Document:

EX-10.1

 Exhibit 10.1 
  

 
 June 29, 2015 

Mr. David O’Connor 
 The Madison Square Garden Company

 Two Pennsylvania Plaza 
 New York, NY 10121 

Dear David: 
 This letter agreement (the “Agreement”),
effective on July 15, 2015 (the “Effective Date”), will confirm the terms of your employment by The Madison Square Garden Company (the “Company”). 

1. Your title shall be President & Chief Executive Officer and you will report to the Executive Chairman. You agree to devote all of your business
time and attention to the business and affairs of the Company and to perform your duties in a diligent, competent, professional and skillful manner and in accordance with applicable law. 

2. Your annual base salary will be a minimum of $2,000,000, paid bi-weekly, subject to annual review and potential increase by the Compensation Committee of
the Board of Directors of the Company (the “Compensation Committee”), in its discretion. 
 3. Commencing with the fiscal year beginning
July 1, 2015, and each fiscal year thereafter, you will also participate in our discretionary annual bonus program with an annual target bonus opportunity equal to 200% of your annual base salary. Bonus payments are based on actual salary
dollars paid during the year and depend on a number of factors including Company, unit and individual performance. However, the decision of whether or not to pay a bonus, and the amount of that bonus, if any, is made by the Compensation Committee,
in its sole discretion. Annual bonuses are typically paid early in the subsequent fiscal year. Except as otherwise provided herein, in order to receive a bonus, you must be employed by the Company at the time bonuses are being paid. Notwithstanding
the foregoing, if your employment with the Company ends on the Scheduled Expiration Date (as defined below), you shall be paid your bonus for the fiscal year ending June 30, 2020, if any, even if such payment is not made to you prior to the
Scheduled Expiration Date, which bonus shall be subject to Company and your business unit performance for that fiscal year as determined by the Company in its sole discretion, but without adjustment for your individual performance. 

4. Commencing with the fiscal year beginning July 1, 2015 and each fiscal year thereafter, you will also, subject to your continued employment by the
Company and actual grant by the 

 Mr. David O’Connor 

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Compensation Committee, participate in such equity and other long-term incentive programs that are made available in the future to similarly situated executives at the Company. It is expected
that such awards will consist of annual grants of cash and/or equity awards with an annual target value of not less than $9,000,000, all as determined by the Compensation Committee in its discretion. All awards described in this Paragraph, in
addition to being subject to actual grant by the Compensation Committee, would be pursuant to the applicable plan document and would be subject to any terms and conditions established by the Compensation Committee in its sole discretion that would
be detailed in separate agreements you would receive after any award is actually made; provided, however, that such terms and conditions shall be consistent with those in awards granted to similarly situated executives. Long-term incentive awards
are currently expected to be subject to three-year vesting. 
 5. In addition to your eligibility to participate in the Company’s regular long-term
incentive programs, the Company will grant you a one-time special award of restricted stock units on or promptly following the Effective Date (the “Make-Whole Grant”). The Make-Whole Grant will have an aggregate grant date value of
$40,000,000, determined based on the average closing price of a share of the Company’s Class A Common Stock for the 20 trading days prior to, but not including, the Effective Date. The Make-Whole Grant will cliff-vest on the third
anniversary of the Effective Date subject to the achievement of performance metrics to be established by the Compensation Committee to achieve tax deductibility under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”), which performance metrics have been disclosed to you by the Company, and will otherwise be on terms substantially consistent with the Company’s standard form award agreement for proxy-reported officers; provided that
the award agreement will contain the spinoff adjustment described below. 
 6. You will also be eligible to participate in our standard benefits program,
subject to meeting the relevant eligibility requirements, payment of the required premiums, and the terms of the plans themselves. We currently offer medical, dental, vision, life, and accidental death and dismemberment insurance; short- and
long-term disability insurance; a savings and retirement program; and ten paid holidays. You will also be eligible for four (4) weeks of vacation to be accrued and used in accordance with Company policy. 

7. If your employment with the Company is terminated prior to the third anniversary of the Effective Date (i) by the Company (other than for
“Cause”); or (ii) by you for “Good Reason” (other than if “Cause” then exists); then, subject to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation
(within any applicable revocation period) of the Separation Agreement (as defined below), then the Make-Whole Grant shall not be forfeited and shall be deemed immediately vested (subject to the performance conditions) and payable on the 90th day after the termination of your employment (or if the performance conditions applicable to the Make-Whole Grant have not yet been satisfied as of the
90th day after the termination of your employment, promptly after the performance conditions have been satisfied as certified by the Compensation Committee). 

 Mr. David O’Connor 

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 8. If your employment with the Company is terminated on or after the third anniversary of the Effective Date,
but on or prior to September 30, 2020 (the “Scheduled Expiration Date”) (i) by the Company (other than for “Cause”); or (ii) by you for “Good Reason” (other than if “Cause” then exists); then,
subject to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement, the Company will provide you with the following: 

 

	 	(a)	Severance in an amount to be determined by the Company (the “Severance Amount”), but in no event less than two (2) times the sum of your annual base salary and your annual target bonus as in effect at the
time your employment terminates. Sixty percent (60%) of the Severance Amount will be payable to you on the six-month anniversary of the date your employment so terminates (the “Termination Date”) and the remaining forty percent
(40%) of the Severance Amount will be payable to you on the twelve-month anniversary of the Termination Date; 

  

	 	(b)	Any unpaid annual bonus for the Company’s fiscal year prior to the fiscal year which includes your Termination Date, and a pro rated bonus based on the amount of your base salary actually earned by you
during the Company’s fiscal year through the Termination Date, each of which will be paid to you when such bonuses are generally paid to similarly situated active executives and will be based on your then current annual target bonus as well as
Company and your business unit performance for the applicable fiscal year as determined by the Company in its sole discretion, but without adjustment for your individual performance; 

 

	 	(c)	Each of your outstanding long-term cash awards granted under the plans of the Company shall immediately vest in full and shall be payable to you at the same time as such awards are paid to active executives of the
Company and the payment amount of such award shall be to the same extent that other similarly situated active executives receive payment as determined by the Compensation Committee (subject to satisfaction of any applicable performance criteria but
without adjustment for your individual performance); 

  

	 	(d)	 (i) All of the time-based restrictions on each of your outstanding restricted stock or restricted stock unit awards granted to you under the plans of
the Company shall immediately be eliminated, (ii) deliveries with respect to your restricted stock that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the
Compensation Committee) shall be made immediately after the effective date of the Separation Agreement, (iii) payment and deliveries with respect to your restricted stock units

 Mr. David O’Connor 

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that are not subject to performance criteria or are subject to performance criteria that have previously been satisfied (as certified by the Compensation Committee) shall be made on the 90th day after the termination of your employment, and (iv) payments or deliveries with respect to your restricted stock and restricted stock units that are subject to performance criteria that have
not yet been satisfied shall be made once the applicable performance criteria is certified by the Compensation Committee as having been satisfied; and 

  

	 	(e)	Each of your outstanding stock options and stock appreciation awards, if any, under the plans of the Company shall immediately vest and become exercisable and you shall have the right to exercise each of those options
and stock appreciation awards for the remainder of the term of such option or award. 

