# EDGAR Filing Document

**Accession Number:** 0001698991
**File Stem:** 0001698991-23-000018
**Filing Date:** 2023-3
**Character Count:** 298903
**Document Hash:** cd1dddd6cc50d1e47c7689ba4a2d390e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001698991-23-000018.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001698991-23-000018

**CONFORMED SUBMISSION TYPE**: DEF 14A

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Accel Entertainment, Inc.
- **CENTRAL INDEX KEY:** 0001698991
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
- **IRS NUMBER:** 981350261
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DEF 14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38136
- **FILM NUMBER:** 23760243

**BUSINESS ADDRESS:**
- **STREET 1:** 140 TOWER DRIVE
- **CITY:** BURR RIDGE
- **STATE:** IL
- **ZIP:** 60527
- **BUSINESS PHONE:** 630-972-2235

**MAIL ADDRESS:**
- **STREET 1:** 140 TOWER DRIVE
- **CITY:** BURR RIDGE
- **STATE:** IL
- **ZIP:** 60527

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TPG Pace Holdings Corp.
- **DATE OF NAME CHANGE:** 20170224

?xml version="1.0" ? acel-20230324

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

**SCHEDULE 14A** 

**Proxy Statement Pursuant to Section 14(a) of** 

**the Securities Exchange Act of 1934** 

**(Amendment No.)** 

---

| | | |
|:---|:---|:---|
| Filed by the Registrant ⌧  | Filed by the Registrant ⌧  | Filed by a Party other than the Registrant ◻  |
| Check the appropriate box:  | Check the appropriate box:  | Check the appropriate box:  |
| ◻ | Preliminary Proxy Statement | Preliminary Proxy Statement |
| ◻ | **Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))**  | **Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))**  |
| ⌧ | Definitive Proxy Statement | Definitive Proxy Statement |
| ◻ | Definitive Additional Materials | Definitive Additional Materials |
| ◻ | Soliciting Material under §240.14a-12  | Soliciting Material under §240.14a-12  |
| **ACCEL ENTERTAINMENT, INC.** | **ACCEL ENTERTAINMENT, INC.** | **ACCEL ENTERTAINMENT, INC.** |
| (Name of Registrant as Specified In Its Charter) | (Name of Registrant as Specified In Its Charter) | (Name of Registrant as Specified In Its Charter) |
| (Name of Person(s) Filing Proxy Statement, if other than the Registrant) | (Name of Person(s) Filing Proxy Statement, if other than the Registrant) | (Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
| Payment of Filing Fee (Check the appropriate box):  | Payment of Filing Fee (Check the appropriate box):  | Payment of Filing Fee (Check the appropriate box):  |
| ⌧ | No fee required. | No fee required. |
| ◻ | Fee paid previously with preliminary materials. | Fee paid previously with preliminary materials. |
| ◻ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11. |

---

------

![acel-20230324_g1.jpg](acel-20230324_g1.jpg)

March 24, 2023

Dear Accel Entertainment Stockholders:

You are cordially invited to attend the 2023 Annual Meeting of Stockholders of Accel Entertainment, Inc. (the "*Annual Meeting*"), which will be held on Thursday, May 4, 2023, at 1:00 p.m., Central Time. We intend to hold our annual meeting virtually, and the meeting will be accessible on the following website: http://www.virtualshareholdermeeting.com/ACEL2023.

It is important that you retain a copy of the control number found on the proxy card, voting instruction form or Notice of Internet Availability of Proxy Materials, as such number will be required for our stockholders to gain access to any meeting held solely by means of remote communication.

At the Annual Meeting, we will ask you to (1) elect three members of our board of directors; (2) approve, on a non-binding advisory basis, the compensation of our named executive officers; (3) recommend, on a non-binding advisory basis, the frequency of future non-binding votes on the compensation of our named executive officers; (4) ratify the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2023; and (5) approve the amendment and restatement of our long term incentive plan.

We have elected to provide access to the proxy materials over the internet, other than to those stockholders who requested a paper copy, under the Securities and Exchange Commission's "notice and access" rules to reduce the environmental impact and cost of our Annual Meeting. However, if you would prefer to receive paper copies of our proxy materials, please follow the instructions included in the Notice of Internet Availability of Proxy Materials.

Whether or not you attend the Annual Meeting, it is important that your shares be represented and voted at the meeting. Therefore, we urge you to promptly vote and submit your proxy via the internet, by telephone, or by mail, in accordance with the instructions included in the proxy materials.

On behalf of the board of directors, we would like to thank you for your continued interest and investment in Accel Entertainment, Inc.

Sincerely,

*/s/ Andrew Rubenstein*

Andrew Rubenstein

*President and Chief Executive Officer* 

------

**ACCEL ENTERTAINMENT, INC.** 

**NOTICE OF 2023 ANNUAL MEETING OF STOCKHOLDERS** 

---

| | | |
|:---|:---|:---|
| **Time and Date:** | Thursday, May 4, 2023 at 1:00 p.m., Central Time. | Thursday, May 4, 2023 at 1:00 p.m., Central Time. |
| **Place:** | Virtual only: <u>http://www.virtualshareholdermeeting.com/ACEL2023</u> | Virtual only: <u>http://www.virtualshareholdermeeting.com/ACEL2023</u> |
| **Items of Business:** | (1) | To elect three Class I directors to serve until the 2026 annual meeting of stockholders or until their successors are duly elected and qualified. |
|  | (2) | To approve, on a non-binding advisory basis, the compensation of our named executive officers as disclosed in the accompanying proxy statement. |
|  | (3) | To conduct a non-binding advisory vote on the frequency of holding future non-binding advisory votes on the compensation of our named executive officers. |
|  | (4) | To ratify the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2023. |
|  | (5) | To approve the amendment and restatement of our long term incentive plan. |
|  | (6) | To consider such other business as may properly come before the meeting or any adjournment or postponement thereof. |
| **Adjournments and**<br>**Postponements:** | Any action on the items of business described above may be considered at the Annual Meeting at the time and on the date specified above or at any time and date to which the Annual Meeting may be properly adjourned or postponed. | Any action on the items of business described above may be considered at the Annual Meeting at the time and on the date specified above or at any time and date to which the Annual Meeting may be properly adjourned or postponed. |
| **Record Date:** | Holders of record of our Class A-1 common stock as of the close of business on March 15, 2023 will be entitled to notice of, and to vote at, the Annual Meeting. | Holders of record of our Class A-1 common stock as of the close of business on March 15, 2023 will be entitled to notice of, and to vote at, the Annual Meeting. |
| **Voting:** | Your vote is very important. All stockholders as of the record date are cordially invited to attend the Annual Meeting and vote. To assure your representation at the meeting, however, we urge you to vote by proxy as promptly as possible over the Internet or by phone as instructed in the Notice of Internet Availability of Proxy Materials or, if you receive paper copies of the proxy materials by mail, you can also vote by mail by following the instructions on the proxy card. You may vote during the meeting even if you have previously returned a proxy. | Your vote is very important. All stockholders as of the record date are cordially invited to attend the Annual Meeting and vote. To assure your representation at the meeting, however, we urge you to vote by proxy as promptly as possible over the Internet or by phone as instructed in the Notice of Internet Availability of Proxy Materials or, if you receive paper copies of the proxy materials by mail, you can also vote by mail by following the instructions on the proxy card. You may vote during the meeting even if you have previously returned a proxy. |

