Company: ACEL
Filing Date: 2025-04-21
Form Type: DEF 14A
Source: 0001628280-25-018604
Chunk: 75

Company: Accel Entertainment, Inc.
Filing Date: 2025-04-21
Form: DEF 14A
Chunk 75
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 the Second A&R LTIP in any manner that requires stockholder approval. Unless sooner terminated, the Second A&R LTIP will expire on November 20, 2029.

#### U.S. Federal Income Tax Consequences
The following is a general summary under current law of certain U.S. federal income tax consequences to participants who are citizens or individual residents of the United States relating to the types of equity awards that may be granted under the Second A&R LTIP. This summary addresses general tax principles and is provided only for general information. Certain kinds of taxes, such as foreign taxes, state and local income taxes, payroll taxes and the alternative minimum tax, are not discussed.

Nonstatutory Stock Options, SARs. Participants will not realize taxable income upon the grant of an Option or an SAR. Upon the exercise of a Nonstatutory Option or an SAR, a Participant will recognize ordinary compensation income (subject to withholding if an employee) in an amount equal to the excess of (i) the amount of cash and the fair market value of the shares of Class A-1 common stock received, over (ii) the exercise price or grant price of the Award, as applicable. A Participant will generally have a tax basis in any shares of Class A-1 common stock received pursuant to the exercise of a Nonstatutory Option or SAR that equals the fair market value of such shares of Class A-1 common stock on the date of exercise. When a Participant sells the shares of Class A-1 common stock acquired as a result of the exercise of a Nonstatutory Option or SAR, any appreciation (or depreciation) in the value of the shares of Class A-1 common stock after the exercise date is treated as long- or short-term capital gain (or loss) for federal income tax purposes, depending on the holding period. The shares of Class A-1 common stock must be held for more than twelve months to qualify for long-term capital gain treatment.

Incentive Stock Options. Neither the grant nor the exercise of an ISO will cause a Participant to recognize taxable income on the grant of an ISO. Upon the exercise of an ISO, a Participant will not recognize taxable income, although the excess of the fair market value of the shares of Class A-1 common stock received upon exercise of the ISO (“ ISO Shares ”) over the exercise price will increase the alternative minimum taxable income of the Participant, which may cause such Participant to incur alternative minimum tax. The payment of any alternative minimum tax attributable to the exercise of an ISO would be