Company: ACEL
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001628280-25-017502
Chunk: 67

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 67
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 such shares are withheld in an amount greater than the minimum statutory rate in the participant’s relevant tax jurisdiction(s).

◦ a provision providing that any equity awards issued will be subject to any clawback or recoupment policies in effect or as may be amended or adopted from time to time; and

◦ a limitation on the transferability of awards, since generally awards may not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, except by will or the laws of descent and distribution.

• does not contain:

◦ an “evergreen” provision to increase automatically the number of shares reserved for issuance under the Second A&R LTIP;

◦ single-trigger vesting acceleration rights, other than on a limited basis for non-employee directors; or

◦ tax gross-ups.

Current A&R LTIP Information.

As of December 31, 2024, there were 85,663,642 total shares of our Class A-1 common stock outstanding. Also as of December 31, 2024, there were (i) 1,067 shares issuable upon the exercise of outstanding stock options with a weighted-average exercise price of $11.58 per share and weighted-average remaining term of 5.6 years, (ii) 1,551,037 shares subject to outstanding RSUs with no exercise price, (iii) 852,122 shares subject to outstanding PSUs with no exercise price, (iv) 2,288,606 shares available for grant under the A&R LTIP, and (v) no shares available for grant under the 2011 Plan or 2016 Plan. The last reported sales price of our Class-A-1 common stock on the NYSE on March 10, 2025, was $10.00.

We Carefully Consider and Forecast Our Need for Shares.

We are requesting approval of an increase of 2,000,000 shares for the Second A&R LTIP to cover anticipated equity awards, such as those for potential new hires, refresh awards, special retention needs and non-employee director grants.

Our Compensation Committee thoughtfully administers our equity incentive programs to manage potential stockholder dilution and to this end our Compensation Committee considered both our “burn rate” and our “overhang” in evaluating the impact of the Second A&R LTIP on our stockholders.

Grant Practices.

We define “burn rate” as the number of equity awards granted during the year, divided by the weighted-average total