---

By Order of the Board of Directors,

*/s/ Derek Harmer*

Derek Harmer

*General Counsel and Chief Compliance Officer*

*This Notice of Annual Meeting and the accompanying proxy statement and form of proxy are being distributed and made available on or about March 24, 2023.* 

------

**<u>Important Notice Regarding the Availability of Proxy Materials for the Stockholder</u>**<br>**<u>Meeting to be held on May 4, 2023.</u>**<br>The proxy statement and our 2022 Annual Report to Stockholders, which includes our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, are available at www.proxyvote.com and at *<u>www.accelentertainment.com</u>* on the *"Investor Relations"* page.<br>

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [PROXY STATEMENT SUMMARY](#i911ecd9cee3b46cfa51a30ad0ea8de99_13) | [6](#i911ecd9cee3b46cfa51a30ad0ea8de99_13) |
| [GENERAL INFORMATION](#i911ecd9cee3b46cfa51a30ad0ea8de99_16) | [7](#i911ecd9cee3b46cfa51a30ad0ea8de99_16) |
| [CORPORATE GOVERNANCE](#i911ecd9cee3b46cfa51a30ad0ea8de99_19) | [12](#i911ecd9cee3b46cfa51a30ad0ea8de99_19) |
| &nbsp;&nbsp;&nbsp;[Our Board](#i911ecd9cee3b46cfa51a30ad0ea8de99_22) | &nbsp;&nbsp;&nbsp;[12](#i911ecd9cee3b46cfa51a30ad0ea8de99_22) |
| &nbsp;&nbsp;&nbsp;[Board Structure](#i911ecd9cee3b46cfa51a30ad0ea8de99_25) | &nbsp;&nbsp;&nbsp;[14](#i911ecd9cee3b46cfa51a30ad0ea8de99_25) |
| &nbsp;&nbsp;&nbsp;[Board Leadership Structure](#i911ecd9cee3b46cfa51a30ad0ea8de99_28) | &nbsp;&nbsp;&nbsp;[15](#i911ecd9cee3b46cfa51a30ad0ea8de99_28) |
| &nbsp;&nbsp;&nbsp;[The Board's Role in Risk Oversight](#i911ecd9cee3b46cfa51a30ad0ea8de99_31) | &nbsp;&nbsp;&nbsp;[15](#i911ecd9cee3b46cfa51a30ad0ea8de99_31) |
| &nbsp;&nbsp;&nbsp;[Hedging Policy](#i911ecd9cee3b46cfa51a30ad0ea8de99_34) | &nbsp;&nbsp;&nbsp;[15](#i911ecd9cee3b46cfa51a30ad0ea8de99_34) |
| &nbsp;&nbsp;&nbsp;[Board Participation](#i911ecd9cee3b46cfa51a30ad0ea8de99_37) | &nbsp;&nbsp;&nbsp;[16](#i911ecd9cee3b46cfa51a30ad0ea8de99_37) |
| &nbsp;&nbsp;&nbsp;[Director Independence](#i911ecd9cee3b46cfa51a30ad0ea8de99_40) | &nbsp;&nbsp;&nbsp;[16](#i911ecd9cee3b46cfa51a30ad0ea8de99_40) |
| &nbsp;&nbsp;&nbsp;[Code of Business Conduct and Ethics](#i911ecd9cee3b46cfa51a30ad0ea8de99_43) | &nbsp;&nbsp;&nbsp;[16](#i911ecd9cee3b46cfa51a30ad0ea8de99_43) |
| &nbsp;&nbsp;&nbsp;[Board Committees](#i911ecd9cee3b46cfa51a30ad0ea8de99_46) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[16](#i911ecd9cee3b46cfa51a30ad0ea8de99_46) |
| &nbsp;&nbsp;&nbsp;[Identifying and Evaluating Director Candidates](#i911ecd9cee3b46cfa51a30ad0ea8de99_49) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18](#i911ecd9cee3b46cfa51a30ad0ea8de99_49) |
| &nbsp;&nbsp;&nbsp;[Board Diversity](#i911ecd9cee3b46cfa51a30ad0ea8de99_52) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19](#i911ecd9cee3b46cfa51a30ad0ea8de99_52) |
| &nbsp;&nbsp;&nbsp;[Availability of Corporate Governance Information](#i911ecd9cee3b46cfa51a30ad0ea8de99_55) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20](#i911ecd9cee3b46cfa51a30ad0ea8de99_55) |
| &nbsp;&nbsp;&nbsp;[Communications with our Board of Directors](#i911ecd9cee3b46cfa51a30ad0ea8de99_58) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20](#i911ecd9cee3b46cfa51a30ad0ea8de99_58) |
| [PROPOSAL 1: ELECTION OF DIRECTORS](#i911ecd9cee3b46cfa51a30ad0ea8de99_61) | [21](#i911ecd9cee3b46cfa51a30ad0ea8de99_61) |
| [DIRECTOR COMPENSATION](#i911ecd9cee3b46cfa51a30ad0ea8de99_64) | [22](#i911ecd9cee3b46cfa51a30ad0ea8de99_64) |
| [EXECUTIVE OFFICERS](#i911ecd9cee3b46cfa51a30ad0ea8de99_67) | &nbsp;&nbsp;&nbsp;[23](#i911ecd9cee3b46cfa51a30ad0ea8de99_67) |
| &nbsp;&nbsp;&nbsp;[Compensation Committee Interlocks and Insider Participation](#i911ecd9cee3b46cfa51a30ad0ea8de99_70) | &nbsp;&nbsp;&nbsp;[24](#i911ecd9cee3b46cfa51a30ad0ea8de99_70) |
