stock price during fiscal year: High $ 17.30 $ 11.81 $ 12.40 15.80$ $ 14.47 Low 7.30 7.68 6.39 9.63 10.03 Stock price at fiscal year end 10.72 8.46 9.57 13.06 10.75

Page | 3 SPECIAL NOTE REGARDING FORWARD–LOOKING STATEMENTS

This Annual Report on Form 10-K (including exhibits and any information incorporated by reference herein) (the "Form 10-K") contains both historical and forward-looking statements that involve risks, uncertainties and assumptions. The statements contained in this report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, beliefs, intentions and strategies for the future. These statements appear in a number of places in this Report and include all statements that are not historical statements of fact regarding the intent, belief or current expectations with respect to, among other things: (i.) our competition; (ii.) our financing plans; (iii.) trends affecting our financial condition or results of operations; (iv.) our growth strategy and operating strategy; (v.) the declaration and payment of dividends; (vi.) the timing and magnitude of future contracts; (vii.) parts shortages and lead times; (viii.) fluctuations in margins; (ix.) the seasonality of our business; and (x.) the introduction of new products and technology. The words “may,” “would,” “could,” “should,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plans” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, many of which are beyond our ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors discussed herein, including those discussed in the section of this Form 10-K entitled “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and those factors discussed in detail in our other filings with the Securities and Exchange Commission.

PART I.

Item 1. BUSINESS

Business Overview

Daktronics Inc. (the “Company”, “Daktronics”, “we”, “our”, or “us”) is the world’s leading supplier of electronic scoreboards, large electronic display systems, digital messaging solutions, software and services for sporting, commercial and transportation applications. We serve our customers by providing the highest quality standard display products as well as custom-designed and integrated systems. We offer a complete line of products, from small scoreboards and electronic displays to large multi-million dollar video display systems as well as related control, timing, and sound systems. We are recognized as a technical leader with the capabilities to design, market, manufacture, install and service complete integrated systems displaying real-time data, graphics, animation and video.

We were founded in 1968 by Drs. Aelred Kurtenbach and Duane Sander, professors of electrical engineering at South Dakota State University in Brookings, South Dakota. The Company began with the design and manufacture of electronic voting systems for state legislatures. In 1971, Daktronics developed the patented Matside® wrestling scoreboard, the first product in the Company's growing and evolving line. In 1994, Daktronics became a publicly traded company, offering shares under the symbol DAKT on the NASDAQ National Market system. Today, Daktronics has grown from a small company operating out of a garage to the world leader, offering the most complete product lineup in the display industry.

We have organized our business into five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the type of customer or geography and are the same as our business units. Financial information concerning these segments is set forth in this Form 10-K in "Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Note 2. Segment Reporting to the Consolidated Financial Statements" of the Notes to our Consolidated Financial Statements included in this Form 10-K.

We make significant investments to complement and develop our existing innovative, high quality products. We strive to grow into new geographic markets by strategically adding resources and emerging markets. Two of our targeted acquisitions were in fiscal 2014 and 2015; these acquisitions support our long-term growth objective which is to increase sales and profitability. For more information regarding these acquisitions, see "Note 4. Business Combinations" of the Notes to our Consolidated Financial Statements included in this Form 10-K.

Our annual, quarterly and current reports and any amendments to those reports are filed with the Securities and Exchange Commission (“SEC”) and are available at http://investor.daktronics.com. We post each of these documents on our website as soon as reasonably practicable after it is electronically filed with the SEC. These reports also may be found on the SEC’s website at www.sec.gov. Information contained on our website is not deemed to be incorporated by reference into this Report or filed with the SEC.

Industry Background

Over the years, our products have evolved significantly from scoreboards and matrix displays and related software applications to complex, integrated visual display systems which include full color video, text and graphics displays located on a local or remote network that are Page |4 tied together through sophisticated control systems. In the mid-1990's, as light emitting diodes (“LEDs”) became available in red, blue and green colors with outdoor brightness, we pioneered the development of full color LED video displays capable of replicating trillions of colors, thereby producing large format video systems with excellent color, brightness, energy efficiency and lifetime. Due to our foundation of developing scoring and graphics display systems, we were able to add video capabilities so all of our customers' large format display needs could be met in a complete, integrated system. This has proved to be a key factor in Daktronics becoming a leader in large electronic displays.

Description of Business

We are engaged in a full range of activities: marketing and sales, engineering and product development, manufacturing, technical contracting, professional services and customer service and support. Each of those activities is described below:

Marketing and Sales. Our sales force is comprised of direct sales staff and resellers located throughout the world supporting all customer types in both sales and service. We primarily use a direct sales force for large integrated display systems sales in professional sports, colleges and universities, and commercial spectacular projects. We use our direct sales force to sell third-party advertising and transportation applications. We utilize resellers outside North America for large integrated system sales where we do not have a direct sales presence. The majority of the products sold by resellers in North America are standard catalog products. We support our resellers through direct mail advertising, trade journal advertising, product and installation training, trade show exhibitions and accessibility to our regional sales or service teams.

Engineering and Product Development. The large format electronic display industry is characterized by ongoing product innovations and developments in technology and complementary services. To remain competitive, we have a tradition of applying engineering resources throughout our business to anticipate and respond rapidly to the system needs in the marketplace. We employ engineers and technicians in the areas of mechanical and electrical design; applications engineering; software design; and customer and product support. We assign product managers to each product family to assist our sales staff in training and implementing product improvements which ensures each product is designed for maximum reliability and serviceability.

Manufacturing. A majority of our products are manufactured in South Dakota and Minnesota in the United States. We also have manufacturing facilities in China, Belgium, and Ireland. For more details on our facilities, see "Item 2, Properties."

Our manufacturing is aligned with our business segments and is co-located with product development to accelerate technology improvements and improve our cost structure. We perform component manufacturing and system manufacturing (metal fabrication, electronic assembly, sub-assembly and final assembly) and testing in-house for most of our products to control quality, improve response time and maximize cost-effectiveness. We make our products in focused factories and product cells. We generally align sales, marketing, engineering and manufacturing into a cohesive business unit with a focus on customers. Given the cyclical nature of some parts of our business, we also need to balance and maintain our ability to manufacture the same products across our plants so we can smooth out the customer demand of the various business units. A key strategy of ours is to increase standardization and commonality of parts and manufacturing processes across product lines through product platform strategies.

Our manufacturing facilities have embraced lean manufacturing techniques throughout all areas. We have also placed significant emphasis on lean techniques in the non-manufacturing areas. Our goal is to eliminate waste and timely deliver products to a customer while maintaining minimal inventory and eliminating non-value added tasks.

Technical Contracting. We serve as a technical contractor for larger display system installations requiring custom designs and innovative product solutions. The purchase of display systems typically involves competitive proposals. As part of our response to a proposal request, we may suggest additional products or features to assist the prospective customer in analyzing the optimal type of display system. We usually include in our proposal site preparation and installation services related to the display system. In these cases, we serve as a contractor and may retain subcontractors for electrical, steel and installation labor. We have developed relationships with many subcontractors throughout the United States and the world, which is an advantage for us in bidding and delivering on these projects. We are licensed in a number of jurisdictions as a general contractor.

Professional Services. Our professional services are essential to continued market penetration and growth. Professional services we provide include event support, content creation, product maintenance, marketing assistance, training on hardware and software, control room design, and continuing technical support for operators.

Customer Service and Support. We offer limited warranties on our products, ranging from one to 10 years, against failure due to defective parts or workmanship. In addition, we offer service agreements of various scopes. To serve our customers we provide help-desk access, parts repair and replacement, display monitoring and on-site support. Our technical help desk has experienced technicians who are on- call 24 hours a day to support events and sites. Our field service personnel and third-party service partners are trained to provide on-site support. We use third-party service partners to allow us to respond to changes in volume of service during our seasonal peaks. Page |5 Products and Technologies

The two principal components of our systems are the display and the controller, which manages the operation of the display. We produce displays varying in complexity, size and resolution. The physical dimensions of a display depend on the size of the viewing area, the distance from the viewer to the display, and the amount and type of information to be displayed. The controller uses computer hardware and software products to compile information provided by the operator and other integrated sources to process information, graphics or animation on the displays. We customize our products according to the design specifications of the customer and the conditions of the environment in which our products function.

Our products are comprised of the following product families, all of which include control systems and software:

• Video displays • Scoreboards and timing systems • Message displays • ITS (intelligent transportation systems) dynamic message signs • Space availability displays • Audio systems • Advertising displays • Digit and price displays

Each of these product families is described below:

Video Displays. These displays are comprised of a large number of full-color pixels capable of showing various levels of video, graphics and animation plus controllers. These displays include red, green and blue LEDs arranged in various combinations to form pixels. The electronic circuitry which controls the pixels allows for variances in the relative brightness of each LED to provide a full color spectrum, thereby displaying video images in striking, vibrant colors. Variables in video displays include the spacing of the pixels (pixel pitch), the resolution of the displays (number of pixels), the brightness of the displays (nits), the number of discrete colors the display is able to produce (color depth), the viewing angles, and the LED mount technology (surface mount vs. through hole).

Our LED ribbon board displays are ultra-slim, customizable displays that accommodate curved and 360° installations. These displays are used for end zones, sidelines, encircling a stadium, outfields, concourses, stadium exterior or other linear applications. For new construction projects, our ProRail® attachment system is combined with ribbon board technology to provide improved sight lines for fans. Digital ribbon boards generally serve as a revenue generation source for teams and facilities through advertising, as well as another location to display information such as scoring and statistics.

Our mobile and modular display systems are transportable and are comprised of lightweight individual LED video panels less than a square meter in size and are assembled together to form a display in a customizable size. These displays are used for touring shows and the events market.

We integrate our display technology with architectural mesh to deliver a dynamic communication medium that provides a semi-transparent viewing experience within a building. These displays can be mounted over a solid facade or in front of windows resulting in a finished solution that is free from visible cabling, and deliver a clean, semi-transparent view. These are less than one inch in depth and provide an elegant, refined structural appearance.

Our line of Freeform LED displays are architectural lighting and display products. The ProPixel® freeform products use mountable LED elements to transform ordinary structures into stunning visual landmarks. A flexible mounting platform allows designers to transform any structure into a full-motion video display.

The control components for video displays in live event applications are our Show Control Software Suite, proprietary digital media players and video processors. These control components provide advanced capabilities for the display of live video and real time content on our displays. The Show Control Software Suite can operate entire networks of displays from a single, intuitive control interface. Features allow users to instantly deliver media clips, camera feeds, and streaming information to any display in a network.

Scoreboards and Timing Systems. Our line of scoreboards and timing products include indoor and outdoor scoreboards for many different sports, digit displays, scoring and timing controllers, statistics software and other related products. Indoor and outdoor systems range in complexity from small scoreboards to larger systems incorporating scoring, timing, video, message centers, advertising panels and control software.

Page |6 We offer a variety of controllers complementing our scoreboards and displays. These controllers vary in complexity from the All Sport® 100, a handheld controller for portable scoreboards, to the All Sport® 5000, designed for more sophisticated scoring systems and allowing for more user-defined options.

We also offer timing systems for sports events, primarily aquatics and track competitions. A component of these systems is our OmniSport® 2000 timing console. The system has the capability to time and rank the competitors and to interface with event management software to facilitate the sporting event. Other timing system components include swimming touchpads, race start systems, and relay take-off platforms.

As a key component of an integrated system, we market sports statistics and results software under the DakStats® trademark. The software allows the entry and display of sports statistics and other information. It is one of the leading applications of its type in collegiate and high school sports.

Message Displays. The key product lines in this group are the Galaxy® and GalaxyPro® and are generally controlled with our Venus® 1500 display controller.

Galaxy® full-matrix displays, available in both indoor and outdoor models, are our leading product line for commercial applications. Galaxy® displays are full color, monochrome, or tri-color, with varying pixel spacing depending on color, size and viewing distance. They are used primarily as message centers to convey information and advertising to consumers.

GalaxyPro® displays are full-matrix outdoor displays capable of displaying text, graphics and animation, as well as prerecorded video clips. The product was developed to meet the video needs of the commercial market, primarily large retail market applications such as auto dealerships and shopping centers. GalaxyPro® displays have varying pixel spacing and are capable of producing 68 billion colors.

The Venus® 1500 display control software is used to control the creation of messages and graphic sequences for downloading to the Galaxy® and GalaxyPro® displays. This software is designed to be user friendly and applicable to all general advertising or message applications. We also provide software kits, allowing system integrators to write their own software using the Venus® 1500 to communicate to the displays.

ITS Dynamic Message Signs (DMS). DMS products include a wide range of LED displays for road management, mass transit and aviation applications. The Vanguard® family of dynamic message displays is typically used to direct traffic and inform motorists. These displays are used over freeways, on arterial roads, near bridges, at toll booths and in other locations. We have also developed a control system for these displays to help transportation agencies manage large networks of displays.

Space Availability Displays. This product line is our digit and directional displays, which are primarily marketed and sold for use in parking facilities. They include multi-line displays delivered in vertical cabinets or drop-in digit panels designed to be mounted in existing structures or signs.

Audio Systems. Our audio systems include both standard and custom options. Standard audio systems are designed to meet the needs of a variety of outdoor sports venues based on the size and configuration of the facility. Custom indoor and outdoor systems are for larger venues and venues with unique seating configurations. Our sound systems are often integrated into an overall venue solution for scoring, timing, message display and/or video capability.

Advertising Displays. Our line of advertising displays includes billboards and street furniture displays.

Our line of static and digital billboards offers a unique display solution for the Out-of-Home (“OOH”) advertising industry. The products are used to display static images which change at regular intervals. These systems include many features unique to the outdoor advertising market, such as our patented mounting system, self-adjusting brightness, improved energy consumption, and enhanced network security.

The Visiconn® system is the software application for controlling content and playback loops for digital billboard applications. This system can transform any Internet-ready computer into a secure, global control center for multiple LED displays, flat panel monitors and other display technologies.

Our line of street furniture engages people with advertising content at eye level as they walk through campuses, cityscapes, and outlet malls. This design enhances the message and complements surrounding architecture. These advertising light boxes are our most flexible solution for static, scrolling and digital OOH campaigns.

Digit and Price Displays. The product line includes our DataTime® and Fuelight™ displays. The DataTime® product line consists of outdoor time and temperature displays which use a remote sensor for temperature data. Fuelight™ digit displays are specifically designed for the petroleum industry, offering high visibility and quick fuel price updates using the Fuelink™ control software. Page |7 Raw Materials

Materials used in the production of our video display system are sourced from around the world. We source some of our materials from a limited number of suppliers due to the proprietary nature of the material. The loss of a key supplier or a defect in the supplied material could have an adverse impact on our business and operations. Our sourcing group works to implement strategies to mitigate these risks. Periodically, we enter into pricing agreements or purchasing contracts under which we agree to purchase a minimum amount of product in exchange for guaranteed price terms over the length of the contract, which generally does not exceed one year.

Intellectual Property

We own or hold licenses to use numerous patents, copyrights, and trademarks on a global basis. Our policy is to protect our competitive position by filing U.S. and international patent applications to protect technology and improvements that we consider important to the development of our business. This will allow us to pursue infringement claims against competitors for protection due to patent violations. We also rely on nondisclosure agreements with our employees and agents to protect our intellectual property. Despite these intellectual property protections, there can be no assurance a competitor will not copy the functions or features of our products.

Seasonality

Our net sales and profitability historically have fluctuated due to the impact of large project orders, such as display systems for professional sports facilities, colleges and universities, and spectacular projects in the commercial area, as well as the seasonality of the sports market. Large project orders can include a number of displays, controllers, and subcontracted structure builds, each of which can occur on varied schedules according to the customer's needs. Net sales and gross profit percentages also have fluctuated due to other seasonal factors, including the impact of holidays, which primarily affects our third quarter.

Our gross margins on large custom and large standard orders tend to fluctuate more than on small standard orders. Large product orders involving competitive bidding and substantial subcontract work for product installation generally have lower gross margins. Although we follow the percentage of completion method of recognizing revenues for large custom orders, we nevertheless have experienced fluctuations in operating results and expect our future results of operations will be subject to similar fluctuations.

Working Capital

For information regarding working capital items, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources” in Part II, Item 7 of this Form 10-K.

Customers

We have a large and diverse worldwide customer base, ranging from local main street business owners to the owners and operators of premier professional sports arenas. Our customers are important to us, and we strive to serve them over the long-term to earn their future business. The loss of one or more customers could have an adverse effect on us. While we are not economically dependent on any single customer, within our Commercial business unit, two major customers account for more than 50 percent of sales in our digital billboard niche. See "Note 2. Segment Reporting" of the Notes to our Consolidated Financial Statements included in this Form 10-K for our primary markets and customers of each business unit.

Backlog

Our backlog consists of contractually obligating sales agreements or purchase orders we expect to fill within the next 24 months. Orders are booked and included in backlog only upon receipt of an executed contract and any required deposits. Because order backlog may be subject to extended delivery schedules, orders may be canceled, and orders have varied estimated profitability, our backlog is not necessarily indicative of future net sales or net income. Backlog can fluctuate due to large order booking timing and seasonality. Backlog is not a measure defined by U.S. generally accepted accounting principles, and our methodology for determining backlog may vary from the methodology used by other companies in determining their backlog amounts.

Government and Other Regulation

In the United States and other countries, various laws, regulations and ordinances restrict the installation of outdoor signs and displays, particularly in the commercial market. These laws and regulations impose greater restrictions on electronic displays versus non-electronic displays due to alleged concerns over aesthetics or driver safety. These factors may prevent or inhibit us from selling products to some prospective customers.

Page |8 Our manufacturing facilities and products comply with industry specific requirements, including United States environmental rules and regulations and safety standards. The safety standards are developed by the Underwriters Laboratories in the United States. We comply with these standards as well as similar standards in other countries. These requirements include quality, manufacturing process controls, manufacturing documentation and supplier certification of raw materials. Our products and production processes require the storage, use and disposal of a variety of hazardous chemicals under applicable laws. We believe we are in material compliance with these requirements.

Our supply chain and sales distribution channels subject us to various trade compliance regulations. We have developed and implemented trade compliance procedures to assure that we adhere to these regulations.

Competition

We encounter a wide variety of competitors that vary by product, geographic area, and business unit. Our competitors are both U.S. and foreign companies and range in size and product offerings. Some of our competitors compete in some markets by providing lower-cost display systems, which are of a lesser quality with lower product performance or less customer support. Other competitors use sponsorships as a means to win the business at a location.

We believe that our ability to compete depends upon product quality and features, technical expertise, offering a broad range of services, and providing cost-effective solutions to our customers.

Research and Development

We believe our engineering and product development capability and experience are very important factors to continue to develop the most up-to-date digital displays and control system solutions desired by the market.

Employees

As of May 2, 2015, we employed approximately 2,420 full-time employees and approximately 330 part-time and temporary employees. Of these employees, approximately 1,040 were in manufacturing, 560 were in sales and marketing, 520 were in customer service, 380 were in engineering and 250 were in general and administrative. None of our employees are represented by a collective bargaining agreement. We believe employee relations are good.

Item 1A. RISK FACTORS

The factors that are discussed below, as well as the matters that are generally set forth in this Form 10-K and the documents incorporated by reference herein, could materially and adversely affect the Company’s business, results of operations and financial condition.

We operate in highly competitive markets and face significant competition and pricing pressure. If we are unable to keep up with the rapidly changing product market or compete effectively, we could lose market share, and our results of operations could be negatively impacted.

The electronic display industry is characterized by ongoing product improvement, innovations and development. We compete against products produced in foreign countries and the U.S. In addition, our products also compete with other forms of advertising, such as television, print media and fixed display signs. Our competitors may develop cheaper, more efficient products, or they may be willing to charge lower prices to increase their market share. Some competitors have more capital and other resources, which may allow them to take advantage of acquisition opportunities or adapt more quickly to changes in customer requirements. To remain competitive, we must anticipate and respond quickly to our customers’ needs, enhance our existing products, introduce new products and features, and continue to price our products competitively.

Our quarterly results of operations can be substantially affected by whether we are awarded large contracts and the size and timing of large contracts.

Our quarterly revenues and earnings have varied in the past and are likely to vary in the future. When awarded large contracts, primarily in the college and professional sports facilities market, the OOH niche, and the large spectacular niche, the timing and amount could cause material fluctuations in our net sales and earnings. Awards of large contracts and their timing and amount are difficult to predict, may not be repeatable, and are outside of our control. Operating results in one quarter may not be indicative of future operating results. Some factors that may cause our operating results to vary include:

• new product introductions; • variations in product and product mix; and Page |9 • delays or cancellations of orders.

Unanticipated warranty and other costs for defective products could adversely affect our financial condition and results of operations and reputation.

We provide warranties on our products with terms varying from one to 10 years. In addition, we offer extended warranties. These warranties require us to repair or replace faulty products and meet certain performance standards, among other customary warranty provisions. Although we continually monitor our warranty claims and provide a reserve for estimated warranty costs, an unanticipated claim could have a material adverse impact on our financial results. In some cases, we may be able to subrogate a claim back to a subcontractor or supplier if the subcontractor or supplier supplied the defective product or performed the service, but this may not always be possible. In addition, the need to repair or replace products with design and manufacturing defects could adversely affect our reputation.

We enter into fixed-priced contracts on a regular basis, which could reduce our profits.

As part of our strategy, we enter into capped or fixed-price contracts. Because of the complexity of many of our client contracts, accurately estimating the cost, scope and duration of a particular contract can be a difficult task. If our actual costs exceed original estimates on fixed-price contracts, our profits will be reduced. Because of the large scale, customer timelines, seasonality of our business or long duration of some contracts, unanticipated cost increases may occur as a result of several factors including, but not limited to: increases in the cost or shortages of materials or labor; unanticipated technical problems; required project modifications not initiated by the customer; suppliers’ or subcontractors’ failure to perform or delay in performing their obligations; and additional costs due to capacity constraints. In addition to increased costs, these factors could delay delivery of products which may result in the assessment of liquidated damages. Unanticipated costs that we are unable to pass on to our customers or our payment of liquidated damages under fixed contracts would negatively impact our profits.

Backlog may not be indicative of future revenue or profitability.

Many of our products have long sales, delivery and acceptance cycles. In addition, our backlog is subject to order cancellations and delays. Orders normally contain cancellation provisions to permit our recovery of costs expended and a pro-rata portion of the profit. If projects are delayed, revenue recognition can occur over longer periods of time, and projects may remain in the backlog for extended periods of time. If we receive relatively large orders in any given quarter, fluctuations in the levels of the quarterly backlog can result because the backlog may reach levels which may not be sustained in subsequent quarters.

Unanticipated events resulting in credit losses could have a material adverse impact on our financial results.

Significant portions of our sales are to customers who place large orders for custom products. We closely monitor the credit worthiness of our customers and have not, to date, experienced significant credit losses. We mitigate our exposure to credit risk, to some extent, by requiring deposits, payments prior to shipment, progress payments and letters of credit. However, because some of our exposure to credit losses is outside of our control, unanticipated events resulting in credit losses could have a material adverse impact on our operating results.

We depend on a single-source or a limited number of suppliers for our raw materials and components, and the loss of any of these suppliers or an increase in cost of raw materials could harm our business.

We obtain some of our raw materials from one or limited number of suppliers. If we cannot obtain key raw materials from our suppliers, the raw materials may not be readily available from other suppliers, other suppliers may not agree to supply the materials to us on terms as favorable as the terms we currently receive, or the raw materials from any other suppliers may not be of adequate and consistent quality. Although we believe our supply of raw materials is adequate for the needs of our business, we cannot assure that new sources of supply will be available when needed. Any interruption in our supply of raw materials could affect our ability to manufacture our products until a new source of supply is located and; therefore, could have a material adverse effect on our business, financial condition or results of operations.

In addition, we purchase various raw materials and components in order to manufacture our products. Historically, fluctuations in the prices of these raw materials and components have not had a material impact on our business. In the future, however, if we experience increases in the price of raw materials and components and are unable to pass on those increases to our customers, it could negatively affect our business, financial condition or results of operations.

Our international operations are exposed to additional risks and uncertainties, including unfavorable political developments, weak foreign economies, and compliance with foreign governmental requirements, which may impact our results of operations.

Page |10 For the 2015, 2014, and 2013 fiscal years, revenue outside the United States represented approximately 19.7%, 17.8%, and 17.0% of our consolidated net sales, respectively. Our operations and earnings throughout the world have been and may in the future be adversely affected by changes in trade, monetary and fiscal policies, laws and regulations, or other activities of U.S. and foreign governments, agencies, and similar organizations. These conditions include, but are not limited to, changes in a country's or region's economic or political conditions; trade regulations affecting production, pricing and marketing of products; local labor conditions and regulations; reduced protection of intellectual property rights in some countries; changes in the regulatory or legal environment; restrictions and fluctuations on currency exchange activities; and burdensome taxes and tariffs and other trade barriers. International risks and uncertainties also include changing social and economic conditions, terrorism, political hostilities and war, difficultly in enforcing agreements or collecting receivables and increased transportation and other shipping costs. The likelihood of such occurrences and their overall effect on us vary greatly from country to country and are not predictable. These factors may result in a decline in net sales or profitability and could adversely affect our ability to expand our business outside of the United States.

Our future results may be affected by legal compliance risks related to the U.S. Foreign Corrupt Practices Act and other anti- bribery and anti-corruption laws for the countries in which we operate.

We are required to comply with the U.S. Foreign Corrupt Practices Act, which prohibits United States companies from engaging in bribery or making other prohibited payments to foreign officials for the purpose of obtaining or retaining business. It also requires us to maintain specific record-keeping standards and adequate internal accounting controls. In addition, we are subject to similar requirements in other countries. Bribery, corruption, and trade laws and regulations, and the enforcement thereof, are increasing in frequency, complexity and severity on a global basis. Although we have internal policies and procedures with the intention of assuring compliance with these laws and regulations, our employees, contractors, agents and licensees involved in our international sales may take actions in violations of such policies. If our internal controls and compliance program do not adequately prevent or deter our employees, agents, distributors, suppliers and other third parties with whom we do business from violating anti-bribery, anti-corruption or similar laws and regulations, we may incur severe fines, penalties and reputational damage.

We may fail to continue to attract, develop and retain key management personnel, which could negatively impact our operating results.

We depend on the performance of our senior executives and key employees, including experienced and skilled technical personnel. The loss of any of our senior executives could negatively impact our operating results and ability to execute our business strategy. Our future success will also depend upon our ability to attract, train, motivate and retain qualified personnel.

We may not be able to utilize our capacity efficiently or accurately plan our capacity requirements, which may negatively affect our business and operating results.

We increase our production capacity and the overhead supporting production based on anticipated market demand. Market demand, however, has not always developed as expected or remained at a consistent level. This underutilization risk can potentially decrease our profitability and impairment of certain assets.

The following factors are among those that could complicate capacity planning for market demand:

• changes in the demand for and mix of products that our customers buy; • our ability to add and train our manufacturing staff in advance of demand; • the market’s pace of technological change; • variability in our manufacturing productivity; and • long lead times for our plant and equipment expenditures.

We have been required to conduct a good faith reasonable country of origin analysis on our use of “conflict minerals,” which has imposed and may impose additional costs on us and could raise reputational challenges and other risks.

The SEC has promulgated final rules in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding disclosure of the use of certain minerals, known as conflict minerals, mined from the Democratic Republic of the Congo and adjoining countries. As required, we filed Forms SD in May 2014 and May 2015 reporting on the source of conflict minerals we use, and we will be required to file a Form SD annually. We incurred costs associated with complying with these disclosure requirements. As we continue our due diligence, we may face reputational challenges if we are unable to verify the origins for all conflict minerals used in our products. We may also encounter challenges in our efforts to satisfy customers that may require all of the components of products purchased to be certified as conflict free. If we are not able to meet customer requirements, customers may choose to disqualify us as a supplier.

Our actual results could differ from the estimates and assumptions used to prepare our financial statements, which could have a material impact on our financial condition and results of operations. Page |11 Our management is required under U.S. generally accepted accounting principles ("GAAP") to make estimates and assumptions as of the dates of the financial statements. These estimates and assumptions affect the recognition of contract revenue, costs, profits or losses in applying the principles of percentage of completion; estimated amounts for warranty costs, the collectability of billed and unbilled accounts receivable and the amount of any allowance for doubtful accounts; the amount of estimated liabilities; the valuation of assets acquired plus liabilities, goodwill, and intangible assets assumed in acquisitions; and the valuation of stock-based compensation.

If our internal control over financial reporting is found to be inadequate, our financial results may not be accurate, raising concerns for investors and potentially adversely affecting our stock price.

Under Section 404 of the Sarbanes-Oxley Act of 2002, we are required to evaluate and determine the effectiveness of our internal controls over financial reporting. We have made, and will continue to make, changes to our internal controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a public company. We may encounter problems or delays in completing the review and evaluation, implementing improvements, or receiving a positive attestation from our independent registered public accounting firm. In addition, our assessment of internal controls may identify deficiencies in our internal controls over financial reporting or other matters which may raise concerns for investors and therefore adversely affect our stock price.

If goodwill or other intangible assets in connection with our acquisitions become impaired, we could take significant non-cash charges against earnings.

We have pursued and will continue to seek potential acquisitions to complement and expand our existing businesses, increase our revenues and profitability, and expand our markets. As a result of prior acquisitions, we have goodwill and intangible assets recorded on our balance sheet as described in "Note 6. Long-Lived Assets" of the Notes to our Consolidated Financial Statements included in this Form 10-K. Under current accounting guidelines, we must assess, at least annually, whether the value of goodwill and other intangible assets has been impaired. Any reduction or impairment of the value of goodwill or other intangible assets will result in additional charges against earnings, which could adversely affect our results of operations in future periods.

Acquisitions and divestitures pose financial, management and other risks and challenges.