 If you die after a termination of your employment that
is subject to Paragraphs 7 or 8, your estate or beneficiaries will be provided with any remaining benefits and rights under such Paragraph. 
 9. If you
cease to be an employee of the Company prior to the Scheduled Expiration Date as a result of your death or your Disability (as defined in the Company’s Long Term Disability Plan), and at such time Cause does not exist then, subject (other than
in the case of death) to your execution and delivery, within 60 days after the date of termination of your employment, and non-revocation (within any applicable revocation period) of the Separation Agreement, you or your estate or beneficiary shall
be provided with the following benefits and rights: 
  

	 	(a)	If such termination due to death or Disability is prior to the third anniversary of the Effective Date, the Make-Whole Grant shall not be forfeited and shall be deemed immediately vested and payable on the 90th day
after the termination of your employment regardless of whether the performance conditions have been satisfied (and, for the avoidance of doubt, will not receive any accelerated vesting of annual long-term incentive awards, notwithstanding the terms
of the award agreements applicable to such annual long-term incentive awards). 

  

	 	(b)	If such termination due to death or Disability is on or after the third anniversary of the Effective Date, you shall receive the benefits and rights set forth in Paragraphs 8(b), (d) and (e) above and each of
your outstanding long-term cash awards granted under the plans of the Company shall immediately vest in full, whether or not subject to performance criteria and shall be payable on the 90th day
after the termination of your employment; provided, that if any such award is subject to any performance criteria, then (i) if the measurement period for such performance criteria has not yet been fully completed, then the payment amount shall
be at the target amount for such award and (ii) if the measurement period for such performance criteria has already been fully completed, then the payment of such award shall be at the same time and to the extent that other similarly situated
executives receive payment as determined by the Compensation Committee (subject to satisfaction of the applicable performance criteria). 

 Mr. David O’Connor 

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 10. For purposes hereof, “Separation Agreement” shall mean the Company’s standard severance
agreement (modified to reflect the terms of this Agreement) which will include, without limitation, the provisions set forth in Paragraphs 7, 8, 9 and 11 hereof (as applicable) and Annex A hereto regarding non-compete (limited to one year),
non-disparagement, non-hire/non-solicitation, confidentiality (including, without limitation, the last paragraph of Section 3 of Annex A), and further cooperation obligations and restrictions on you (with Company reimbursement of your
associated expenses and payment for your services as described in Annex A in connection with any required post-employment cooperation) as well as a general release by you of the Company and its affiliates (and their respective directors and
officers), but shall otherwise contain no post-employment covenants unless agreed to by you. The Company shall provide you with the form of Separation Agreement within seven days of your termination of employment. For avoidance of doubt, your rights
of indemnification under the Company’s Amended and Restated Certificate of Incorporation, under your indemnification agreement with the Company and under any insurance policy, or under any other resolution of the Board of Directors of the
Company shall not be released, diminished or affected by any Separation Agreement or release or any termination of your employment. 
 11. Except as
otherwise set forth in Paragraphs 7, 8 and 9 hereof, in connection with any termination of your employment, your then outstanding equity and cash incentive awards shall be treated in accordance with their terms and, other than as provided in this
Agreement, you shall not be eligible for severance benefits under any other plan, program or policy of the Company. Except as provided in Paragraph 9(a) relating to a termination due to death or disability within the first three years after the
Effective Date, nothing in this Agreement is intended to limit any more favorable rights that you may be entitled to under your equity and cash incentive award agreements, including, without limitation, your rights in the event of a termination of
your employment, a “Going Private Transaction” or a “Change of Control” (as those terms are defined in the applicable award agreement). 

12. For purposes of this Agreement, “Cause” means your (i) commission of an act of fraud, embezzlement, misappropriation, willful
misconduct, gross negligence or breach of fiduciary duty against the Company or an affiliate thereof, or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of nolo contendere, or imposition of
unadjudicated probation for any crime involving moral turpitude or any felony. 
 For purposes of this Agreement, “Good Reason” means that
(1) without your written consent, (A) your annual base salary or annual target bonus (as each may be increased from time to time in the Compensation Committee’s sole discretion) is reduced, (B) your title (as in effect from time
to time) is diminished, (C) you report directly to someone other than the Executive Chairman (or if there is no Executive Chairman, to someone other than the Chairman of the 

 Mr. David O’Connor 

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Board of Directors of the Company), (D) the Company requires that your principal office be located outside of the Borough of Manhattan, (E) the Company materially breaches its
obligations to you under this Agreement or (F) your responsibilities as in effect immediately after the date hereof are thereafter materially diminished, (2) you have given the Company written notice, referring specifically to this
Agreement and definition, that you do not consent to such action, (3) the Company has not corrected such action within 15 days of receiving such notice, and (4) you voluntarily terminate your employment with the Company within 90
days following the happening of the action described in subsection (1) above. 
 13. This Agreement does not constitute a guarantee of employment for
any definite period. Your employment is at will and may be terminated by you or the Company at any time, with or without notice or reason. 
 14. The
Company may withhold from any payment due to you any taxes required to be withheld under any law, rule or regulation. If any payment otherwise due to you hereunder would result in the imposition of the excise tax imposed by Section 4999 of the
Code, the Company will instead pay you either (i) such amount or (ii) the maximum amount that could be paid to you without the imposition of the excise tax, depending on whichever amount results in your receiving the greater amount of after-tax proceeds. In the event that the payments and benefits payable to you would be reduced as provided in the previous sentence, then such reduction will be determined in a manner which has the least economic
cost to you and, to the extent the economic cost is equivalent, such payments or benefits will be reduced in the inverse order of when the payments or benefits would have been made to you (i.e. later payments will be reduced first) until the
reduction specified is achieved. If the Company elects to retain any accounting or similar firm to provide assistance in calculating any such amounts, the Company shall be responsible for the costs of any such firm. 

15. It is intended that this Agreement will comply with Section 409A of the Code and any regulations and guidelines promulgated thereunder (collectively,
“Section 409A”) to the extent this Agreement is subject thereto, and that this Agreement shall be interpreted on a basis consistent with such intent. If and to the extent that any payment or benefit under this Agreement, or any plan, award
or arrangement of the Company or its affiliates, constitutes “non-qualified deferred compensation” subject to Section 409A and is payable to you by reason of your termination of employment, then (a) such payment or benefit shall
be made or provided to you only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations and (b) if you are a “specified employee” (within the meaning of Section 409A as
determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the date of your separation from service (or your earlier death). Any amount not paid or benefit not provided in respect of
the six month period specified in the preceding sentence will be paid to you, together with interest on such delayed amount at a rate equal to the average of the one-year LIBOR fixed rate equivalent for the ten business days prior to the date of
your employment termination, in a lump sum or provided to you as soon as 

 Mr. David O’Connor 

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practicable after the expiration of such six month period. Each payment or benefit provided under this Agreement shall be treated as a separate payment for purposes of Section 409A to the
extent Section 409A applies to such payment. 
 16. To the extent you are entitled to any expense reimbursement from the Company that is subject to
Section 409A, (i) the amount of any such expenses eligible for reimbursement in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except under any lifetime limit applicable to expenses
for medical care), (ii) in no event shall any such expense be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expense, and (iii) in no event shall any right to reimbursement be
subject to liquidation or exchange for another benefit. 
 17. The Company will not take any action, or omit to take any action, that would expose any
payment or benefit to you to the additional tax of Section 409A, unless (i) the Company is obligated to take the action under an agreement, plan or arrangement to which you are a party, (ii) you request the action, (iii) the
Company advises you in writing that the action may result in the imposition of the additional tax and (iv) you subsequently request the action in a writing that acknowledges you will be responsible for any effect of the action under
Section 409A. The Company will hold you harmless for any action it may take or omission in violation of this Paragraph 17, including any attorney’s fees you may incur in enforcing your rights. 