| EXECUTIVE COMPENSATION | &nbsp;&nbsp;&nbsp;[24](#i911ecd9cee3b46cfa51a30ad0ea8de99_73) |
| &nbsp;&nbsp;&nbsp;[Compensation Discussion and Analysis](#i911ecd9cee3b46cfa51a30ad0ea8de99_329) | &nbsp;&nbsp;&nbsp;[24](#i911ecd9cee3b46cfa51a30ad0ea8de99_329) |
| &nbsp;&nbsp;&nbsp;[Compensation Committee Report](#i911ecd9cee3b46cfa51a30ad0ea8de99_335) | &nbsp;&nbsp;&nbsp;[36](#i911ecd9cee3b46cfa51a30ad0ea8de99_335) |
| &nbsp;&nbsp;&nbsp;2022[Summary Compensation](#i911ecd9cee3b46cfa51a30ad0ea8de99_346) | &nbsp;&nbsp;&nbsp;[36](#i911ecd9cee3b46cfa51a30ad0ea8de99_346) |
| &nbsp;&nbsp;&nbsp;2022[Grants of Plan-Based Award](#i911ecd9cee3b46cfa51a30ad0ea8de99_341)s  | &nbsp;&nbsp;&nbsp;[38](#i911ecd9cee3b46cfa51a30ad0ea8de99_341) |
| &nbsp;&nbsp;&nbsp;2022 [Outstanding Equity Awards](#i911ecd9cee3b46cfa51a30ad0ea8de99_76) at Fiscal Year-End | &nbsp;&nbsp;&nbsp;[39](#i911ecd9cee3b46cfa51a30ad0ea8de99_76) |
| &nbsp;&nbsp;&nbsp;2022[Option Exercises and Stock Vested](#i911ecd9cee3b46cfa51a30ad0ea8de99_379) | &nbsp;&nbsp;&nbsp;[40](#i911ecd9cee3b46cfa51a30ad0ea8de99_379) |
| &nbsp;&nbsp;&nbsp;[Employment Agreements](#i911ecd9cee3b46cfa51a30ad0ea8de99_374) | &nbsp;&nbsp;&nbsp;[41](#i911ecd9cee3b46cfa51a30ad0ea8de99_374) |
| &nbsp;&nbsp;&nbsp;[Potential Payments Upon Termination or Change-In-Control](#i911ecd9cee3b46cfa51a30ad0ea8de99_369) | &nbsp;&nbsp;&nbsp;[43](#i911ecd9cee3b46cfa51a30ad0ea8de99_369) |
| &nbsp;&nbsp;&nbsp;[Chief Executive Officer Pay Ratio](#i911ecd9cee3b46cfa51a30ad0ea8de99_364) | &nbsp;&nbsp;&nbsp;[44](#i911ecd9cee3b46cfa51a30ad0ea8de99_364) |
| [PROPOSAL 2: NON-BINDING ADVISORY VOTE ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS](#i911ecd9cee3b46cfa51a30ad0ea8de99_354) | &nbsp;&nbsp;&nbsp;[52](#i911ecd9cee3b46cfa51a30ad0ea8de99_354) |
| [PROPOSAL 3: NON-BINDING ADVISORY VOTE ON THE FREQUENCY OF HOLDING FUTURE NON-BINDING ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS](#i911ecd9cee3b46cfa51a30ad0ea8de99_391) | &nbsp;&nbsp;&nbsp;[53](#i911ecd9cee3b46cfa51a30ad0ea8de99_391) |
| [REPORT OF THE AUDIT COMMITTEE](#i911ecd9cee3b46cfa51a30ad0ea8de99_79) | [54](#i911ecd9cee3b46cfa51a30ad0ea8de99_79) |
| [PROPOSAL](#i911ecd9cee3b46cfa51a30ad0ea8de99_82)[4](#i911ecd9cee3b46cfa51a30ad0ea8de99_82)[: RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#i911ecd9cee3b46cfa51a30ad0ea8de99_82) | [55](#i911ecd9cee3b46cfa51a30ad0ea8de99_82) |
| [PROPOSAL 5: APPROVAL OF THE AMENDMENT AND RESTATEMENT OF OUR LONG-TEM INCENTIVE PLAN](#i911ecd9cee3b46cfa51a30ad0ea8de99_398) | [56](#i911ecd9cee3b46cfa51a30ad0ea8de99_398) |
| [EQUITY PLAN COMPENSATION INFORMATION](#i911ecd9cee3b46cfa51a30ad0ea8de99_499) | &nbsp;&nbsp;&nbsp;[65](#i911ecd9cee3b46cfa51a30ad0ea8de99_499) |
| [DELINQUENT SECTION 16(A) REPORTS](#i911ecd9cee3b46cfa51a30ad0ea8de99_85) | [66](#i911ecd9cee3b46cfa51a30ad0ea8de99_85) |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#i911ecd9cee3b46cfa51a30ad0ea8de99_88) | [67](#i911ecd9cee3b46cfa51a30ad0ea8de99_88) |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#i911ecd9cee3b46cfa51a30ad0ea8de99_91) | &nbsp;&nbsp;&nbsp;[70](#i911ecd9cee3b46cfa51a30ad0ea8de99_91) |
| [DEADLINE FOR RECEIPT OF STOCKHOLDER PROPOSALS](#i911ecd9cee3b46cfa51a30ad0ea8de99_94) | &nbsp;&nbsp;&nbsp;[71](#i911ecd9cee3b46cfa51a30ad0ea8de99_94) |
| [OTHER MATTERS](#i911ecd9cee3b46cfa51a30ad0ea8de99_97) | &nbsp;&nbsp;&nbsp;[72](#i911ecd9cee3b46cfa51a30ad0ea8de99_97) |

---

------

**PROXY STATEMENT SUMMARY** 

This summary highlights information contained elsewhere in this proxy statement. This summary does not contain all of the information that you should consider, and you should review all of the information contained in the proxy statement before voting.