We routinely explore acquiring other businesses and assets. Periodically, we may also consider disposing of certain assets, subsidiaries, or lines of business. Acquisitions or divestitures present financial, managerial and operational challenges. These include, but are not limited to, the following:

• diversion of management attention; • difficulty with integrating acquired businesses; • difficulty with the integration of different corporate cultures; • personnel issues; • increased expenses; • assumption of unknown liabilities and indemnification obligations; • potential disputes with the buyers or sellers; • the time involved in evaluating or modifying the financial systems of an acquired business; and • establishment of internal controls.

There can be no assurance that we will engage in any acquisitions or divestitures or that we will be able to do so on terms that will result in any expected benefits.

The terms and conditions of our credit facility impose restrictions on our operations, and if we default on our credit facility, it could have a material adverse effect on our results of operations and financial condition and make us vulnerable to adverse economic or industry conditions.

The terms and conditions of our credit facilities impose restrictions limiting our ability to incur debt, merge, sell assets, make distributions (including cash dividends) and create or incur liens. The availability of credit facilities is also subject to certain covenants as explained in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations.” A breach of any of these covenants could result in an event of default under our credit facility. Upon the occurrence of an event of default, the lender could elect to declare any and all amounts outstanding under such facility to be immediately due and payable and terminate all commitments to extend further credit.

In addition, it is anticipated that borrowings from our existing credit facilities and cash provided by operating activities should provide sufficient funds to finance our capital expenditures, working capital and otherwise meet operating expenses and debt service requirements. However, if additional capital is required, there can be no assurance we will be able to obtain such capital when needed Page |12 or on satisfactory terms. Also, market conditions can negatively impact our clients' ability to fund their projects and can impact our vendors, suppliers, and subcontractors and may not allow them to perform their obligations to us.

If we became unable to obtain adequate surety bonding or letters of credit, it could adversely affect our ability to bid on new work, which could have a material adverse effect on our future revenue and business prospects.

In line with industry practice, we are often required to provide performance and surety bonds to customers and may be required to provide letters of credit. These bonds and letters of credit provide credit support for the client if we fail to perform our obligations under the contract. If security is required for a particular project and we are unable to obtain a bond or letter of credit on terms acceptable to us, we may not be able to pursue that project. In addition, bonding may be more difficult to obtain in the future or may only be available at significant additional cost as a result of general conditions that affect the insurance and bonding markets.

We may be unable to protect our intellectual property rights effectively, or we may infringe upon the intellectual property of others, either of which may have a material adverse effect on our operating results and financial condition.

We rely on a variety of intellectual property rights we use in our products and services. We may not be able to successfully preserve our intellectual property rights in the future, and these rights could be invalidated, circumvented or challenged. In particular, the laws of certain countries in which our products are sold do not protect our products and intellectual property rights to the same extent as the laws of the United States. If litigation is necessary in the future to enforce our intellectual property rights, to protect our trade secrets or to determine the validity and scope of the proprietary rights of others, such litigation could result in substantial costs and diversion of resources.

In addition, intellectual property of others also has an impact on our ability to offer some of our products and services for specific uses or at competitive prices. Competitor's patents or other intellectual property may limit our ability to offer products or services to our customers. Any infringement or claimed infringement of the intellectual property rights of others could result in litigation and adversely affect our ability to continue to provide, or could increase the cost of providing, products and services.

The outcome of pending and future claims or litigation can have a material adverse impact on our business, financial condition, and results of operations.

We can be a party to litigation in the normal course of business. Litigation and regulatory proceedings are subject to inherent uncertainties, and unfavorable rulings can and do occur. Pending or future claims against us could result in professional liability, product liability, criminal liability, warranty obligations or other liabilities to the extent we are not insured against a loss or our insurance fails to provide adequate coverage. Also, a well-publicized actual or perceived problem could adversely affect our reputation and reduce the demand for our products.

Our data systems could fail or their security could be compromised.

Any failure of our data systems, or any breach of our systems’ security measures, could adversely affect our operations, at least until our data can be restored and/or the breaches remediated.

The protections we have adopted and to which we are subject may discourage takeover offers favored by our shareholders.

Our articles of incorporation, by-laws and other corporate governance documents and the South Dakota Business Corporation Act (SD Act) contain provisions that could have an anti-takeover effect and discourage, delay or prevent a change in control or an acquisition that many shareholders may find attractive. These provisions make it more difficult for our shareholders to take some corporate actions. These provisions relate to:

• the ability of our Board of Directors to issue undesignated shares on terms and with the rights, preferences and designations determined by the Board without shareholder action; • the classification of our Board of Directors, which effectively prevents shareholders from electing a majority of the directors at any one meeting of shareholders; • the adoption of a shareholder rights plan providing for the exercise of common stock purchase rights when a person becomes the beneficial owner of 15 percent or more of our outstanding common stock (subject to certain exceptions); • under the SD Act, limitations on the voting rights of shares acquired in specified types of acquisitions and restrictions on specified types of business combinations; and • under the SD Act, prohibitions against engaging in a “business combination” with an “interested shareholder” for a period of four years after the date of the transaction in which the person became an interested shareholder unless the business combination is approved.

Page |13 These provisions may deny shareholders the receipt of a premium on their common stock, which in turn may have a depressive effect on the market price of our common stock.

Our common stock has at times been thinly traded, which may result in low liquidity and price volatility.

The daily trading volume of our common stock has at times been relatively low. If this were to occur in the future, the liquidity and appreciation of our common stock may not meet our shareholders’ expectations, and the prices at which our stock trades may be volatile. The market price of our common stock could be adversely impacted as a result of sales by existing shareholders of a large number of shares of common stock in the market or by the perception such sales could cause.

Significant changes in the market price of our common stock could result in securities litigation claims against us.

The market price of our common stock has fluctuated and will likely continue to fluctuate, and in the past, companies that have experienced significant changes in the market price of their stock have been subject to securities litigation claims. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our management’s attention from other business concerns, which could harm our business.

Our executive officers, directors and principal shareholders have the ability to significantly influence all matters submitted to our shareholders for approval.

Dr. Aelred Kurtenbach served as our Chairman of the Board until September 3, 2014, when he retired. Mr. Reece Kurtenbach, Dr. Aelred Kurtenbach's son, serves as our Chairman and Chief Executive Officer. In addition, Dr. Aelred Kurtenbach has two other children who serve as our Vice President of Human Resources and as our Vice President of Manufacturing. Together, these individuals, in the aggregate, beneficially owned 8.6 percent of our outstanding common stock as of June 15, 2015, assuming the exercise by them of all of their options that were currently exercisable or that vest within 60 days of June 15, 2015. In addition, our other executive officers and directors, in the aggregate, beneficially owned an additional 4.9 percent of our outstanding common stock as of June 15, 2015, assuming the exercise by them of all of their options currently exercisable or that vest within 60 days of June 15, 2015. While this does not represent a majority of our outstanding common stock, if these shareholders were to choose to act together, they would be able to significantly influence all matters submitted to our shareholders for approval, as well as our management and affairs. For example, these persons, if they choose to act together, could significantly influence the election of directors and approval of any merger, consolidation, sale of all or substantially all of our assets or other business combination or reorganization. This concentration of voting power could delay or prevent an acquisition of us on terms that other shareholders may desire. The interests of this group of shareholders may not always coincide with the interests of other shareholders, and they may act in a manner that advances their best interests and not necessarily those of other shareholders, including seeking a premium value for their common stock, and might affect the prevailing market price for our common stock.

Unexpected events, including natural disasters, may increase our cost of doing business or disrupt our operations.

The occurrence of one or more unexpected events, including war, terrorist acts, fires, tornadoes, floods and severe weather in the United States or in other countries in which we operate may disrupt our operations as well as the operations of our customers. Such acts could create additional uncertainties, forcing customers to reduce, delay, or cancel already planned projects. These events could result in damage to, and a complete or partial closure of, one or more of our manufacturing facilities, which could make it difficult to supply our customers with product and provide our employees with work thereby adversely affecting our business, operating results or financial condition.

Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 2. PROPERTIES

Our principal real estate properties are located in areas we deem necessary to meet sales, service and operating requirements. We consider all of our properties to be both suitable and adequate to meet our requirements for the foreseeable future. A description of our principal facilities is set forth below:

Page |14 Owned or Square Facilities Leased Footage Facility Activities Brookings, SD Owned 773,000 Corporate Office, Manufacturing, Sales, Service Redwood Falls, MN Owned 120,000 Manufacturing, Sales, Service, Office Rupelmonde, Belgium Owned 40,000 Manufacturing, Sales, Service, Office Ennistymon, Ireland Owned 44,000 Manufacturing, Sales, Service, Office Sioux Falls, SD Leased 145,000 Manufacturing, Sales, Service, Office Shanghai, China Leased 90,500 Manufacturing, Sales, Service, Office

The remaining sales and service offices located throughout the United States, Canada, Europe, South America, and the Asia-Pacific regions are small offices, generally consisting of less than 10,000 square feet leased under operating leases. These lease obligations expire on various dates, with the longest commitment extending to fiscal 2019. We believe all of our leases will be renewable at market terms, at our discretion or that suitable alternative space will be available to lease under similar terms and conditions. See "Note 17. Commitments and Contingencies" of the Notes to our Consolidated Financial Statements included in the Form 10-K for further information on lease obligations.

Item 3. LEGAL PROCEEDINGS

We are involved in a variety of legal actions relating to various matters during the normal course of business. Although we are unable to predict the ultimate outcome of these legal actions, it is the opinion of management that the disposition of these matters, taken as a whole, will not have a material adverse effect on our financial condition or results of operations.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Page |15 PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is quoted on The NASDAQ Global Select Market under the symbol “DAKT.” As of June 15, 2015, we had 1,164 shareholders of record. Following are the high and low sales prices for our common stock for each quarter within the last two fiscal years. Fiscal Year 2015 Fiscal Year 2014 Sales Price Cash Sales Price Cash Dividends Dividends High Low Declared High Low Declared 1st Quarter $ 14.47 $ 11.05 $ 0.10 $ 11.49 $ 9.63 $ 0.12 2nd Quarter 13.68 11.02 0.10 12.35 10.45 0.09 3rd Quarter 13.87 11.48 0.10 15.80 11.73 0.09 4th Quarter 13.05 10.03 0.10 14.63 13.06 0.09

On May 29, 2015, our Board of Directors declared a quarterly dividend payment of $0.10 per share payable on June 23, 2015 to holders of record of our common stock on June 12, 2015.

Although we expect to continue to pay dividends for the foreseeable future, any and all subsequent dividends will be reviewed regularly and declared by the Board at its discretion. In addition, our credit facility imposes limitations on our ability to pay dividends as further described in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Performance Graph

The following graph shows changes during the period from May 1, 2010 to May 2, 2015 in the value of $100 invested in: (1) our common stock; (2) The NASDAQ Composite; and (3) the Standard and Poor's 600 Index for Electronic Equipment Manufacturers. The values of each investment as of the dates indicated are based on share prices plus any cash dividends, with the dividends reinvested on the date they were paid. The calculations exclude trading commissions and taxes.

Page |16 Item 6. SELECTED FINANCIAL DATA (in thousands, except per share data)

The table below provides selected historical financial data, which should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and the Notes to the Consolidated Financial Statements, which are included in Items 7 and 8 of this Annual Report on Form 10-K. The statement of operations data for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013 and the balance sheet data at May 2, 2015 and April 26, 2014 are derived from, and are qualified by reference to, the audited Consolidated Financial Statements included elsewhere in this Form 10-K. The statement of operations data for the fiscal years ended April 28, 2012 and April 30, 2011 and the balance sheet data at April 27, 2013, April 28, 2012 and April 30, 2011 are derived from audited financial statements that are not included in this Form 10-K.

2015 2014 2013 2012 2011 Statement of Operations Data: Net sales $ 615,942 $ 551,970 $ 518,322 $ 489,526 $ 441,676 Gross profit 144,579 141,710 133,894 113,437 111,484 Gross profit margin 23.5% 25.7% 25.8% 23.2% 25.2% Operating income 31,285 36,557 30,600 10,275 19,527 Operating margin 5.1% 6.6% 5.9% 2.1% 4.4% Net income 20,882 22,206 22,779 8,489 14,244 Diluted earnings per share 0.47 0.51 0.53 0.20 0.34 Weighted average diluted shares outstanding 44,443 43,762 42,621 42,304 42,277 Balance Sheet Data: Working capital $ 149,075 $ 140,532 $ 125,456 $ 119,833 $ 128,160 Total assets 379,479 357,451 319,418 315,967 327,847 Total long-term liabilities 25,420 20,624 16,480 15,989 15,083 Total shareholders' equity 212,039 203,119 188,246 190,805 203,102 Cash dividends per share 0.40 0.39 0.73 0.62 0.60

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides our highlights and commentary related to factors impacting our financial conditions and further describes the results of operations. The most significant risks and uncertainties are discussed in "Item 1A. Risk Factors."

This discussion should be read in conjunction with the accompanying Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Form 10-K.

EXECUTIVE OVERVIEW

Our mission is to be the world leader at informing and entertaining audiences through dynamic audio-visual communication systems. We measure our success through estimated market share based on estimated market demand for digital displays and profitability over the long-term. Our success is contingent on the depth and quality of our products, including related control systems, the depth of our service offerings and our technology serving these market demands. These qualities are important for our long-term success because our products have finite lifetimes and we strive to win replacement business from existing customers.

The global market place and adoption of digital solutions has expanded over the years. As the market matures, product pricing has been a barrier to entry for more participants in the market. The marketplace continues to expand the use of digital technology in a wide variety of applications. With this positive demand, strong competition exists across all of our business units, which causes margin constraints. Projects with revenues exceeding $1.0 million also attract competition, which generally reduces profitability. In addition, as a result of the lower sales prices, we must sell more products to generate the same or greater level of net sales in future years.

We organize around customer segments and geographic regions as further described in "Note 2. Segment Reporting" of the Notes to our Consolidated Financial Statements included in this Form 10-K. Each of our business units is impacted by adverse economic conditions in different ways and to different degrees. Each business unit also has unique key growth drivers and challenges, as described below.

Page |17 Commercial Business Unit: Over the long-term, we believe growth in the Commercial business unit will result from a number of factors, including:

• Standard display product market growth due to market adoption and lower product costs, which drive marketplace expansion. Standard display products are used to attract or communicate with customers and potential customers of retail, commercial, and other establishments. Pricing and economic conditions impact our success in this business unit. We utilize a reseller network to distribute our standard products. • National accounts standard display market opportunities due to their desire to communicate their message, advertising and content consistently across the country. Increased demand is possible from retailers, quick serve restaurants, petroleum businesses, and other nationwide organizations. • Increasing interest in spectaculars, which include very large and sometimes highly customized displays as part of entertainment venues such as casinos, amusement parks and Times Square type locations. • The introduction of architectural lighting products for commercial buildings, which real estate owners use to add accents or effects to an entire side or circumference of a building to communicate messages or to decorate the building. • The continued deployment of digital billboards as out-of-home ("OOH") companies continue developing new sites and start to replace digital billboards which are reaching end of life. This is dependent on there being no adverse changes in the digital billboard regulatory environment, which could restrict future deployments of billboards, as well as maintaining our current market share of the business concentrated in a few large OOH companies. • Replacement cycles within each of these areas.

Live Events Business Unit: Over the long-term, we believe growth in the Live Events business unit will result from a number of factors, including:

• Facilities spending more on larger display systems to enhance the game-day and event experience for attendees. • Lower product costs, driving an expansion of the marketplace. • Our product and service offerings, which remain the most integrated and comprehensive offerings in the industry. • The competitive nature of sports teams, which strive to out-perform their competitors with display systems. • The desire for high-definition video displays, which typically drives larger displays or higher resolution displays, both of which increase the average transaction size. • Replacement cycles within each of these areas.

High School Park and Recreation Business Unit: Over the long-term, we believe growth in the High School Park and Recreation business unit will result from a number of factors, including:

• Increased demand for video systems in high schools as school districts realize the revenue generating potential of these displays versus traditional scoreboards. • Increased demand for different types of displays, such as message centers at schools to communicate to students, parents and the broader community. • The use of more sophisticated displays in athletic facilities, such as aquatic venues in schools.

Transportation Business Unit: Over the long-term, we believe growth in the Transportation business unit will result from increasing applications and acceptance of electronic displays to manage transportation systems, including roadway, airport, parking, transit and other applications. Effective use of the United States transportation infrastructure requires intelligent transportation systems. This growth is highly dependent on government spending, primarily by the federal government, along with the continuing acceptance of private/public partnerships as an alternative funding source.

International Business Unit: Over the long-term, we believe growth in the International business unit will result from achieving greater penetration in various geographies and building products more suited to individual markets. We are broadening our product offerings into the transportation segment in Europe and the Middle East. We currently focus on third-party advertising market opportunities and the factors listed in each of the other business units to the extent they apply outside the United States and Canada.

Page |18 CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The following discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments which affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On a regular basis, we evaluate our estimates, including those related to total costs on long-term construction-type contracts, costs to be incurred for product warranties and extended maintenance contracts, bad debts, excess and obsolete inventory, income taxes, share-based compensation and contingencies. Our estimates are based on historical experience and on various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may differ from these estimates.

We believe the following critical accounting policies require significant judgments and estimates in the preparation of our consolidated financial statements:

Revenue recognition on long-term construction-type contracts. Earnings on construction-type contracts are recognized on the percentage- of-completion method, measured by the percentage of costs incurred to date to estimated total costs for each contract. Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs include charges for such items as facilities, engineering and project management. Provisions for estimated losses on uncompleted contracts are made in the period such losses are capable of being estimated. Generally, construction-type contracts we enter into have fixed prices established, and to the extent the actual costs to complete construction-type contracts are higher than the amounts estimated as of the date of the financial statements, the resulting gross margin would be negatively affected in future quarters when we revise our estimates. Our practice is to revise estimates as soon as such changes in estimates are known. We do not believe there is a reasonable likelihood there will be a material change in future estimates or assumptions we use to determine these estimates. We combine contracts for accounting purposes when they are negotiated as a package with an overall profit margin objective, essentially represent an agreement to do a single project for a customer, involve interrelated construction activities, and are performed concurrently or sequentially. When a group of contracts is combined, revenue and profit are recognized uniformly over the performance of the combined projects. We segment revenues in accordance with the contract segmenting criteria in Accounting Standards Codification (“ASC”) 650-35, Construction-Type and Production-Type Contracts.

Allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. To identify impairment in customers’ ability to pay, we review aging reports, contact customers in connection with collection efforts and review other available information. Although we consider our allowance for doubtful accounts adequate, if the financial condition of our customers were to deteriorate and impair their ability to make payments to us, additional allowances may be required in future periods. We do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine the allowance for doubtful accounts. As of May 2, 2015 and April 26, 2014, we had an allowance for doubtful accounts balance of approximately $2.3 million and $2.5 million, respectively.

Warranties. We have recognized a reserve for warranties on our products equal to our estimate of the actual costs to be incurred in connection with our performance under the warranties. Generally, estimates are based on historical experience taking into account known or expected changes. If we would become aware of an increase in our estimated warranty costs, additional reserves may become necessary, resulting in an increase in costs of goods sold. We do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine our reserve for warranties. As of May 2, 2015 and April 26, 2014, we had approximately $26.5 million and $27.3 million reserved for these costs, respectively.

Extended warranty and product maintenance. We recognize deferred revenue related to separately priced extended warranty and product maintenance agreements. The deferred revenue is recognized ratably over the contractual term. If we would become aware of an increase in our estimated costs under these agreements in excess of our deferred revenue, additional reserves may be necessary, resulting in an increase in costs of goods sold. In determining if additional reserves are necessary, we examine cost trends on the contracts and other information and compare them to the deferred revenue. We do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine estimated costs under these agreements. As of May 2, 2015 and April 26, 2014, we had $13.1 million and $13.8 million of deferred revenue related to separately priced extended warranty and product maintenance agreements, respectively.

Inventory. Inventories are stated at the lower of cost or market. Market refers to the current replacement cost, except market may not exceed the net realizable value (that is, the estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal), and market is not less than the net realizable value reduced by an allowance for normal profit margins. In valuing inventory, we estimate market value where it is believed to be the lower of cost or market, and any necessary changes are charged to costs of goods sold in the period in which they occur. In determining market value, we review various factors such as current inventory Page |19 levels, forecasted demand and technological obsolescence. We do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to calculate the estimated market value of inventory. However, if market conditions change, including changes in technology, product components used in our products or expected sales, we may be exposed to unforeseen losses which could be material.

Income taxes. We operate in multiple income tax jurisdictions both within the United States and internationally. Our annual tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes in each tax jurisdiction. Tax laws require that certain items be included in the tax returns at different times than the items are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary and reverse over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities and reflect the enacted income tax rates in effect for the years in which the differences are expected to reverse. We consider a valuation allowance for deferred tax assets if it is "more likely than not" that some or all of the benefits will not be realized.

Because we operate in multiple income tax jurisdictions both within the United States and internationally, management must determine the appropriate allocation of income and expenses to each of these jurisdictions based on current interpretations of complex income tax regulations.

Income tax authorities in all jurisdictions regularly perform audits of our income tax filings. Income tax audits associated with the allocation of income, expenses and other complex issues, including transfer pricing methodologies, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates.

We have no deferred tax liability recognized relating to our investment in foreign subsidiaries where the earnings have been indefinitely reinvested. If circumstances change and it becomes apparent that some or all of the undistributed untaxed earnings of a subsidiary will be remitted to the United States, we will accrue a tax expense at the time of the remittance. We have approximately $10.4 million of untaxed earnings which have indefinitely been reinvested.

Asset Impairment. Carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment in accordance with ASC 350, Intangibles - Goodwill and Other. Our impairment review involves estimating the fair value of goodwill and indefinite-lived intangible assets using a combination of a market approach and an income (discounted cash flow) approach at the reporting unit level, requiring significant management judgment with respect to revenue and expense growth rates, changes in working capital, and the selection and use of an appropriate discount rate. The estimates of fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease any impairment charge. We use our judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities may signal an asset has become impaired.

Carrying values for long-lived tangible assets and definite-lived intangible assets, excluding goodwill and indefinite-lived intangible assets, are reviewed for possible impairment as circumstances warrant in connection with ASC 360-10-05-4, Impairment or Disposal of Long-Lived Assets. Impairment reviews are conducted when we believe a change in circumstances in the business or external factors warrants a review. Circumstances such as the discontinuation of a product or product line, a sudden or consistent decline in the forecast for a product, changes in technology or in the way an asset is being used, a history of negative operating cash flow, or an adverse change in legal factors or in the business climate, among others, may be indicators that trigger an impairment review. Our initial impairment review to determine if a potential impairment charge is required is based on an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist. The analysis requires judgment with respect to changes in technology, the continued success of product lines, future volume, revenue and expense growth rates, and discount rates.

Share-based compensation. We use the Black-Scholes standard option pricing model (“Black-Scholes model”) to determine the fair value of stock options and stock purchase rights. The determination of the fair value of the awards on the date of grant using the Black- Scholes model is affected by our stock price as well as by assumptions regarding other variables, including projected employee stock option exercise behaviors, risk-free interest rate, expected volatility of our stock price in future periods, and expected dividend yield.

We analyze historical employee exercise and termination data to estimate the expected life assumption of a new employee option. We believe historical data currently represents the best estimate of the expected life of a new employee option. The risk-free interest rate we use is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected life of the options. We estimate the expected volatility of our stock price in future periods by using the implied volatility in market traded options. Our decision to use expected volatility was based on the availability of actively traded options for our common stock, and our assessment of expected volatility is more representative of future stock price trends than the historical volatility of our common stock. We use an expected dividend yield consistent with our dividend yield over the period of time we have paid dividends in the Black-Scholes option valuation Page |20 model. The amount of share-based compensation expense we recognize during a period is based on the portion of the awards ultimately expected to vest. We estimate pre-vesting option forfeitures at the time of grant by analyzing historical data, and we revise those estimates in subsequent periods if actual forfeitures differ from those estimates.

If factors change and we employ different assumptions for estimating share-based compensation expense in future periods or if we decide to use a different valuation model, the expense in future periods may differ significantly from what we have recorded in the current period and could materially affect our net earnings and net earnings per share in a future period.

RECENT ACCOUNTING PRONOUNCEMENTS

For a summary of recently issued accounting pronouncements and the effects those pronouncements would have on our financial results, see "Note 1. Nature of Business and Summary of Significant Accounting Policies" of the Notes to our Consolidated Financial Statements included in this Form 10-K.

RESULTS OF OPERATIONS

Daktronics Inc. operates on a 52 or 53 week fiscal year, with our fiscal year ending on the Saturday closest to April 30 of each year. When April 30 falls on a Wednesday, the fiscal year ends on the preceding Saturday. Within each fiscal year, each quarter is comprised of 13 week periods following the beginning of each fiscal year. In each 53 week year, an additional week is added to the first quarter and each of the last three quarters is comprised of a 13 week period. Fiscal 2015 is a 53-week year; therefore, the fiscal year ended May 2, 2015 contained operating results for 53 weeks while the fiscal years ended April 26, 2014 and April 27, 2013 contained operating results for 52 weeks.

Net Sales

May 2, April 26, April 27, 2015 2014 2015 vs 2014 2013 2014 vs 2013 Dollar Percent Dollar Percent (dollars in thousands) Amount Amount Change Change Amount Change Change Net Sales: Commercial $ 165,793 $ 154,754 $ 11,039 7.1 % $ 144,596 $ 10,158 7.0 % Live Events 231,877 197,246 34,631 17.6 % 158,562 38,684 24.4 % High School Park and Recreation 67,657 59,531 8,126 13.7 % 66,128 (6,597) (10.0)% Transportation 48,333 54,861 (6,528) (11.9)% 73,270 (18,409) (25.1)% International 102,282 85,578 16,704 19.5 % 75,766 9,812 13.0 % $ 615,942 $ 551,970 $ 63,972 11.6 % $ 518,322 $ 33,648 6.5 % Orders: Commercial $ 170,209 $ 155,840 $ 14,369 9.2 % $ 152,028 $ 3,812 2.5 % Live Events 226,354 225,331 1,023 0.5 % 161,602 63,729 39.4 % High School Park and Recreation 69,188 59,812 9,376 15.7 % 64,796 (4,984) (7.7)% Transportation 50,845 49,057 1,788 3.6 % 73,426 (24,369) (33.2)% International 114,977 87,094 27,883 32.0 % 80,158 6,936 8.7 % $ 631,573 $ 577,134 $ 54,439 9.4 % $ 532,010 $ 45,124 8.5 %

Page |21 Sales and orders were impacted as a result of the 53-week fiscal year ended May 2, 2015 compared to the more common 52 week fiscal year. The fiscal years ended April 26, 2014 and April 27, 2013 contained 52 weeks. The additional week of sales constituted approximately 2% of the increase in sales for the 2015 fiscal year.

Fiscal Year 2015 as compared to Fiscal Year 2014

Commercial: The increase in net sales for fiscal 2015 compared to fiscal 2014 was the net result of an increase in sales in the billboard niche due to the timing of orders and shipments. Weather related issues at our customers' billboard construction sites caused delayed shipments and moved sales from fiscal 2014 into early fiscal 2015. Sales in our spectacular niche increased due to increased market activity, which was offset by decreases in our on-premise and national account niches caused by the soft economic market.

The increase in orders for fiscal 2015 compared to fiscal 2014 was primarily the net result of an increase in orders in our large custom video contract niche due to increased market activity in this area. There was a slight increase in orders in our billboard niche, which was offset by decreases in our on-premise and national account niches due to the soft economic market.

We continue to see adoption of video solutions in our Commercial business unit marketplace. We see opportunity for orders and sales in our billboard, on-premise, and national account niches due to replacement cycles. A number of large custom video contract opportunities are available in the marketplace. Due to a number of factors, such as the discretionary nature of customers committing to a system, economic dependencies, and competitive factors, it is difficult to predict orders and net sales for fiscal 2016. We expect growth in this business unit over the long-term, assuming favorable economic conditions.

Live Events: The increase in net sales for fiscal 2015 compared to fiscal 2014 was primarily due to an increase the number of multi- million dollar projects in professional sports stadiums used by Major League Baseball ("MLB"), the National Basketball Association ("NBA"), the National Football League ("NFL"), and the National Hockey League ("NHL"), which was offset by decreases in multi- sport arenas and sales related to college and university venues.

Orders for fiscal 2015 compared to fiscal 2014 were relatively flat.

We continue to see ongoing interest from venues at all levels to increase the size and capability of their display system in our Live Events business unit marketplace. A number of factors, such as the discretionary nature of customers committing to upgrade systems, long replacement cycles, and competitive factors make forecasting fiscal 2016 orders and net sales difficult. We expect growth in this business unit over the long-term, assuming favorable economic conditions and that we are successful at counteracting competitive pressures.

High School Park and Recreation: The increase in net sales for fiscal 2015 compared to fiscal 2014 was primarily the result of a difference in order timing. We experienced many orders that were pushed out from our fourth quarter of fiscal 2014 into the first six months of fiscal 2015. The increase in sales also is due to production and delivery on a higher volume of orders and an increase in service agreements. Order transaction size also increased due to larger display sizes, which increased sales prices.

The increase in orders for fiscal 2015 compared to fiscal 2014 was primarily due to higher orders of video and sound systems as some orders pushed into the first six months of fiscal 2015 from the fourth quarter of fiscal 2014 due to customer timing, increased opportunities in the market place, and an increase in the size of the display systems.

We continue to see opportunities to sell larger video systems and our classic scoring and message centers in fiscal 2016, primarily in high school facilities which benefit from our sports marketing services that generate advertising revenue to fund the display systems and because of schools' desires to communicate with students and parents. For the long term, we believe this market presents growth opportunities as the economy continues to improve and larger video systems are adopted.