18. It is our intention that the benefits and rights to which you could become entitled in connection with termination of employment be exempt from or comply
with Section 409A. If you or the Company believes, at any time, that any of such benefit or right is not exempt or does not comply, it will promptly advise the other and will negotiate reasonably and in good faith to amend the terms of such
arrangement such that it complies (with the most limited possible economic effect on you and on the Company). 
 19. This Agreement is personal to you and
without the prior written consent of the Company shall not be assignable by you. This Agreement shall inure to the benefit of and be enforceable by your legal representatives. This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns. Other than as provided for in the last sentence of this Paragraph 19, the rights or obligations of the Company under this Agreement may only be assigned or transferred pursuant to a merger or consolidation in
which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of Company; provided, however, that the assignee or transferee is the successor to all or substantially all of the assets of Company
and such assignee or transferee assumes the liabilities and duties of Company, as contained in this Agreement, either contractually or as a matter of law. Upon the consummation of the Company’s planned spinoff of its sports and entertainment
businesses (collectively, “Spinco”) where you are the President & Chief Executive Officer of Spinco (but not of the Company), this Agreement and the rights and obligations of the Company hereunder shall be assigned to and assumed
by Spinco and the Company shall have no continuing obligations hereunder. 

 Mr. David O’Connor 

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 20. To the extent permitted by law, you and the Company waive any and all rights to a jury trial
with respect to any matter relating to this Agreement (including the covenants set forth in Annex A hereof). This Agreement will be governed by and construed in accordance with the law of the State of New York applicable to contracts made and to be
performed entirely within that State. 
 21. Both the Company and you hereby irrevocably submit to the jurisdiction of the courts of the State of New
York and the federal courts of the United States of America in each case located in the City of New York, Borough of Manhattan, solely in respect of the interpretation and enforcement of the provisions of this Agreement, and each party hereby
waives, and agrees not to assert, as a defense that either party, as appropriate, is not subject thereto or that the venue thereof may not be appropriate. You and the Company each agree that mailing of process or other papers in connection with any
such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof. 
 22. This Agreement may not be amended
or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. It is the parties’ intention that this Agreement not be construed more strictly with regard to you or the Company. 

23. This Agreement, the separate Indemnification Agreement of even date and any other agreements entered into between you and the Company on the date hereof
reflect the entire understanding and agreement of you and the Company with respect to the subject matter hereof and supersedes all prior understandings or agreements relating thereto. 

24. Upon the consummation of the Company’s planned spinoff of Spinco, the Company may either (a) transfer this Agreement and your employment to
Spinco, and you will be the President & Chief Executive Officer of Spinco, or (b) make you President & Chief Executive Officer of the Company and of Spinco for the same aggregate compensation provided under this Agreement, in
which case your compensation will be equitably divided between the Company and Spinco in a manner determined by the Company at the time of the spinoff. You agree that “Good Reason” will not exist solely because the Company appoints
you to (x) serve solely as the President and Chief Executive Officer of Spinco (and not of the Company) following the spinoff of those businesses from the Company or (y) serve as President and Chief Executive Officer of both the Company
and Spinco following the spinoff. If, upon the Company’s planned spinoff of Spinco, you are the President & Chief Executive Officer of Spinco, but not of the Company, then the Make-Whole Grant (and any other equity award you were
granted by the Company) will be equitably adjusted so that the award and the applicable equity award settle solely in shares of 

 Mr. David O’Connor 

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Spinco common stock (with a value equivalent to the value of such award immediately prior to the spinoff) and any applicable performance metrics will only relate to the Spinco businesses. Such
equitable adjustment shall be determined in the Company’s sole discretion; provided that the adjusted performance metrics (if applicable) will meet the requirements of Section 162(m) of the Code and will be mutually agreed by you and
Spinco. 
 25. This Agreement will automatically terminate, and be of no further force or effect, on the Scheduled Expiration Date; provided, however, that
the provisions of Paragraphs 7 through 11, 14 through 25 and Annex A shall survive the termination of the Agreement and remain binding on you and the Company in accordance with their terms. 

 Mr. David O’Connor 

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 On behalf of the Company, I look forward to working with you. 

 

			
	Sincerely,
	
	THE MADISON SQUARE GARDEN COMPANY
	
	 /s/ James L. Dolan

	By:		James L. Dolan
	Title:		Executive Chairman

 Accepted and Agreed: 
  

	
	 /s/ David O’Connor

	David O’Connor

 Mr. David O’Connor 

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 ANNEX A 

ADDITIONAL COVENANTS 
 (This Annex
constitutes part of the Agreement) 
 You agree to comply with the following covenants in addition to those set forth in the Agreement. 

1. CONFIDENTIALITY 
 You agree to retain in strict confidence and
not divulge, disseminate, copy or disclose to any third party any Confidential Information, other than for legitimate business purposes of the Company and its subsidiaries. As used herein, “Confidential Information” means any non-public
information that is material or of a confidential, proprietary, commercially sensitive or personal nature of, or regarding, the Company or any of its subsidiaries or any current or former director, officer or member of senior management of any of
the foregoing (collectively “Covered Parties”). The term Confidential Information includes information in written, digital, oral or any other format and includes, but is not limited to (i) information designated or treated as
confidential; (ii) budgets, plans, forecasts or other financial or accounting data; (iii) customer, guest, fan, vendor, sponsor, marketing affiliate or shareholder lists or data; (iv) technical or strategic information regarding the
Covered Parties’ television, programming, advertising, sports, entertainment, theatrical, or other businesses; (v) advertising, sponsorship, business, sales or marketing tactics, strategies or information; (vi) policies, practices,
procedures or techniques; (vii) trade secrets or other intellectual property; (viii) information, theories or strategies relating to litigation, arbitration, mediation, investigations or matters relating to governmental authorities;
(ix) terms of agreements with third parties and third party trade secrets; (x) information regarding employees, talent, players, coaches, agents, consultants, advisors or representatives, including their compensation or other human
resources policies and procedures; (xi) information or strategies relating to any potential or actual business development transactions and/or any potential or actual business acquisition, divestiture or joint venture; and (xii) any other
information the disclosure of which may have an adverse effect on the Covered Parties’ business reputation, operations or competitive position, reputation or standing in the community. 

If disclosed, Confidential Information or Other Information could have an adverse effect on the Company’s standing in the community, its business
reputation, operations or competitive position or the standing, reputation, operations or competitive position of any of its affiliates, subsidiaries, officers, directors, employees, coaches, consultants or agents or any of the Covered Parties. 

Notwithstanding the foregoing, the obligations of this section, other than with respect to subscriber information, shall not apply to Confidential Information
which is: 
 a) already in the public domain or which enters the public domain other than by your breach of this Paragraph 1; 

 Mr. David O’Connor 

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 b) disclosed to you by a third party with the right to disclose it in good faith; or 

c) specifically exempted in writing by the Company from the applicability of this Agreement. 