**Annual Meeting of Stockholders** 

---

| | |
|:---|:---|
| **Date:** | Thursday, May 4, 2023 |
| **Time:** | 1:00 p.m., Central Time |
| **Location:** | Virtual only: http://www.virtualshareholdermeeting.com/ACEL2023 |
| **Record Date:** | Wednesday, March 15, 2023 |
| **Voting:** | Stockholders as of the record date are entitled to vote. Each share of Class A-1 common stock is entitled to one vote. |

---

**Proposals and Voting Recommendations** 

---

| | | | |
|:---|:---|:---|:---|
| | | **Board<br>Recommendation** | **Page** |
| Proposal 1 | Election of Directors |  |  |
|  | &nbsp;&nbsp;&nbsp;Karl Peterson | For | [21](#i911ecd9cee3b46cfa51a30ad0ea8de99_61) |
|  | &nbsp;&nbsp;&nbsp;Dee Robinson | For | [21](#i911ecd9cee3b46cfa51a30ad0ea8de99_61) |
|  | &nbsp;&nbsp;&nbsp;Andrew Rubenstein | For | [21](#i911ecd9cee3b46cfa51a30ad0ea8de99_61) |
| Proposal 2 | Approval, on a non-binding advisory basis, of the compensation of our<br>named executive officers | For | [52](#i911ecd9cee3b46cfa51a30ad0ea8de99_354) |
| Proposal 3 | Indication, on a non-binding advisory basis, of the frequency of future<br>non-binding advisory votes to approve the compensation of our named<br>executive officers | "One Year" | [53](#i911ecd9cee3b46cfa51a30ad0ea8de99_391) |
| Proposal 4 | Ratification of our independent registered public accounting firm | For | [55](#i911ecd9cee3b46cfa51a30ad0ea8de99_82) |
| Proposal 5 | Approval of the amendment and restatement of our long term incentive plan | For | [56](#i911ecd9cee3b46cfa51a30ad0ea8de99_398) |

---

**Voting Methods** 

You can vote in one of four ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Visit <u>www.proxyvote.com</u> to vote VIA THE INTERNET

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Call 1-800-690-6903 to vote BY TELEPHONE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sign, date and return your proxy card in the prepaid enclosed envelope to vote BY MAIL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Attend the meeting to vote DURING THE MEETING

To reduce our administrative and postage costs and the environmental impact of the Annual Meeting, we encourage stockholders to vote via the Internet or by telephone, both of which are available 24 hours a day, seven days a week, until 11:59 p.m. Eastern Time on May 3, 2023. Stockholders may revoke their proxies at the times and in the manners described on page 8 of this proxy statement.

If your shares are held in "street name" through a bank, broker or other holder of record, you will receive voting instructions from the holder of record that you must follow in order for your shares to be voted. If you wish to vote during the meeting, you must obtain a legal proxy from the bank, broker or other holder of record that holds your shares.

------

**ACCEL ENTERTAINMENT, INC.** 

**2023 ANNUAL MEETING OF STOCKHOLDERS** 

**GENERAL INFORMATION** 

This proxy statement and the enclosed form of proxy are solicited on behalf of Accel Entertainment, Inc., (the "*Company*," "*Accel*" or "*we*," "*us*" and "*our*") a Delaware corporation, by our board of directors for use at the 2023 Annual Meeting of Stockholders (referred to as the "*Annual Meeting*") and any postponements or adjournments thereof. The Annual Meeting will be held virtually on Thursday, May 4, 2023, at 1:00 p.m., Central Time. The meeting will be accessible on the following website: http://www.virtualshareholdermeeting.com/ACEL2023. It is important that you retain a copy of the control number found on the proxy card, voting instruction form or Notice of Internet Availability of Proxy Materials, as such number will be required for our stockholders to gain access to any meeting held solely by means of remote communication.

**Internet Availability of Proxy Materials** 

In accordance with rules adopted by the Securities and Exchange Commission (referred to as the "*SEC*") that allow companies to furnish their proxy materials over the Internet, we are mailing a Notice of Internet Availability of Proxy Materials instead of a paper copy of our proxy statement and our 2022 Annual Report to our stockholders (our "*2022 Annual Report*"). The Notice of Internet Availability of Proxy Materials contains instructions on how to access those documents and vote over the Internet. The Notice of Internet Availability of Proxy Materials also contains instructions on how to request a paper copy of our proxy materials, including our proxy statement, our 2022 Annual Report, and a form of proxy card. We believe this process will allow us to provide our stockholders the information they need in a more timely manner, while reducing the environmental impact and lowering our costs of printing and delivering the proxy materials.

These proxy solicitation materials are being first released on or about March 24, 2023 to all stockholders entitled to vote at the meeting.

**Record Date** 

Stockholders of record at the close of business on March 15, 2023, which we have set as the record date, are entitled to notice of and to vote at the meeting.

**Number of Outstanding Shares** 

On the record date, there were 86,569,067 outstanding shares of our Class A-1 common stock, par value $0.0001 per share ("*Class A-1 common stock*").

**Requirements for a Quorum** 

The holders of a majority of the issued and outstanding shares of Class A-1 common stock entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum for the transaction of business at the meeting under our bylaws and Delaware state law. Each stockholder voting at the meeting, either in person or by proxy, may cast one vote per share of Class A-1 common stock held on all matters to be voted on at the meeting.

------

**Votes Required for Each Proposal** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Proposal No. 1**: Directors shall be elected by a plurality of the votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Therefore, the three nominees who receive the greatest number of affirmative votes cast shall be elected as directors. We do not have cumulative voting rights for the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Proposal No. 2**: The non-binding advisory vote on the compensation of our named executive officers as disclosed in this proxy statement shall be decided by the affirmative vote of a majority of votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Proposal No. 3:** The selected frequency of future non-binding advisory votes to approve the compensation of our named executive officers shall be determined by a plurality of the votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote thereon. Therefore, the frequency that receives the greatest number of affirmative votes cast shall be the approved frequency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Proposal No. 4**: The proposal to ratify KPMG LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2023 shall be decided by the affirmative vote of a majority of votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Proposal No. 5**: The proposal to approve the amendment and restatement of our long term incentive plan shall be decided by the affirmative vote of a majority of the votes cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

The vote on each matter submitted to stockholders is tabulated separately. Broadridge Financial Solutions, or a representative thereof, will tabulate the votes.