Transportation: The decrease in net sales for fiscal 2015 compared to fiscal 2014 was primarily the result of sales recognized during fiscal 2014 for three significant state transportation authorities and a significant transit project with no sales from recurring projects of a similar size recognized during fiscal 2015. We believe some of the sales decline is due to the uncertainty in this market because of the lack of clarity on the approval, timing and funding levels of the federal Highway and Transportation Funding Act of 2014.

The increase in orders for fiscal 2015 compared to fiscal 2014 was primarily due to the timing of orders received from state transportation authorities.

For fiscal 2016, we believe that the Transportation business unit's sales will increase due to a strong backlog going into fiscal 2016. A number of factors, such as transportation funding, the competitive environment and various other factors, make forecasting orders and net sales difficult. However, highways and public transit show growth in capital improvement projects that include dynamic message signs. Without transportation funding, payments to states could be reduced and could have a negative impact on our sales and financial results in the Transportation business unit. Page |22

International: The increase in net sales for fiscal 2015 compared to fiscal 2014 was the net result of sales recognized for sports projects in Europe and Australia, retail spectaculars, and OOH billboard and street furniture products. We believe the increased sales is a result of our ongoing strategy to grow our international presence. In addition, Data Display's sales in the International business unit were approximately $5.0 million for fiscal 2015; Data Display was not part of the International business unit in fiscal 2014.

The increase in orders for fiscal 2015 compared to fiscal 2014 was primarily due to the increased amount of orders booked during the fourth quarter of fiscal 2015. These orders are related to all of our international markets; however, a major portion was due to an order in the transportation market for over $12.0 million.

For fiscal 2016, we believe the International business unit has potential for sales growth as we penetrate markets with our established sales networks and the pipeline of projects increases. In addition, the third-party advertising business continues to be strong worldwide, and we see a definite shift to digital as prices for displays have come down. We continue to see an increase in our pipeline for large video projects in sports and commercial applications and an increase in the projects using architectural lighting solutions. As with our other business units, large video system projects cause difficulty in projecting fiscal 2016 results.

Backlog: The product order backlog as of May 2, 2015 was $190.5 million as compared to $171.6 million as of April 26, 2014. Historically, our backlog varies due to the seasonality of our business, the timing of large projects, and customer delivery schedules for these orders. The backlog decreased from one year ago in our Live Events and High School Park and Recreation business units and increased in our other business units. Approximately $30.0 million of the backlog is expected to be realized in fiscal 2017 for a Live Events project.

Fiscal Year 2014 as compared to Fiscal Year 2013

Commercial: The increase in net sales for fiscal 2014 compared to fiscal 2013 was the net result of:

• An increase of $6.0 million in sales of large custom video contracts. The level of large custom contract orders and sales in this niche is subject to volatility. • An increase of $4.7 million in sales in our reseller niche resulting from increased contract orders in shopping centers and malls and civic and nonprofit niches. • Relatively flat sales in our billboard niche.

Live Events: The increase in net sales for fiscal 2014 compared to fiscal 2013 was the net result of:

• An increase of $40.0 million in sales in our large sports venue segment, resulting from $26.5 million in sales to NFL stadiums, $18.4 million in sales to multi-sport arenas, and $4.3 million in sales to MLB stadiums. This was offset by decrease in sales to minor league stadiums, NHL stadiums, and other various niches. • A $1.3 million decrease in sales to mobile and modular customers.

High School Park and Recreation: The decrease in net sales for fiscal 2014 compared to fiscal 2013 was the result of:

• Lower volume of sales from large video systems as a result of a decrease in the size and corresponding selling price of the video displays ordered during fiscal 2014. The opportunities to book large video system orders vary from year to year, and it is hard to predict. A number of factors, such as the discretionary nature of customers committing to upgrade products, impact order volumes. • The timing of purchase decisions that is impacted by economic factors.

Transportation: The decrease in net sales for fiscal 2014 compared to fiscal 2013 was the result of:

• Recognized sales in the amount of $30.5 million during fiscal 2013 for two significant projects with no sales from recurring projects of a similar size recognized during fiscal 2014. • A slight increase in sales related to traditional transportation business in fiscal 2014.

International: The increase in net sales for fiscal 2014 compared to fiscal 2013 was the net result of a higher beginning backlog for fiscal 2014 compared to fiscal 2013 and an increase of orders booked during fiscal 2014 converting into sales and progress on large projects. We have been successful in sports application systems and commercial applications internationally. We completed the acquisition of OPEN during the first quarter of fiscal 2014. OPEN's sales were included in the International business unit results and contributed $4.2 million of net sales during fiscal 2014.

Page |23 Gross Profit Year Ended May 2, 2015 April 26, 2014 April 27, 2013 As a Percent As a Percent As a Percent (dollars in thousands) Amount of Net Sales Amount of Net Sales Amount of Net Sales Commercial $ 44,344 26.7% $ 44,974 29.1% $ 38,123 26.4% Live Events 40,945 17.7 43,019 21.8 31,718 20.0 High School Park and Recreation 21,561 31.9 16,202 27.2 18,601 28.1 Transportation 14,647 30.3 16,126 29.4 24,552 33.5 International 23,082 22.6 21,389 25.0 20,900 27.6 $ 144,579 23.5% $ 141,710 25.7% $ 133,894 25.8%

Fiscal Year 2015 as compared to Fiscal Year 2014

The gross profit percentage decreased for fiscal 2015 compared to fiscal 2014. This decline was due to the mix of business; a number of multi-million dollar projects that generally are more competitive and have lower profit margins and include a higher level of subcontracted installations; additional spending due to capacity constraints in our second quarter; an increase in expenses for our acquisition of Data Display during the year; and competitive pressures in the marketplace.

It is difficult to project gross profit levels for fiscal 2016 because of the uncertainty regarding the level of sales, the sales mix and timing, and the competitive factors in our business. We are focused on improving our gross profit margins as we execute our strategies for improved profitability which include enhanced capacity planning, releasing new product designs, and improved operational effectiveness in the installation and services delivery areas. Although there are ways to improve profitability, we are experiencing cost pressures in wages and benefits and increased pay in our U.S. manufacturing facilities at the beginning of fiscal 2016.

Commercial: The gross profit percent decrease in the Commercial business unit for fiscal 2015 compared to fiscal 2014 was the result of the product mix of sales and manufacturing utilization, partially offset by lower warranty costs as a percent of sales.

Live Events: The gross profit percent decrease in the Live Events business unit for fiscal 2015 compared to fiscal 2014 was due to the effects of an increased mix of large custom contracts, the related increased mix of subcontracted installation activity, and the higher volume of business during the second quarter which stretched our capacity. In order to meet critical event dates for our sports customers, we had additional costs related to overtime, expediting, and shipping. The installation activity generally lowers margins as we outsource subcontracted on-site work at general contracting rates which have lower margins than in-house video equipment production.

High School Park and Recreation: The gross profit percent increase in the High School Park and Recreation business unit for fiscal 2015 compared to fiscal 2014 primarily was the result of overall gross margin improvement on contracts due to higher percentages of Daktronics Sports Marketing ("DSM") projects and improved manufacturing utilization. In addition, in the first quarter of fiscal 2015, we recognized a $1.3 million gain on the sale of our theatre rigging division.

Transportation: The gross profit percent increase in the Transportation business unit for fiscal 2015 compared to fiscal 2014 was primarily the result of improved gross margins on contracts and standard orders and lower warranty costs as a percent of sales, partially offset by a decline in our manufacturing utilization.

International: The gross profit percent decrease in the International business unit for fiscal 2015 compared to fiscal 2014 was the net result of an overall gross margin decline on our large custom contracts, which generally have lower margins due to their competitive nature and low utilization of our international manufacturing facilities, including the factory and related costs acquired with the Data Display acquisition.

Page |24 Fiscal Year 2014 as compared to Fiscal Year 2013

The gross profit percentage remained flat for fiscal 2014 compared to fiscal 2013.

Commercial: The gross profit percent increase in the Commercial business unit for fiscal 2014 compared to fiscal 2013 was the result of overall gross margin improvement on product sales mix and manufacturing utilization, which was offset by increased warranty costs.

Live Events: The gross profit percent increase in the Live Events business unit for fiscal 2014 compared to fiscal 2013 was the result of improved manufacturing utilization from increased sales, offset by slightly higher warranty costs. Large live events video projects are competitively bid and generally result in lower overall margins from a sales mix perspective.

High School Park and Recreation: The gross profit percent decrease in the High School Park and Recreation business unit for fiscal 2014 compared to fiscal 2013 primarily was the result of lower volume of sales from video projects and increased warranty and manufacturing costs.

Transportation: The gross profit percent decrease in the Transportation business unit for fiscal 2014 compared to fiscal 2013 was primarily the result of a lower volume of large custom projects and increased manufacturing costs, which was partially offset by lower warranty costs.

International: The gross profit percent decrease in the International business unit for fiscal 2014 compared to fiscal 2013 was the net result of a decrease in the gross margin on product sales and an increase in manufacturing costs related to our new manufacturing plant in Belgium for third-party advertising displays, which was partially offset by lower warranty costs.

Selling Expenses Year Ended May 2, 2015 April 26, 2014 April 27, 2013 As a As a As a Percent of Percent Percent of Percent Percent of (dollars in thousands) Amount Net Sales Change Amount Net Sales Change Amount Net Sales Commercial $ 15,802 9.5% 7.8% $ 14,662 9.5% 5.6% $ 13,882 9.6% Live Events 13,611 5.9 8.8 12,515 6.3 (1.0) 12,647 8.0 High School Park and Recreation 10,436 15.4 (2.7) 10,727 18.0 2.6 10,451 15.8 Transportation 4,244 8.8 28.0 3,316 6.0 2.9 3,222 4.4 International 13,870 13.6 10.3 12,574 14.7 0.1 12,557 16.6 $ 57,963 9.4% 7.7% $ 53,794 9.7% 2.0% $ 52,759 10.2%

All areas of selling expenses were impacted as a result of the 53-week fiscal year ended May 2, 2015 compared to the more common 52 week fiscal year. The fiscal years ended April 26, 2014 and April 27, 2013 contained 52 weeks.

Fiscal Year 2015 as compared to Fiscal Year 2014

Selling expenses consist primarily of salaries, other employee-related costs, travel and entertainment expenses, facilities-related costs for sales and service offices, bad debt expenses, third-party commissions and expenditures for marketing efforts, including the costs of collateral materials, conventions and trade shows, product demos, and supplies.

Selling expense in our Commercial, Live Events, Transportation, and International business units increased for fiscal 2015 compared to fiscal 2014 primarily due to increases in personnel expenses, travel and entertainment expense, marketing expense, the implementation of a sales opportunity management tool, the additional costs associated with the Data Display sales teams, and various other expenses, with a reduction of bad debt and commission expenses.

Selling expense in our High School Park and Recreation business unit remained relatively flat for fiscal 2015 compared to fiscal 2014.

We expect selling expenses will increase slightly in dollars in fiscal 2016 as compared to fiscal 2015 but remain flat as a percentage of net sales.

Page |25 Fiscal Year 2014 as compared to Fiscal Year 2013

Selling expense in our Commercial, High School Park and Recreation, Transportation, and International business units increased slightly in fiscal 2014 compared to fiscal 2013 primarily due to increases in personnel costs, including taxes and benefits, and travel and entertainment for sales activities, partially offset by a decrease in bad debt expense for potentially uncollectable accounts receivable primarily from sales derived from our International business unit not recurring in fiscal 2014.

Selling expense in our Live Events business unit remained relatively flat for fiscal 2014 compared to fiscal 2013.

Other Operating Expenses Year Ended May 2, 2015 April 26, 2014 April 27, 2013 As a As a As a Percent of Percent Percent of Percent Percent of (dollars in thousands) Amount Net Sales Change Amount Net Sales Change Amount Net Sales General and administrative $ 30,679 5.0% 9.6% $ 27,984 5.1% 2.1% $ 27,404 5.3% Product design and development $ 24,652 4.0% 5.5% $ 23,375 4.2% 1.1% $ 23,131 4.5%

All areas of operating expenses were impacted as a result of the 53-week fiscal year ended May 2, 2015 compared to the more common 52 week fiscal year. The fiscal years ended April 26, 2014 and April 27, 2013 contained 52 weeks.

Fiscal Year 2015 as compared to Fiscal Year 2014

General and administrative expenses consist primarily of salaries, other employee-related costs, professional fees, shareholder relations costs, facilities and equipment-related costs for administrative departments, training costs, amortization of intangibles, and the costs of supplies.

General and administrative expenses in fiscal 2015 increased as compared to fiscal 2014 primarily due to an increase in professional services costs, personnel expenses, IT maintenance, and various other expenses. These expenses included one-time costs incurred in the second quarter of fiscal 2015 for professional services to support the expansion of our International business and other on-going costs to support our anticipated business growth. We incurred $0.4 million in general and administration expense for professional fees related to the Data Display acquisition.

We expect general and administrative expenses to increase slightly in dollars for fiscal 2016 as compared to fiscal 2015 but remain flat as a percentage of net sales.

Product design and development expenses consist primarily of salaries, other employee-related costs, facilities cost and equipment-related costs and supplies. Product development investments in the near term are focused on video technology with a range of pixel pitches for outdoor applications using LED surface mount technology, which offers improved performance at a lower cost point as compared to our current offerings. In addition, we continue to focus on various other products to standardize display components and control systems for both single site and network displays.

Our costs for product development represent an allocated amount of costs based on time charges, materials costs and the overhead of our engineering departments. Generally, a significant portion of our engineering time is spent on product development while the rest is allocated to large contract work and is included in cost of goods sold. Product development expenses in fiscal 2015 increased compared to fiscal 2014 primarily due to an increase in materials used in the development of new products and labor costs assigned to product development projects.

We expect product design and development expenses will increase slightly in dollars in fiscal 2016 as compared to fiscal 2015 but remain flat as a percentage of sales.

Fiscal Year 2014 as compared to Fiscal Year 2013

General and administrative expenses in fiscal 2014 as compared to fiscal 2013 was the result of an increase of $0.8 million in professional fees, travel and entertainment, IT maintenance, advertising, and other expense, which was offset by decreases in various other general and administrative expenses.

Product design and development expenses in fiscal 2014 as compared to fiscal 2013 remained relatively flat.

Page |26 Other Income and Expenses Year Ended May 2, 2015 April 26, 2014 April 27, 2013 As a As a As a Percent of Percent Percent of Percent Percent of (dollars in thousands) Amount Net Sales Change Amount Net Sales Change Amount Net Sales Interest income, net $ 896 0.1 % (13.8)% $ 1,039 0.2 % (11.0)% $ 1,168 0.2 % Other (expense) income, net $ (498) (0.1)% 40.3 % $ (355) (0.1)% (57.7)% $ (839) (0.2)%

Fiscal Year 2015 as compared to Fiscal Year 2014

Interest income, net: We generate interest income through short-term cash investments, marketable securities, product sales on an installment basis, or in exchange for the rights to sell and retain advertising revenues from displays, which result in long-term receivables. Interest expense is comprised primarily of interest costs on long-term marketing obligations.

Interest income, net decreased slightly for fiscal 2015 as compared to fiscal 2014 due to lower installment receivables. As a result of the volatility of working capital needs and changes in investing and financing activities, along with changes in the interest rate environment, it is difficult to project changes in interest income. We expect our cash balances will increase during fiscal 2016.

Other (expense) income, net: The change in other income and expense, net for fiscal 2015 as compared to fiscal 2014, is primarily due to unrealized foreign currency gains from the volatility of the Euro, Australian dollar, and Canadian dollar.

Fiscal Year 2014 as compared to Fiscal Year 2013

Interest income, net: Interest income declined slightly for fiscal 2014 as compared to fiscal 2013 due to a lower level of income on investments due to lower yields available in the market when reinvesting available cash.

Other (expense) income, net: The decrease in other expenses for fiscal 2014 as compared to fiscal 2013 was due to the recognition in fiscal 2013 of a $0.5 million settlement of a dispute relating to a past acquisition; no similar transaction was recorded in fiscal 2014.

Income Taxes

The effective tax rate was approximately 34.1 percent, 40.4 percent and 26.4 percent for fiscal 2015, fiscal 2014, and fiscal 2013, respectively.

The effective income tax rate for fiscal 2015 includes the impact of The Tax Increase Prevention Act of 2014 signed by the President in December 2014, which extended the research tax credits for one year to December 31, 2014. Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts paid or incurred on or before December 31, 2013. The extension of the research credit is retroactive and includes amounts paid or incurred after December 31, 2013. As a result of the retroactive extension, we recognized approximately $1.3 million in tax benefits during fiscal 2015.

The effective income tax rate for fiscal 2014 includes the impact of a $2.3 million valuation allowance against a deferred tax asset related to losses on an equity investment when it became more likely than not we would not realize the benefit. The rate was also impacted by the research credit being effective for only a portion of the year. For a more detailed description of the valuation allowance, please see "Note 13. Income Taxes" of the Notes to our Consolidated Financial Statements included in this Form 10-K.

The effective income tax rate for fiscal 2013 included the positive impact of a non-recurring international tax charge.

Fiscal Year 2015 Fourth Quarter Summary

During the fourth quarter of fiscal 2015, net sales increased approximately 16.0 percent to $158.1 million as compared to $136.2 million in the fourth quarter of fiscal 2014. Net sales increased in the Commercial, Live Events, High School Park and Recreation, and International business units and remained relatively flat in the Transportation business unit. Commercial business unit net sales increased due to increases in the net sales for billboard and large custom video contracts, offset by a decrease in sales in on-premise and national account niches. Live Events business unit net sales increased due an increase in orders related to video displays for MLB stadiums. High School Park and Recreation business unit net sales increased due to an increase in sales and service orders. International business unit net sales increased due to sales recognized for sports projects in Europe and Australia, retail spectaculars, and OOH billboard and street furniture products.

Page |27 Gross margin percentage decreased to approximately 22.3 percent in the fourth quarter of fiscal 2015 from approximately 24.8 percent in the fourth quarter of fiscal 2014. The decrease in gross profit percentage was the net result of the product mix of sales and the increased mix of subcontracted installation activity.

Selling expenses increased to $14.6 million in the fourth quarter of fiscal 2015 compared to $13.7 million in the fourth quarter of fiscal 2014. The increase was primarily due to increased personnel expenses, including taxes and benefits, marketing expenses, and bad debt expense which were partially offset by decreases of commissions and other expenses.

General and administrative costs increased by approximately 8.2 percent in the fourth quarter of fiscal 2015 to $7.8 million as compared to $7.2 million in the fourth quarter of fiscal 2014. The increase was primarily due to increased personnel expenses, including taxes and benefits, and information technology, including software and hardware expenses, and partially offset by a decrease in professional fees.

Product development costs decreased by approximately 2.7 percent in the fourth quarter of fiscal 2015 to $5.9 million as compared to $6.0 million in the fourth quarter of fiscal 2014. The decrease was the result of reduced engineering costs and small changes in non- engineering costs, the cost of materials to produce prototypes or test materials, and legal fees related to patent work.

The effective tax rate was 45.0 percent in the fourth quarter of fiscal 2015 compared to 74.3 percent in the fourth quarter of fiscal 2014. The effective income tax rate for fiscal 2014 includes the impact of a $2.3 million valuation allowance against a deferred tax asset related to losses in an equity in investment when it became more likely than not we would not realize the benefit.

Page |28 LIQUIDITY AND CAPITAL RESOURCES Year Ended May 2, April 26, Percent (dollars in thousands) 2015 2014 Change Net cash provided by (used in): Operating activities $ 53,168 $ 36,199 46.9 % Investing activities (24,227) (16,358) 48.1 Financing activities (16,070) (15,321) 4.9 Effect of exchange rate changes on cash (641) (94) 581.9 Net increase in cash and cash equivalents $ 12,230 $ 4,426 (176.3)%

Cash flows from operating activities: Operating cash flows result primarily from cash received from customers, which is offset by cash payments for inventories, income taxes, market and warranty obligations, and employee compensation.

Cash provided by operating activities was $53.2 million for fiscal 2015 compared to $36.2 million in fiscal 2014. The increase in cash from operating activities of $17.0 million was the net result of an increase for changes in net operating assets and liabilities of $18.2 million, an increase of $0.6 million in our deferred income taxes, a $0.5 million increase in depreciation and amortization, and a $0.1 million increase in other non-cash items, net, offset by a decrease of $1.3 million in net income and a $1.1 million gain on the sale of property and equipment.

The most significant drivers of cash used from operating activities were changes in accounts payable, customer deposits and construction- type contracts, offset by cash generated from accounts receivable, inventory, and long-term marketing obligations and payables. Changes in accounts receivables generated $6.4 million of cash in fiscal 2015 compared to consuming $18.3 million in fiscal 2014. Changes in inventory consumed $1.9 million of cash in fiscal 2015 compared to consuming $12.8 million in fiscal 2014. Changes in long-term marketing obligations and payables generated $3.3 million of cash in fiscal 2015 compared to consuming $0.1 million in fiscal 2014. Changes in construction-type contracts, customer deposits, and accounts payable generated $6.8 million of cash in fiscal 2015 compared to generating $26.0 million in fiscal 2014.

Overall, changes in operating assets and liabilities can be impacted by the timing of cash flow on large orders, which can cause significant fluctuations in the short term in inventory, accounts receivables, accounts payable, customer deposits, costs and earnings in excess of billings and various other operating assets and liabilities. Variability in costs and earnings in excess of billings and billings in excess of costs relates to the timing of billings on construction-type contracts and revenue recognition, which can vary significantly depending on contractual payment terms and build and installation schedules. Balances are also impacted by the seasonality of the sports markets.

Cash flows from investing activities: Cash used in investing activities totaled $24.2 million for fiscal 2015 compared to $16.4 million in fiscal 2014. Purchases of property and equipment totaled $21.8 million in fiscal 2015 compared to $13.5 million in fiscal 2014. The change from the prior year is due to the expansion of our Minnesota manufacturing facility, the purchase of new manufacturing equipment for various new product lines as well as machine upgrades, and additions to our information technology infrastructure.

A net cash inflow of $4.0 million was recognized during fiscal 2015 from the disposition of our automated rigging systems division for theatre applications.

A net cash outlay of $6.3 million was recognized during fiscal 2015 compared to $1.5 million in fiscal 2014 for acquisitions, investments in affiliates and equity investments.

Cash flows from financing activities: Cash used in financing activities was $16.1 million for fiscal 2015 compared to $15.3 million in fiscal 2014. Dividends of $17.4 million, or $40.0 cents per share, were paid to Daktronics shareholders during fiscal 2015 compared to $16.7 million, or $39.0 cents per share, paid to Daktronics shareholders during fiscal 2014. During fiscal 2015 and fiscal 2014, payments of $1.2 million and $3.7 million were made on the debt assumed in the acquisitions of Data Display and OPEN, respectively.

Other Liquidity and Capital Resources Discussion: Although we have $2.7 million of retainage on long-term contracts included in receivables and costs in excess of billings as of May 2, 2015, we expect all of it to be collected within one year.

Working capital was $149.1 million at May 2, 2015 and $140.5 million at April 26, 2014. The increase in working capital was primarily the result of higher sales and increases in cash and inventories, and decreases in warranty obligations, which were partially offset by increases among accounts payable, accrued expenses, and deferred revenue. We have historically financed working capital needs through a combination of cash flow from operations and borrowings under bank credit agreements.

Page |29 We have used and expect to continue to use cash reserves and, to a lesser extent, bank borrowings to meet our short-term working capital requirements. On large product orders, the time between order acceptance and project completion may extend up to and exceed 24 months depending on the amount of custom work and a customer’s delivery needs. We often receive down payments or progress payments on these product orders. To the extent these payments are not sufficient to fund the costs and other expenses associated with these orders, we use working capital and bank borrowings to finance these cash requirements. We are sometimes required to obtain performance bonds for display installations, and we have a bonding line available through a surety company for an aggregate of $150.0 million in bonded work outstanding. If we were unable to complete the work and our customer would call upon the bond for payment, the surety company would subrogate their loss to Daktronics. At May 2, 2015, we had $42.7 million of bonded work outstanding against this line. For additional information on financing agreements, see, "Note 10. Financing Agreements" of the Notes to our Consolidated Financial Statements included in this Form 10-K.

Our business growth and profitability improvement strategies depend on investments in capital expenditures. We are projecting capital expenditures to be approximately $25 million for fiscal 2016 for manufacturing equipment for new or enhanced product production, expanded capacity, investments in quality and reliability equipment, and continued information infrastructure investments.

We utilize cash to pay dividends to our investors. The following table summarizes the quarterly dividend declared and paid since the fiscal year end of April 26, 2014:

Date Declared Record Date Payment Date Amount per Share May 22, 2014 June 2, 2014 June 13, 2014 $0.10 September 4, 2014 September 15, 2014 September 26, 2014 $0.10 December 4, 2014 December 15, 2014 December 26, 2014 $0.10 March 5, 2015 March 16, 2015 March 27, 2015 $0.10 May 29, 2015 June 12, 2015 June 23, 2015 $0.10

Although we expect to continue to pay dividends for the foreseeable future, any and all subsequent dividends will be reviewed regularly and declared by the Board of Directors at its discretion.

We believe our working capital available from all sources will be adequate to meet the cash requirements of our operations in the foreseeable future. If our growth extends beyond current expectations, or if we make any strategic investments, we may need to increase our credit facilities or seek other means of financing. We anticipate we will be able to obtain any needed funds under commercially reasonable terms from our current lenders or other sources.

Page |30 OFF-BALANCE-SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

We enter into various lease, purchase and marketing obligations that require payments in future periods. Operating lease obligations relate primarily to leased manufacturing space, office space, furniture, and vehicles. Long-term marketing obligations relate to amounts due in future periods for payments on net sales where we sold and installed our equipment in exchange for future advertising revenue. When certain advertising revenue thresholds are met, all or a portion of excess cash is owed back to the customer. Conditional and unconditional purchase obligations represent future payments for inventory, advertising rights and various other products and services purchase commitments.

We have entered into standby letters of credit and surety bonds with financial institutions relating to the guarantee of future performance on contracts, primarily construction type contracts. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms, which are generally one year.

Guarantees include transactions in connection with the sale of equipment to various customers. Under these transactions, we have entered into contractual arrangements whereby we agreed to repurchase equipment at the end of the lease term at a fixed price. Our total obligations under these fixed price arrangements were $1.1 million as of May 2, 2015 and April 26, 2014. In accordance with the provisions of ASC 460, Guarantees, there is no guarantee liability in accrued expenses that must be recognized, in connection with these arrangements.

As of May 2, 2015, our contractual obligations were as follows (in thousands): Less than After 5 Contractual Obligations Total 1 year 1-3 Years 4-5 Years Years Cash commitments: Long-term obligations and accrued interest $ 2,391 $ 555 $ 1,263 $ 573 $ — Operating leases 4,245 2,490 1,649 106 — Unconditional purchase obligations 2,758 1,773 985 — — Conditional purchase obligations 700 200 400 100 — Unrecognized tax benefits 2,891 157 2,734 — — Total $ 12,985 $ 5,175 $ 7,031 $ 779 $ — Other commercial commitments: Standby letters of credit $ 13,615 $ 10,930 $ 1,155 $ 1,530 $ — Lines of credit interest $ 62 $ 62 $ — $ — $ — Surety bonds $ 42,720 $ 38,052 $ 4,668 $ — $ — Guarantees $ 1,100 $ 1,100 $ — $ — $ —

INFLATION

We believe inflation has not had a material effect on our operations or our financial condition, although it could in the future.

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Rates

Through May 2, 2015, most of our net sales were denominated in U.S. dollars, and our exposure to foreign currency exchange rate changes on net sales has not been significant. For the fiscal year 2015, net sales originating outside the United States were 20 percent of total net sales, of which a portion was denominated in Canadian dollars, Euros, Chinese renminbi, British pounds, Australian dollars, Brazilian reais or other currencies. We manufacture our products in the United States, China, Belgium, and Ireland. Our results of operations could be affected by factors such as changes in foreign currency rates or weak economic conditions in foreign markets. If we believed currency risk in any foreign location is significant, we would utilize foreign exchange hedging contracts to manage our exposure to the currency fluctuations.

Over the long term, net sales to international markets are expected to increase as a percentage of net sales and, consequently, a greater portion of our business could be denominated in foreign currencies. In addition, we may fund our foreign subsidiaries’ operating cash needs in the form of loans denominated in U.S. dollars. As a result, operating results may become subject to fluctuations based upon changes in the exchange rates of certain currencies in relation to the United States dollar. To the extent we engage in international sales denominated in U.S. dollars, an increase in the value of the U.S. dollar relative to foreign currencies could make our products less competitive in international markets. This effect is also impacted by the sources of raw materials from international sources. We estimate that a 10 percent change in all foreign exchange rates would impact our reported income before taxes by approximately $2.0 million. Page |31 This sensitivity analysis disregards the possibilities that rates can move in opposite directions and that losses from one geographic area may be offset by gains from another geographic area. We will continue to monitor and minimize our exposure to currency fluctuations and, when appropriate, use financial hedging techniques, including foreign currency forward contracts and options, to minimize the effect of these fluctuations. However, exchange rate fluctuations as well as differing economic conditions, changes in political climates, differing tax structures and other rules and regulations could adversely affect our ability to effectively hedge exchange rate fluctuations in the future.

We have foreign currency forward agreements in place to offset changes in the value of intercompany receivables from certain foreign subsidiaries due to changes in foreign exchange rates. The notional amount of these derivatives is $14.7 million, and all contracts mature within 10 months. These contracts are marked to market each balance sheet date and are not designated as hedges. See "Note 16. Derivative Financial Instruments" of the Notes to our Consolidated Financial Statements included in this Form 10-K for further details.