Notwithstanding anything elsewhere in this Agreement, including this Paragraph 1 and Paragraph 3 below, you are authorized to make any disclosure required of
you by any federal, state and local laws or judicial, arbitral or governmental agency proceedings (including making truthful statements in connection with a judicial or arbitral proceeding to enforce your rights under this Agreement, to the extent
reasonably required and made in good faith), after, to the extent legal and practicable, providing the Company with prior written notice and an opportunity to respond prior to such disclosure. In addition, this Agreement in no way restricts or
prevents you from providing truthful testimony concerning the Company to judicial, administrative, regulatory or other governmental authorities. 
 2.
NON-COMPETE 
 You acknowledge that due to your executive position in the Company and your knowledge of the Company’s confidential and proprietary
information, your employment or affiliation with certain entities would be detrimental to the Company. You agree that, without the prior written consent of the Company, you will not represent, become employed by, consult to, advise in any manner or
have any material interest in any business directly or indirectly in any Competitive Entity (as defined below). A “Competitive Entity” shall mean any person or entity that (1) has a direct or indirect 10% or greater ownership interest
in, or management or control of, any business, person or entity that competes with any of the Company’s businesses including, without limitation, any arena, stadium, professional sports team, sports league, concert venue, concert promoter,
theatrical producer, regional sports network, or similar or related business (e.g., Internet sites in connection therewith) within the United States or within any other country in which the Company has any competing business or from which such
business, person or entity competes with any of the Company’s domestic businesses, or (2) is an affiliate of a person or entity described in clause (1). For purposes of this Paragraph 2, an affiliate of an entity (including, without
limitation, the Company) shall mean an entity that directly or indirectly controls, is controlled by, or under common control with, such entity. An entity shall be deemed to compete with the on-line content business of the Company, or any of its
affiliates only if the entity directly competes against the on-line content business of the Company, or its affiliate; provided, however, that an entity’s business shall not be deemed to directly compete merely by the fact that the business
sells ads on-line, unless the business specifically targets such ads to the same customers or potential customers as being targeted by the on-line content business of the Company, its subsidiary or affiliate. Ownership of not more than 1% of the
outstanding stock of 

 Mr. David O’Connor 

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any publicly traded company shall not be a violation of this Paragraph. This agreement not to compete will expire upon the one year anniversary of the date of a termination of your employment
with the Company on or prior to the Scheduled Expiration Date; provided that, if you remain continuously employed with the Company from the Effective Date through the Scheduled Expiration Date, then this agreement not to compete will expire on the
Scheduled Expiration Date. 
 3. ADDITIONAL UNDERSTANDINGS 

You agree, for yourself and others acting on your behalf, that you (and they) have not disparaged and will not disparage, make negative statements about
(either “on the record” or “off the record”) or act in any manner which is intended to or does damage to the good will of, or the business or personal reputations of the Company or any of its incumbent or former officers,
directors, agents, consultants, employees, successors and assigns or any of the Covered Parties. 
 The Company agrees that, except as necessary to comply
with applicable law or the rules of the NASDAQ Stock Market or any other stock exchange on which the Company’s stock may be traded (and any public statements made in good faith by the Company in connection therewith), it and its corporate
officers and directors, employees in its public relations department or third party public relations representatives retained by the Company will not disparage you or make negative statements in the press or other media which are damaging to your
business or personal reputation. In the event that the Company so disparages you or makes such negative statements, then notwithstanding the “Additional Understandings” provision to the contrary, you may make a proportional response
thereto. 
 In addition, you agree that the Company is the owner of all rights, title and interest in and to all documents, tapes, videos, designs, plans,
formulas, models, processes, computer programs, inventions (whether patentable or not), schematics, music, lyrics and other technical, business, financial, advertising, sales, marketing, customer or product development plans, forecasts, strategies,
information and materials (in any medium whatsoever) developed or prepared by you or with your cooperation in connection with your employment by the Company (the “Materials”). The Company will have the sole and exclusive authority to use
the Materials in any manner that it deems appropriate, in perpetuity, without additional payment to you. 
 If requested by the Company, you agree to
deliver to the Company upon the termination of your employment, or at any earlier time the Company may request, all memoranda, notes, plans, files, records, reports, and software and other documents and data (and copies thereof regardless of the
form thereof (including electronic copies)) containing, reflecting or derived from Confidential Information or the Materials of the Company or any of its affiliates which you may then possess or have under your control. If so requested, you shall
provide to the Company a signed statement confirming that you have fully complied with this Paragraph. Notwithstanding the foregoing, you shall be entitled to retain your contacts, calendars and personal diaries and any materials needed for your tax
return preparation or related to your compensation. 

 Mr. David O’Connor 

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 In addition, you agree for yourself and others acting on your behalf, that you (and they) shall not, at any
time, participate in any way in the writing or scripting (including, without limitation, any “as told to” publications) of any book, article, periodical, periodical story, movie, play, other written or theatrical work, or video that
(i) relates to your services to the Company or any of its affiliates or (ii) otherwise refers to the Company or its respective businesses, activities, directors, officers, employees or representatives, without the prior written consent of
the Company. 
 4. FURTHER COOPERATION 
 Following the date of
termination of your employment with the Company (the “Expiration Date”), you will no longer provide any regular services to the Company or represent yourself as a Company agent. If, however, the Company so requests, you agree to cooperate
fully with the Company in connection with any matter with which you were involved prior to the Expiration Date, or in any litigation or administrative proceedings or appeals (including any preparation therefore) where the Company believes that your
personal knowledge, attendance and participation could be beneficial to the Company. This cooperation includes, without limitation, participation on behalf of the Company in any litigation or administrative proceeding brought by any former or
existing Company employees, representatives, agents or vendors. The Company will pay you for your services rendered under this provision at the rate of $7,700 per day for each day or part thereof, within 30 days of the approval of the invoice
therefor. 
 The Company will provide you with reasonable notice in connection with any cooperation it requires in accordance with this section and will
take reasonable steps to schedule your cooperation in any such matters so as not to materially interfere with your other professional and personal commitments. The Company will reimburse you for any reasonable out-of-pocket expenses you reasonably
incur in connection with the cooperation you provide hereunder as soon as practicable after you present appropriate documentation evidencing such expenses. You agree to provide the Company with an estimate of such expense before you incur the same.

 5. NON-HIRE OR SOLICIT 
 You agree not to hire, seek to
hire, or cause any person or entity to hire or seek to hire (without the prior written consent of the Company), directly or indirectly (whether for your own interest or any other person or entity’s interest) any person who is or was in the
prior six months an employee of the Company, or any of its subsidiaries, until the first anniversary of the date of your termination of employment with the Company. This restriction does not apply to any former employee who was discharged by Company
or any of its affiliates. In addition, this restriction will not prevent you from providing references. 

 Mr. David O’Connor 

 Page
 15
 
  

 6. ACKNOWLEDGMENTS 

You acknowledge that the restrictions contained in this Annex A, in light of the nature of the Company’s business and your position and responsibilities,
are reasonable and necessary to protect the legitimate interests of the Company. You acknowledge that the Company has no adequate remedy at law and would be irreparably harmed if you breach or threaten to breach the provisions of this Annex A, and
therefore agree that the Company shall be entitled to injunctive relief, to prevent any breach or threatened breach of any of those provisions and to specific performance of the terms of each of such provisions in addition to any other legal or
equitable remedy it may have. You further agree that you will not, in any equity proceeding relating to the enforcement of the provisions of this Annex A, raise the defense that the Company has an adequate remedy at law. Nothing in this Annex A
shall be construed as prohibiting the Company from pursuing any other remedies at law or in equity that it may have or any other rights that it may have under any other agreement. If it is determined that any of the provisions of this Annex A or any
part thereof, is unenforceable because of the duration or scope (geographic or otherwise) of such provision, it is the intention of the parties that the duration or scope of such provision, as the case may be, shall be reduced so that such provision
becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. 
 7. SURVIVAL 

The provisions of this Annex A shall survive any termination of your employment by the Company or the expiration of the Agreement except as otherwise provided
herein.EX-10.1

 Exhibit 10.1 

RESTRICTED STOCK DEFERRAL PROGRAM 

UNDER THE 
 APOGEE
ENTERPRISES, INC. 2009 NON-EMPLOYEE DIRECTOR STOCK INCENTIVE PLAN, 
 AS AMENDED AND RESTATED (2014) 

(2015 Statement) 
 Adopted
by the Nominating and Corporate Governance Committee on June 24, 2015 
  

	Section 1.	Establishment and Purpose. 

