Company: ACEL
Filing Date: 2025-04-11
Form Type: PRE 14A
Source: 0001628280-25-017502
Chunk: 76

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-11
Form: PRE 14A
Chunk 76
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 allowed as a credit against the Participant’s regular tax liability in a later year to the extent the Participant’s regular tax liability is in excess of the alternative minimum tax for that year. Upon the disposition of ISO Shares that have been held for the required holding period (generally, at least two years from the date of grant and one year from the date of exercise of the ISO), a Participant will generally recognize capital gain (or loss) equal to the excess (or shortfall) of the amount received in the disposition over the exercise price paid by the Participant for the ISO Shares. However, if a Participant disposes of ISO Shares that have not been held for the requisite holding period (a “ Disqualifying Disposition ”), the Participant will recognize ordinary compensation income in the year of the Disqualifying Disposition in an amount equal to the amount by which the fair market value of the ISO Shares at the time of exercise of the ISO (or, if less, the amount realized in the case of an arm’s-length disposition to an unrelated party) exceeds the exercise price paid by the Participant for such ISO Shares. A Participant would also recognize capital gain to the extent the amount realized in the Disqualifying Disposition exceeds the fair market value of the ISO Shares on the exercise date. If the exercise price paid for the ISO Shares exceeds the amount realized (in the case of an arm’s-length disposition to an unrelated party), such excess would ordinarily constitute a capital loss.

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Other Awards: Cash Awards, RSUs, Restricted Stock and Class A-1 Share Awards. A Participant will recognize ordinary compensation income upon receipt of cash pursuant to a cash Award or, if earlier, at the time the cash is otherwise made available for the Participant to draw upon. Individuals will not have taxable income at the time of grant of an RSU Award, but rather, will generally recognize ordinary compensation income at the time he or she receives cash or shares of Class A-1 common stock in settlement of the RSU Award, as applicable, in an amount equal to the cash or the fair market value of the shares of Class A-1 common stock received.

A recipient of Restricted Stock or an Award of unrestricted shares of Class A-1 common stock generally will be subject to tax at ordinary income tax rates on the fair market value of the shares of Class A-1 common stock when received, reduced by any amount paid by the recipient; however, if the shares of Class A-1 common stock are not transferable and are subject