Company: ACEL
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001628280-25-018604
Chunk: 68

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 68
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 number of shares of Class A-1 common stock outstanding as of the end of each applicable fiscal year. The burn rate measures the potential dilutive effect of our outstanding equity grants. During the past three fiscal years, we granted equity awards under our A&R LTIP as summarized in the chart below. Based on the numbers in the table below, our three-year average gross burn rate was approximately 1.39% for fiscal years 2022 through 2024. This calculation of

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our burn rate is based on equity awards granted under our A&R LTIP and does not include an adjustment for any shares returned to the A&R LTIP or as a result of the forfeiture, lapse, repurchase or other termination of awards.

| Fiscal Year |     | Options Granted |     | RSUs Granted |     | PSUs Granted |     | Burn Rate |
| 2024        |     |               — |     |      918,103 |     |      149,381 |     | 1%        |
| 2023        |     |               — |     |      937,738 |     |      702,741 |     | 2%        |
| 2022        |     |         315,881 |     |      569,600 |     |            — |     | 1%        |

Potential Dilution.

We define “overhang” as the stock options outstanding but not exercised and outstanding full value awards (which include RSUs and PSUs), plus shares available to be granted as equity awards, divided by the total number of shares of Class A-1 common stock outstanding. The overhang measures the potential dilutive effect of outstanding equity awards under our A&R LTIP plus shares available for grant under our A&R LTIP. Please see the table below for a breakdown of these categories as of December 31, 2024. Based on the values included in the table below, our fully-diluted overhang rate as of December 31, 2024 was 7%, and is within the limits recommended by certain independent shareholder advisory groups. If approved, the new shares reserved for issuance under the Second A&R LTIP would represent an additional potential equity dilution of approximately 8%. Estimated overhang dilution rates noted herein include outstanding options and full value awards, with performance based awards included at “target” (or at “maximum” if there is no “target”), issued under the A&R LTIP