 (a) Establishment. Pursuant to the authority granted
to it under the Director Stock Incentive Plan, the Nominating and Corporate Governance Committee of the Board (the “Committee”) hereby establishes, effective June 24, 2015, a deferred compensation arrangement for the non-employee members of its Board which shall be known as the Restricted Stock Deferral Program for Non-Employee Directors (hereinafter called the “Program”). 

(b) Purpose. The purpose of this Program is to provide a means whereby receipt of certain stock grants by the Company to its Non-Employee Directors for services as a member of the Company’s Board may be deferred to some future period. This will be accomplished by allowing each Participating Director to elect to voluntarily receive
all or a portion of his or her restricted stock or restricted stock unit award in the form of shares of deferred Common Stock pursuant to an irrevocable election made under this Program. 

(c) Relation to Other Plans. Restricted Stock Awards deferred under this Program are granted under the Company’s
shareholder-approved Director Stock Incentive Plan, and the Committee is authorized to establish this deferral Program under the Director Stock Incentive Plan. All shares of Common Stock issued under this Program are subject to the terms and
conditions of the Director Stock Incentive Plan, including without limitation the share limits and adjustment provisions under Section 4 of the Director Stock Incentive Plan. In addition, all Deferred Stock Accounts maintained under this
Program shall be administered in accordance with this Program, but also shall be subject to the terms and conditions of the Director Stock Incentive Plan. In the event of any conflict between this Program and the Director Stock Incentive Plan, the
terms of the Director Stock Incentive Plan shall control. 
 The Company also maintains another deferred compensation plan for its Directors
called the Deferred Compensation Plan for Non-Employee Directors for purposes of deferring Director cash fees and retainers. That deferred compensation plan permits Directors to elect voluntarily to receive all or a portion of their retainers and
fees in the form of shares of deferred Common Stock. Unlike this Program, the Deferred Compensation Plan is separately approved by the Company’s shareholders and not governed by the limitations of the Director Stock Incentive Plan. 

 

	Section 2.	Definitions. 

 (a) Definitions. When the following terms are used herein with
initial capital letters, they shall have the following meanings: 
 (i) “Board” shall mean the Board of Directors of the Company.

 (ii) “Change in Control” shall mean a Change in Control as defined in the Director Stock Incentive Plan as of the effective
date hereof, except that no event shall constitute a Change in Control unless such event constitutes a change in control event as defined in section 409A of the Internal Revenue Code, any regulations and other guidance in effect from time to time
thereunder, including without limitation, Treasury Regulation § 1.409A-3(i)(5). 

 (iii) “Committee” shall mean the Nominating and Corporate Governance Committee of the
Board or any successor committee of the Board designated by the Board to administer the Program. The Committee shall be comprised of not less than such number of Directors as shall be required to permit Awards granted under the Program to qualify
under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director” within the meaning of
Rule 16b-3. 
 (iv) “Common Stock” shall mean the common stock, par value $0.33
1/3 per share, of Apogee Enterprises, Inc. 
 (v) “Company” shall mean Apogee Enterprises, Inc., a Minnesota corporation,
together with all its subsidiaries. 
 (vi) “Deferral Election Form” shall mean the irrevocable election to defer the receipt of
Restricted Stock Awards as provided for in Section 4(c) of this Program. 
 (vii) “Deferred Payment Form” shall mean the
irrevocable payment election of the Participant’s Deferred Stock Account. 
 (viii) “Deferred Stock Account” shall mean the
account established pursuant to Section 4(b) of this Program. 
 (ix) “Director Stock Incentive Plan” shall mean the Apogee
Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan, as amended from time to time. 
 (x) “Election Amount” shall
mean the amount of the Restricted Stock Award the Participating Director elects to defer as set forth in Section 4(a) of this Program. 

(xi) “Eligible Director” shall mean any Non-Employee Director of the Company as set forth
in Section 3 of this Program. 
 (xii) “Fair Market Value” shall mean the value as set forth in Section 4(e) of this
Program. 
 (xiii) “Maturity Date” shall mean the date set forth in Section 6(a) of this Program. 

(xiv) “Non-Employee Director” shall mean an individual who is a member of the Board but who
is not an employee of the Company or any of its subsidiaries. 
 (xv) “Participant” shall mean a person who is a Non-Employee Director who has elected to defer Restricted Stock Awards under this Program, or a person who, prior to the time of Termination from Board had elected to defer such compensation under this Program and
who retains, or whose beneficiaries retain, benefits under the Program and in accordance with its terms. 
 (xvi) “Participating
Director” shall mean the meaning set forth in Section 4(a). 
 (xvii) “Plan Year” shall mean the 12-month period beginning January 1 and ending December 31. 
 (xviii) “Program”
shall mean this Restricted Stock Deferral Program, as it may be amended from time to time. 

 (xix) “Restricted Stock Award” shall mean any Award of Restricted Stock or Restricted
Stock Units granted to a Director under the Apogee Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan, as amended from time to time. 

(xx) “Stock Deferral Election” shall mean the election made pursuant to Section 4(a) of this Program. 

(xxi) “Termination from Board” shall mean a Participant’s membership on the Board terminates under any circumstances. However
when the term “Termination from Board” is used in this Program Statement, it shall be construed to have the same meaning consistent with the term “Separation from Service” as used in section 409A of the Code. The date of
termination of a Participating Director’s service as a Director of the Company will be deemed to be the date of termination recorded on the personnel or other records of the Company. 

(b) Gender and Number. Except when otherwise indicated by the context, any masculine terminology when used in this Program shall also
include the feminine gender, and the definition of any term herein in the singular shall also include the plural. 
  

	Section 3.	Eligibility for Participation. 

 Any Non-Employee
Director of the Company shall be eligible to participate in this Program (an “Eligible Director”). In the event a Participant no longer meets the requirements for participation in this Program, the Participant shall become an inactive
Participant, retaining all the rights described under this Program, except the right to make any further deferrals, until the time that the Participant again becomes an active Participant or receives a complete distribution of the Participant’s
Deferred Stock Account. 
  

	Section 4.	Election to Defer Receipt of Restricted Stock Awards. 