Interest Rate Risks

Our exposure to market rate risk for changes in interest rates relates primarily to our marketing obligations and long-term accounts receivable. As of May 2, 2015, our outstanding marketing obligations were $0.7 million, all of which were in fixed rate obligations.

In connection with the sale of certain display systems, we have entered into various types of financing with customers. The aggregate amounts due from customers include an imputed interest element. The majority of these financings carry fixed rates of interest. As of May 2, 2015, our outstanding long-term receivables were $9.9 million. Each 25 basis point increase in interest rates would have an associated annual opportunity benefit of $38 thousand.

The following table provides maturities and weighted average interest rates on our financial instruments sensitive to changes in interest rates. Fiscal Years (dollars in thousands) 2016 2017 2018 2019 2020 Thereafter Assets: Long-term receivables, including current maturities: Fixed-rate $ 3,785 $ 2,209 $ 1,674 $ 1,113 $ 435 $ 658 Average interest rate 8.7% 8.6% 8.5% 8.5% 9.0% 9.0% Liabilities: Long- and short-term debt: Variable-rate $ 389 $ 607 $ 409 $ 427 $ — $ — Average interest rate 4.5% 4.5% 4.5% 4.5% —% —% Long-term marketing obligations, including current portion: Fixed-rate $ 344 $ 141 $ 107 $ 91 $ 55 $ — Average interest rate 8.7% 8.8% 8.9% 9.0% 9.0% —%

Of our $57.3 million in cash balances at May 2, 2015, $49.9 million were denominated in United States dollars. Cash balances in foreign currencies are operating balances maintained in accounts of our foreign subsidiaries. A portion of the cash held in foreign accounts is used to collateralize outstanding bank guarantees issued by the foreign subsidiaries.

Page |32 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Daktronics Inc.

We have audited the accompanying consolidated balance sheets of Daktronics Inc. and subsidiaries (the Company) as of May 2, 2015 and April 26, 2014, and the related consolidated statements of operations, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended May 2, 2015. Our audits also included the financial statement schedule listed in the Index at Item 15(a)(2). These financial statements and schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Daktronics Inc. and subsidiaries at May 2, 2015 and April 26, 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended May 2, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects, the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Daktronics Inc.’s internal control over financial reporting as of May 2, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated June 22, 2015, expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP Minneapolis, Minnesota June 22, 2015

Page |33 DAKTRONICS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) May 2, April 26, 2015 2014 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 57,284 $ 45,054 Restricted cash 496 514 Marketable securities 25,346 25,398 Accounts receivable, net 80,857 82,500 Inventories, net 64,389 62,228 Costs and estimated earnings in excess of billings 35,068 33,400 Current maturities of long-term receivables 3,784 5,235 Prepaid expenses and other assets 7,688 6,758 Deferred income taxes 10,640 10,694 Income tax receivables 5,543 2,459 Total current assets 291,095 274,240 Property and equipment, net 72,844 65,270 Long-term receivables, less current maturities 6,090 7,877 Goodwill 5,269 4,558 Intangibles, net 1,824 2,680 Investment in affiliates and other assets 1,655 826 Deferred income taxes 702 2,000 TOTAL ASSETS $ 379,479 $ 357,451 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 52,747 $ 45,913 Accrued expenses 26,063 23,462 Warranty obligations 11,838 14,476 Billings in excess of costs and estimated earnings 23,797 22,483 Customer deposits (billed or collected) 16,828 17,654 Deferred revenue (billed or collected) 9,524 7,722 Current portion of other long-term obligations 587 809 Income taxes payable 636 1,162 Deferred income taxes — 27 Total current liabilities 142,020 133,708 Long-term warranty obligations 14,643 12,774 Long-term deferred revenue (billed or collected) 3,914 4,978 Other long-term obligations, less current maturities 3,190 2,871 Long-term income tax payable 2,734 — Deferred income taxes 939 1 Total long-term liabilities 25,420 20,624 SHAREHOLDERS' EQUITY: Common Stock, no par value, authorized 120,000,000 shares; 43,643,801 and 43,166,731 shares issued at May 2, 2015 and April 26, 2014, respectively 48,960 43,935 Additional paid-in capital 32,693 29,923 Retained earnings 132,771 129,266 Treasury Stock, at cost, 19,680 shares (9) (9) Accumulated other comprehensive (loss) income (2,376) 4 TOTAL SHAREHOLDERS' EQUITY 212,039 203,119 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 379,479 $ 357,451 See notes to consolidated financial statements.

Page |34 DAKTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)

Year Ended May 2, April 26, April 27, 2015 2014 2013 Net sales $ 615,942 $ 551,970 $ 518,322 Cost of goods sold 471,363 410,260 384,428 Gross profit 144,579 141,710 133,894

Operating expenses: Selling expense 57,963 53,794 52,759 General and administrative 30,679 27,984 27,404 Product design and development 24,652 23,375 23,131 113,294 105,153 103,294 Operating income 31,285 36,557 30,600

Nonoperating income (expense): Interest income 1,119 1,294 1,523 Interest expense (223) (255) (355) Other (expense) income, net (498) (355) (839)

Income before income taxes 31,683 37,241 30,929 Income tax expense 10,801 15,035 8,150 Net income $ 20,882 $ 22,206 $ 22,779

Weighted average shares outstanding: Basic 43,514 42,886 42,280 Diluted 44,443 43,762 42,621

Earnings per share: Basic $ 0.48 $ 0.52 $ 0.54 Diluted $ 0.47 $ 0.51 $ 0.53

Cash dividends declared per share $ 0.40 $ 0.39 $ 0.73

See notes to consolidated financial statements.

Page |35 DAKTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands)

Year Ended May 2, April 26, April 27, 2015 2014 2013

Net income $ 20,882 $ 22,206 $ 22,779

Other comprehensive (loss) income: Cumulative translation adjustments (2,358) 147 (102) Unrealized loss on available-for-sale securities, net of tax (22) (25) (49) Total other comprehensive (loss) income, net of tax (2,380) 122 (151) Comprehensive income $ 18,502 $ 22,328 $ 22,628

See notes to consolidated financial statements.

Page |36 DAKTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (in thousands) Accumulated Additional Other Common Paid-In Retained Treasury Comprehensive Stock Capital Earnings Stock Income (Loss) Total Balance as of April 28, 2012: $ 34,631 $ 24,320 $ 131,830 $ (9) $ 33 $ 190,805 Net income — — 22,779 — — 22,779 Cumulative translation adjustments — — — — (102) (102) Unrealized loss on available-for-sale securities, net of tax — — — — (49) (49) Share-based compensation — 3,037 — — — 3,037 Exercise of stock options 1,316 (163) — — — 1,153 Employee savings plan activity 1,482 — — — — 1,482 Dividends paid — — (30,859) — — (30,859) Balance as of April 27, 2013: 37,429 27,194 123,750 (9) (118) 188,246 Net income — — 22,206 — — 22,206 Cumulative translation adjustments — — — — 147 147 Unrealized loss on available-for-sale securities, net of tax — — — — (25) (25) Net tax benefit related to share-based compensation — 119 — — — 119 Share-based compensation — 2,897 — — — 2,897 Exercise of stock options 4,954 (287) — — — 4,667 Employee savings plan activity 1,552 — — — — 1,552 Dividends paid — — (16,690) — — (16,690) Balance as of April 26, 2014: 43,935 29,923 129,266 (9) 4 203,119 Net income — — 20,882 — — 20,882 Cumulative translation adjustments — — — — (2,358) (2,358) Unrealized loss on available-for-sale securities, net of tax — — — — (22) (22) Net tax benefit related to share-based compensation — 38 — — — 38 Share-based compensation — 3,038 — — — 3,038 Exercise of stock options 2,513 (306) — — — 2,207 Employee savings plan activity 2,512 — — — — 2,512 Dividends paid — — (17,377) — — (17,377) Balance as of May 2, 2015: $ 48,960 $ 32,693 $ 132,771 $ (9) $ (2,376) $ 212,039

See notes to consolidated financial statements

Page |37 DAKTRONICS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

Year Ended May 2, April 26, April 27, 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 20,882 $ 22,206 $ 22,779 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 14,764 14,137 15,379 Amortization 204 364 228 Amortization of premium/discount on marketable securities 168 221 190 Gain on sale of property and equipment (1,207) (72) 42 Share-based compensation 3,038 2,897 3,037 Excess tax benefits from share-based compensation (38) (119) — Provision for doubtful accounts (222) (190) 331 Deferred income taxes, net 2,146 1,543 (4,340) Change in operating assets and liabilities 13,433 (4,788) 13,103 Net cash provided by operating activities 53,168 36,199 50,749

CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (21,837) (13,519) (9,674) Proceeds from sales of property, equipment and other assets 4,037 238 198 Purchases of marketable securities (15,653) (15,550) (16,506) Proceeds from sales or maturities of marketable securities 15,532 13,953 17,451 Acquisitions, net of cash acquired (6,306) (1,480) — Net cash used in investing activities (24,227) (16,358) (8,531)

CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (81) — (1,459) Proceeds from exercise of stock options 2,513 4,954 1,316 Excess tax benefits from share-based compensation 38 119 — Principal payments on long-term obligations (1,163) (3,704) — Dividends paid (17,377) (16,690) (30,859) Net cash used in financing activities (16,070) (15,321) (31,002)

EFFECT OF EXCHANGE RATE CHANGES ON CASH (641) (94) (11) NET INCREASE IN CASH AND CASH EQUIVALENTS 12,230 4,426 11,205

CASH AND CASH EQUIVALENTS: Beginning of period 45,054 40,628 29,423 End of period $ 57,284 $ 45,054 $ 40,628

See notes to consolidated financial statements.

Page |38 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data)

Note 1. Nature of Business and Summary of Significant Accounting Policies

Nature of business: Daktronics Inc. and its subsidiaries are engaged principally in the design, manufacture and sale of a wide range of electronic display systems and related products which are sold in a variety of markets throughout the world and the rendering of related maintenance and professional services. Our products are designed primarily to inform and entertain people through the communication of content.

Fiscal year: We operate on a 52 or 53 week fiscal year, with our fiscal year ending on the Saturday closest to April 30 of each year. When April 30 falls on a Wednesday, the fiscal year ends on the preceding Saturday. Within each fiscal year, each quarter is comprised of 13 week periods following the beginning of each fiscal year. In each 53 week year, an additional week is added to the first quarter of that fiscal year and each of the last three quarters is comprised of a 13 week period. The fiscal years ended April 26, 2014 and April 27, 2013 consisted of 52 weeks. Fiscal 2015 is a 53-week year.

Principles of consolidation: The consolidated financial statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Investments in affiliates over which we do not have the ability to exert significant influence over the investees operating and financing activities are accounted for under the cost method of accounting. We have evaluated our relationships with affiliates and have determined that these entities are not variable interest entities. Our proportional share of the respective affiliate’s earnings or losses is included in other (expense) income in our consolidated statements of operations.

The aggregate amount of investments accounted for under the cost method was $1,071 and $224 at May 2, 2015 and April 26, 2014, respectively. There have not been any identified events or changes in circumstances that may have a significant adverse effect on their fair value and it is not practical to estimate their fair value.

Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the estimated total costs on construction-type contracts, estimated costs to be incurred for product warranties, excess and obsolete inventory, the reserve for doubtful accounts, share-based compensation, goodwill impairment and income taxes. Changes in estimates are reflected in the periods in which they become known.

Cash and cash equivalents: All highly liquid investments with maturities of three months or less at the date of purchase are considered to be cash equivalents and consist primarily of government repurchase agreements, savings accounts and money market accounts that are carried at cost, which approximates fair value. We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We have not experienced any losses in such accounts.

Restricted cash: Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees.

Inventories: Inventories are stated at the lower of cost (first-in, first-out method) or market. Market is determined on the basis of estimated net realizable values.

Revenue recognition: Net sales are reported net of estimated sales returns and exclude sales taxes. We estimate our sales returns reserve based on historical return rates and analysis of specific accounts. Our sales returns reserve was $15 and $14 at May 2, 2015 and April 26, 2014, respectively.

Long-term construction-type contracts: Earnings on construction-type contracts are recognized on the percentage-of-completion method, measured by the percentage of costs incurred to date to estimated total costs for each contract. Contract costs include all direct material and labor costs and those indirect costs related to contract performance. Indirect costs include charges for such items as facilities, engineering, and project management. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are probable and capable of being estimated. We combine contracts for accounting purposes when they are negotiated as a package with an overall profit margin objective, essentially represent an agreement to do a single project for a customer, involve interrelated construction activities, and are performed concurrently or sequentially. When a group of contracts is combined, revenue and profit are recognized uniformly over the performance of the combined projects. We segment revenues in accordance with contract segmenting criteria in Accounting Standards Codification (“ASC”) 650-35, Construction-Type and Production-Type Contracts. Page |39 Equipment other than construction-type contracts: We recognize revenue on equipment sales, other than construction-type contracts, when title passes, which is usually upon shipment and then only if the terms of the arrangement are fixed and determinable and collectability is reasonably assured. We record estimated sales returns and discounts as a reduction of net sales in the same period revenue is recognized.

Product maintenance: In connection with the sale of our products, we also occasionally sell separately priced extended warranties and product maintenance contracts. The revenue related to such contracts is deferred and recognized ratably as net sales over the terms of the contracts, which vary up to 10 years. We record unrealized revenue in deferred revenue (billed or collected) in the liability section of the balance sheet.

Services: Revenues generated by us for services, such as event support, control room design, on-site training, equipment service and technical support of our equipment, are recognized as net sales when the services are performed. Net sales from services and product maintenance approximated 8.2 percent, 8.4 percent and 9.0 percent of net sales for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively.

Multiple-element arrangements: We generate revenue from the sale of equipment and related services, including customization, installation and maintenance services. In these limited cases, we provide some or all of such equipment and services to our customers under the terms of a single multiple-element sales arrangement. These arrangements typically involve the sale of equipment bundled with some or all of these services, but they may also involve instances in which we have contracted to deliver multiple pieces of equipment over time rather than at a single point in time.

When a sales arrangement involves multiple elements, the items included in the arrangement (deliverables) are evaluated pursuant to ASC 605-25, Revenue Arrangements with Multiple Deliverables and ASC 605-35, Accounting for Performance of Construction-Type and Certain Production-Type Contracts, to determine whether they represent separate units of accounting. We perform this evaluation at the inception of an arrangement and as we deliver each item in the arrangement. We first consider the separation criteria of ASC 605-35. Deliverables not within the scope of ASC 605-35 are evaluated for separation under ASC 605-25. For those elements falling under the guidance of ASC 605-25, we generally account for a deliverable (or a group of deliverables) separately if the delivered item (s) has standalone value to the customer and if we have given the customer a general right of return relative to the delivered item(s) and delivery or performance of the undelivered item(s) or service(s) is probable and substantially in our control.

When items included in a multiple-element arrangement represent separate units of accounting, we allocate the arrangement consideration to the individual items based on their relative fair values. The amount of arrangement consideration allocated to the delivered item(s) is limited to the amount not contingent on us delivering additional products or services. Once we have determined the amount, if any, of arrangement consideration allocable to the delivered item(s), we apply the applicable revenue recognition policy to determine when and by which method such amount may be recognized as revenue.

We generally determine if objective and reliable evidence of fair value for the items included in a multiple-element arrangement exists based on whether we have vendor-specific objective evidence ("VSOE") of the price for which we sell an item on a standalone basis. If we do not have VSOE for the item, we will use the price charged by a competitor selling a comparable product or service on a standalone basis to similarly situated customers, if available. If neither VSOE nor third party evidence is available, we use our best estimate of the selling price for that deliverable.

Long-term receivables and advertising rights: We occasionally sell and install our products at facilities in exchange for the rights to sell or to retain future advertising revenues. For these transactions, we recognize revenue for the amount of the present value of the future advertising payments if enough advertising is sold to obtain normal margins on the contract and we record the related receivable in long- term receivables. We recognize imputed interest as earned.

Property and equipment: Property and equipment is stated at cost and depreciated principally on the straight-line method over the following estimated useful lives:

Years Buildings 7 - 40 Machinery and equipment 5 - 7 Office furniture and equipment 3 - 5 Computer software and hardware 3 - 5 Equipment held for rental 2 - 7 Demonstration equipment 3 - 5 Transportation equipment 5 - 7

Page |40 Leasehold improvements are depreciated over the lesser of the useful life of the asset or the term of the lease. Our depreciation expense was $14,764, $14,137 and $15,379 for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively.

Long-Lived Assets: Long-lived assets other than goodwill and indefinite-lived intangible assets, described in "Note 6. Long-Lived Assets", which are separately tested for impairment, are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable.

When evaluating long-lived assets for potential impairment, we first compare the carrying value of the asset to the asset's estimated future cash flows (undiscounted and without interest charges). If the estimated future cash flows are less than the carrying value of the asset, we calculate an impairment loss. The impairment loss calculation compares the carrying value of the asset to the asset's estimated fair value. We recognize an impairment loss if the amount of the asset's carrying value exceeds the asset's estimated fair value. If we recognize an impairment loss, the adjusted carrying amount of the asset becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated (amortized) over the remaining useful life of that asset.

Our impairment loss calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows.

Software costs: We capitalize certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in property and equipment on our consolidated balance sheets. Software costs that do not meet capitalization criteria are expensed when incurred.

Insurance: We are self-insured for certain losses related to health and liability claims and workers’ compensation. We obtain third-party insurance to limit our exposure to these claims. We estimate our self-insured liabilities using a number of factors, including historical claims experience. Our self-insurance liability was $1,783 and $1,656 at May 2, 2015 and April 26, 2014, respectively, and is included in accrued expenses in our consolidated balance sheets.

Foreign currency translation: Our foreign subsidiaries use the local currency of their respective countries as their functional currency. The assets and liabilities of foreign operations are generally translated at the exchange rates in effect at the balance sheet date. The operating results of foreign operations are translated at weighted average exchange rates. The related translation gains or losses are reported as a separate component of shareholders’ equity in accumulated other comprehensive (loss) income.

Income taxes: We operate in multiple income tax jurisdictions both within the United States and internationally. Our annual tax rate is determined based on our income, statutory tax rates and the tax impacts of items treated differently for tax purposes than for financial reporting purposes in each tax jurisdiction. Tax laws require certain items be included in the tax return at different times than are reflected in the financial statements. Some of these differences are permanent, such as expenses that are not deductible in our tax return, and some differences are temporary and reverse over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities and reflect the enacted income tax rates in effect for the years in which the differences are expected to reverse. We consider a valuation allowance for deferred tax assets if it is "more likely than not" some or all of the benefits will not be realized.

Income tax authorities in these jurisdictions regularly perform audits of our income tax filings. Income tax audits associated with the allocation of income, expenses and other complex issues, including transfer pricing methodologies, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates.

Comprehensive (loss) income: We follow the provisions of ASC 220, Reporting Comprehensive Income, which establishes standards for reporting and displaying comprehensive income and its components. Comprehensive (loss) income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For us, comprehensive (loss) income represents net income (loss) adjusted for foreign currency translation adjustments and unrealized gains and losses on available-for-sale securities. The foreign currency translation adjustment included in comprehensive (loss) income has not been tax affected, as the investments in foreign affiliates are deemed to be permanent. In accordance with ASC 220 and Accounting Standards Update ("ASU") 2011-05, we disclose comprehensive (loss) income on a separate consolidated statement of comprehensive income.

Product design and development: All expenses related to product design and development are charged to operations as incurred. Our product development activities include the enhancement of existing products and the development of new products. Page |41 Advertising costs: We expense advertising costs as incurred. Advertising expenses were $2,318, $1,694 and $1,584 for fiscal years 2015, 2014 and 2013, respectively.

Shipping and handling costs: Shipping and handling costs collected from our customers in connection with our sales are recorded as revenue. We record shipping and handling costs as a component of cost of sales at the time the product is shipped.

Earnings per share (“EPS”): Basic EPS is computed by dividing income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution which may occur if securities or other obligations to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which share in our earnings.

The following is a reconciliation of the income and common stock share amounts used in the calculation of basic and diluted EPS for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013: Per share Net income Shares income (loss) For the year ended May 2, 2015: Basic earnings per share $ 20,882 43,514 $ 0.48 Dilution associated with stock compensation plans — 929 (0.01) Diluted earnings per share $ 20,882 44,443 $ 0.47 For the year ended April 26, 2014: Basic earnings per share $ 22,206 42,886 $ 0.52 Dilution associated with stock compensation plans — 876 (0.01) Diluted earnings per share $ 22,206 43,762 $ 0.51 For the year ended April 27, 2013: Basic earnings per share $ 22,779 42,280 $ 0.54 Dilution associated with stock compensation plans — 341 (0.01) Diluted earnings per share $ 22,779 42,621 $ 0.53

Options outstanding to purchase 1,462, 1,564 and 2,672 shares of common stock with a weighted average exercise price of $18.42, $18.64 and $15.09 per share during the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively, were not included in the computation of diluted earnings per share because the weighted average exercise price of those instruments exceeded the average market price of the common shares during the year.

Share-based compensation: We account for share-based compensation in accordance with ASC 718, Compensation-Stock Compensation. Under the fair value recognition provisions of ASC 718, we measure share-based compensation cost at the grant date based on the fair value of the award and recognize the compensation expense over the requisite service period, which is the vesting period. See Note 11. Shareholders’ Equity and Share-Based Compensation for additional information and the assumptions we use to calculate the fair value of share-based employee compensation.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which was issued as a new topic, ASC 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, providing guidance for transactions that were not previously addressed comprehensively and improving guidance for multiple-element arrangements. The FASB recently announced plans to defer the effective adoption date by one year. This ASU is effective for us beginning in fiscal 2019 and can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our consolidated results of operations, cash flows, and financial position.

Page |42 Note 2. Segment Reporting

We have organized our business into five segments which meet the definition of reportable segments under ASC 280-10, Segment Reporting: Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the type of customer or geography and are the same as our business units.

Our Commercial business unit primarily consists of sales of our video display systems, digital billboards, Galaxy® and Fuelight™ product lines to resellers (primarily sign companies), outdoor advertisers, national retailers, quick-serve restaurants, casinos and petroleum retailers. Our Live Events business unit primarily consists of sales of integrated scoring and video display systems to college and professional sports facilities and convention centers and sales of our mobile display technology to video rental organizations and other live events type venues. Our High School Park and Recreation business unit (formerly known as our Schools and Theatres business unit) primarily consists of sales of scoring systems, Galaxy® displays and video display systems to primary and secondary education facilities. Upon the sale of our automated rigging systems division for theatre applications in July 2014, we changed the name of this business unit. Other than such sale, there was no change to the composition of the segment. Our Transportation business unit primarily consists of sales of our Vanguard® and Galaxy® product lines to governmental transportation departments, airlines and other transportation related customers. Our International business unit consists of sales of all product lines outside the United States and Canada. We focus on product lines related to integrated scoring and video display systems for sports and commercial applications, out-of-home advertising products, and European transportation related products.

Segment reports present results through contribution margin, which is comprised of gross profit less selling costs. Segment profit excludes general and administration expense, product development expense, interest income and expense, non-operating income and income tax expense. Assets are not allocated to the segments. Depreciation and amortization are allocated to each segment based on various financial measures; however, some depreciation and amortization are corporate in nature and remain unallocated. In general, our segments follow the same accounting policies as those described in "Note 1. Nature of Business and Summary of Significant Accounting Policies". Unabsorbed costs of domestic field sales and services infrastructure, including most field administrative staff, are allocated to the Commercial, Live Events, Transportation, and High School Park and Recreation business units based on cost of sales. Shared manufacturing, buildings and utilities, and procurement costs are allocated based on payroll dollars, square footage and various other financial measures.

We do not maintain information on sales by products; therefore, disclosure of such information is not practical.

Page |43 The following table sets forth certain financial information for each of our five operating segments for the periods indicated: Year Ended May 2, April 26, April 27, 2015 2014 2013 Net sales: Commercial $ 165,793 $ 154,754 $ 144,596 Live Events 231,877 197,246 158,562 High School Park and Recreation 67,657 59,531 66,128 Transportation 48,333 54,861 73,270 International 102,282 85,578 75,766 615,942 551,970 518,322 Contribution margin: Commercial 28,541 30,313 24,241 Live Events 27,334 30,503 19,071 High School Park and Recreation 11,125 5,474 8,150 Transportation 10,404 12,810 21,330 International 9,212 8,816 8,343 86,616 87,916 81,135 Non-allocated operating expenses: General and administrative 30,679 27,984 27,404 Product design and development 24,652 23,375 23,131 Operating income 31,285 36,557 30,600 Nonoperating income (expense): Interest income 1,119 1,294 1,523 Interest expense (223) (255) (355) Other (expense) income, net (498) (355) (839) Income before income taxes 31,683 37,241 30,929 Income tax expense 10,801 15,035 8,150 Net income $ 20,882 $ 22,206 $ 22,779 Depreciation and amortization: Commercial $ 4,846 $ 4,243 $ 4,940 Live Events 4,610 4,461 4,473 High School Park and Recreation 1,836 2,053 2,233 Transportation 1,148 1,132 1,375 International 1,053 873 717 Unallocated corporate depreciation 1,475 1,739 1,869 $ 14,968 $ 14,501 $ 15,607

No single geographic area comprises a material amount of net sales or long-lived assets (net of accumulated depreciation) other than the United States. The following table presents information about net sales and long-lived assets in the United States and elsewhere: Year Ended May 2, April 26, April 27, 2015 2014 2013 Net sales: United States $ 494,860 $ 453,468 $ 430,242 Outside U.S. 121,082 98,502 88,080 $ 615,942 $ 551,970 $ 518,322 Long-lived assets: United States $ 67,882 $ 60,846 $ 60,060 Outside U.S. 4,962 4,424 1,565 $ 72,844 $ 65,270 $ 61,625

Page |44 We have numerous customers worldwide for sales of our products and services; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services except with respect to our dependence on a few large digital billboard customers in our Commercial business unit.

Note 3. Marketable Securities

We have a cash management program which provides for the investment of cash balances not used in current operations. We classify our investments in marketable securities as available-for-sale in accordance with the provisions of ASU 320, Investments – Debt and Equity Securities. Marketable securities classified as available-for-sale are reported at fair value with unrealized gains or losses, net of tax, reported in accumulated other comprehensive (loss) income. As it relates to fixed income marketable securities, we do not intend to sell any of these investments, and it is not likely we will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of May 2, 2015, we anticipate we will recover the entire amortized cost basis of such fixed income securities, and we have determined no other-than-temporary impairments associated with credit losses were required to be recognized. The cost of securities sold is based on the specific identification method. Where quoted market prices are not available, we use the market price of similar types of securities traded in the market to estimate fair value.

As of May 2, 2015 and April 26, 2014, our available-for-sale securities consisted of the following: Amortized Unrealized Unrealized Cost Gains Losses Fair Value Balance as of May 2, 2015: Certificates of deposit $ 11,409 $ — $ — $ 11,409 U.S. Government securities 1,000 1 — 1,001 U.S. Government sponsored entities 7,951 — (9) 7,942 Municipal bonds 4,989 5 — 4,994 $ 25,349 $ 6 $ (9) $ 25,346 Balance as of April 26, 2014: Certificates of deposit $ 7,734 $ — $ — $ 7,734 U.S. Government securities 2,000 2 — 2,002 U.S. Government sponsored entities 8,349 — (8) 8,341 Municipal bonds 7,309 12 — 7,321 $ 25,392 $ 14 $ (8) $ 25,398

Realized gains or losses on investments are recorded in our consolidated statements of operations as other (expense) income, net. Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of "accumulated other comprehensive (loss) income” into earnings based on the specific identification method. In the fiscal years ended May 2, 2015 and April 26, 2014, the reclassifications from accumulated other comprehensive (loss) income to net assets were immaterial.

All available-for-sale securities are classified as current assets, as they are readily available to support our current operating needs. The contractual maturities of available-for-sale debt securities as of May 2, 2015 were as follows: Less than 12 months 1-5 Years Total Certificates of deposit $ 3,211 $ 8,198 $ 11,409 U.S. Government securities 1,001 — 1,001 U.S. Government sponsored entities — 7,942 7,942 Municipal obligations 4,687 307 4,994 $ 8,899 $ 16,447 $ 25,346

Note 4. Business Combinations

Open Acquisition

We acquired 100 percent ownership in OPEN Out-of Home Solutions ("OPEN"), a Belgian company, on May 8, 2013 for an undisclosed amount. The results of its operations have been included in our consolidated financial statements since the date of acquisition. We have not made pro forma disclosures as the results of its operations are not material to our consolidated financial statements.

OPEN is a European manufacturer of cabinets and street furniture for the third-party advertising market. This acquisition expanded our product offerings to third-party advertisers as they increasingly adopt digital technology and included a manufacturing plant in Belgium Page |45 to manufacture digital advertising displays. This acquisition was funded with cash on hand and a five-year promissory note that matures in May 2018.

During the third quarter of fiscal 2014, the purchase price allocation for the OPEN acquisition was completed. The excess of the purchase price over the net tangible and intangible assets was recorded as goodwill of $1,249 which primarily related to the value of an assembled workforce and is not deductible for tax purposes. Included in the purchase price allocation were acquired identifiable intangibles valued at $1,160 representing trade names with a useful life of 20 years and a customer list valued at $582 with a useful life of nine years. Also included in the purchase was $2,658 of property and equipment, $2,038 of inventory, $833 of other current assets offset by current operating liabilities of $1,230 and long and short term debt of $4,155. There were no material adjustments to the original purchase price allocation.

The purchase price includes deferred payments of $2,375 to be made over five years unless certain conditions in the business are not met. We have included the payment obligation in other long-term obligations in our consolidated balance sheet.