**Our Board's Recommendation for Each Proposal** 

Our board of directors recommends that you vote your shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "FOR" each of the three Class I director nominees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "FOR" the non-binding advisory resolution approving the compensation of our named executive officers as disclosed in this proxy statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "ONE YEAR" for the frequency of future non-binding advisory votes to approve the compensation of our named executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "FOR" the ratification of KPMG LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "FOR" the amendment and restatement of our long term incentive plan.

**Voting Instructions** 

You may vote your shares by proxy by doing any one of the following: vote via the Internet at <u>www.proxyvote.com</u>; call 1-800-690-6903 to vote by telephone; or sign, date and return your proxy or voting instruction card in the prepaid enclosed envelope to vote by mail. When a proxy is properly executed and returned, the shares it represents will be voted at the meeting as directed.

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If a proxy card is properly executed and returned and no voting specification is indicated, the shares will be voted (1) "for" the election of each of the three Class I nominees for director set forth in this proxy statement, (2) "for" the non-binding advisory resolution approving the compensation of our named executive officers as set forth in this proxy statement, (3) "one year" for the frequency of holding future non-binding advisory votes on the compensation of our named executive officers, (4) "for" the proposal to ratify the appointment of KPMG LLP, as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2023, (5) "for" the amendment and restatement of our long term incentive plan, and (6) as the persons specified in the proxy deem advisable in their discretion on such other matters as may come before the meeting. As of the date of this proxy statement, we have received no notice of any such other matters.

If you attend the Annual Meeting, you may vote during the meeting even if you have previously voted via the Internet or by phone or returned a proxy or voting instruction card by mail, and your vote during the meeting will supersede any vote previously cast.

**Broker Non-Votes and Abstentions** 

If you are a beneficial owner of shares held in "street name" and do not provide the broker, bank, or other nominee that holds your shares with specific voting instructions, under the rules of various national and regional securities exchanges, the organization that holds your shares may generally vote on routine matters but cannot vote on non-routine matters. If the broker, bank, or other nominee that holds your shares does not receive instructions from you on how to vote your shares on a non-routine matter, the organization that holds your shares will inform the inspector of election that it does not have the authority to vote on this matter with respect to your shares. This is commonly referred to as a "broker non-vote."

Absent instructions from the beneficial owner of such shares, a broker, bank, other nominee is not entitled to vote shares held for a beneficial owner on "non-routine" matters. At our Annual Meeting, only the proposal to ratify KPMG LLP as our independent registered public accounting firm for the year ending December 31, 2023 ("*Proposal 4*") is considered a routine matter. The proposal for the election of directors ("*Proposal 1*"), the proposal for the non-binding advisory resolution approving the compensation of our named executive officers as set forth in this proxy statement ("*Proposal 2*"), the proposal for the frequency of future non-binding advisory votes to approve the compensation of our named executive officers ("*Proposal 3*"), the proposal to approve the amendment and restatement of our long term incentive plan ("*Proposal 5*") and any other proposals presented at the Annual Meeting are non-routine matters. We encourage you to provide voting instructions to your broker, whether or not you plan to attend the Annual Meeting.

Each broker non-vote and abstention is counted for determining the presence of a quorum. Proposal 1 and Proposal 3 require a plurality of votes cast. Abstentions and broker non-votes have no effect on the determination of whether either a director nominee or a frequency of a future non-binding advisory vote to approve the compensation of our named executive officers has received the vote of a majority of the shares of Class A-1 common stock present or represented by proxy and cast at the meeting. However, abstentions and broker non-votes could prevent the approval of Proposal 2, Proposal 4 and Proposal 5 as they have the same effect as votes "against" each such proposal because they represent shares present and entitled to vote that are not voted in favor of such proposal.

**Revoking Proxies** 

Any stockholder giving a proxy may revoke the proxy at any time before its use by furnishing to us either a written notice of revocation or a duly executed proxy (via internet, telephone or mail) bearing a later date, or by attending the meeting and voting during the meeting. Attendance at the meeting will not cause your previously granted proxy to be revoked unless you specifically vote during the meeting.

**Election Inspector** 

Mathew Ellis of the Company has been selected to serve as the election inspector.

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Votes cast by proxy or in person at the meeting will be tabulated by such election inspector, who will determine whether a quorum is present. The election inspector will treat broker non-votes and abstentions as shares that are present and entitled to vote for purposes of determining the presence of a quorum, and as described in the "*Broker Non-Votes and Abstentions*" section of this proxy statement for purposes of determining the approval of any matter submitted to stockholders for a vote.

**Voting Results** 

The final voting results from the Annual Meeting will be included in a Current Report on Form 8-K to be filed with the SEC within four business days of the Annual Meeting.

**Costs of Solicitation of Proxies** 

We will bear the cost of this solicitation. In addition, we may reimburse brokerage firms and other persons representing beneficial owners of shares for expenses incurred in forwarding solicitation materials to such beneficial owners. Proxies also may be solicited by certain of our directors and officers, personally or by telephone or e-mail, without additional compensation. We do not expect to engage or pay any compensation to a third-party proxy solicitor.

**Householding** 

We have adopted a procedure called "householding," which is permitted by rules of the SEC. Under this procedure, certain stockholders of record who have the same address and last name, and who do not participate in electronic delivery of proxy materials, will receive only one copy of our Notice of Internet Availability of Proxy Materials, and as applicable, any additional proxy materials that are delivered. A separate proxy card for each stockholder of record will be included in the printed materials. This procedure reduces our printing costs, mailing costs and fees. Upon written request, we will promptly deliver a separate copy of the Notice of Internet Availability of Proxy Materials or, if applicable, the printed proxy materials to any stockholder at a shared address to which a single copy of any of those documents was delivered. To receive a separate copy of the Notice of Internet Availability of Proxy Materials or 2022 Annual Report or, if applicable, the printed proxy materials, please notify us by sending a written request to our General Counsel and Chief Compliance Officer at 140 Tower Drive, Burr Ridge, Illinois 60527. Street name stockholders may contact their brokerage firm, bank, broker-dealer or other similar organization to request information about householding.