 (a) Election to Receive Common
Stock at a Later Date in Lieu of Vesting Date. On a Deferral Election Form provided by the Company, each Eligible Director who decides to participate may irrevocably elect to defer receipt of 25%, 50%, 75% or 100% of any Restricted Stock Award
(rounded down to the nearest whole share of Common Stock). The amounts to be deferred will be in the form of a Common Stock credit to the Participating Director’s Deferred Stock Account, as set forth in Section 4(b) hereof, for the number
of shares of Common Stock the Participating Director elects to defer. The Stock Deferral Election shall be made pursuant to Section 4(c). Any Stock Deferral Election may only be amended or revoked for a subsequent Plan Year, by completing a new
Deferral Election Form and filing it with the Company prior to the beginning of such Plan Year as provided in Section 4(c). Shares deferred will be evidenced by the Deferral Election Form and a Deferred Stock Agreement (to be used as the award
agreement in lieu of the Company’s standard Restricted Stock Agreement or Restricted Stock Unit Agreement (as applicable)). 
 (b)
Credits to Deferred Stock Account. Credits to each Participant’s Deferred Stock Account shall be made quarterly as of the last business day of each calendar quarter. The credit to the Deferred Stock Account shall be in the form of stock
units in a number equal to the number of shares of Common Stock deferred, together with any Dividend Equivalent amounts accrued between the grant date and the crediting date. 

(c) Manner of Making Deferral Election. A Participating Director may defer all or a portion of a Restricted Stock Award by filing, at
any time prior to the beginning of a Plan Year in which the Restricted Stock Award is to be granted (or by such earlier date as the Committee shall determine), an irrevocable election with the Company on a form provided for that purpose, except that
any person who is first elected to the Board after the beginning of a Plan Year may make a Stock Deferral Election for grants occurring in that Plan Year within thirty (30) days of becoming eligible to participate in this Program.
(Notwithstanding the foregoing, the Committee may permit deferral elections with respect to Restricted Stock Awards granted in June, 2015 if such elections are made on or prior to the award grant date, subject to any additional limitations or
requirements imposed by the Committee to comply with section 409A of the Internal Revenue Code.) The Deferral Election Form shall specify an amount to 

 
be deferred expressed as a percentage of the Participating Director’s Restricted Stock Award (as described in Section 4(a) above). In all circumstances, the first credit to a
Participant’s Deferred Stock Account will only include Restricted Stock Awards granted for services performed after the effective date of the Deferral Election Form. 

(d) Dividend Credit. Each time a cash dividend is paid on the Common Stock of the Company, the Participating Director shall receive a
credit of stock units to Participating Director’s Deferred Stock Account as of the last business day of the calendar quarter in which the dividend was paid. The number of stock units credited shall be the number equal to that number of shares
of Common Stock (rounded to the nearest one-hundredth of a share) having a Fair Market Value, as defined in Section 4(e), on the last business day of the applicable calendar quarter equal to the amount of
the dividend that would have been payable on the number of shares of Common Stock equal to the number of stock units credited to the Participating Director’s Deferred Stock Account on the dividend record date. 

(e) Fair Market Value. For purposes of converting dollar amounts into shares of Common Stock, the Fair Market Value of each share of
Common Stock shall be equal to the closing price of one share of the Common Stock on the NASDAQ Global Select Market (or other exchange on which the shares of Common Stock are then listed and primarily traded) on the applicable crediting date or
payment date. 
  

	Section 5.	Deferral Payment and Issuance of Common Stock. 

 (a) Vesting and Maturity of Deferred
Stock Account. The Participant’s stock units shall vest or be forfeited as provided in the Participant’s Participant’s Deferred Stock Agreement(s). The Participant’s vested Deferred Stock Account shall become payable to (or
with respect to) a Participant upon the earliest of, or upon the occurrence of, one of the following events (the “Maturity Date”), as elected by the Participant in the Deferral Election Form: 

(i) The Participant’s Termination from Board, 

(ii) A date selected by the Participant, 

(iii) The Participant reaches seventy (70) years of age, or 

(iv) The Participant’s death. 

(b) Form of Deferral Payment. At the time of making the Stock Deferral Election, each Participating Director shall also complete a
deferral payment election specifying one of the payment options described in Sections 5(c) and (d), and an election pursuant to Section 5(a) for the Maturity Date. The deferral payment election shall be irrevocable as to all amounts
credited to the Participating Director’s Deferred Stock Account. The Participating Director may change the deferral payment election by completing a Deferred Payment Form and filing it with the Company, such change will only apply to deferrals
credited in a subsequent Plan Year. 
 (c) Payment of Deferred Stock Accounts in a Lump Sum. Unless a Participating Director elects
to receive payment of the Participating Director’s Deferred Stock Account in installments as described in Section 5(d), vested credits to a Participating Director’s Deferred Stock Account shall be payable in full on the first business
day of the calendar year following the Maturity Date. If the provisions of Section 7 become applicable and a Participating Director’s designated beneficiary or beneficiaries are entitled to receive payment, such distributions shall, in all
cases, be made in a lump sum in accordance with this Section and not Section 5(d) of this Program. All payments shall be made in shares of Common Stock, with one share of Common Stock issued for each vested stock unit credited to the
Participating Director’s Deferred Stock Account, plus cash in lieu of any fractional share. 
 (d) Payment of Deferred Stock
Accounts in Installments. A Participating Director may elect to have the Participating Director’s vested Deferred Stock Account paid in annual installments following the Maturity Date. All payments shall be made in shares of Common Stock,
with one share of Common Stock issued 

 
for each stock unit credited to the Participating Director’s Deferred Stock Account, plus cash in lieu of any fractional share. All installment payments shall be made annually beginning on
the first business day of the calendar year following the Maturity Date, with subsequent installments paid on the first business day of each subsequent calendar year. The amount of each installment payment shall be computed as the number of stock
units credited to the Participating Director’s vested Deferred Stock Account on the relevant installment payment date, multiplied by a fraction, the numerator of which is one and the denominator of which is the total number of installments
elected (not to exceed 10) minus the number of installments previously paid. Amounts paid prior to the final installment payment shall be rounded to the nearest whole number of shares; the final installment payment shall be for the whole number of
stock units then credited to the Participating Director’s Deferred Stock Account, together with cash in lieu of any fractional share. 

(e) Payment of Deferred Stock Accounts – Change in Control. Notwithstanding Sections 5(c) and (d), in the event of a Change
in Control, credits to a Participating Director’s vested Deferred Stock Account immediately prior to the effective time of the transaction constituting the Change in Control shall be paid in full to the Participating Director or the
Participating Director’s beneficiary or estate, as the case may be, either in whole shares of Common Stock (together with cash in lieu of a fractional share) or, if the holders of Common Stock generally are to receive other consideration in
such Change in Control transaction, in the consideration per share of Common Stock to be received by such holders of Common Stock, in either case, on the business day immediately after the effective date of the transaction. 

 

	Section 6.	Designation of Beneficiaries. 

 (a) Right to Designate. Each Participant may
designate, upon forms to be furnished by and filed with the Program Administrator, one or more primary Beneficiaries or alternative Beneficiaries to receive all or a specified part of such Participant’s Deferred Stock Account in the event of
such Participant’s death. The Participant may change or revoke any such designation from time to time without notice to or consent from any Beneficiary. No such designation, change or revocation shall be effective unless executed by the
Participant and received by the Company during the Participant’s lifetime. 
 (b) Failure of Designation. If a Participant: 

(i) fails to designate a Beneficiary, 

(ii) designates a Beneficiary and thereafter revokes such designation without naming another Beneficiary, or 

(iii) designates one or more Beneficiaries and all such Beneficiaries so designated fail to survive the Participant, 

such Participant’s Deferred Stock Account, or the part thereof as to which such Participant’s designation fails, as the case may be, shall be
payable to the first class of the following classes of automatic Beneficiaries with a member surviving the Participant and (except in the case of surviving issue) in equal shares if there is more than one member in such class surviving the
Participant: 
 Participant’s surviving spouse 

Participant’s surviving issue per stirpes and not per capita 

Participant’s surviving parents 

Participant’s surviving brothers and sisters 

Representative of Participant’s estate. 

