Company: ACEL
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001628280-25-018604
Chunk: 77

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 77
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 to a substantial risk of forfeiture when received, a Participant will recognize ordinary compensation income in an amount equal to the fair market value of the shares of Class A-1 common stock (i) when the shares of Class A-1 common stock first become transferable and are no longer subject to a substantial risk of forfeiture, in cases where a Participant does not make a valid election under Section 83(b) of the Code or (ii) when the Award is received, in cases where a Participant makes a valid election under Section 83(b) of the Code. If a Section 83(b) election is made and the shares of Class A-1 common stock are subsequently forfeited, the recipient will not be allowed to take a deduction for the value of the forfeited shares of Class A-1 common stock. If a Section 83(b) election has not been made, any dividends received with respect to Restricted Stock that are subject at that time to a risk of forfeiture or restrictions on transfer generally will be treated as compensation that is taxable as ordinary income to the recipient; otherwise the dividends will be treated as dividends.

In each of the foregoing cases, we will generally have a corresponding deduction at the time the participant recognizes ordinary income, subject to Code Section 162(m), as applicable, and the relevant income tax regulations. Code Section 162(m) places a limit of $1 million on the amount of compensation that we may deduct as a business expense in any year with respect to certain of our most highly paid executive officers. We may from time to time pay compensation to our executives that may not be deductible if our Compensation Committee believes that doing so is in the best interests of our stockholders.

ERISA Information. The Second A&R LTIP is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended.

Effect on Current Stockholders if the Second A&R LTIP is Not Approved

If our stockholders do not approve the Second A&R LTIP, our plans to operate our business would be materially adversely affected because we otherwise may not have sufficient shares available under our A&R LTIP to attract and retain new employees or to motivate and retain our existing employees. Additionally, if the shares available for grant under the A&R LTIP are not increased, we may need to use inducement awards—without a stockholder approved plan—to grant awards to newly hired employees and find other ways to retain our current employees, as they are not eligible to receive non-plan awards due to rules put in place by NY