**Availability of our Filings with the SEC and Additional Information** 

Through our investor relations website, *<u>www.accelentertainment.com</u>* under the *"Investor Relations"* page, we make available free of charge all of our SEC filings, including our proxy statements, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K, as well as Form 3, Form 4, and Form 5 reports of our directors, officers, and principal stockholders, together with amendments to these reports filed or furnished pursuant to Sections 13(a), 15(d), or 16 of the Securities Exchange Act of 1934, as amended (the "*Exchange Act*"). We will also provide upon written request, without charge to each stockholder of record as of the record date, a copy of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC on March 1, 2023. Any exhibits listed in the Form 10-K report also will be furnished upon request at the actual expense we incur in furnishing such exhibits. Any such requests should be directed to our General Counsel and Chief Compliance Officer at our executive offices set forth in this proxy statement.

This proxy statement and our 2022 Annual Report are also available at: *http://www.proxyvote.com*.

All of our SEC filings can also be accessed through the SEC's website, *<u>http://www.sec.gov</u>*.

The Class A-1 common stock of the Company is listed on the New York Stock Exchange (the "*NYSE*"), and reports and other information on the Company can be reviewed at the office of the NYSE.

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**Information Deemed Not Filed** 

Our 2022 Annual Report to Stockholders, which was made available to stockholders with or preceding this proxy statement, contains financial and other information about our Company but is not incorporated into this proxy statement and is not to be considered a part of these proxy materials or subject to Regulations 14A or 14C or to the liabilities of Section 18 of the Exchange Act. The information contained in the "*Compensation Committee Report*" and "*Report of the Audit Committee*" shall not be deemed "filed" with the SEC or subject to Regulations 14A or 14C or to the liabilities of Section 18 of the Exchange Act.

**Other Information** 

We were originally incorporated in the Cayman Islands on February 14, 2017 as TPG Pace Holdings Corp. ("*Pace*"), as a special purpose acquisition company ("*SPAC*"), formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses. On June 30, 2017, Pace consummated its initial public offering (the "*IPO*"), following which its shares began trading on the NYSE. On November 20, 2019 (the "*Closing Date*"), in a transaction referred to as the "*Business Combination*," Pace combined with Accel Entertainment, Inc. ("*Legacy Accel*"), an Illinois corporation, and re-domesticated as a Delaware corporation.

In connection with the closing of the Business Combination, the ("*Closing*") Pace changed its name to "Accel Entertainment, Inc." and its trading symbols on the NYSE from "TPGH" to "ACEL."

As used in this proxy statement, unless the context otherwise requires, "*Pace*" refers to the registrant prior to the Closing, and "*we*," "*us*," "*our*," "*Accel*," and the "*Company*" refer to Legacy Accel prior to the Closing and the registrant and, where appropriate, its subsidiaries following the Closing.

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**CORPORATE GOVERNANCE** 

**Our Board** 

Our business and affairs are overseen by our board of directors (our "*Board*"), which currently consists of eight members. Set forth below is biographical information for each of our current directors.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Titles** | **Director Since** |
| Andrew Rubenstein | 54 | Chief Executive Officer, President and Director | 2010 |
| Karl Peterson<sup>(1)(2)(3)(5)</sup> | 52 | Chairman and Director | 2017 |
| Gordon Rubenstein | 51 | Vice Chairman and Director | 2010 |
| Eden Godsoe<sup>(1)(3)(4)</sup> | 53 | Director | 2019 |
| Kathleen Philips<sup>(1)(2)(3)(4)(5)</sup> | 56 | Director | 2017 |
| Dee Robinson<sup>(2)(3)</sup> | 62 | Director | 2020 |
| Kenneth B. Rotman | 56 | Director | 2019 |
| David W. Ruttenberg<sup>(2)(4)</sup> | 81 | Director | 2010 |

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<sup>(1)</sup> *Member of the compensation committee*

<sup>(2)</sup> *Member of the nominating and corporate governance committee&nbsp;&nbsp;&nbsp;&nbsp;*

<sup>(3)</sup> *Member of the compliance committee*

<sup>(4)</sup> *Member of the audit committee* 

<sup>(5)</sup> *Mr. Peterson and Ms. Philips joined the board of Pace in 2017 and joined the board of Accel in connection with the Business Combination in 2019* 

***Andrew Rubenstein*** has served as Accel's Chief Executive Officer, Chairman (prior to the Business Combination) and a director since January 2010. In 2009, Mr. A. Rubenstein founded Accel and served as founding chairman of the board of directors of Legacy Accel (the "*Legacy Accel Board*"). Prior to serving as Accel's founding chairman, Mr. A. Rubenstein was a co-owner and an executive of Seven, LLC and was an owner and operator of the largest liquor store chain in central Illinois by revenue, Super Liquors, Inc. Mr. A. Rubenstein is a graduate of Brandeis University where he earned a Bachelor of Arts degree, with honors, in Economics and Master of Arts degree in International Finance and Economics. We believe that Mr. A. Rubenstein's prior experience as Accel's founder and CEO makes him well qualified to serve as a member of our Board.

***Karl Peterson*** has served as Accel's Chairman since 2019. He currently serves as head of Peterson Capital Partners, a family office with numerous public and private investments. In 2022, he retired as a Senior Partner of TPG Global, LLC ("*TPG*") and Managing Partner of TPG Pace Group ("*Pace*"), where he previously headed the firm's effort to sponsor special purpose acquisition companies and other permanent capital solutions for companies. Mr. Peterson served as a director, President and Chief Executive Officer of Pace from February of 2017 through the consummation of the Business Combination. Previously, he served as a director, President and Chief Executive Officer of Pace Holdings Corp. from its inception in 2015 through its business combination with Playa Hotels & Resorts B.V. in March of 2017. From 2010 through 2016, Mr. Peterson was Managing Partner of TPG Europe LLP. Since rejoining TPG in 2004, Mr. Peterson has led investments for TPG in technology, media, financial services, and travel sectors. Prior to 2004, he was a co-founder and the President and Chief Executive Officer of Hotwire.com. He led the business from its inception through its sale to InterActiveCorp in 2003. Before Hotwire, Mr. Peterson was a principal at TPG in San Francisco, and from 1992 to 1995 he was a financial analyst at Goldman Sachs & Co. LLC. Since 2021, Mr. Peterson has served as a director of Vacasa, Inc., an international vacation rental management company. Since 2017, Mr. Peterson has also served as a director of Playa Hotels & Resorts B.V., an owner, operator and developer of resorts. Since 2007, Mr. Peterson has served as a director of Sabre Inc., a travel technology company, and as chairman of their board from 2020 to April 2022. From 2013 to 2017, Mr. Peterson served as a director on the board of Caesars Acquisition Company, a casino asset and entertainment company. Mr. Peterson has also served on the board of several TPG companies, including TPG Pace Beneficial Finance, as non-

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executive chair, from 2020 to the present, TPG Pace Solutions in 2021, TPG Pace Tech Opportunities Corp. from 2020 to 2021, and TPG Pace Beneficial II Corp., as non-executive chair, from 2021 to the present.