(c) Disclaimers by Beneficiaries. A Beneficiary entitled to a distribution of all or a portion of a deceased Participant’s
Deferred Stock Account may disclaim an interest therein subject to the following requirements. To be eligible to disclaim, a Beneficiary must be a natural person, must not have received a 

 
distribution of all or any portion of the Deferred Stock Account at the time such disclaimer is executed and delivered, and must have attained at least age
twenty-one (21) years as of the date of the Participant’s death. Any disclaimer must be in writing and must be executed personally by the Beneficiary before a notary public. A disclaimer shall state
that the Beneficiary’s entire interest in the undistributed Deferred Stock Account is disclaimed or shall specify what portion thereof is disclaimed. To be effective, duplicate original executed copies of the disclaimer must be both executed
and actually delivered to the Company after the date of the Participant’s death but not later than one hundred eighty (180) days after the date of the Participant’s death. A disclaimer shall be irrevocable when delivered to the
Company. A disclaimer shall be considered to be delivered to the Company only when actually received by the Company. The Company shall be the sole judge of the content, interpretation and validity of a purported disclaimer. Upon the filing of a
valid disclaimer, the Beneficiary shall be considered not to have survived the Participant as to the interest disclaimed. A disclaimer by a Beneficiary shall not be considered to be a transfer of an interest in violation of the provisions of
Section 8 and shall not be considered to be an assignment or alienation of benefits in violation of federal law prohibiting the assignment or alienation of benefits under this Program. No other form of attempted disclaimer shall be recognized
by the Company. 
 (d) Definitions. When used herein and, unless the Participant has otherwise specified in the Participant’s
Beneficiary designation, when used in a Beneficiary designation, “issue” means all persons who are lineal descendants of the person whose issue are referred to, including legally adopted descendants and their descendants but not including
illegitimate descendants and their descendants; “child” means an issue of the first generation; “per stirpes” means in equal shares among living children of the person whose issue are referred to and the issue (taken
collectively) of each deceased child of such person, with such issue taking by right of representation of such deceased child; and “survive” and “surviving” mean living after the death of the Participant. 

(e) Special Rules. Unless the Participant has otherwise specified in the Participant’s Beneficiary designation, the following
rules shall apply: 
 (i) If there is not sufficient evidence that a Beneficiary was living at the time of the death of the Participant, it
shall be deemed that the Beneficiary was not living at the time of the death of the Participant. 
 (ii) The automatic Beneficiaries
specified in Section 7(b) and the Beneficiaries designated by the Participant shall become fixed at the time of the Participant’s death so that, if a Beneficiary survives the Participant but dies before the receipt of all payments due such
Beneficiary hereunder, such remaining payments shall be payable to the representative of such Beneficiary’s estate. 
 (iii) If the
Participant designates as a Beneficiary the person who is the Participant’s spouse on the date of the designation, either by name or by relationship, or both, the dissolution, annulment or other legal termination of the marriage between the
Participant and such person shall automatically revoke such designation. (The foregoing shall not prevent the Participant from designating a former spouse as a Beneficiary on a form executed by the Participant and received by this Program
Administrator after the date of the legal termination of the marriage between the Participant and such former spouse, and during the Participant’s lifetime.) 

(iv) Any designation of a nonspouse Beneficiary by name that is accompanied by a description of relationship to the Participant shall be
given effect without regard to whether the relationship to the Participant exists either then or at the Participant’s death. 
 (v)
Any designation of a Beneficiary only by statement of relationship to the Participant shall be effective only to designate the person or persons standing in such relationship to the Participant at the Participant’s death. 

A Beneficiary designation is permanently void if it either is executed or is filed by a Participant who, at the time of such execution or filing, is then a
minor under the law of the state of the Participant’s legal residence. The Company shall be the sole judge of the content, interpretation and validity of a purported Beneficiary designation. 

 (f) No Spousal Rights. Prior to the death of the Participant, no spouse or surviving
spouse of a Participant and no person designated to be a Beneficiary shall have any rights or interest in the benefits credited under this Program including, but not limited to, the right to be the sole Beneficiary or to consent to the designation
of Beneficiaries (or the changing of designated Beneficiaries) by the Participant. 
 (g) Death Prior to Full Distribution. If, at
the death of the Participant, any payment to the Participant was due or otherwise pending but not actually paid, the amount of such payment shall be included in the Deferred Stock Account which are payable to the Beneficiary (and shall not be paid
to the Participant’s estate). 
 (h) Facility of Payment. In case of the legal disability, including minority, of a Participant
or Beneficiary entitled to receive any distribution under this Program, payment shall be made, if the Company shall be advised of the existence of such condition: 

(i) to the duly appointed guardian, conservator or other legal representative of such Participant or Beneficiary, or 

(ii) to a person or institution entrusted with the care or maintenance of the incompetent or disabled Participant or Beneficiary, provided
such person or institution has satisfied the Company that the payment will be used for the best interest and assist in the care of such Participant or Beneficiary, and provided further, that no prior claim for said payment has been made by a duly
appointed guardian, conservator or other legal representative of such Participant or Beneficiary. 
 Any payment made in accordance with the foregoing
provisions of this Section shall constitute a complete discharge of any liability or obligation of the Company therefor. 
  

	Section 7.	Nontransferability. 

 In no event shall the Company make any payment under this Program
to any assignee or creditor of a Participant or of a Beneficiary. Prior to the time of payment hereunder, a Participant or Beneficiary shall have no rights by way of anticipation or otherwise to assign or otherwise dispose of any interest under this
Program nor shall such rights be assigned or transferred by operation of the law. 
  

	Section 8.	Limitation on Rights of Eligible Directors and Participating Directors. 

 (a) Service
as a Director. Nothing in this Program will interfere with or limit in any way the right of the Board or the Company’s shareholders to remove an Eligible Director or Participating Director from the Board. Neither this Program nor any action
taken pursuant to it will constitute or be evidence of any agreement or understanding, express or implied, that the Board or the Company’s shareholders have retained or will retain an Eligible Director or Participating Director for any period
of time or at any particular rate of compensation. 
 (b) Nonexclusivity of this Program. Nothing contained in this Program is
intended to effect, modify or rescind any of the Company’s existing compensation plans or programs or to create any limitations on the Board’s power or authority to modify or adopt compensation arrangements as the Board may from time to
time deem necessary or desirable. 
  

	Section 9.	Amendment, Modification and Termination. 

 The Committee may suspend or terminate this
Program at any time. The Committee may amend this Program from time to time in such respects as the Committee may deem advisable in order that this Program will conform to any change in applicable laws or regulations or in any other respect that the
Committee may deem to be in the Company’s best interests; provided, however, that no amendments to this Program will be effective without approval of the Company’s shareholders, if shareholder approval of the amendment is then required
pursuant to Rule 16b-3 (or any successor rule) promulgated under the Securities Exchange Act of 1934, as amended, or the rules 

 
of the NASDAQ Global Select Market (or other exchange on which the shares of Common Stock are then listed and primarily traded). Following a termination of this Program, Deferred Stock Accounts
shall remain in this Program until the Participant becomes eligible for the benefits under Section 6. The termination of this Program shall not adversely affect any Participant or Beneficiary who has become entitled to the payment of any
benefits under this Program as of the date of termination. Notwithstanding the foregoing, to the extent permissible under section 409A of the Code and the related Treasury regulations and guidance, if there is a termination of this Program with
respect to all Participants, the Committee shall have the right, in its sole discretion, and notwithstanding any elections made by the Participant, to immediately pay all benefits in a lump sum following such termination of this Program. 