OPEN's sales were included in the International business unit results and contributed $4,218 of net sales during fiscal 2014. General and administrative expenses included $44 and $146 for the years ended April 26, 2014 and April 27, 2013, respectively, for professional fees relating to the acquisition.

Data Display Acquisition

We acquired 100 percent ownership in Data Display, a European transportation display company, on August 11, 2014 for an undisclosed amount. The results of its operations have been included in our consolidated financial statements since the date of acquisition. We have not made pro forma disclosures as the results of its operations are not material to our consolidated financial statements.

Data Display is a European based company focused on the design and manufacture of transportation displays. This acquisition will allow our Company to better service transportation customers world-wide and broadens our leadership position on a global scale. This acquisition included a manufacturing plant in Ireland to manufacture transportation displays. This acquisition was funded with cash on hand.

During the second quarter of fiscal 2015, we prepared the preliminary fair value measurements of assets acquired and liabilities assumed, as of the acquisition date using independent appraisals and other analysis. We are in the process of determining final working capital adjustments. The excess of purchase price over the net tangible and intangible assets was recorded as goodwill of $1,249 which primarily related to the value of an assembled workforce and is not deductible for tax purposes. Included in the purchase price allocation were acquired identifiable intangibles valued at $480 representing trademarks and technology with a useful life of 20 years and customer relationships valued at $84 with a useful life of 18 years. Based on the preliminary fair value measurements, also included in the purchase price was $1,433 of property and equipment, $437 of investments for affiliates, $2,773 of inventory, $3,380 of accounts receivable, and $1,869 of other current assets, which was offset by current operating liabilities of $3,616 and long term obligations of $950. The purchase price allocation is expected to be completed in the second quarter of fiscal 2016.

Data Display contributed net sales of $8,138 during fiscal 2015. General and administrative expenses included $434 during fiscal 2015 for professional fees relating to the acquisition.

Note 5. Sale of Theatre Rigging Division

In July 2014, we sold our automated rigging systems division for theatre applications. Related to the sale, we recorded a $1,261 gain which is included in cost of goods sold in the High School Park and Recreation business unit. In connection with the sale, we changed the name of the business unit from Schools and Theatres to High School Park and Recreation to more accurately describe it. See "Note 2. Segment Reporting" for a further description.

As part of the transaction, we sold assets of $2,817 that primarily consisted of accounts receivable, patents, inventory, and manufacturing equipment net of $355 of accounts payable.

Note 6. Long-Lived Assets

Goodwill and other intangible assets: We account for goodwill and intangible assets in accordance with ASC 350, Goodwill and Other Intangible Assets. Under these provisions, goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates an impairment or a decline in value may have occurred. Such circumstances could include, but are not limited to, a worsening trend of orders and sales without a corresponding way to preserve future cash flows or a significant decline in our stock price. In conducting our impairment testing, we compare the fair value of each of our business units (reporting unit) to the related carrying value. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. Page |46 We utilize an income approach to estimate the fair value of each reporting unit. We selected this method because we believe it most appropriately measures our income producing assets. We considered using the market approach and cost approach, but concluded they were not appropriate in valuing our reporting units given the lack of relevant and available market comparisons. The income approach is based on the projected cash flows, which are discounted to their present value using discount rates which consider the timing and risk of the forecasted cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting units’ expected long-term operating cash performance. This approach also mitigates the impact of the cyclical trends occurring in the industry. Fair value is estimated using internally-developed forecasts and assumptions. The discount rate used is the average estimated value of a market participant’s cost of capital and debt, derived using customary market metrics. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. We also compare and reconcile our overall fair value to our market capitalization. Although there are inherent uncertainties related to the assumptions used and to our application of these assumptions to this analysis, we believe the income approach provides a reasonable estimate of the fair value of our reporting units. The foregoing assumptions to a large degree were consistent with our long-term performance, with limited exceptions. We believe our future investments for capital expenditures as a percent of revenue will remain similar to the historical rates as a percentage of sales in future years. Our investments are expected to relate to equipment replacements and new product line manufacturing equipment needs, and to keep our information technology infrastructure robust. We also believe long-term receivables will decrease as we grow. We also have assumed through the recent economic downturn that our markets have not contracted for the long term; however, it may be a number of years before they fully recover. These assumptions could deviate materially from actual results.

We perform an analysis of goodwill on an annual basis. We complete this annual analysis during our third quarter of each fiscal year, based on the goodwill amount as of the first business day of our third quarter in fiscal 2015, 2014, and 2013. The result of our analysis indicated no goodwill impairment existed for fiscal years 2015, 2014, and 2013.

The changes in the carrying amount of goodwill related to each reportable segment for the fiscal year ended May 2, 2015 were as follows:

Live Events Commercial Transportation International Total Balance as of April 26, 2014: $ 2,381 $ 723 $ 129 $ 1,325 $ 4,558 Disposal of automated rigging systems division for theatre applications (22) — — — (22) Acquisition, net of cash acquired — — — 1,249 1,249 Foreign currency translation (38) (2) (38) (438) (516) Balance as of May 2, 2015: $ 2,321 $ 721 $ 91 $ 2,136 $ 5,269

As required by ASC 350, intangibles with finite lives are amortized. We evaluate indefinite lived assets for impairment annually and whenever events or changes in circumstances indicate their carrying value may not be recoverable. The net value of intangible assets is shown on our consolidated balance sheets. Estimated amortization expense based on intangibles as of May 2, 2015 is $141 for each of the fiscal years 2016 through 2017, $132 for fiscal 2018, $132 for each of the fiscal years 2019 through 2020, and $1,146 in the aggregate for fiscal years after 2020.

The following table sets forth the gross carrying amount and accumulated amortization of intangible assets by major intangible class as of May 2, 2015 and April 26, 2014: May 2, 2015 April 26, 2014 Weighted Gross Gross Average Life Carrying Accumulated Carrying Accumulated (in years) Amount Amortization Net Value Amount Amortization Net Value Definite-lived: Patents 10 $ — $ — $ — $ 2,282 $ 1,730 $ 552 Registered Trademarks 20 1,461 116 1,345 1,216 59 1,157 Other 10 608 129 479 648 78 570 17 2,069 245 1,824 4,146 1,867 2,279

Indefinite-lived: Registered trademarks — — — 401 — 401 $ 2,069 $ 245 $ 1,824 $ 4,547 $ 1,867 $ 2,680

Page |47 Impairment of long-lived assets: In the fiscal years ended May 2, 2015, April 26, 2014, and April 27, 2013, the pretax impairment charges for other long-lived assets, including property and equipment, were immaterial. The impairment charges related to technology or equipment obsoleted due to technology improvements or to custom demo equipment with no resale value. Impairment charges during fiscal 2015, 2014, and 2013 were included primarily in product development and selling expense.

Note 7. Selected Financial Statement Data

Inventories consisted of the following: May 2, April 26, 2015 2014 Raw materials $ 28,325 $ 27,660 Work-in-process 7,512 11,835 Finished goods 28,552 22,733 $ 64,389 $ 62,228

Inventories are reported net of the allowance for excess and obsolete inventory of $3,998 and $2,692 as of May 2, 2015 and April 26, 2014, respectively.

Property and equipment consisted of the following: May 2, April 26, 2015 2014 Land $ 2,147 $ 2,539 Buildings 64,186 59,363 Machinery and equipment 80,664 72,787 Office furniture and equipment 15,823 15,754 Computer software and hardware 51,083 45,329 Equipment held for rental 803 868 Demonstration equipment 7,299 7,532 Transportation equipment 6,012 4,823 228,017 208,995 Less accumulated depreciation 155,173 143,725 $ 72,844 $ 65,270

Accrued expenses consisted of the following: May 2, April 26, 2015 2014 Compensation $ 12,137 $ 14,189 Taxes, other than income taxes 4,223 2,977 Other 9,703 6,296 $ 26,063 $ 23,462

Other (expense) income, net consisted of the following: Year Ended May 2, April 26, April 27, 2015 2014 2013 Foreign currency transaction (losses) $ (514) $ (292) $ (319) Other 16 (63) (520) $ (498) $ (355) $ (839)

Page |48 Note 8. Uncompleted Contracts

Uncompleted contracts consisted of the following: May 2, April 26, 2015 2014 Costs incurred $ 708,029 $ 486,430 Estimated earnings 237,239 166,250 945,268 652,680 Less billings to date 933,997 641,763 $ 11,271 $ 10,917

Uncompleted contracts are included in the accompanying consolidated balance sheets as follows:

May 2, April 26, 2015 2014 Costs and estimated earnings in excess of billings $ 35,068 $ 33,400 Billings in excess of costs and estimated earnings (23,797) (22,483) $ 11,271 $ 10,917

Note 9. Receivables

We sell our products throughout the United States and in certain foreign countries on credit terms we establish for each customer. On the sale of certain products, we have the ability to file a contractor’s lien against the product installed as collateral and to file claims against surety bonds to protect our interest in receivables. Foreign sales are at times secured by irrevocable letters of credit or bank guarantees.

Accounts receivable are reported net of an allowance for doubtful accounts of $2,316 and $2,539 at May 2, 2015 and April 26, 2014, respectively.

We make estimates regarding the collectability of our accounts receivable, long-term receivables, costs and estimated earnings in excess of billings and other receivables. In evaluating the adequacy of our allowance for doubtful accounts, we analyze specific balances, customer creditworthiness, changes in customer payment cycles, and current economic trends. If the financial condition of any customer were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances may be required. We charge off receivables at such time as it is determined collection will not occur. Charge-offs of receivables and our allowance for doubtful accounts related to financing receivables are not material to our financial results.

In connection with certain sales transactions, we have entered into sales contracts with installment payments exceeding six months and sales-type leases. The present value of these contracts and leases is recorded as a receivable as the revenue is recognized in accordance with United States generally accepted accounting principles ("GAAP"), and profit is recognized to the extent the present value is in excess of cost. We generally retain a security interest in the equipment or in the cash flow generated by the equipment until the contract is paid. The present value of long-term contracts and lease receivables, including accrued interest and current maturities, was $9,874 and $13,112 as of May 2, 2015 and April 26, 2014, respectively. Contract and lease receivables bearing annual interest rates of 5.0 to 10.0 percent are due in varying annual installments through July 2022. The face amount of long-term receivables was $10,976 as of May 2, 2015 and $14,892 as of April 26, 2014. Included in accounts receivable as of May 2, 2015 and April 26, 2014 was $385 and $2,098, respectively, of retainage on construction-type contracts, all of which are expected to be collected within one year.

Note 10. Financing Agreements

We have a credit agreement with a U.S. bank for a $35,000 line of credit, which includes up to $15,000 for standby letters of credit. The line of credit, which was amended on November 15, 2013, is due on November 15, 2016. The interest rate ranges from LIBOR plus 145 basis points to LIBOR plus 195 basis points depending on the ratio of our interest-bearing debt to EBITDA. EBITDA is defined as net income before deductions for income taxes, interest expense, depreciation and amortization, all as determined in accordance with GAAP. The effective interest rate was 1.6 percent at May 2, 2015. We are assessed a loan fee equal to 0.125 percent per annum of any non-used portion of the loan. As of May 2, 2015, there were no advances to us under the line of credit, and the balance of letters of credit outstanding was approximately $10,960.

Page |49 The credit agreement is unsecured and requires us to be in compliance with the following financial ratios:

• A minimum fixed charge coverage ratio of at least 2 to 1 at the end of any fiscal year. The ratio is equal to (a) EBITDA less dividends or other distributions, a capital expenditure reserve of $6,000, and income tax expenses, over (b) all principal and interest payments with respect to debt, excluding principal payments on the line of credit; and • A ratio of interest-bearing debt, excluding any marketing obligations, to EBITDA of less than 1 to 1 at the end of any fiscal quarter.

We have an additional credit agreement with another U.S. bank which supports our credit needs outside of the United States. It was also amended on November 15, 2013 and becomes due on November 15, 2016. The facility provides for a $40,000 line of credit and includes facilities for letters of credit and bank guarantees and to secure foreign loans for our international subsidiaries. This credit agreement is unsecured. It contains the same covenants as the credit agreement on the line of credit and contains an inter creditor agreement whereby the debt has a cross default provision with the primary credit agreement described above. The total credit allowed between the two credit agreements is limited to $40,000. As of May 2, 2015, there were no advances outstanding and approximately $2,655 in bank guarantees under this line of credit.

We were in compliance with all applicable covenants as of May 2, 2015 and April 26, 2014. The minimum fixed charge coverage ratio as of May 2, 2015 was 47-to-1, and the ratio of interest-bearing debt to EBITDA as of May 2, 2015 was 0.04-to-1.

Note 11. Shareholders’ Equity and Share-Based Compensation

Common stock: Our authorized shares of 120,000,000 consist of 115,000,000 shares of common stock and 5,000,000 shares of “undesignated stock.” Our Board of Directors has the power to issue any or all of the shares of undesignated stock without shareholder approval, including the authority to establish the rights and preferences of the undesignated stock.

Each outstanding share of our common stock includes one common share purchase right. Each right entitles the registered holder to purchase from us one-tenth of one share of common stock at a price of $100 per common share, subject to adjustment and the terms of the shareholder rights agreement under which the dividend was declared and paid. The rights become exercisable immediately after the earlier of (i) 10 business days following a public announcement that a person or group has acquired beneficial ownership of 15 percent or more of our outstanding common shares (subject to certain exclusions) or (ii) 10 business days following the commencement or announcement of an intention to make a tender offer or exchange offer for our common shares, the consummation of which would result in the beneficial ownership by a person or group of 15 percent or more of our outstanding common shares. The rights expire on November 19, 2018, which date may be extended by our Board subject to certain additional conditions.

Stock incentive plans: During fiscal 2008, we established the 2007 Stock Incentive Plan (“2007 Plan”) and ceased granting options under the 2001 Incentive Stock Option Plan and the 2001 Outside Directors Option Plan (“2001 Plans”). The 2007 Plan provides for the issuance of stock-based awards, including stock options, restricted stock, restricted stock units and deferred stock, to employees, directors and consultants. Stock options issued to employees under the plans generally have a 10-year life, an exercise price equal to the fair market value on the grant date and a five-year annual vesting period. Stock options granted to independent directors under these plans have a seven-year life and an exercise price equal to the fair market value on the date of grant. Stock options granted to independent directors prior to fiscal 2010 vested annually over three years, and options granted in or after fiscal 2010 vest in one year. The restricted stock granted to independent directors vests in one year, provided that they remain on the Board. Restricted stock units are granted to employees and have a five-year annual vesting period. As with stock options, restricted stock and restricted stock unit ownership cannot be transferred during the vesting period.

At May 2, 2015, the aggregate number of shares available for future grant under the 2007 Plan for stock options and restricted stock awards was 27 shares. Full value awards such as restricted stock and restricted stock unit awards reduce the number of shares available for issuance by a factor of two, and if such an award were forfeited or terminated without delivery of the shares, the number of shares again becoming eligible for issuance would be multiplied by a factor of two. Although the 2001 Plans remain in effect for options outstanding, no new options can be granted under these plans.

Restricted stock and restricted stock units: We issue restricted stock to our non-employee directors and restricted stock units to employees. The fair value of restricted stock and our restricted stock unit awards are measured on the grant date based on the market value of our common stock. The related compensation expense as calculated under ASC 718, net of estimated forfeitures, is recognized over the applicable vesting period. Unrecognized compensation expense related to the restricted stock and restricted stock unit awards was approximately $2,751 at May 2, 2015, which is expected to be recognized over a weighted-average period of 3.1 years. The total fair value of restricted stock vested was $1,089, $804, and $666 for fiscal years 2015, 2014, and 2013, respectively.

Page |50 A summary of nonvested restricted stock and restricted stock units for the years ended May 2, 2015, April 26, 2014 and April 27, 2013 is as follows: Year Ended May 2, 2015 April 26, 2014 April 27, 2013 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Nonvested Fair Value Nonvested Fair Value Nonvested Fair Value Shares Per Share Shares Per Share Shares Per Share Outstanding at beginning of year 318 $ 9.59 279 $ 9.74 242 $ 9.81 Granted 150 12.25 147 10.03 119 8.50 Vested (111) 9.83 (85) 9.47 (69) 12.05 Forfeited (13) 10.70 (23) 9.37 (13) 9.63 Outstanding at end of year 344 10.63 318 9.59 279 9.74

Stock Options: We issue incentive stock options to our employees and non-qualified stock options to our independent directors. A summary of stock option activity under all stock option plans during the fiscal year ended May 2, 2015 is as follows:

Weighted Weighted Average Average Exercise Remaining Aggregate Stock Price Per Contractual Intrinsic Options Share Life (Years) Value Outstanding at April 26, 2014 2,935 $ 13.77 5.00 $ 6,333 Granted 205 13.31 — — Canceled or forfeited (167) 14.57 — — Exercised (232) 10.84 — 533 Outstanding at May 2, 2015 2,741 $ 13.94 4.63 $ 2,258

Shares vested and expected to vest 2,714 $ 13.96 4.60 $ 2,244 Exercisable at May 2, 2015 2,018 $ 14.96 3.54 $ 1,802

The aggregate intrinsic value of stock options represents the difference between the exercise price of stock options and the fair market value of the underlying common stock for all in-the-money options. We define in-the-money options at May 2, 2015 as options having exercise prices lower than the $10.75 per share market price of our common stock on that date. There were in-the-money options to purchase 953 shares exercisable at May 2, 2015. The total intrinsic value of options exercised during fiscal years 2015, 2014, and 2013 was $533, $1,534, and $562, respectively. The total fair value of stock options vested was $1,294, $1,541, and $1,898 for fiscal years 2015, 2014, and 2013, respectively.

We estimate the fair value of stock options granted using the Black-Scholes option valuation model. We recognize the fair value of the stock options on a straight-line basis as compensation expense. All options are recognized over the requisite service periods of the awards, which are generally the vesting periods.

The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. ASC 718 requires us to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate pre-vesting option forfeitures and record share- based compensation expense only for those awards expected to vest. The following factors are the significant assumptions used in the computation of the fair value of options:

Expected life. The expected life of options granted represents the period of time they are expected to be outstanding. We estimate the expected life of options granted based on historical exercise patterns, which we believe are representative of future behavior. We have examined our historical pattern of option exercises in an effort to determine if there were any discernible patterns of activity based on certain demographic characteristics. Demographic characteristics tested included age, salary level, job level and geographic location. We have determined there were no meaningful differences in option exercise activity based on the demographic characteristics tested.

Expected volatility. We estimate the volatility of our common stock at the date of grant based on historical volatility consistent with ASC 718 and SEC Staff Accounting Bulletin No. 107, Share Based Payments. Our decision to use historical volatility instead Page |51 of implied volatility was based upon analyzing historical data along with the lack of availability of history of actively traded options on our common stock.

Risk-free interest rate. The rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a term similar to the expected life of the options.

Dividend yield. We use an expected dividend yield consistent with our dividend yield over the period of time we have paid dividends.

The following table provides the weighted-average fair value of options granted and the related assumptions used in the Black-Scholes model: Year Ended May 2, April 26, April 27, 2015 2014 2013 Fair value of options granted $ 5.44 $ 4.91 $ 3.43 Risk-free interest rate 1.93 - 2.14% 2.03 - 2.34% 0.71 - 1.13% Expected dividend rate 2.60% 2.32% 2.43% Expected volatility 48.01 - 51.89% 54.09 - 54.37% 45.60 - 46.15% Expected life of option 5.84 - 6.95 years 5.9 - 6.9 years 5.9 - 6.8 years

Employee stock purchase plan: We have an employee stock purchase plan (“ESPP”), which enables employees after six months of continuous employment to elect, in advance and semi-annually, to contribute up to 15 percent of their compensation, subject to certain limitations, toward the purchase of our common stock at a purchase price equal to 85 percent of the lower of the fair market value of the common stock on the first or last day of the participation period. The ESPP requires participants to hold any shares purchased under the ESPP for a minimum period of one year after the date of purchase. Compensation expense recognized on shares issued under our ESPP is based on the value of a traded option to purchase shares of our stock at a 15 percent discount to the stock price. The total number of shares reserved under the ESPP is 2,500. The number of shares of common stock issued under the ESPP totaled 248, 195, and 214 shares in fiscal 2015, 2014, and 2013, respectively. The number of shares of common stock reserved for future employee purchases under the ESPP totaled 742 shares at May 2, 2015. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code of 1986.

Total share-based compensation expense: As of May 2, 2015, there was $5,136 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under all equity compensation plans. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize the cost over a weighted-average period of 2.8 years.

The following table presents a summary of the share-based compensation expense by equity type as follows: Year Ended May 2, April 26, April 27, 2015 2014 2013 Stock options $ 1,311 $ 1,451 $ 1,812 Restricted stock and stock units 1,234 1,000 765 Employee stock purchase plans 493 446 460 $ 3,038 $ 2,897 $ 3,037

A summary of the share-based compensation expenses for stock options, restricted stock, restricted stock units and shares issued under the ESPP for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013 is as follows: Year Ended May 2, April 26, April 27, 2015 2014 2013 Cost of goods sold $ 737 $ 657 $ 633 Selling 825 810 856 General and administrative 908 859 980 Product design and development 568 571 568 $ 3,038 $ 2,897 $ 3,037

We received $2,513 in cash from option exercises under all share-based payment arrangements for the fiscal year ended May 2, 2015. The tax (expense) benefit related to non-qualified options and restricted stock units under all share-based payment arrangements totaled $3, $(126), and $346 for fiscal years 2015, 2014, and 2013, respectively. Page |52 Note 12. Employee Benefit Plans

We sponsor a 401(k) savings plan under which eligible U.S. employees may choose to make voluntary contributions of such employees' compensation on a pretax basis, subject to certain Internal Revenue Service (IRS) limits. We make matching contributions equal to 50 percent of the employee's qualifying contribution up to six percent of such employee's compensation plus other discretionary contributions as authorized by our Board of Directors. Employees are eligible to participate upon completion of one year of service if they have attained the age of 21 and have worked more than 1000 hours during such plan year. We contributed $2,115, $1,859 and $1,713 to the plan for fiscal years 2015, 2014, and 2013, respectively.

We have unfunded deferred compensation agreements with one individual who is a former officer and another individual who is a former officer and director under which interest is credited each year to each participant’s account in an amount equal to the five-year Treasury note rate as of January 1 of each plan year. Total amounts accrued for these plans as of May 2, 2015 and April 26, 2014 was $433 and $522, respectively. Contributions for each of the fiscal years 2015, 2014, and 2013 were $23, $23 and $23, respectively. The amounts accrued under the plans are not funded and are subject to the claims of the participants’ creditors. Participants may elect various forms of withdrawals upon retirement, including a lump sum distribution or annual payments over five or 10 years. In 2015, a payment of $93 was distributed to one participant, which represented the first of five years of payments.

Note 13. Income Taxes

The pretax income attributable to domestic and foreign operations was as follows: Year Ended May 2, April 26, April 27, 2015 2014 2013 Domestic $ 29,194 $ 35,699 $ 27,667 Foreign 2,489 1,542 3,262 Income before income taxes $ 31,683 $ 37,241 $ 30,929

Income tax expense consisted of the following: Year Ended May 2, April 26, April 27, 2015 2014 2013 Current: Federal $ 6,657 $ 11,342 $ 9,517 State 1,150 1,454 2,219 Foreign 848 696 754 Deferred: Federal 1,906 1,241 (3,114) State 307 667 (1,090) Foreign (67) (365) (136) $ 10,801 $ 15,035 $ 8,150

Page |53 A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory rate to income before income taxes is as follows: Year Ended May 2, April 26, April 27, 2015 2014 2013 Computed income tax expense (benefit) at federal, state and local jurisdiction statutory rates $ 11,089 $ 13,035 $ 10,825 State taxes, net federal benefit 1,016 1,433 684 Research and development tax credit (1,292) (750) (1,804) Meals and entertainment 369 344 308 Stock compensation 566 586 466 Dividends paid to retirement plan (352) (328) (616) Domestic production activities deduction (529) (1,012) (976) Change in valuation allowances (2,295) 2,301 — Change in uncertain tax positions 2,357 111 (70) Other, net (128) (685) (667) $ 10,801 $ 15,035 $ 8,150

The components of the net deferred tax asset were as follows: May 2, April 26, 2015 2014 Deferred tax assets: Warranty reserves $ 10,038 $ 10,432 Vacation accrual 1,808 1,510 Net losses on equity investments — 2,870 Deferred maintenance revenue 745 1,332 Reserves for excess and obsolete inventory 939 981 Equity compensation 828 899 Allowance for doubtful accounts 613 797 Inventory capitalization 531 306 Accrued compensation and benefits 1,124 1,397 Intangible assets — 56 Unrealized loss on foreign currency exchange 554 206 Net operating loss carry forwards 791 766 Other 344 379 18,315 21,931 Valuation allowance on equity investments (52) (2,297) 18,263 19,634

Deferred tax liabilities: Property and equipment (7,249) (6,232) Prepaid expenses (577) (574) Other (34) (162) (7,860) (6,968) $ 10,403 $ 12,666

The classification of net deferred tax assets in the accompanying consolidated balance sheets is: May 2, April 26, 2015 2014 Current assets $ 10,640 $ 10,694 Current liabilities — (27) Non-current assets 702 2,000 Non-current liabilities (939) (1) $ 10,403 $ 12,666

Page |54 The changes in the amounts recorded for uncertain tax positions are:

May 2, 2015 April 26, 2014 April 27, 2013 Balance at beginning of year $ 494 $ 379 $ 449 Gross increases related to prior period tax positions 6 16 — Gross decreases related to prior period tax positions — — (11) Gross increases related to current period tax positions 2,496 99 129 Lapse of statute of limitations (105) — (188) Balance at end of year $ 2,891 $ 494 $ 379

All of our unrecognized tax benefits would have an impact on the effective tax rate if recognized. It is reasonably possible that the amount of unrecognized tax benefits could change due to one or more of the following events in the next 12 months: expiring statutes, audit activity, tax payments, or competent authority proceedings. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved; however, we do not anticipate any significant changes within the next 12 months. Interest and penalties incurred associated with uncertain tax positions are included in other (expense) income.

Our fiscal 2014 financial results included a deferred asset tax valuation allowance of $2,297 for a one-time valuation allowance. The corresponding deferred tax asset was related to potential capital losses from an investment in an affiliate ("affiliate") that is a United States entity. During the fourth quarter of fiscal 2014, we were notified that the affiliate had sold off a significant portion of its operations for a substantial loss. This loss puts us in doubt of any financial recovery of our investment in affiliate. Although the full capital loss of the affiliate has not yet been triggered under the Code, we have concluded that it would be more likely than not a capital loss if the affiliate goes out of business or we abandon the partnership. A tax court case solidified capital loss treatment versus ordinary gain treatment in abandonments. The Tax Court's decision in Pilgrim's Pride Corporation v. Commissioner and Code Sections 165 and 1234A state that loss deductions related to worthless security abandonments would be treated as a capital loss versus an ordinary loss.

In fiscal 2015, the Tax Court's decision in Pilgrim's Pride Corporation v. Commissioner was overturned by the federal Fifth Circuit Court of Appeals. Hence, we abandoned our partnership interest and will record an ordinary loss on our 2015 federal tax return, thereby moving the asset and valuation allowance into our current tax provision and recording a current deduction. Because our position has a chance of being disallowed, we believe we cannot reach the more-likely-than not conclusion that this ordinary loss will be realized. Therefore, we have maintained an uncertain tax provision reserve. We will continue to evaluate the facts and circumstances of this case and adjust our reserve accordingly.

Additional tax information:

In the normal course of business, income tax authorities in various income tax jurisdictions both within the United States and internationally conduct routine audits of our income tax returns filed in prior years. Income tax years are open for the United States jurisdiction for fiscal years 2012, 2013 and 2014. International jurisdictions have open tax years varying by location beginning in fiscal 2005.

We have no deferred tax liability recognized relating to our investment in foreign subsidiaries where the earnings have been indefinitely reinvested. If circumstances change and it becomes apparent that some or all of the undistributed untaxed earnings of a subsidiary will be remitted to the United States, we will accrue a tax expense at the time of the remittance. We have approximately $10,437 of untaxed earnings which have indefinitely been reinvested. Determination of the amount of any unrecognized deferred income tax liability on these is not practicable.

We have income tax net operating loss carryforwards related to our international operations of approximately $2,386 and a $791 deferred tax asset. These loss carryforwards do not expire; therefore, the deferred tax asset has an indefinite life. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced.

We recognized an expense of $14, $20 and $10 in net interest and penalties during the years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively. Interest and penalties recognized are recorded in income taxes in our consolidated statements of operations. We had accrued $16 and $15 in net interest or penalties as of May 2, 2015 and April 26, 2014, respectively.

Page |55 Note 14. Cash Flow Information

The changes in operating assets and liabilities consisted of the following:

Year Ended May 2, April 26, April 27, 2015 2014 2013 (Increase) decrease: Restricted cash $ 18 $ (466) $ 1,120 Account receivable 6,412 (18,293) 3,364 Long-term receivables 3,234 3,027 2,348 Inventories (1,907) (12,771) 6,656 Costs and estimated earnings in excess of billings (1,667) 5,955 (16,335) Prepaid expenses and other current assets (575) (536) (658) Income taxes receivable (3,084) (2,414) 5,944 Advertising rights and other assets 912 64 386 Increase (decrease): Current marketing obligations and other payables (146) 372 3 Accounts payable 5,594 6,701 4,749 Customer deposits (1,315) 4,931 (450) Accrued liabilities 2,860 165 2,909 Warranty obligations (2,638) 543 884 Billings in excess of costs and estimated earnings 1,314 8,238 (140) Long-term warranty obligations 1,869 1,560 2,048 Income taxes payable (666) (527) 1,023 Deferred revenue (250) (836) (577) Long-term marketing obligations and other payables 3,468 (501) (171) $ 13,433 $ (4,788) $ 13,103

Supplemental disclosures of cash flow information consisted of the following:

Year Ended May 2, April 26, April 27, 2015 2014 2013 Cash payments for: Interest $ 289 $ 198 $ 420 Income taxes, net of refunds 8,690 16,521 5,422

Supplemental schedule of non-cash investing and financing activities consisted of the following:

Year Ended May 2, April 26, April 27, 2015 2014 2013 Demonstration equipment transferred to inventory $ 34 $ 255 $ 612 Purchases of property and equipment included in accounts payable 1,510 2,099 1,207 Contributions of common stock under the employee stock purchase plan 2,512 1,552 1,482

Note 15. Fair Value Measurement

ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy within ASC 820 distinguishes between the following three levels of inputs which may be utilized when measuring fair value.