Mr. Peterson is a graduate of the University of Notre Dame, where he earned a Bachelor of Business Administration Degree with High Honors. Mr. Peterson is well-qualified to serve as a director of our Board because of his significant directorship experience, his broad experience in the technology, media, financial services and travel sectors and his previous role as a director of Pace Holdings Corp.

***Gordon Rubenstein*** is Co-Founder and Vice-Chairman of Accel. Additionally, he is Managing Partner of Raine Ventures where he leads the Raine Group's venture capital platform. Prior to joining Raine in 2013, Mr. G. Rubenstein founded and managed Pacific Partners, an operationally-focused venture capital partnership with backing from George Soros, Sam Zell, leading technology executives and entrepreneurs as well as partners from KKR, Silver Lake and Freeman Spogli. In addition, Mr. G. Rubenstein co-founded Astro Gaming (acquired by Skullcandy (Nasdaq: SKUL)), and Rave Digital Media (acquired by AMC Entertainment). Currently, Mr. G. Rubenstein serves on the boards of directors of Tastemade Inc., Happn and TVTime. Additionally, Mr. G. Rubenstein served on the board of directors of Cheddar until stepping down after its sale to Altice (ATUS). In addition, he is an observer to several other Raine Venture partner company boards. Mr. G. Rubenstein has an A.B. from the University of Michigan. He serves on the San Francisco Education Fund Leadership Counsel and lives in San Francisco with his wife and three children. We believe that Mr. Gordon Rubenstein's experience as the Managing Partner of Raine Ventures and experience with high growth companies, as well as his experience as a co-founder of Accel make him well qualified to serve as a member of our Board.

***Eden Godsoe*** has served as a director since 2019 and is currently the Chief Revenue Officer and Chief Operating Officer at Towne (also known as Qvale Technologies). In this role, Ms. Godsoe manages sales, partnerships and all aspects of operations, including customer service and field operations. Prior to Towne, Ms. Godsoe serve as Vice President of Operations at Zeus Living where she managed all aspects of operations, including customer experience, field operations and supply chain. Prior to joining Zeus Living, Ms. Godsoe served as Vice President of Strategy and Market Effectiveness at Sunrun where she was responsible for setting the corporate strategy and operating plan as well as implementing growth and margin initiatives. Prior to Sunrun, Ms. Godsoe was the Founder and CEO of two startups—FaveRave, an employee engagement and workforce insights platform, and SkinnyScoop, a consumer polling and social curation platform. Earlier in her career, Ms. Godsoe was the Director of Sales, Marketing and Customer Service at Comcast and Director of Product Management and Marketing at Covad Communications. Ms. Godsoe began her career as an M&A financial analyst at Morgan Stanley. Ms. Godsoe holds an M.B.A. from Stanford Graduate School of Business and a B.A. in Economics and Philosophy from the University of Western Ontario. She currently serves on the board of SMART, a San Francisco non-profit, and has previously served on the board of the Stanford Business School Fund. We believe that Ms. Godsoe's extensive operational experience and business expertise make her well qualified to serve as a member of our Board.

***Kathleen Philips*** has served as a director since 2019. Ms. Philips served as a director of Nerdy, Inc. from 2020 to the present and Apptio from 2017 to 2019. Ms. Philips has also served on the board of several TPG companies, including TPG Pace Beneficial Finance from 2020 to December 2022, TPG Pace Solutions in 2021, and TPG Pace Tech Opportunities Corp. from 2020 to 2021. Ms. Philips has been retired since August 2020. Prior to that time, she served as an advisor at Zillow Group, Inc. from January 2019 until August 2020. During her tenure with Zillow Group, Ms. Philips held many leadership positions, including chief legal officer from September 2014 until December 2018, secretary from July 2010 until December 2018, chief financial officer and treasurer from August 2015 until May 2018, chief operating officer from August 2013 to August 2015 and general counsel from July 2010 to September 2014. Prior to joining Zillow Group, Ms. Philips served as general counsel at FanSnap, Inc., a search engine for live event tickets, from June 2008 to June 2010, as general counsel at Pure Digital Technologies, Inc., the producer of Flip Video camcorders, from September 2007 to June 2008, and as general counsel at StubHub, Inc., an online live event ticket marketplace, from May 2005 to April 2006. Ms. Philips served as general counsel at Hotwire, Inc. from 2001 to 2004 and as its corporate counsel from 2000 to 2001. Ms. Philips was an attorney in private practice at Cooley Godward LLP from 1998 to 2000 and at Stoel Rives LLP from 1997 to 1998. Ms. Philips holds a B.A. in Political Science from the University of California, Berkeley, and a J.D. from the University of

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Chicago. Ms. Philips is well-qualified to serve as a director of our Board because of her senior management experience at a growth-oriented, publicly-traded company.

***Dee Robinson*** has served as a director since 2020 and is the founder and CEO of Robinson Hill, Inc., a Chicago-based concessions management firm founded in 1995 with locations in non-traditional venues focusing on airports. Prior to Robinson Hill, Ms. Robinson founded product merchandiser Unity Square, which sold ethnic-inspired products through a strategic partnership with Sears, Roebuck and Company. She has also served as an advertising executive for Leo Burnett and an associate product director for Johnson and Johnson Consumer Products Company, with additional experience in commercial banking at Ameritrust and Northern Trust. Ms. Robinson also served as a member of the Illinois Gaming Board from November 2015 until May 2019. Ms. Robinson holds an M.B.A. from Northwestern University, Kellogg School of Management and a B.A. from the University of Pennsylvania. We believe that Ms. Robinson's commercial success and gaming experience make her well qualified to serve as a member of our Board.