 

	Section 10.	Participants Are General Creditors of the Company. 

 The Participating Directors and
Beneficiaries thereof shall be general unsecured creditors of the Company with respect to any payments to be made pursuant to this Program and shall not have any preferred interest by way of trust, escrow, lien or otherwise in any specific assets of
the Company. If the Company shall, in fact, elect to set aside monies or other assets to meet its obligations hereunder (there being no obligation to do so), whether in a grantor’s trust or otherwise, the same shall, nevertheless, be regarded
as a part of the general assets of the Company subject to the claims of its general creditors, and neither any Participating Director nor any Beneficiary thereof shall have a legal, beneficial or security interest therein. 

 

	Section 11.	Claims Procedure. 

 Without limiting the generality of the following, an application for
benefits under Section 3 shall be processed as a claim for the purposes of this Section. 
 (a) Original Claim. Any person may
file with the Committee a written claim for benefits under this Program. Within ninety (90) days after the filing of such a claim, the Committee shall notify the claimant in writing whether his or her claim is upheld or denied in whole or in
part or shall furnish the claimant a written notice describing specific special circumstances requiring a specified amount of additional time (but not more than one hundred eighty days from the date the claim was filed) to reach a decision on the
claim. If the claim is denied in whole or in part, the Committee shall state in writing: 
 (i) the specific reasons for the denial; 

(ii) the specific references to the pertinent provisions of this Program document on which the denial is based; 

(iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and 
 (iv) an explanation of the claims review procedure set forth in this Section. 

(b) Claims Review Procedure. Within sixty (60) days after receipt of notice that his or her claim has been denied in whole or in
part, the claimant may file with the Committee a written request for a review and may, in conjunction therewith, submit written issues and comments. Within sixty (60) days after the filing of such a request for review, the Committee shall
notify the claimant in writing whether, upon review, the claim was upheld or denied in whole or in part or shall furnish the claimant a written notice describing specific special circumstances requiring a specified amount of additional time (but not
more than one hundred twenty days from the date the request for review was filed) to reach a decision on the request for review. 
 (c)
General Rules. 
 (i) No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made
in accordance with the claims procedure. The Committee may require that any claim for benefits and any request for a review of a denied claim be filed on forms to be furnished by the Committee upon request. 

 (ii) All decision on claims and on requests for a review of denied claims shall be made by the
Committee. 
 (iii) The Committee may, in its discretion, hold one or more hearings on a claim or a request for a review of a denied claim.

 (iv) Claimants may be represented by a lawyer or other representative (at their own expense), but the Committee reserves the right to
require the claimant to furnish written authorization. A claimant’s representative shall be entitled to receive copies of notices sent to the claimant. 

(v) The decision of the Committee on a claim and on a request for a review of a denied claim shall be served on the claimant in writing. If a
decision or notice is not received by a claimant within the time specified, the claim or request for a review of a denied claim shall be deemed to have been denied. 

(vi) Prior to filing a claim or a request for a review of a denied claim, the claimant or his or her representative shall have a reasonable
opportunity to review a copy of the Program and all other pertinent documents in the possession of Apogee. 
 (vii) The Committee may
permanently or temporarily delegate all or a portion of its authority and responsibility under this Section to another committee or to an individual. 

(viii) The procedures and remedies herein are not exclusive. Subsequent to a Change in Control, a Participant or surviving spouse of a
Participant shall not be required to exhaust these administrative remedies. If there is litigation regarding the benefits payable to or with respect to a Participant, then notwithstanding any provision in this Program to the contrary, determinations
made by the Committee subsequent to a Change in Control (even if such determinations relate to events occurring wholly or partially before the Change in Control) shall not be afforded any deference and the matter shall be heard de novo. 

(ix) If any Participant successfully litigates, in whole or in part, any claim for benefits under this Program, the court shall award
reasonable attorney’s fees and costs of the action to the Participant. 
  

	Section 12.	Miscellaneous. 

 (a) Securities Law and Other Restrictions. Notwithstanding any
other provision of this Program or any Stock Deferral Election delivered pursuant to this Program, the Company will not be required to issue any shares of Common Stock under this Program and a Participating Director may not sell, assign, transfer or
otherwise dispose of shares of Common Stock issued pursuant to this Program, unless (a) there is in effect with respect to such shares a registration statement under the Securities Act of 1933, as amended (the “Securities Act”) and
any applicable state securities laws or an exemption from such registration under the Securities Act and applicable state securities laws, and (b) there has been obtained any other consent, approval or permit from any other regulatory body that
the Company deems necessary or advisable. The Company may condition such issuance, sale or transfer upon the receipt of any representations or agreements from the parties involved, and the placement of any legends on certificates representing shares
of Common Stock, as may be deemed necessary or advisable by the Company, in order to comply with such securities law or other restriction. 

(b) Governing Law. The validity, construction, interpretation, administration and effect of this Program and any rules, regulations and
actions relating to this Program will be governed by and construed exclusively in accordance with the laws of the State of Minnesota. 

 (c) Service of Process. In the absence of any designation to the contrary by the Company,
the Secretary of the Company is designated as the appropriate and exclusive agent for the receipt of service of process directed to this Program in any legal proceeding including arbitration, involving this Program. 

(d) Administrative Determinations. The Committee shall make such determinations as may be required from time to time in the
administration of this Program. The Committee shall have the discretionary authority and responsibility to interpret and construe the Program documents and to determine all factual and legal questions under this Program, including but not limited to
the entitlement of Participants and others, and the amounts of their respective interests. Each interested party may act and rely upon all information reported to them hereunder and need not inquire into the accuracy thereof, nor be charged with any
notice to the contrary. 
 (e) Rules and Regulations. Any rule not in conflict or at variance with the provisions hereof may be
adopted by the Committee. 
 (f) Errors in Computations. The Company nor the Committee shall not be liable or responsible for any
error in the computation of any benefit payable to or with respect to any Participant resulting from any misstatement of fact made by the Participant or by or on behalf of any survivor to whom such benefit shall be payable, directly or indirectly,
to Apogee, and used by the Company in determining the benefit. Apogee shall not be obligated or required to increase the benefit payable to or with respect to such Participant which, on discovery of the misstatement, is found to be understated as a
result of such misstatement of the Participant. However, the benefit of any Participant which is overstated by reason of any such misstatement or any other reason shall be reduced to the amount appropriate in view of the truth (and to recover any
prior overpayment by offset or other legal process). 
 (g) ERISA Status. This Program is adopted with the understanding that it is
an unfunded arrangement maintained primarily for the purpose of providing deferred compensation for non-employee directors only, and thus is not subject to ERISA. Each provision shall be interpreted and
administered accordingly. 
 (h) IRC Status. This Program is intended to be a nonqualified deferred compensation arrangement. The
rules of section 401(a) et. seq. of the Code shall not apply to this Program. The rules of section 409A of the Code shall apply to this Program to the extent applicable and this Program Statement shall be construed and administered
accordingly. The Company nor any of its officers, directors, agents or affiliates shall be obligated, directly or indirectly, to any Participant or any other person for any taxes, penalties, interest or like amounts that may be imposed on the
Participant or other person on account of any amounts under this Program or on account of any failure to comply with any Code section.

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