Level 1 - Quoted prices in active markets for identical assets or liabilities. Page |56 Level 2 - Observable inputs other than quoted prices included within Level 1 for the assets or liabilities, either directly or indirectly (for example, quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated input).

Level 3 - Unobservable inputs supported by little or no market activity based on our own assumptions used to measure assets and liabilities.

The fair values for fixed-rate contracts receivable are estimated using a discounted cash flow analysis based on interest rates currently being offered for contracts with similar terms to customers with similar credit quality. The carrying amounts reported on our consolidated balance sheets for contracts receivable approximate fair value and have been categorized as a Level 2 fair value measurement. Fair values for fixed-rate long-term marketing obligations are estimated using a discounted cash flow calculation applying interest rates currently being offered for debt with similar terms and underlying collateral. The total carrying value of long-term marketing obligations as reported on our consolidated balance sheets within other long-term obligations approximates fair value and has been categorized as a Level 2 fair value measurement.

The following table sets forth by Level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 2, 2015 and April 26, 2014 according to the valuation techniques we used to determine their fair values. There have been no transfers of assets or liabilities among the fair value hierarchies presented. Fair Value Measurements Level 1 Level 2 Total Balance as of May 2, 2015: Cash and cash equivalents $ 57,284 $ — $ 57,284 Restricted cash 496 — 496 Available-for-sale securities: Certificates of deposit — 11,409 11,409 U.S. Government securities 1,001 — 1,001 U.S. Government sponsored entities — 7,942 7,942 Municipal obligations — 4,994 4,994 Derivatives - currency forward contracts — (283) (283) $ 58,781 $ 24,062 $ 82,843 Balance as of April 26, 2014: Cash and cash equivalents $ 45,054 $ — $ 45,054 Restricted cash 514 — 514 Available-for-sale securities: Certificates of deposit — 7,734 7,734 U.S. Government securities 2,002 — 2,002 U.S. Government sponsored entities — 8,341 8,341 Municipal obligations — 7,321 7,321 Derivatives - currency forward contracts — (85) (85) $ 47,570 $ 23,311 $ 70,881

The following methods and assumptions were used to estimate the fair value of each class of financial instrument. There have been no changes in the valuation techniques used by us to value our financial instruments.

Cash and cash equivalents: Consists of cash on hand in bank deposits and highly liquid investments, primarily money market accounts. The fair value was measured using quoted market prices in active markets. The carrying amount approximates fair value.

Restricted cash: Consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees. The fair value of restricted cash was measured using quoted market prices in active markets. The carrying amount approximates fair value.

Certificates of deposit: Consists of time deposit accounts with original maturities of less than three years and various yields. The fair value of these securities was measured based on valuations observed in less active markets than Level 1 investments from a third-party financial institution. The carrying amount approximates fair value.

U.S. Government securities: Consists of U.S. Government treasury bills, notes, and bonds with original maturities of less than three years and various yields. The fair value of these securities was measured using quoted market prices in active markets.

Page |57 U.S. Government sponsored entities: Consist of Fannie Mae and Federal Home Loan Bank investment grade debt securities trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The fair value of these securities was measured based on valuations observed in less active markets than Level 1 investments. The contractual maturities of these investments vary from one month to three years.

Municipal obligations: Consist of investment grade municipal bonds trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The contractual maturities of these investments vary from two to three years. The fair value of these bonds was measured based on valuations observed in less active markets than Level 1 investments.

Derivatives – currency forward contracts: Consists of currency forward contracts trading with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. The fair value of these securities was measured based on a valuation from a third- party bank. See Note 16. Derivative Financial Instruments for more information regarding our derivatives.

The fair value measurement standard also applies to certain non-financial assets and liabilities measured at fair value on a nonrecurring basis. For example, certain long-lived assets such as goodwill, intangible assets and property, plant and equipment are measured at fair value in connection with business combinations or when an impairment is recognized and the related assets are written down to fair value. We utilized the fair value measurement standard, using primarily level 3 inputs, to value the assets and liabilities for the business combinations involving OPEN and Data Display, and determination of goodwill associated with the Vortek disposal. See "Note 4. Business Combinations" for more information. We did not make any material business combinations or recognize significant impairment losses during fiscal 2015 or fiscal 2014.

Note 16. Derivative Financial Instruments

We utilize derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates on those transactions denominated in currencies other than our functional currency, which is the U.S. dollar. We enter into currency forward contracts to manage these economic risks. We account for all derivatives on the balance sheet within accounts receivable or accounts payable measured at fair value, and changes in fair values are recognized in earnings unless specific hedge accounting criteria are met for cash flow or net investment hedges. As of May 2, 2015 and April 26, 2014, we had not designated any of our derivative instruments as accounting hedges, and thus we recorded the changes in fair value in other (expense) income, net.

The foreign currency exchange contracts in aggregated notional amounts in place to exchange United States Dollars at May 2, 2015 and April 26, 2014 were as follows:

May 2, 2015 April 26, 2014 U.S. Foreign U.S. Foreign Dollars Currency Dollars Currency Foreign Currency Exchange Forward Contracts: U.S. Dollars/Australian Dollars 1,487 1,918 455 512 U.S. Dollars/Canadian Dollars 4,129 4,923 — — U.S. Dollars/British Pounds 1,679 1,123 2,484 1,500 U.S. Dollars/Singapore Dollars 1,176 1,601 1,035 1,300 U.S. Dollars/Euros (229) 174 1,314 973 U.S. Dollars/Swiss Franc 5,662 5,500 — — U.S. Dollars/Japanese Yen 764 91,282 — —

As of May 2, 2015 and April 26, 2014, there was a net liability of $283 and $85, respectively, representing the fair value of foreign currency exchange forward contracts, which was determined using Level 2 inputs from a third-party bank.

Note 17. Commitments and Contingencies

Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections, and other legal matters on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading. We do not record an accrual when the likelihood of loss being incurred is probable, but the amount cannot be reasonably estimated, or when the loss is believed to be only reasonably possible or remote, although disclosures will be made for material matters as required by ASC 450-20, Loss Page |58 Contingencies. Our assessment of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter following all appeals.

As of May 2, 2015 and April 26, 2014, we did not believe there was a reasonable possibility that any material loss for these various claims or legal actions, including reviews, inspections or other legal proceedings, if any, would be incurred. Accordingly, no accrual or disclosure of a potential range of loss has been made related to these matters. In the opinion of management, the ultimate liability of all unresolved legal proceedings is not expected to have a material effect on our financial position, liquidity or capital resources.

Guarantees: In connection with the sale of equipment to various customers, we have entered into contractual arrangements whereby we agreed to repurchase equipment at the end of the lease term at a fixed price. Our total obligations under these fixed price arrangements were $1,100 and $1,100 as of May 2, 2015 and April 26, 2014, respectively. In accordance with the provisions of ASC 460, Guarantees, there was no guarantee liability in accrued expenses that needed to be recognized in connection with these arrangements.

Warranties: We offer a standard parts coverage warranty for periods varying from one to five years for most of our products. We also offer additional types of warranties to include on-site labor, routine maintenance and event support. In addition, the terms of warranties on some installations can vary from one to 10 years. The specific terms and conditions of these warranties vary primarily depending on the type of the product sold. We estimate the costs which may be incurred under the warranty obligations and record a liability in the amount of such estimated costs at the time the revenue is recognized. Factors affecting our estimate of the cost of our warranty obligations include historical experience and expectations of future conditions. We continually assess the adequacy of our recorded warranty reserves and, to the extent we experience any changes in warranty claim activity or costs associated with servicing those claims, our warranty obligation is adjusted accordingly.

Changes in our warranty liability for the fiscal years ended May 2, 2015 and April 26, 2014 consisted of the following:

May 2, 2015 April 26, 2014 Beginning accrued warranty costs $ 27,250 $ 25,146 Warranties issued during the period 14,113 13,008 Settlements made during the period (13,829) (13,796) Changes in accrued warranty costs for pre-existing warranties during the period, including expirations (1,053) 2,892 Ending accrued warranty costs $ 26,481 $ 27,250

Performance guarantees: We have entered into standby letters of credit and surety bonds with financial institutions relating to the guarantee of our future performance on contracts, primarily construction type contracts. As of May 2, 2015, we had outstanding letters of credit and surety bonds in the amount of $13,615 and $42,720, respectively. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms, which are generally one year.

Leases: We lease vehicles, office space and various equipment for various sales and service locations throughout the world, including manufacturing space in the United States and China. Some of these leases, including the lease for manufacturing facilities in Sioux Falls, South Dakota, include provisions for extensions or purchase. The lease for the facilities in Sioux Falls, South Dakota can be extended for an additional three years past its current term, which ends December 31, 2016, and it contains an option to purchase the property subject to the lease from January 1, 2015 to December 31, 2016 for $8,400, which approximates fair value. If the lease is extended, the purchase option increases to $8,600 for the year ending December 31, 2017 and $8,800 for the year ending December 31, 2018. Rental expense for operating leases was $2,714, $2,742 and $2,749 for the fiscal years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively.

Future minimum payments under noncancelable operating leases, excluding executory costs such as management and maintenance fees, with initial or remaining terms of one year or more consisted of the following at May 2, 2015: Fiscal years ending Amount 2016 $ 2,490 2017 1,324 2018 325 2019 68 2020 38 Thereafter — $ 4,245

Page |59 Purchase commitments: From time to time, we commit to purchase inventory, advertising, information technology maintenance and support services, and various other products and services over periods that extend beyond one year. As of May 2, 2015, we were obligated under the following conditional and unconditional purchase commitments, which included $700 in conditional purchase commitments:

Fiscal years ending Amount 2016 $ 1,973 2017 1,090 2018 295 2019 100 2020 — Thereafter — $ 3,458

Other long-term obligations: We are obligated to pay the following payments for an acquisition and for other various obligations.

May 2, 2015 April 26, 2014 Advertising $ 700 $ 620 Deferred purchase price 1,476 2,375 Total Outstanding 2,176 2,995 Less: current liability 555 728 Other long-term obligations $ 1,621 $ 2,267

Note 18. Subsequent Events

On May 29, 2015, our Board of Directors declared a quarterly dividend of $0.10 per share on our common stock for the fiscal year ended May 2, 2015, payable on June 23, 2015 to holders of record of our common stock on June 12, 2015.

Note 19. Quarterly Financial Data (Unaudited)

The following table presents summarized quarterly financial data:

Fiscal 2015 Quarter Ended August 2, November 1, January 31, May 2, 2014 2014 2015 2015 Net sales $ 166,618 $ 173,115 $ 118,123 $ 158,086 Gross profit 43,403 40,877 25,062 35,237 Net income 8,745 7,737 561 3,839 Basic earnings per share 0.20 0.18 0.01 0.09 Diluted earnings per share 0.20 0.18 0.01 0.09

Fiscal 2014 Quarter Ended July 27, October 26, January 25, April 26, 2013 2013 2014 2014 Net sales $ 138,722 $ 161,639 $ 115,369 $ 136,240 Gross profit 35,502 43,365 29,089 33,754 Net income 5,719 11,790 2,871 1,826 Basic earnings per share 0.13 0.28 0.07 0.04 Diluted earnings per share 0.13 0.27 0.07 0.04

Page |60 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management of our Company is responsible for establishing and maintaining effective disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. As of May 2, 2015, an evaluation was performed, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of May 2, 2015, our disclosure controls and procedures were effective at the reasonable assurance level to ensure information required to be disclosed in this Annual Report on Form 10-K was recorded, processed, summarized and reported within the time period required by the SEC’s rules and forms and accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

During the quarter ended May 2, 2015 and thereafter, there have been no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control system was designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control —Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on our evaluation under the framework in Internal Control—Integrated Framework, our management concluded our internal control over financial reporting was effective as of May 2, 2015.

Our internal control over financial reporting as of May 2, 2015 has been audited by Ernst & Young LLP, our independent registered public accounting firm, as stated in their report that follows.

By /s/ Reece A. Kurtenbach By /s/ Sheila M. Anderson Reece A. Kurtenbach Sheila M. Anderson Chief Executive Officer Chief Financial Officer June 22, 2015 June 22, 2015

Page |61 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Daktronics Inc.

We have audited Daktronics Inc. and subsidiaries’ (the Company) internal control over financial reporting as of May 2, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). The Company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Daktronics Inc. and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of May 2, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Daktronics Inc. and subsidiaries as of May 2, 2015 and April 26, 2014, and the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended May 2, 2015 of Daktronics Inc. and subsidiaries and our report dated June 22, 2015 expressed “an unqualified opinion thereon”.

/s/ Ernst & Young LLP Minneapolis, Minnesota June 22, 2015

Page |62 Item 9B. OTHER INFORMATION

None

PART III.

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item 10 will be included under the captions “Proposal One - Election of Directors” and “Corporate Governance” in our Proxy Statement for our 2015 annual meeting of shareholders (“Proxy Statement”) to be filed within 120 days after our most recent fiscal year-end. Information concerning the compliance of our officers, directors and 10 percent shareholders with Section 16(a) of the Securities Exchange Act of 1934 is incorporated by reference to the information to be contained in the Proxy Statement under the caption “Section 16(a) Beneficial Ownership Reporting Compliance.” The information regarding Audit Committee members and “Audit Committee Financial Experts” is incorporated by reference to the information to be contained in the Proxy Statement under the caption “Corporate Governance–Committees of the Board of Directors.” The information regarding our Code of Conduct is incorporated by reference to the information to be contained in the Proxy Statement under the heading “Corporate Governance – Code of Conduct.”

Item 11. EXECUTIVE COMPENSATION

Information regarding the compensation of our directors and officers for the fiscal year ended May 2, 2015 will be in the Proxy Statement under the heading “Proposal One - Election of Directors” and “Executive Compensation” and is incorporated herein by reference.

We maintain a Code of Conduct which applies to all of our employees, officers and directors. Included in the Code of Conduct are ethics provisions that apply to our Chief Executive Officer, Chief Financial Officer and all other financial and accounting management employees. A copy of our Code of Conduct can be obtained from our website at www.daktronics.com on the Investor Relations page and will be made available free of charge to any shareholder upon request. Information on or available through our website is not part of this Form 10-K. We intend to disclose any waivers from, or amendments to, the Code of Conduct by posting a description of such waiver or amendment on our Internet website. However, to date, we have not granted a waiver from the Code of Conduct.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The security ownership of certain beneficial owners and management will be contained in the Proxy Statement under the heading “Security Ownership of Certain Beneficial Owners and Management” and “Executive Compensation - Securities Authorized for Issuance Under Equity Compensation Plans” and is incorporated herein by reference.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Information required by this item is incorporated by reference from the sections entitled “Proposal One – Election of Directors – Independent Directors” and “Corporate Governance - Compensation Committee Interlocks and Insider Participation” that will be contained in our Proxy Statement. There were no related party transactions in fiscal 2015.

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information regarding our principal accountant will be contained in the Proxy Statement under the heading “Proposal Three - Ratification of Appointment of Independent Registered Public Accounting Firm” and is incorporated herein by reference.

Page |63 PART IV.

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) Financial Statements Our financial statements, a description of which follows, are contained in Part II, Item 8:

Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of May 2, 2015 and April 26, 2014 Consolidated Statements of Operations for each of the three fiscal years ended May 2, 2015, April 26, 2014, and April 27, 2013 Consolidated Statements of Comprehensive Income for each of the three fiscal years ended May 2, 2015, April 26, 2014, and April 27, 2013 Consolidated Statements of Shareholders’ Equity for each of the three fiscal years ended May 2, 2015, April 26, 2012, and April 27, 2013 Consolidated Statements of Cash Flows for each of the three fiscal years ended May 2, 2015, April 26, 2014, and April 27, 2013 Notes to the Consolidated Financial Statements

(2) Schedules

The following financial statement schedule is submitted herewith:

Schedule II – Valuation and Qualifying Accounts

Other schedules are omitted because they are not required or are not applicable or because the required information is included in the financial statements listed above.

(3) Exhibits

A list of exhibits required to be filed as part of this report is set forth in the Index of Exhibits, which immediately precedes such exhibits, and is incorporated herein by reference.

All Sport®, Daktronics®, DakStats®, DataTime®, Fuelight™, Fuelink™, Galaxy®, GalaxyPro™, OmniSport®, ProAd®, ProPixel®, ProRail®, ProStar®, ProTour®, Sportsound®, Valo®, Vanguard®, Venus®, V-Net®, Visiconn®, V-Tour®, and V-Link® are trademarks of Daktronics Inc. All other trademarks referenced are the intellectual property of their respective companies.

Page |64 SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized, on June 22, 2015.

DAKTRONICS INC.

By: /s/ Reece A. Kurtenbach Chief Executive Officer and President (Principal Executive Officer)

By: /s/ Sheila M. Anderson Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature Title Date

By /s/ Byron J. Anderson Director June 22, 2015 Byron J. Anderson

By /s/ Robert G. Dutcher Director June 22, 2015 Robert G. Dutcher

By /s/ Nancy D. Frame Director June 22, 2015 Nancy D. Frame

By /s/ Reece A. Kurtenbach Director June 22, 2015 Reece A. Kurtenbach

By /s/ James B. Morgan Director June 22, 2015 James B. Morgan

By /s/ John L. Mulligan Director June 22, 2015 John L. Mulligan

By /s/ James A. Vellenga Director June 22, 2015 James A. Vellenga

Page |65 DAKTRONICS INC. AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING (in thousands)

Additions Balance at Charged to Charged to Balance Beginning Costs and Other at End Description of Year Expenses Accounts Deductions of Year For the year ended May 2, 2015: Deducted from asset accounts: Allowance for doubtful accounts $ 2,539 $ (146) $ — $ (73) (b) $ 2,320 Allowance for excess and obsolete inventories 2,692 2,701 2 (a) (1,397) (c) 3,998 For the year ended April 26, 2014: Deducted from asset accounts: Allowance for doubtful accounts 2,718 860 — (1,039) (b) 2,539 Allowance for excess and obsolete inventories 3,286 1,219 (1) (a) (1,812) (c) 2,692 For the year ended April 27, 2013: Deducted from asset accounts: Allowance for doubtful accounts 2,398 782 — (462) (b) 2,718 Allowance for excess and obsolete inventories 2,851 3,094 1 (a) (2,660) (c) 3,286 (a) Translation adjustment on foreign subsidiary balances (b) Write-off of uncollected accounts, net of collections (c) Obsolete and excess inventory disposals

Page |66 Index of Exhibits

Certain of the following exhibits are incorporated by reference from prior filings. The form with which each exhibit was filed and the date of filing are as indicated below; the reports described below are filed as Commission File No. 0-23246 unless otherwise indicated. 3.1 Amended and Restated Articles of Incorporation of the Company (Incorporated by reference to Exhibit 3.1 filed with our Quarterly Report on Form 10-Q on August 30, 2013). 3.2 Amended and Restated Bylaws of the Company (Incorporated by reference to Exhibit 3.4 filed with our Annual Report on Form 10-K on June 12, 2013). 4.1 Form of Stock Certificate evidencing Common Stock, without par value, of the Company (Incorporated by reference to Exhibit 4.1 filed with our Amendment No. 1 to the Registration Statement on Form S-1 on January 12, 1994 as Commission File No. 33-72466). 4.2 Rights Agreement (Incorporated by reference to Exhibit 4.1 filed with our Form 8-A on August 29, 2008). 4.3 2001 Incentive Stock Option Plan (Incorporated by reference to Exhibit 4.1 to our Registration Statement on Form S-8 filed on November 8, 2001 as Commission File No. 333-72990).* 4.4 2001 Outside Directors Stock Option Plan (Incorporated by reference to Exhibit 4.2 to our Registration Statement on Form S-8 filed on November 8, 2001 as Commission File No. 333-72990).* 4.5 Daktronics Inc. 2007 Incentive Stock Plan (Incorporated by reference to Exhibit 10.1 filed with our Quarterly Report on Form 10-Q on August 20, 2007).* 10.1 Amended and Restated Deferred Compensation Agreement Between the Company and Aelred Kurtenbach (Incorporated by reference to Exhibit 10.1 filed with our Annual Report on Form 10-K on June 28, 2004).* 10.2 Loan Agreement dated October 14, 1998 between U.S. Bank National Association and the Company (Incorporated by reference to Exhibit 10.6 filed with our Quarterly Report on Form 10-Q filed on December 11, 1998). 10.3 Eighth Amendment to Loan Agreement dated November 12, 2009 by and between the Company and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 filed with our Current Report on Form 8-K filed on November 12, 2009). 10.4 Tenth Amendment to Loan Agreement dated November 15, 2011 by and between the Company and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 filed with our Current Report on Form 8-K filed on November 17, 2011). 10.5 Eleventh Amendment to Loan Agreement dated November 9, 2012 by and between the Company and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 filed with our Current Report on Form 8-K filed on November 9, 2012). 10.6 Renewal Revolving Note dated November 15, 2013 issued by the Company to the U.S. Bank National Association (Incorporated by reference to Exhibit 10.2 filed with our Current Report on Form 8-K filed on November 18, 2013). 10.7 Loan Agreement dated December 23, 2010 between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.3 filed with our Current Report on Form 8-K filed on November 17, 2011). 10.8 Second Amendment to Loan Agreement Dated November 15, 2011 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.5 filed with our Current Report on Form 8-K filed on November 17, 2011). 10.9 Third Amendment to Loan Agreement dated July 2, 2012 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.1 filed with our Current Report on Form 8-K filed on July 3, 2012). 10.10 Fourth Amendment to Loan Agreement dated November 9, 2012 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.3 filed with our Current Report on Form 8-K filed on November 9, 2012). 10.11 Reaffirmation and Second Amendment to Unlimited Guaranty Agreement dated November 9, 2012 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.4 filed with our Current Report on Form 8-K filed on November 9, 2012). 10.12 Amended and Restated Revolving Note dated November 15, 2013 issued by the Company to Bank of America, N.A. (Incorporated by reference to Exhibit 10.5 filed with our Current Report on Form 8-K filed on November 18, 2013). 10.13 Twelfth Amendment to Loan Agreement dated November 15, 2013 by and between the Company and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 filed with our Current Report on Form 8-K filed on November 18, 2013). 10.14 Fifth Amendment to Loan Agreement dated November 15, 2013 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.3 filed with our Current Report on Form 8-K filed on November 18, 2013). 10.15 Reaffirmation of and Third Amendment to Unlimited Guaranty Agreement dated November 15, 2013 by and between the Company and Bank of America, N.A. (Incorporated by reference to Exhibit 10.4 filed with our Current Report on Form 8-K filed on November 18, 2013). 21.1 Subsidiaries of the Company. (1)

Page |67 23.1 Consent of Ernst & Young LLP. (1) 24 Power of Attorney. (1) 31.1 Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) 31.2 Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (1) 32.1 Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350). (1) 101 The following financial information from our Annual Report on Form 10-K for the fiscal year ended May 2, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements, and (vii) document and entity information. (1) (1) Filed herewith electronically. * Indicates a management contract or compensatory plan or arrangement.

Page |68 EXHIBIT 32.1 DAKTRONICS INC. CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Daktronics Inc. (the “Company”) for the annual period ended May 2, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Reece A. Kurtenbach, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. /s/ Reece A. Kurtenbach Reece A. Kurtenbach Chief Executive Officer June 22, 2015

EXHIBIT 32.2 DAKTRONICS INC. CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Daktronics, Inc. (the “Company”) for the annual period ended May 2, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sheila M. Anderson, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. /s/ Sheila M. Anderson Sheila M. Anderson Chief Financial Officer June 22, 2015

Page |69

DIRECTORS & COMPANY MANAGERS

INDEPENDENT DIRECTORS

Byron J. Anderson2, 3 Robert G. Dutcher2 Nancy D. Frame2, 3 Former Senior Vice President Former Strategic Advisor Lead Member Former Deputy Director Agilent Technologies, Inc. of MEDRAD, Inc. U.S. Trade and Development Agency

John L. Mulligan1 James A. Vellenga1, 3 Bruce W. Tobin, retired May 1, 20151 Investment Associate Former President and CEO Former Vice President of Finance for UBS Financial Services, Inc. BSFX Corporation International and Coprorate Staff Services 3M

1 Member of Audit Committee 2 Member of Compensation Committee 3 Member of Nominating and Governance Committee

NON-INDEPENDENT DIRECTORS

Reece A. Kurtenbach(1) James B. Morgan Chairman of the Board, President and Former President and CEO CEO Daktronics, Inc.

NAMED EXECUTIVE OFFICERS

Sheila M. Anderson Bradley T. Wiemann Carla S. Gatzke Chief Financial Officer and Treasurer Executive Vice President Commerical, Vice President Human Resources, High School Park and Recreation, and Secretary Transportation Business Units

Matthew J. Kurtenbach Vice President Manufacturing

OTHER OFFICERS

Brett D. Wendler Sarah Rose Rich E. Hinz Vice President Engineering Vice President Services Vice President Information Technology

Jay W. Parker Seth T. Hansen Vice President Live Events Sales Vice President Project Management

Pete F. Egart Daniel J. Chase Judd Guthmiller Vice President EMELA Sales Vice President Asia-Pacific Sales Vice President International Operations

Page | 70

INVESTOR RELATIONS ANNUAL MEETING You can contact Daktronics Investor Relations at any time to The annual meeting of shareholders will be held September 2, order financial documents such as our Annual Report or Form 2015 at Daktronics headquarters in Brookings, South Dakota, 10-K free of charge. at 7:00 pm Central Daylight Time. Shareholders of record on June 29, 2015 will be eligible to vote at the meeting. You may contact us about any investment related questions, via phone, fax, email, or through our web site. Our contact information is: FORM 10-K AND OTHER REPORTS Copies of the Company’s Annual Report on Form 10-K for the Daktronics, Inc. year ended May 2, 2015, filed with the Securities and Exchange Investor Relations Commission, are available without charge upon written request 201 Daktronics Drive to the Investor Relations Dept., Daktronics, Inc., 201 Brookings, SD 57006 Daktronics Drive, Brookings, South Dakota, 57006-5128; by Website: www.daktronics.com calling 800-605-DAKT (3258); or by accessing the Company’s Email: [email protected] website at www.daktronics.com Phone: 605-692-0200 Fax: 605-697-4700 STOCK PRICE HISTORY Our common stock trades on The NASDAQ Global Select TRANSFER AGENT Market under the symbol DAKT. High and low sales prices of Wells Fargo Bank Minnesota, N.A. our common stock for fiscal years 2015 and 2014 are presented Shareowner Services below. 1110 Centre Pointe Curve, Suite 101 Mendota Heights, MN 55120 FISCAL 2014 FISCAL 2015 High Low High Low Inquiries related to stock transfers or lost certificates should be First Quarter $ 11.49 $ 9.63 $ 14.47 $ 11.05 directed to Wells Fargo Shareowner Services by calling 800- Second Quarter $ 12.35 $ 10.45 $ 13.68 $ 11.02 468-9716 or 651-450-4064. Third Quarter $ 15.80 $ 11.73 $ 13.87 $ 11.48 Fourth Quarter $ 14.63 $ 13.06 $ 13.05 $ 10.03

INDEPENDENT AUDITORS EY, Minneapolis, Minnesota ADDITIONAL INFORMATION Visit us at www.daktronics.com for additional information on LEGAL COUNSEL upcoming and future projects, product offerings, and other Winthrop & Weinstine, P.A., Minneapolis, Minnesota items of interest.

Cautionary Notice Regarding Forward-Looking Statements: This annual report, including information incorporated by reference and the Annual Report on Form 10-K, contains both historical and forward-looking statements that involve risks, uncertainties and assumptions. The statements contained in this report that (including exhibits and any information incorporated by reference) are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations, beliefs, intentions and strategies for the future. These statements appear in a number of places in this report and include all statements that are not historical statements of fact regarding the intent, belief or current expectations with respect to, among other things: our financing plans; trends affecting our financial condition or results of operations; our growth strategy and operating strategy; our competition; our business outside of the United States; our large contracts with significant customers; our ability to protect our intellectual property rights; excess production capacity or capacity needs; our involvement in litigation; difficult conditions of the economy; and the declaration and payment of dividends. The words “may,” “would,” “could,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plans” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, many of which are beyond our ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors discussed herein, including those discussed in the section of the Annual Report on Form 10-K entitled “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and those factors discussed in detail in our other filings with the Securities and Exchange Commission.

AEPA FORM F.1: COMPLIANCE

AEPA IFB #016 – I INTERIOR AND EXTERIOR L ED SCOREBOARDS, MARQUEE, EQUIPMENT & INSTALLATION

NAME OF BIDDER ______Daktronics, Inc. INSTRUCTIONS: 1. This form is eight (8) pages long. The bidder’s authorized representative must sign the form at the end. 2. The criteria listed below are derived from the Part B: Bid Specifications this IFB. Other than industry requirements established in federal, state or local statutes, exceptions/deviations may be proposed as long as they are expressly noted below and clarified on Form F.2., which follows. Please understand that the stated specifications represent the most desirable attributes of the products and services sought by AEPA and its AEPA Member Agencies. 3. AEPA understands that not all bidders provide all commodities indicated in the specifications. Bidders may propose specific, similar and/or alternative manufacturer’s product lines and/or services without prejudice as long as the proposed products and services meet or exceed the specifications in Part B: Bid Specifications of this IFB. 4. For each criterion below, check either “Comply” if it aligns with the company’s ability to provide products and services or “Deviate” if it does not. 5. If there are no deviations to the specifications, indicate that by checking the appropriate box on Form F.2 and sign it. 6. Scan the completed form to a PDF file and title as instructed in Part C (this section), page 2, #5.

Item Description Comply Deviate 6.1 The Vendor Partner will have access to a full inventory of the awarded product line. X 6.2 The Vendor Partner shall maintain a minimum monthly overall average fill rate of 95% or above. Line items that are X reordered, backordered, or partially filled are not considered filled line items when calculating this service level. 6.3 Orders must be shipped within 48 hours after receipt of an order 90% of the time. The Vendor Partner will notify the Buyer if product ordered cannot be shipped within this time X period to provide the opportunity to secure product elsewhere. 6.4 Vendor Partners must be a manufacturer’s authorized sales and service dealer for all proposed equipment/software. An authorized sales and service dealer is defined in this solicitation as one purchasing their products for resell directly from the manufacturer(s) or the manufacturer’s approved X channels. Products that result from new authorized sales and service dealer arrangements between the Vendor Partner and the manufacturer during the term of this contract may be added and offered through the AEPA contract. 6.5 All charges and components necessary for performance of the contract shall be clearly identified even if such are not X specifically addressed in any paragraph or sub-paragraph or form that is a part of this request. 6.6 If the Vendor Partner intends to utilize independent agents/distributors, subcontractors and/or third-party agents to perform and/or provide any part of the products and services X offered herein, the Vendor Partner must identify all providers and any and all associated costs with these providers. 6.7 Optional services must be identified separately, and must include clear descriptions of proposed services. X

AEPA IFB #016-I Scoreboards Marquees Signage Page 15 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms Item Description Comply Deviate 6.8 Vendor Partners must provide a product or mix of products in a manner that will allow Buyers to migrate to emerging technologies/services and between legacy technologies with X no penalty charge associated with maintaining the most appropriate selections of goods and services throughout the life of the contract. 6.9 Vendor Partners must be able to supply paper catalogs where requested. The catalog shall have a cover label indicating that the catalog’s contents are available through the participating X Member Agency and the AEPA contract. The label shall identify the agency’s contract number, discount level(s) and any special ordering instructions. 6.10 Packing slips shall accompany all deliveries and shall contain Buyer’s purchase order number, vendor name and name of X article. Cartons shall be identified by purchase order number and vendor name. 6.11 Orders not filled and partials shall be indicated on the packing list. Vendor Partner shall inform member of anticipated X availability date for unfilled and partial orders. 6.12 All products sold by the Vendor Partner must be new. Only the newest versions of software and equipment will be bid. Older versions will only be sold, if specifically requested. Vendor Partner may offer reconditioned products as a X Voluntary Alternate; such items shall be marketed and labeled as being reconditioned. 6.13 Products that have a 30/60/90 day money back guarantee will be clearly identified in the catalog and on the web site (if X applicable). 6.14 Vendor Partner has the option to offer private label products. Vendor Partner shall maintain the same manufacturer specifications for private label products throughout the term of contract. Any change of manufacturers for a private label X shall result in offerings equal to or superior to the originally approved manufacturer at a price equal to or lower than the original offering. 6.15 Vendor Partner must maintain a toll free technical support line open 8 a.m. Eastern Time zone until 5 p.m., Pacific Time zone, Monday through Friday. Calls must be answered by a X live US technician. 6.16 Vendor Partner must have a 24-hour toll-free order fax line. X 6.17 If the Vendor Partner makes an error in pricing (typographical or photographic error, for example), the Buyer reserves the right to return the product. The Vendor Partner agrees to pay X for cost of any returned product due to a pricing error. 6.18 Vendor Partner shall provide a Safety Data Sheet (SDS) for all items sold, if required. A separate sheet shall be provided for X each individual item when purchase is made. 6.19 Orders that are $50.00 or more shall include free shipping. Vendor Partner shall bid a flat rate for all orders that are less than $50.00 regardless of where to be shipped in the X continental United States.

AEPA IFB #016-I Scoreboards Marquees Signage Page 16 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms CATEGORY SPECIFICATIONS Comply Deviate 7.1 General a. A variety of scoreboard and marquee solutions must be offered and equipped with the necessary control systems, displays and indicators X required to communicate scores and information to both the participants of the event and the community in attendance for the sport or event being conducted at the facility, that is, football, basketball, baseball, hockey, track, volleyball and multipurpose uses is desired. b. The offeror must be willing and able to provide a complete line of either scoreboards or marquees, or both, that possess the capabilities and captions required to meet the individual AEPA member’s needs and requirements. c. Product lines of scoreboards and marquees that display a variety of captions and messaging capabilities are desired and must include all related accessories normally associated such as ad/sponsor panels, scorer's tables, truss or other decorative accents, sound systems, identification panels, and marketing services related to equipment. d. The product line of indoor and outdoor devices must meet and/or exceed governmental codes and industry performance and operational standards relating to their designated purpose and application with in the members site conditions and environment. e. All materials shall be guaranteed to be installed and perform in accordance with the manufacturer’s specifications. f. Current display technology, that is, light emitting diode (LED) of colors Red, Amber, Blue, White in monochrome and RGB. g. Product cabinets shall be constructed of aluminum and include all necessary mounting brackets required. h. Products shall be available in a variety of standard colors in order to meet institution’s color scheme. Custom colors can be offered. i. Product lines offered shall include a variety of shapes and sizes to allow for the diversity of individual member’s needs and requirements. j. Scoreboards and marquees offered shall be shipped assembled and ready to be installed. If this is not the case, the offeror must clearly identify and state the assembly required. k. A variety of numeral, alpha character and three object sizes must be available. l. Multi-purpose products that can be used for multiple activities and events are requested. Four-sided models for large gyms are desired. m. Products offered shall be UL or ETL listed. n. Products offered for both indoor and outdoor shall have built-in protection against damage from lightning. o. Products with advertising space are desired. p. Products with both conventional wire and remote access or radio control are desired. q. All materials and equipment must be new and unused. All materials and equipment offered under this category will be from manufacturers regularly engaged in the manufacture of indoor and outdoor sports equipment, and shall be the latest standard designs current at the time of delivery. r. Offeror must be willing and able to warrant products offered and their installation against defects in materials and/or workmanship for a minimum period of five (5) years from date of acceptance. 7.2 a. Scoreboard BASKETBALL 1) Basketball scoreboard shall be direct wired to stand-alone X control console or a wireless control system. 2) Display shall include minutes, seconds, and scores for two teams, as well as period, possession, bonus and double AEPA IFB #016-I Scoreboards Marquees Signage Page 17 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms bonus for each team on the top section; team fouls for two teams and player number with personal fouls on the bottom section. 3) Scoreboard can also score volleyball, wrestling and any sport requiring a clock, score and period function. 4) Provide with changeable captions for volleyball and wrestling on the bottom section. 5) Game clock shall have a lit colon or decimal to indicate display of either minutes and seconds or seconds and tenths of seconds. 6) Equipment to be solid-state electronic technology.

b. Cabinet 1) Cabinet to be constructed of aluminum and include mounting brackets and constructed of aluminum. 2) Cabinet and trim colors shall be as selected from manufacturer’s standard colors. Custom colors are available. 3) Cabinet to be shipped assembled and constructed for wall mounting. 4) Digits shall be made up of seven bar-type segments evenly illuminated by epoxy encapsulated LEDs. Digits shall be colored amber for game clock; red and green for other information and protected by an acrylic faceplate. Digit colors shall be determined exclusively by LED light to maximize color saturation. Non-illuminated areas on faceplate shall be screened with black, non-reflective paint to provide maximum contrast. 5) Game clock shall have a display capacity up to “99:59”, team scores to “199”, period to “9”, team fouls to “99”, personal fouls to “9”, player number to “99”. Bonus or double bonus shall be indicated by two arrows for each team. 6) Captions shall be adhesive backed white vinyl permanently attached to the cabinet. Changeable captions for volleyball and wrestling shall be the same vinyl on aluminum plaques. 7) Electronics to be packaged in a low voltage, plug-in processor accessible from front of cabinet. 8) Power to be 120 watts maximum 120 VAC, 60 Hz. 9) Provide electronic horn rated at 100dB at 10’0”.

c. Control 1) Remote Control Cable. (a). Control console can also be available in wire or radio configuration with functionality to allow scoreboard to auto-detect simultaneous wire or radio data transmission and utilize the strongest signal strength. 2) Furnish one length of two wire-shielded cables to connect from the control receptacle junction box to the scoreboard cabinet. 3) Provide a carrying case.

d. Limited Warranty 1) Warranty provides a minimum of 5 years of no cost parts exchange including standard shipping for electronic parts including radios due to manufacturing defects. Provide toll-free service coordination and technical online and phone support during business hours.

e. Optional Equipment AEPA IFB #016-I Scoreboards Marquees Signage Page 18 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms 1) Provide shot timers. 2) Provide one clock hand switch or sideline hand switch for second operator. 3) Provide one duplicate control allowing independent operation of a two scoreboard system and providing a backup unit. 4) Provide player line-up panels, one to be mounted on each side of scoreboard cabinet, accommodating up to 15 players’ names and numbers. Furnish with a steel suspension and lowering assembly and a font of 1,125 snap- in letters and numbers. 5) Provide foul indicator panels to be used in conjunction with player line-up panels. 6) Provide six-line announcement panel to be permanently attached to the bottom of the scoreboard cabinet. 7) Provide wireless or battery-powered control operation for above equipment.

7.3 a. Scoreboard. FOOTBALL 1) Shall be direct wired to stand-alone control console or a X wireless control system. 2) Display shall include minutes, seconds, tenths of seconds and score for two teams, as well as quarter, ball possession, timeouts left for each team, down, yards to go and ball on. 3) Equipment to be solid-state electronic technology.

b. Cabinet 1) To include mounting brackets and constructed of aluminum. Cabinet to be shipped assembled and constructed for two-column mounting with two steel mounting brackets built into the cabinet. 2) Cabinet and trim colors shall be as selected from manufacturer’s standard colors. Custom colors are available.

c. Display 1) Display digits and indicators shall be made up of 2.3 inch by 2.3 inch circuit card mounted pixels. Each pixel shall be individually replaceable and contain nine LEDs. LEDs shall be amber in color. 2) Pixels shall be environmentally sealed with a Dow-Corning potting mixture to protect the electronics from moisture. A neoprene gasket shall seal each circuit card ,to the cabinet, preventing moisture from entering the cabinet. 3) At a minimum the digit height shall be 30” for clock; 24” for team score, quarter, down, yards to go and ball on; 18” for timeouts left. Possession indicators shall be 10” high. 4) At a minimum the Game clock shall have a display capacity up to “99:59.9”, team score to “99”, quarter to “9”, timeouts left to “9”, down to “9”, to go to “99” and ball on to “99”. 5) At a minimum the digits shall consist of the following number of pixels: 30”, 34 pixels; 24”, 27 pixels; 18”, 20 pixels. Each possession indicator shall consist of eight (8) pixels arranged in the shape of a football. 6) Captions shall be adhesive backed vinyl permanently attached to the cabinet. Home and visitor shall be on painted white backgrounds with black lettering. 7) Electronics to be packaged in a low voltage plug-in processor accessible from front of cabinet. 8) Power to be 120VAC, 60 Hz AEPA IFB #016-I Scoreboards Marquees Signage Page 19 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms d. Control 1) Remote Control Cable. (a). Control console available in wire or radio configuration with functionality to allow scoreboard to auto-detect simultaneous wire or radio data transmission and utilize the strongest signal strength. 2) Furnish one length of two wire-shielded cables to connect from the control receptacle junction box to the scoreboard cabinet. 3) Provide a carrying case.

e. Limited Warranty 1) Warranty provides a minimum of 5 years of no cost parts exchange including standard shipping on electronic parts and radios due to manufacturing defects. Provide toll-free service coordination and technical online and phone support during business hours.

f. Provide electronic team name message centers 1) Provide one clock handswitch or sideline handswitch for second operator. 2) Provide wireless or battery-powered control operation for above equipment.

g. Optional Equipment. 1) Provide a horn. 7.4 a. General ONE-SIDED 1) Shall be ETL/CETL listed. X LED 2) Marquee shall be direct wired to control or operated via MARQUEE data radio or wireless from the control point. 3) Marquee shall display user-programmed messages on a 16 x 80 or a 48 x 100 matrix. 4) Equipment to be solid-state electronic technology.

b. Cabinet 1) Cabinet shall be constructed of aluminum including mounting brackets. Product to be shipped assembled and constructed for two-pole mounting. 2) Cabinet color shall be as selected from manufacturer’s standard colors. 3) Display shall be made up of circuit card mounted LEDs. Pixel spacing shall be no greater than 1.25” with a minimum of four (4) LEDs per pixel. Character color shall be amber. Two-line display shall feature characters a minimum of 8.75” in height per line. Average number of characters per line shall be 14-15. 4) Electronics to be packaged in a low voltage plug-in processor accessible from front of cabinet. 5) Power to be 280 watts maximum 120 VAC, 60 Hz.

c. Control 1) Requires 120 VAC, 60 Hz. 2) Provide 4-conductor data cable OR be via Wi-Fi ready mobile phone or tablet through a web browser.

d. Warranty 1) Warranty provided for a period of five (5) years from the date of invoice against defects in workmanship or material. Defective components will be repaired or replaced on a AEPA IFB #016-I Scoreboards Marquees Signage Page 20 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms factory exchange basis. Exclusions include, but are not limited to accident, neglect, abuse, misuse or natural disasters.

e. Optional Equipment 1) Provide controller with ISE Play interface and 2-conductor shielded cable. 2) Provide direct controller with coaxial cable or dial-up modem connection or wireless connection. 3) Provide red LED characters.

f. Control System 1) Construction shall be an aluminum case with four (4) rubber slide-resistant feet. 2) Operating features shall include a two-line LCD readout showing information as sent to the scoreboard display, constant display of time remaining or time lapsed, jump clock capability, changeable color-coded keypad to allow key identification change by sport, numeric key pad, plus and minus keys for quick sequential data entry, push-type horn button and a positive action rocker switch for the time in/time out function. 3) Electronic features shall include a program mode allowing change in sport controlled or accommodation of a sport rules change, a memory circuit to retain information if power interrupted and electronic foul memory. 4) Power to be 12 watts maximum 120 VAC, 60Hz. 5) Furnished with an 8’ power and 10’ data cable cord to connect to power source and control receptacle junction box.

g. Options 1) FCC Certified Wireless System. 2) Furnished with factory-installed transmitter and antenna. 3) Each display shall be furnished with factory-installed receiver and antenna. 4) System shall allow for synchronized operation of two or more scoreboards from one control operating on the same channel. 5) System shall allow for multiple displays to be operated from a single control to show the scores of one game or for multiple displays to be controlled by multiple controls to show scores from different games simultaneously in progress. These two modes of operation shall be user selectable at the control with no access to the displays required. 6) System shall not interfere with wireless LANs and personal computing devices that use the 2.4GHz ISM band. 7) System shall operate normally in the presence of cell phones, pagers and their transmission towers. 8) System shall utilize spread spectrum technology that redundantly transmits the same data at least 16 times. 9) Radio-link indicator light shall indicate when transmission link is operational. 10) System shall refresh display with new data no less than 10 times per second for smooth and accurate operation of game and shot clocks, including 1/10 second timing. 11) System shall have a transmission range of at least 300’ indoors and 1,000’ outdoors.MP-70 Battery Operation.

AEPA IFB #016-I Scoreboards Marquees Signage Page 21 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms h. Battery Operation 1) Furnished with control specific Nickel Metal Hydride (Ni- MH) battery and charger. 2) Control shall feature a battery charger connection port in place of a power cord. 3) Audio-visual warning shall alert user when battery has been discharged to an extremely low level. 4) Battery shall generate a minimum of eight (8) hours of power before requiring recharge. 5) Battery charger shall be capable of powering the MP-70 if the battery’s charge is too low to do so. 6) Charger requires 120 VAC power source. 7) Optional Equipment. 8) Furnish padded carrying case. 9) Furnish additional overlays. 10) Furnish spare battery.

7.5 a. General Requirements OUTDOOR 1) Contract vendor shall work directly with Member’s staff to X MARQUEES perform a comprehensive site survey prior to design, recommendation, or installation of an outdoor marquee. (1 OR 2 SIDED) 2) One set of as-built drawings shall be provided to the Member as part of the cost of the marquee. The drawings shall include site conditions and marquee construction. 3) Onsite training for Member’s designated employees shall be provided on the proper operation and maintenance of the installed marquee. 4) All marquees shall meet all applicable exposure guidelines specified by ASTM standards and state and local codes. 5) Overall marquee design and construction shall allow for adequate wind load resistance, up to 120 mph.

b. Cabinet Requirements 1) A variety of cabinet heights and widths, constructed of heavy-duty extruded aluminum, with radius or squared corners, and also designed in a portrait or landscape format. 2) Cabinet structure shall use rigid, heavy-gauge aluminum extrusions that are mitered, reinforced and welded. Cabinet structure shall also use a fully galvanized steel internal column and base plate. 3) Cabinet shall have a thermally cured enamel paint finish, available in a variety of standard colors, two-tone designs and custom colors. 4) Added accessories, such as cowling and trim packages, shall be painted to match the cabinet. 5) Vandal/graffiti resistant coating for the cabinet shall be available as an option. 6) Cabinet shall allow for the placement of the facility name, logo, and appropriate graphics in a variety of sizes, colors and styles, using a scotch print, thermo printed vinyl material or similar process that will provide photo-realistic high UV resistant graphics. 7) As an option, the cabinet may be designed as a sign without changeable copy, allowing for the placement of the facility name, logo, and appropriate graphics only. 8) Cabinets shall be made available in a non-illuminated or illuminated design. Illuminated cabinets shall be lit internally with high output, energy-efficient florescent fixtures, with instant start ballast. All writing and internal components shall meet applicable UL standards. The design AEPA IFB #016-I Scoreboards Marquees Signage Page 22 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms will allow for the easy changing of burnt out bulbs, and for the addition of photoelectric control timer control and/or simple on/off control. 9) Illumination levels on sign surfaces shall be in the 100 to 300 lux range (10 to 30 foot-candles) and shall be uniform over sign surface. 10) Cabinets shall be available in a freestanding, low profile, angle bracket mounted, tower mounted, wall mounted, or pole mounted configurations. 11) Cabinets shall use tamper proof carriage bolts and nuts. 12) Cabinets shall use thermal cured, solar grade co-extruded lexan, or similar materials for the sign face and/or cover doors. The material shall provide face rigidity, depth dimension, high impact strength, flame retardancy, thermo formability, light transmittance, and UV resistance. 13) Cabinet cover doors shall be hinged with either single or double doors. 14) Vandal covers shall be available as an option. Vandal covers shall use thermally cured, solar grade co-extruded lexan, or similar material. Vandal covers shall be fabricated with an extruded aluminum frame, with mechanical props (with no seals) recessed into the sign face, and secured with a three-point keyed locking mechanism. 15) Signs shall use a zip track, available in a variety of sizes including, but not limited to, 3”, 4”, 6”, 8”, 10”, etc. Zip track shall be available in single or multiple line configurations and shall be riveted every 3 ½” to assure permanent attachment. 16) As part of the signs design and the development of the project’s scope of work, an assortment of letters, numbers and symbols (available in a variety of fonts, colors, and sizes), sorting boxes, letter wands, and changer poles (available in a variety of sizes) shall also be available.

c. Control via Windows based software (standard). Software to allow for creating, editing, scheduling, running, and deleting messages. Display software allow for importing of standard video format, including avi, mpg, mp4, and mov. Display capable of displaying time, temperature, RSS feeds, and xml data. Owner to provide windows based computer. d. Limited Warranty provides for a minimum period of five (5) years from the e. Date of invoice against defects in workmanship or material. Defectivecomponentswillberepairedorreplacedonafactoryexchan gebasis.Exclusionsinclude, but are not limited to accident, neglect, abuse, misuse or natural disasters.

7.6 OPTIONAL a. FCC Certified Wireless System. FEATURES b. Furnished with factory-installed transmitter and antenna. X c. Each display shall be furnished with factory-installed receiver and antenna. d. System shall allow for synchronized operation of two or more scoreboards from one control operating on the same channel. e. System shall allow for multiple displays to be operated from a single control to show the scores of one game or for multiple displays to be controlled by multiple controls to show scores from different games simultaneously in progress. These two modes of operation shall be user selectable at the control with no access to the displays required. f. System shall not interfere with wireless LANs and personal AEPA IFB #016-I Scoreboards Marquees Signage Page 23 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms computing devices that use the 2.4GHz ISM band. g. System shall operate normally in the presence of cell phones, pagers and their transmission towers. h. System shall utilize spread spectrum technology that redundantly transmits the same data at least 16 times. i. Radio-link indicator light shall indicate when transmission link is operational. j. System shall refresh display with new data no less than 10 times per second for smooth and accurate operation of game and shot clocks, including 1/10 second timing. k. System shall have a transmission range of at least 300’ indoors and 1,000’ outdoors.MP-70 Battery Operation. 7.7 a. Control via Windows based software (standard). Software to allow for creating, editing, scheduling, running, and deleting X SOFTWARE SYSTEM messages. Display software allow for importing of standard REQUIREMENTS video format, including avi, mpg, mp4, and mov. Display capable of displaying time, temperature, RSS feeds, and xml data. Owner to provide windows based computer. b. Scheduling will be made in 12 or 24-hour formats. c. Scheduler shall reside within the LED display cabinet as an onboard processor and not require a PC to operate the messaging schedule. d. Screen helps will provide excerpts from the Owner’s Manual. e. Function to prevent unacceptable words to be displayed. f. Library of words is password protected. g. Library is fully editable for adding or deleting words. h. Menu guided control. i. Simultaneous display and edit capability. j. Automatic Rebooting of system disk after power outage; system clock and calendar shall continue to function during power failure. k. Password protection capability. l. Flexibility shall be achieved through system software and program sequence and schedules, which can be stored on floppy disk or fixed disk. m. All operating software will be provided to Owner along with required usage licenses and software updates. n. Various Text Modules with scalable fonts and traveling text. o. Remote or on-site programming with the appropriate connection. p. User-friendly menu and icon-based software. q. Scheduling can be pre-programmed more than 1 year in advance. r. Message display holds memory for up to 60 days without external power.

7.8 POWER a. The electronic switching power supplies shall be short circuit X SUPPLIES protected. The electronic switching power supplies shall also be protected by an overload allowance ranging from 105% up to 150%. b. The LED display shall be powered by multiple solid-state electronic switching power supplies. c. A separate power supply for the CPU shall be used to isolate the processor power from the LED drive power.

7.9 a. LED display shall be compatible with the following INFORMATION Transmission Methods: X TRANSMISSION 1) Each method shall have specific requirements and shall be METHOD reviewed and decided upon prior to manufacturing. OPTIONS AEPA IFB #016-I Scoreboards Marquees Signage Page 24 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms 7.10 Network a. Direct Data Line using type CAT6 cable. Connection b. LAN connection utilizing either CAT6 cable or Fiber Optics. X c. Wireless LAN or RF Modem. d. Direct Laptop PC connection. e. Data Line – Run a 1” conduit with pull string per Division 16 specifications from the closest data hub to the sign location. f. Install data cable as per manufacturer’s requirements.

7.11 Support a. Entire Sign and Footing to be engineered to withstand 120 mph, Structure for Exposure B. X Outdoor b. Fabricate items of structural steel in accordance with AISC Applications specifications. c. Columns: Cold-formed steel tubing, ASTM A-500, Grade B. Powder-coated prior to assembly. d. Cowling: Galvanized steel panels applied to front and back of support columns. Powder coating shall be applied prior to assembly. e. Base Plates: Cold-rolled plate, ASTM A-36. Steel base plates welded to column and fastened to footer with anchor bolts. Plates to contain welded steel gusset plates, as required. f. Anchor Bolts, Lock Nuts & Washers: Hot-dipped galvanized steel, ASTM A-36. g. Unfinished Treated Fasteners: Grade A, Regular low carbon stainless steel bolts and nuts. ASTM A-307. Provide hexagonal bolts and nuts. h. Shop Finish – polyester powder coat finish to achieve 2.0 – 3.0 mils. i. Reinforcement Bars, Ties & Stirrups: Grade 60, ASTM A-615. Attach to anchor bolts to create unitized anchoring system. j. Cast-in Place Concrete: Engineered footing at adequate size and depth for sign support/wind loads. Mix Design shall be 3000 p.s.i. (Minimum at 28 days, 5 sacks of cement per cu. Yard of concrete (min.) 6.5 gallons of water per sack (94 lbs.) of cement (max.). Use CRSI “Manual of Standard Practice”. k. Portland Cement: Type I or IA, ASTM C-150S.

AEPA IFB #016-I Scoreboards Marquees Signage Page 25 of 27 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part C: Bid Forms AEPA Form F, Item 7.1r Example

Gold Services ATTACHMENT A

GOLD® Services

Scope of Services Services Included 1. Daktronics parts coverage which includes: 1.1. Daktronics Rapid Parts™ Exchange Program for available parts only. 1.2. Repair or replacement of failed electronic parts or assemblies. 1.3. Shipping of repaired or replaced failed electronic components from Daktronics. 2. Technical support via telephone during business hours as defined below. 3. Access to the Service Coordination Center.

Gold shall not include nor be construed to include any service or support that is not expressly stated above in the definition of the Gold service. Examples of services that are not within the scope of Gold service include, but are not limited to, the following: 1. On-site labor to diagnose and/or replace failed electronic components. 2. Remote monitoring services. 3. After hours telephone support.

Above listed exclusions are available as billable services. Quotes may be provided upon request.

Business Hours: Monday through Friday, 8 am to 5 pm CST (excludes Daktronics observed holidays).

Purchaser Responsibilities The items listed below are the responsibility of the Purchaser. 1. Purchaser is responsible for routine operator functions such as content creation or scheduling. 2. Purchaser is responsible for management of customer-owned spare parts inventory. 3. Purchaser is responsible for costs of any on-site labor to diagnose and/or replace failed electronic components. 4. Purchaser is responsible for providing lift access to the display. 5. Purchaser is responsible for the maintenance items listed below; failure to properly maintain equipment may, at Daktronics’ sole discretion, relieve Daktronics of its responsibilities under the Terms and Conditions of Extended Service attached hereto. 5.1. Throughout the term of this Agreement, Purchaser shall maintain site conditions within the common environmental range of all system devices as specified by Daktronics. 5.2. Purchaser is responsible for routine maintenance functions. 5.3. Purchaser is responsible for purchasing and maintaining antivirus software on all control devices connected to Daktronics equipment. (See Daktronics Knowledge Base for list of supported software. DD2079868 http://www.daktronics.com/Support/KB/Pages/Antivirus-software-recommendations.aspx

Gold® is a registered Daktronics trademark. This Service Agreement shall be subject to the attached Terms and Conditions of Extended Service.

TERMS AND CONDITIONS OF EXTENDED SERVICE 1. Scope of Extended Service Agreement. The scope of the Extended Service Agreement (the “Service Agreement”) covers the Equipment and any Software delivered by Daktronics that is delivered under the terms of a Software License Agreement between Purchaser and Daktronics, and shall also include those services defined on Attachment A (excluding maintenance services which are the respo nsibility of Purchaser as defined on Attachment A or services which may be purchased for an additional fee) (the “Services”) . Response Times are defined on Attachment A.

2. Contract Documents. The parties agree that any subsequently-issued Purchaser form, such as a purchase order, shall incorporate the terms and conditions of this Agreement. The provisions of this Agreement shall control in the event of any conflicting provision in Purchaser’s form.

3. Commencement Date. The Services shall begin upon the date stated as the 'Commencement Date' on the cover page of this Agreement.

4. Conditions Precedent. Daktronics reserves the right to suspend its performance in the event Purchaser fails to: (a) make payment as required, (b) maintain the Equipment within the recommended environmental conditions, including but not limited to appropriat e ventilation/air conditioning for its location (Air conditioning systems must be maintained according to manufacturer’s specifications), or (c) perform any other obligation including, without limitation, complying with the terms of any Software License Agreement between Purchaser and Daktronics.

5. Payment. Purchaser agrees to pay Daktronics according to the Payment Schedule. Unless otherwise stated, the price is exclusive of federal, state and local taxes, including without limitation sales, use, excise, privilege, or transactional taxes, but excluding Daktronics’ income tax ('Tax'). Purchaser shall promptly pay upon demand such applicable Tax. Purchaser must present a valid exemption certificate if it claims any exemption from Tax. Late payments shall accrue interest at the rate of 1.5% per month or the highest amount permitted by law, whichever is lower.

6. Spare Parts Package. In the event the Equipment was purchased with a spare parts package, the parties acknowledge and agree that the spare parts package is designed to exhaust over the life of the Equipment and, as such, the replenishment of the package is not included in the scope of this Extended Services Agreement.

7. Limitations of Coverage. This Agreement does not cover: (a) service due to: (i) inadequate or improper power, (ii) improper care, maintenance, storage or use of the Equipment, (iii) a Force Majeure Event, (iv) environmental conditions outside the Equipmen t’s technical specifications (including, without limitation excessive temperatures, corrosives, and metallic pollutants), or (v) defects or failures occurring during a lapse in service coverage or (vi) incorporation of accessories, attachments, software or other devices or systems not furnished by Daktronics; (b) the provision of replacement communication methods (such as wire, metallic or fiber optic cable, conduit, trenching or other solutions) for the purpose of overcoming local site interference; (c) LED degradation occurring within Daktronics technical specifications (degradation means the LED continues to emit light, but at some lesser level of brightness); (d) paint or refinishing the Equipment or furnishing material for this purpose; (e) pixel failure less than a total of .5% of the overa ll display, or in the case of free form elements, one entire element; (f) electrical work external to the Equipment; (g) batteries; (h) third-party systems and other ancillary equipment including without limitation front-end video control systems, audio systems, video processors and players, HVAC equipment, and LCD screens.

8. Actions that Void the Service Agreement. Daktronics shall be under no obligation to continue service under this Agreement if the Equipment or Software is: (a) moved from its location of initial installation or reinstalled without the prior written approval of Daktronics (unless the equipment was designed by Daktronics to be mobile or Purchaser has received Daktronics’ prior consent), or (b) im properly repaired or altered in a manner inconsistent with the Equipment manufacturer’s standards or recommendations.

9. Service Providers. Daktronics may select the parties delivering services under this Agreement at its reasonable discretion.

10. Access to the Equipment. The Purchaser shall provide unfettered, solid, safe and unrestricted access to the Equipment, or (if requested, any installed Software) taking into account environmental or site conditions. Unless otherwise specified on Attac hment A, the Purchaser shall be required to provide any lifts or access equipment. Additional equipment or personnel required for safety, as determined by Daktronics in its reasonable discretion, shall be billed separately on a time and material basis.

11. Adverse Conditions. In no event shall Daktronics be obliged to perform Services under this Agreement during the existence of Adverse Conditions. 'Adverse Conditions' include without limitation, the following: severe inclement weather, hazardous site conditions including infestations of animals or dangerous insects, saturated ground conditions, or residence or occupation by unauthorized personnel. The determination of a site condition as an Adverse Condition shall be at the reasonable discretion of Daktronics. Inaccessibility due to Adverse Conditions will exempt a location from coverage under this Agreement until such time as the Equipment becomes safely accessible once again.

12. Cooperation. Purchaser shall fully cooperate with Daktronics in connection with the service of the Equipment and Software. The Purchaser shall promptly notify Daktronics of Equipment and Software failure. Waiver of liability or other restrictions shall not be imposed as a requirement prior to accessing the site.

13. Return Items. All items returned to Daktronics must have a Return Material Authorization (RMA) number. For exchange items, the number is included with the shipment of the exchange unit. For repair items, an RMA number can be obtained by phone (800 -325-8766), (International +1-605-697-4000), fax (605-697-4444) unless otherwise directed by Daktronics.

14. Shipping. When returning parts to Daktronics for repair or replacement, Purchaser assumes all risk of loss or damage, agrees to use any shipping containers, which might be provided by Daktronics, and agrees to ship the Equipment in the manner prescribed by Daktronics. If returning equipment within the United States or within Canada, all Equipment must be returned by Purchaser FO B Daktronics’ designated facility. If returning equipment across country b orders, all Equipment must be returned by Purchaser DDP Daktronics’ designated facility per INCOTERMS 2010. Daktronics assumes all risk of loss or damage during return shipment to Purchaser and such Equipment shall be returned by Daktronics FOB or DDP Pur chaser’s designated facility as appropriate.

15. Confidentiality. To the extent permitted by law, Purchaser shall consider all information furnished by Daktronics, including the terms and conditions of this Agreement, to be confidential and shall not disclose any such information to any other person, or use such information itself for any purpose other than fulfillment of this Agreement unless Purchaser first obtains written permission from Daktronics to do so. Purchaser shall provide confidential information only to those of its agents, servants and employees who have been informed of the requirements of this paragraph and have agreed to be bound by them. The provisions of this paragraph shall s urvive termination of the Agreement.

16. Default. Daktronics reserves the right to terminate this Agreement and accelerate all amounts due and payable if: (a) Purchaser fails to make payment to Daktronics within ten days of the agreed payment dates, (b) Purchaser otherwise fails to comply with any m aterial provision of this Agreement, or (c) any proceeding is filed by or against Purchaser in bankruptcy. Daktronics reserves all its rights (both legal and equitable) under the Agreement, applicable statutes, and the common law. If Purchaser fails to perform any covenant or obligation under this Agreement or any other Agreement that Purchaser has with Daktronics, including without limitation the f ailure to pay when due any amounts owed to Daktronics, Daktronics shall be excused from the performance of any of its obligations under this Agreement and any other Agreement it has with the Purchaser. Purchaser shall be liable for any and all costs and expenses (including reasonable attorney’s fees) incurred by Daktronics in enforcing any provision of this Agreement.

17. Indemnity. Daktronics shall indemnify, defend and hold harmless the Purchaser and their respective subsidiaries, officers, directors, shareholders, partners, employees, agents, insurers, successors and assigns from any third-party claims for liability, losses, damages, costs or expenses (collectively, 'Losses') arising out of: (i) any negligent act or omission by Daktronics or its personnel, agents, subcontractors, or others engaged by Daktronics or under Daktronics’ control related to the execu tion of this Agreement; (ii) any claim against any indemnified party by reason of or alleging any unauthorized or infringing use by an indemnified party of any patent, process, trade secret, copyright, trademark, or other intellectual property right regarding the Equipment or the Software and its components; or, (iii) any fine or assessment with respect to any violation or alleged violation of any Applicable Laws regarding safety or he alth.

The Purchaser shall indemnify, defend and hold harmless Daktronics and its subsidiaries, officers, directors, shareholders, partners, representatives, employees, agents, insurers, successors and assigns of each of the foregoing from any and all Losses arising out of or in any way related to: (i) any negligent act or omission by the Purchaser or its personnel, agents, subcontractors, or others engaged by the Purchaser or under their control (other than Daktronics or its personnel, agents, subcontractors, or others engaged by Daktronics or under Daktronics’ control), or (ii) any unauthorized or infringing use by an indemnified party of any patent, process, trade secret, copyright, trademark, or other intellectual property right.

18. Disclaimers; Limitation of Liability. Daktronics makes no representations or warranties under this Agreement, and Purchaser acknowledges that this Agreement is subject to all disclaimers and limitations of liability set forth in any purchase terms and other agreements between the parties applicable to the Equipment and Software, including Daktro nics’ Standard Terms and Conditions of Sale, Software License Agreement and Warranty and Limitation of Liability.

19. Force Majeure. Both parties shall be excused from any liability under this Agreement for any delay in performance or failure to perform which delay or failure to perform is caused by circumstances which are beyond the reasonable control of that party, including without limitation acts of God, natural disaster, fire, flood, labor or material shortages, war, vermin, earthquakes, tsunami, acts of terrorism, etc. (a 'Force Majeure Event').

20. Assignment. Unless otherwise stated, this Agreement may not be assigned by either party without the prior written consent of the other party.

21. Miscellaneous. This Agreement shall be governed by the laws of the state where the Services are provided without regard to its conflict of law principles. This Agreement is the product of negotiations between the parties hereto represented by counsel and any rules of construction relating to interpretation against the drafter of an Agreement shall not apply to this Agreement and are expressly waived. This Agreement represents the entire Agreement of the parties and supersedes any previous understanding or Agreement. This Agreement may not be amended or altered in any manner except in a writing signed by both parties. This Agreement may be executed in counterparts. The Purchaser and Daktronics are not partners or joint venturers. If any part of this Agreement is in any manner held to be invalid, illegal, void, or to be in conflict with any law, then the validity of the remaining portions or provisions of this Agreement shall not be affected, and such part, term, paragraph or provision shall be construed and enforced in a manner designed to effectuate the intent expressed in this Agreement to the maximum extent permitted by law.

NJ Business Registration Form

All vendors must have a valid Business Registration Certificate (BRC) from the Department of the Treasury, Division of Revenue prior to conducting business in the State of New Jersey and prior to receiving the award of a contract with a public entity.

BUSINESS REGl$TIU.t Q lt CERTI FICA.TE [)(P.UHU9fl i A5'· '!l'r"I >\.'•SON CI ~CR ~TATE A<;E~CV MID CA5lfi0 SiAVICE COl'HRACTOA •oooii. m ·~c~· °"' •. _,,

TAX:PA"t"ER NAME • TRAC lo Mr TAIC REGISTRATION TEST ACCOU"1' CLI 4l Sl RA l TAXPAYER IOENTIFICATIOtl11: SEQL E lJMBER 970o097-3fiJ~ 0101: """'""'SS · ISSUANCE O.A1E· • lLINGAI l'Rt. •• ...lff NJ Q8f ' VE DA G11i.

STATE OF NEW JERSEY BUSINESS REGISTRATION CERTIFICATE

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For more information on how to obtain a Business Registration Certificate, please visit the State of New Jersey, Department of Treasury, Division of Revenue and Enterprise Services website at: http://www.state.nj .us/treasury/revenue/busregcert.shtml. A valid Business Registration Certificate must be provided to the MRESC before the award of a contract can be made.

Form.AJ\302 STATE OF NEW .JERSEY R.llv. ll/ 11 Division of Purch•- A~ Contnct Compli..nce' Audit Unit EEO Monitoring p,..._, EMPLOYEE INFORMATION REPORT IMl'ORTAllT-AEAD INSTIIUCTIONS CIJID'Ul.LY llEFOffE CilMPLrnNG FOAM. Fl.1URE TO PROPERLY COMPUTE THE ENTllE FOllr.6 AN> TO SUBMIT TH£ REQUI~ $1Sil.llO F££ MAY DELAY ISSUANCE OF 'tOUR CERTIFICAJE. DO NOT SIJBMIT R0-1 IHPORT FOii 5£CTION ~ IT9.I 11. F0< lnwuct;ons on cample

SECTION A - COMPANY IDENllFICATION

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12. HOW "llo'A.S JNl'OQ.illlION AS TO llAa Oi'.l!.THNIC GILOOP IN SEClION JI OBTA!Nnl I 4. ts THIS THI! l'l1SI' 15. ill' :NO. IlATI! LAS!' 1.v-.....is-..y o 2 . ~:it...... r o l . ~ ($'pocify) E:m:pto)._ lilfannmaa '.UPOllT St1JIMlTTl!D 0 J:.pczt_,

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KCT10111 C-SICllATUAE MIO IDOITlflCATIOlll

17. AODllESS NO. 6cST1U!lrr

To download the AA-302 form, click this link: http://www.state.nj.us/treasury/contract compliance/pdf/aa302.pdf INSTRUCTIONS FOR COMPLETING THE EMPLOYEE INFORMATION REPORT (FORM AA302)

IMPORTANT: READ THE FOLLOWING INSTRUCTIONS CAREFULLY BEFORE COMPLETING THE FORM. PRINT OR TYPE ALL INFORMATION. FAILURE TO PROPERLY COMPLETE THE ENTIRE FORM AND TO SUBMIT THE REQUIRED $150.00 NON-REFUNDABLE FEE MAY DELAY ISSUANCE OF YOUR CERTIFICATE. IF YOU HAVE A CURRENT CERTIFICATE OF EMPLOYEE INFORMATION REPORT, DO NOT COMPLETE THIS FORM UNLESS YOUR ARE RENEWING A CERTIFICATE THAT IS DUE FOR EXPIRATION. DO NOT COMPLETE THIS FORM FOR CONSTRUCTION CONTRACT AWARDS.

ITEM 1 - Enter the Federal Identification Number assigned by ITEM 11 - Enter the appropriate figures on all lines and in all the Internal Revenue Service, or if a Federal Employer columns. THIS SHALL ONLY INCLUDE EMPLOYMENT Identification Number has been applied for, or if your DATA FROM THE FACILITY THAT IS BEING AWARDED business is such that you have not or will not receive a THE CONTRACT. DO NOT list the same employee in more Federal Employer Identification Number, enter the Social than one job category. DO NOT attach an EE0-1 Report. Security Number of the owner or of one partner, in the case of a partnership. Racial/Ethnic Groups will be defined: Black: Not of Hispanic origin. Persons having origin in any of ITEM 2 - Check the box appropriate to your TYPE OF the Black racial groups of Africa. BUSINESS. If you are engaged in more than one type of Hispanic: Persons of Mexican, Puerto Rican, Cuban, or business check the predominate one. If you are a Central or South American or other Spanish culture or origin, manufacturer deriving more than 50% of your receipts from regardless of race. your own retail outlets, check "Retail''. American Indian or Alaskan Native: Persons having origins in any of the original peoples of North America, and who ITEM 3 - Enter the total "number" of employees in the entire maintain cultural identification through tribal affiliation or company, including part-time employees. This number shall community recognition. include all facilities in the entire firm or corporation. Asian or Pacific Islander: Persons having origin in any of the original peoples of the Far East, Southeast Asia, the ITEM 4 - Enter the name by which the company is identified. Indian Sub-continent or the Pacific Islands. This area If there is more than one company name, enter the includes for example, China, Japan, Korea, the Phillippine predominate one. Islands and Samoa. Non-Minority: Any Persons not identified in any of the ITEM 5 - Enter the physical location of the company. Include aforementioned Racial/Ethnic Groups. City, County, State and Zip Code. ITEM 12 - Check the appropriate box. If the race or ethnic ITEM 6 - Enter the name of any parent or affiliated company group information was not obtained by 1 or 2, specify by what including the City, County, State and Zip Code. If there is other means this was done in 3. none, so indicate by entering "None" or NIA. ITEM 13 - Enter the dates of the payroll period used to ITEM 7 - Check the box appropriate to your type of company prepare the employment data presented in Item 12. establishment. "Single-establishment Employer" shall include an employer whose business is conducted at only one ITEM 14 - If this is the first time an Employee Information physical location. "Multi-establishment Employer" shall Report has been submitted for this company, check block include an employer whose business is conducted at more "Yes". than one location. ITEM 15 - If the answer to Item 15 is "No", enter the date ITEM 8 - If "Multi-establishment" was entered in item 8, enter when the last Employee Information Report was submitted by the number of establishments within the State of New Jersey. this company.

ITEM 9 - Enter the total number of employees at the ITEM 16 - Print or type the name of the person completing establishment being awarded the contract. the form. Include the signature, title and date.

ITEM 10 - Enter the name of the Public Agency awarding the ITEM 17 - Enter the physical location where the form is being contract. Include City, County, State and Zip Code. This is completed. Include City, State, Zip Code and Phone Number. not applicable if you are renewing a current Certificate.

TYPE OR PRINT IN SHARP BALL POINT PEN THE VENDOR TS TO COMPLETE THE EMPLOYEE INFORMATION REPORT FORM (AA302) AND RETAIN A COPY FOR THE VENDOR'S OWN FlLES. THE VENDOR SHOULD ALSO SUBM IT A COPY TO THE PUBLIC AGENCY AWARDfNG THE CONTRACT IF THIS IS YOUR FIRST REPORT; AND FORWARD ONE COPY WITH A CHECK IN THE AMOUNT OF $150.00 PAYABLE TO THE TREASURER, STA TE OF NEW .JERSEYCf EE IS 'ON-REFUNDABLE) TO: NJ Department of the Treasury Division of Purchase & Property Contract Compliance Audit Unit EEO Monitoring Program P.O. Box 206 Trenton, New Jersey 08625-0206 Telephone No. (609) 292-5473 RETURN WITH BID

(REVISED 4 I 10) EXHIBIT A

MANDATORY EQUAL EMPLOYMENT OPPORTUNITY LANGUAGE N.J.S.A. 10:5-31 et seq. (P.L. 1975, C. 127) N .J.A.C. 1 7:27 GOODS, PROFESSIONAL SERVICE AND GENERAL SERVICE CONTRACTS

During the performance of this contract, the contractor agrees as follows:

The contractor or subcontractor, where applicable, will not discriminate against any employee or applicant for employment because of age, race, creed, color, national origin, ancestry, marital status, affectional or sexual orientation, gender identity or expression, disability, nationality or sex. Except with respect to affectional or sexual orientation and gender identity or expression, the contractor will ensure that equal employment opportu nity is afforded to such applicants in recruitment and employment, and that employees are treated during employment, without regard to their age, race, creed, color, national origin, ancestry, marital status, affectional or sexual orientation, gender identity or expression, disability, nationality or sex. Such equal employment opportunity shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Public Agency Compliance Officer setting forth provisions of this nondiscrimination clause.

The contractor or subcontractor, where applicable will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to age, race, creed, color, national origin, ancestry, marital status, affectional or sexual orientation, gender identity or expression, disability, nationality or sex.

The contractor or subcontractor will send to each labor union, with which it has a collective bargaining agreement, a notice, to be provided by the agency contracting officer , advising the labor union of the contractor's commitments under this chapter and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

The contractor or subcontractor, where applicable, agrees to comply with any regulations promulgated by the Treasurer pursuant to N.J.S.A. 10:5-31 et seq., as amended and supplemented from time to time and the Americans with Disabilities Act.

The contractor or subcontractor agrees to make good faith efforts to meet targeted county employment goals established in accordance with N.J.A.C. 17:27-5.2.

C. 271 POLITICAL CONTRIBUTION DISCLOSURE FORM Contractor Instructions Business entities (contractors) receiving contracts from a public agency that are NOT awarded pursuant to a "fair and open" process (defined at N.J.S.A. 19:44A-20.7) are subject to the provisions of P.L. 2005, c. 271, s. 2 (N.J.S.A. 19:44A-20.26). This law provides that 10 days prior to the award of such a contract, the contractor shall disclose contributions to: • any State, county, or municipal committee of a political party • any legislative leadership committee*' • any continuing political committee (a.k.a., political action committee) • any candidate committee of a candidate for, or holder of, an elective office: o of the public entity awarding the contract o of that county in which that public entity is located o of another public entity within that county o or of a legislative district in which that public entity is located or, when the public entity is a county, of any legislative district which includes all or part of the county The disclosure must list reportable contributions to any of the committees that exceed $300 per election cycle that were made during the 12 months prior to award of the contract. See N.J.S.A. 19:44A-8 and 19:44A-l 6 for more details on reportable contributions.

N.J.S.A. 19:44A-20.26 itemizes the parties from whom contributions must be disclosed when a business entity is not a natural person. This includes the following: • individuals with an "interest" ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit • all principals, partners, officers, or directors of the business entity or their spouses • any subsidiaries directly or indirectly controlled by the business entity • IRS Code Section 527 New Jersey based organizations, directly or indirectly controlled by the business entity and filing as continuing political committees, (PACs)

When the business entity is a natural person, "a contribution by that person's spouse or child, residing therewith, shall be deemed to be a contribution by the business entity." [N.J.S.A. 19:44A-20.26(b)]. The contributor must be listed on the disclosure.

Any business entity that fails to comply with the disclosure provisions shall be subject to a fine imposed by ELEC in an amount to be determined by the Commission which may be based upon the amount that the business entity failed to report.

The enclosed list of agencies is provided to assist the contractor in identifying those public agencies whose elected official and/or candidate campaign committees are affected by the disclosure requirement. It is the contractor's responsibility to identify the specific committees to which contributions may have been made and need to be disclosed. The disclosed information may exceed the minimum requirement.

The enclosed form, a content-consistent facsimile, or an electronic data file containing the required details (along with a signed over sheet) may be used as the contractor's submission and is disclosable to the public under the Open Public Records Act.

1 N.J.S.A. 19:44A-3(s): ''The term "legislative leadership committee" means a committee established, authorized to be established, or designated by the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly or the Minority Leader of the General Assembly pursuant to section 16 of P.L. 1993, c. 65 (C. 19:44A-10. l ) for the purpose ofreceiving contributions and making expenditures." The contractor must also complete the attached Stockholder Disclosure Certification. This will assist the agency in meeting its obligations under the law. NOTE: This section does not apply to Board of Education contracts.

P.L. 2005, c. 271 (Unofficial version, Assembly Committee Substitute to A-3013, First Reprint*)

AN ACT authorizing units of local government to impose limits on political contributions by contractors and supplementing Title 40A of the New Jersey Statutes and Title 19 of the Revised Statutes.

BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:

40A:ll-511. a. A county, municipality, independent authority, board of education, or fire district is hereby authorized to establish by ordinance, resolution or regulation, as may be appropriate, measures limiting the awarding of public contracts there from to business entities that have made a contribution pursuant to P.L. 1973, c. 83 (C. 19:44A-l et seq.) and limiting the contributions that the holders of a contract can make during the term of a contract, notwithstanding the provisions and parameters of sections 1through12 of P.L. 2004, c. 19 (C. 19:44A-20.2 et al.) and section 22 of P.L. 1973, c. 83 (C. 19:44A-22). b. The provisions of P.L. 2004, c. 19 shall not be construed to supersede or preempt any ordinance, resolution or regulation of a unit of local government that limits political contributions by business entities performing or seeking to perform government contracts. Any ordinance, resolution or regulation in effect on the effective date of P.L. 2004, c. 19 shal1 remain in effect and those adopted after that effective date shall be valid and enforceable. c. An ordinance, resolution or regulation adopted or promulgale

52:34-25 2. a. Not later than 10 days prior to entering into any contract having an anticipated value in excess of $17,500, except for a contract that is required by law to be publicly advertised for bids, a State agency, county, municipality, independent authority, board of education, or fire district shall require any business entity bidding thereon or negotiating therefor, to submit along with its bid or price quote, a list of political contributions as set forth in this subsection that are reportable by the recipient pursuant to the provisions of P.L. 1973, c. 83 (C.19:44A-l et seq.) and that were made by the business entity during the preceding 12 month period, along with the date and amount of each contribution and the name of the recipient of each contribution. A business entity contracting with a State agency shall disclose contributions to any State, county, or municipal committee of a political party, legislative leadership committee, candidate committee of a candidate for, or holder of, a State elective office, or any continuing political committee. A business entity contracting with a county, municipality, independent authority, other than an independent authority that is a State agency, board of education, or fire district shall disclose contributions to: any State, county, or municipal committee of a political party; any legislative leadership committee; or any candidate committee of a candidate for, or holder of, and elective office of that public entity, of that county in which that public entity is located, of another public entity within that county, or of a legislative district in which that public entity is located or, when the public entity is a county, of any legislative district which includes all or part of the county, or any continuing political committee.

The provisions of this section shall not apply to a contract when a public emergency requires the immediate delivery of goods or services. b. When a business entity is a natural person, a contribution by that person's spouse or child, residing therewith, shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by any person or other business entity having an interest therein shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by: all principals, partners, officers, or directors of the business entity or their spouses; any subsidiaries directly or indirectly controlled by the business entity; or any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee, shall be deemed to be a contribution by the business entity. c. As used in this section:

"business entity" means a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction;

"interest" means the ownership or control of more than 10% of the profits or assets of a business entity of 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate; and

P.L. 2005, c. 271

"State agency" means any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission or other instrumentality within or created by such department, the Legislature of the State and any office, board, bureau or commission within or created by the Legislative Branch, and any independent State authority, commission, instrumentality or agency. d. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by the New Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be based upon the amount that the business entity failed to report.

19:44A-20.13 3. a. Any business entity making a contribution of money or any other thing of value, including an in-kind contribution, or pledge to make a contribution of any kind to a candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, or to a political party committee, legislative leadership committee, political committee or continuing political committee, which has received in any calendar year $50,000 or more in the aggregate through agreements or contracts with a public entity, shall file an annual disclosure statement with the New Jersey Election Law Enforcement Commission, established pursuant to section 5 of P.L. 1973, c. 83 (C. 19:44A-5), setting forth all such contributions made by the business entity during the 12 months prior to the reporting deadline. b. The commission shall prescribe forms and procedures for the reporting required in subsection a. of this section which shall include, but not be limited to:

(1) the name and mailing address of the business entity making the contribution, and the amount contributed during the 12 months prior to the reporting deadline;

(2) the name of the candidate for or the holder of any public office having ultimate responsibility for the awarding of public contracts, candidate committee, joint candidates committee, political party committee, legislative leadership committee, political committee or continuing political committee receiving the contribution; and

(3) the amount of money the business entity received from the public entity through contract or agreement, the dates, and information identifying each contract or agreement and describing the goods, services or equipment provided or property sold. c. The commission shall maintain a list of such reports for public inspection both at its office and through its Internet site. d. When a business entity is a natural person, a contribution by that person's spouse or child, residing therewith, shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by any person or other business entity having an interest therein shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution by: all principals, partners, officers, or directors of the business entity, or their spouses; any subsidiaries directly or indirectly controlled by the business entity; or any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party committee, shall be deemed to be a contribution by the business entity.

As used in this section:

"Business entity" means a natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association or any other legal commercial entity organized under the laws of this State or of any other state or foreign jurisdiction; and

"Interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit, as appropriate. e. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by the New Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be based upon the amount that the business entity failed to report.

4. This act shall take effect immediately.

*Note: Bold italicized statutory references of new sections are anticipated and not final as of the time this document was prepared. Statutory compilations of N.J.S.A. l 8A: l 8A-5 l is anticipated to show a reference to N.J.S.A. 40:1 1-51 and to N.J.S.A. 52:34-25.

APPENDIX A AMERICANS WITH DISABILITIES ACT OF 1990 Equal Opportunity for Individuals with Disability

The contractor and the Middlesex Regional Educational Services Commission (hereafter "owner") do hereby agree that the provisions of Title 11 of the Americans With Disabilities Act of 1990 (the "Act") (42 U.S.C. S121 01 et seq.), which prohibits discrimination on the basis of disability by public entities in all services, programs, and activities provided or made available by public entities, and the rules and regulations promulgated pursuant there unto, are made a part of this contract. In providing any aid, benefit, or service on behalf of the owner pursuant to this contract, the contractor agrees that the performance shall be in strict compliance with the Act. In the event that the contractor, its agents, servants, employees, or subcontractors violate or are alleged to have violated the Act during the performance of this contract, the contractor shall defend the owner in any action or administrative proceeding commenced pursuant to this Act. The contractor shall indemnify, protect, and save harmless the owner, its agents, servants, and employees from and against any and all suits, claims, losses, demands, or damages, of whatever kind or nature arising out of or claimed to arise out of the alleged violation. The contractor shall, at its own expense, appear, defend, and pay any and all charges for legal services and any and all costs and other expenses arising from such action or administrative proceeding or incurred in connection therewith. In any and all complaints brought pursuant to the owner's grievance procedure, the contractor agrees to abide by any decision of the owner which is rendered pursuant to said grievance procedure. If any action or administrative proceeding results in an award of damages against the owner, or if the owner incurs any expense to cure a violation of the ADA which has been brought pursuant to its grievance procedure, the contractor shall satisfy and discharge the same at its own expense.

The owner shall, as soon as practicable after a claim has been made against it, give written notice thereof to the contractor along with full and complete particulars of the claim, If any action or administrative proceeding is brought against the owner or any of its agents, servants, and employees, the owner shall expeditiously forward or have forwarded to the contractor every demand, complaint, notice, summons, pleading, or other process received by the owner or its representatives.

It is expressly agreed and understood that any approval by the owner of the services provided by the contractor pursuant to this contract will not relieve the contractor of the obligation to comply with the Act and to defend, indemnify, protect, and save harmless the owner pursuant to this paragraph.

It is further agreed and understood that the owner assumes no obligation to indemnify or save harmless the contractor, its agents, servants, employees and subcontractors for any claim which may arise out of their performance of this Agreement. Furthermore, the contractor expressly understands and agrees that the provisions of this indemnification clause shall in no way limit the contractor's obligations assumed in this Agreement, nor shall they be construed to relieve the contractor from any liability, nor preclude the owner from taking any other actions available to it under any other provisions of the Agreement or otherwise at law.

$>tate of .f!eb.1 JI ersep DEPARTMENT OF THE TREASURY CHRIS CHRISTIE DIVISION OF PURCHASE A D PROPERTY ANDREW P. SIDAMO -ERISTOFF Governor OFFICE OF THE DIRECTOR State Treasurer 33 WEST STA TE STREET P.O. BOX 039 KIM GAUDAG 0 TRE TO , EW JERSEY 08625-0039 JIG lASA DESAI-MCCLEARY Lt. Governor Director Telephone (609) 292-4886 / Facsimile (609) 984-2575

The following list represents entities determined, based on credible information available to the public, to be engaged in prohibited activities in Iran pursuant to P.L. 2012, c. 25 ("Chapter 25"):

1. Amon a 20. Liquefied Natural Gas Limited 2. Bank Saderat PLC 21 . Maire Tecnim ont SpA 3. Bank Sepah 22. Naftiran lntratrade Company (NICO) 4. Bank Markazi Iran (Central Bank of Iran) 23. National Iranian Tanker Company (NITC) 5. Bank Mellat 24. Oil and Natural Gas Corporation (ONGC) 6. Bank Melli Iran 25. Oil India Limited 7. Bank Tejarat 26. Panvu Chu Konq Steel Pipe Company, Ltd . 27. Persia International Bank 8. Belaz - 9. Belneftkhim (Belarusneft) 28. PetroChina Company, Ltd . 10. China International United Petroleum &Chemicals Co. , Ltd . 29. Petroleos de Venezuela (PDVSA Petroleo, SA) (Unipec) 11 . China National Offshore Oil Corporation (CNOOC) 30 . Sameh Afzar Ta jak Company (SATCO) 12. China National Petroleum Corporation (CNPC) 31. Schwing America, Inc. 13. China National United Oil Corporation (ChinaOil) 32. Shandong FIN CNC Machine Company, Ltd . 14. China Petroleum &Chemical Corporation (Sinopec) 33. Sinohydro 15. China Precision Machinery Import-Export Corp. (CPMIEC) 34. SK Energy 16. Grimley Smith Associates 35. SKS Ventu res 17. Indian Oil Corporation 36. Som Petrol AS 18. lndustrija Nafte (INA) 37. Sonangol 19. Kinqdream PLC 38. Zhuhai Zhenrong Company

List Date: January 31, 2014