***Kenneth B. Rotman*** has served as a director since 2019 and is the Chief Executive Officer and Managing Director of Clairvest Group Inc., a publicly-traded Toronto-based private equity firm (Toronto Stock Exchange: CVG) with significant expertise and experience in the gaming industry. He has more than 25 years of experience as a private equity investor. Prior to joining Clairvest in October 1993, Mr. Rotman spent just under three years at E. M. Warburg, Pincus & Co. where Mr. Rotman principally focused on media, communications and manufacturing transactions in North America and the United Kingdom. In addition to serving on the board of directors of Clairvest, he has participated on the boards of numerous public and private companies, including: Also Energy, MAG Aerospace, NovaSource Power Services, Top Aces, Light Tower Rental, PEER 1 Network Enterprises, Hudson Valley Waste, Shepell•fgi, Sparkling Spring Water and Winters Brothers Waste Systems. Mr. Rotman has also served on the board of directors of numerous charitable organizations. He earned a B.A. from Tufts University in 1988, a M.Sc. from the London School of Economics in 1989 and a M.B.A. from New York University Stern School of Business in 1991. We believe that Mr. Rotman's experience with Clairvest Group Inc., and extensive experience as a private equity investor make him well qualified to serve as a member of our Board.

***David W. Ruttenberg*** has served as Accel's director since 2010. Mr. Ruttenberg founded and served as Chairman of Belgravia Group Limited, a real estate development company, since 2014. In addition, Mr. Ruttenberg is the founder and President of Lakewest, Inc. (a real estate investment company), President of Lakeden Ltd. (a real estate investment company), Partner of Lakewest Venture Partners (a venture investment company), Ruttenberg, Gilmartin and Reis LLC (law firm) and President of David C. & Sarajean Ruttenberg Arts Foundation (a private operating foundation). Mr. Ruttenberg received his Bachelor of Science degree in Economics from Cornell University and his Juris Doctor degree from Northwestern School of Law. We believe that Mr. Ruttenberg's business expertise, financial acumen and business industry contacts make him well qualified to serve as a member of our Board.

**Board Structure** 

Our amended and restated certificate of incorporation and our amended and restated bylaws provide for a classified board of directors with staggered three-year terms, consisting of the three classes as follows:

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| | | |
|:---|:---|:---|
| **Class** | **Director** | **Independent**  |
| Class I (term expires at 2023 annual meeting) | Karl Peterson | No |
|  | Dee Robinson | Yes |
|  | Andrew Rubenstein | Yes |
| Class II (term expires at 2024 annual meeting) | Gordon Rubenstein | No |
|  | David W. Ruttenberg | Yes |
| Class III (term expires at 2025 annual meeting) | Eden Godsoe | Yes |
|  | Kathleen Philips | Yes |
|  | Kenneth B. Rotman | Yes |

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The Board has determined that Messrs. Peterson, Rotman and Ruttenberg and Mses. Godsoe, Philips and Robinson each qualify as an "independent director," as defined in the corporate governance rules of the NYSE.

Only one class of directors will be elected at each annual meeting of stockholders, with the other classes continuing for the remainder of their respective three-year terms. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of our directors.

The division of our Board into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control of our Company.

**Board Leadership Structure** 

Our Corporate Governance Guidelines provide that our Board will be free to choose its chairperson in any way that it considers in the best interests of our Company at any giving point in time, and our Nominating and Corporate Governance Committee charter provides that the committee will periodically consider the leadership structure of our Board and make such recommendations to our Board with respect thereto as appropriate. Our Board currently believes that it should maintain flexibility in determining the Board leadership structure that is appropriate for the Company at a given time.

Currently, our leadership structure separates the roles of Chairman of the Board and Chief Executive Officer, with Mr. A. Rubenstein serving as our Chief Executive Officer and Mr. Peterson serving as our Chairman of the Board. Our Board believes that separating these roles provides the appropriate balance between strategy development, flow of information between management and the Boards, and oversight of management. We believe this provides guidance for our Board, while also positioning our Chief Executive Officer as the leader of the Company in the eyes of our customers, employees, and other stakeholders. As Chairman, Mr. Peterson, among other responsibilities, presides over regularly scheduled meetings of the Board, serves as a liaison between the directors, and performs such additional duties as our Board may otherwise determine and delegate. Our Board recognizes the time, effort, and energy that Mr. A. Rubenstein is required to devote to his position as our Chief Executive Officer in the current business environment, as well as the commitment required for a person to serve as our Chairman, particularly as the Board's oversight responsibilities continue to grow. By having Mr. Peterson serve as Chairman of the Board, Mr. A. Rubenstein is better able to focus his attention on running our Company. Additionally, Mr. Gordon Rubenstein serves as the Vice Chairman of the Board. His responsibilities as Vice Chairman include acting as a resource to other members of the Board in respect of industry practices, competitive landscape, regulatory issues, business opportunities and other matters, and leading Board meetings in conjunction with the Chairman of the Board, Mr. Peterson, or acting in such capacity in his absence.

**The Board's Role in Risk Oversight** 

**Hedging Policy**

Our insider trading policy prohibits Accel employees, officers and directors from engaging in hedging or monetization transactions involving Accel securities, including, among other things, zero-cost collars and forward sale contracts or the contribution of Accel securities to exchange funds that could be interpreted as having the effect of hedging in Accel securities. Additionally, our insider trading policy prohibits Accel employees, officers and

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directors from engaging in transactions involving options or other derivative securities on Accel's securities, such as puts and calls, whether on an exchange or in any other market, engaging in short sales of Accel's securities, including short sales "against the box," and using or pledging Accel securities as collateral in a margin account or as collateral for a loan.

**Board Participation** 

Our Board held seven meetings in fiscal year 2022. During fiscal year 2022, all of our directors attended all of the meetings of our Board and of the committees on which he or she serves or served, except Ms. Godsoe was absent from one special meeting of our Board and one meeting of each of the Audit, Compensation and Compliance Committees, Ms. Philips was absent from one regular meeting of our Board and Mr. Ruttenberg was absent from one special meeting of our Board. All of our directors attended the 2022 Annual Meeting of Stockholders.

**Director Independence** 

NYSE listing standards require that a majority of a company's board of directors be independent. An "independent director" is defined generally as a person other than an officer or employee of the company or its subsidiaries or any other individual having a relationship which in the opinion of the company's board of directors, would interfere with the director's exercise of independent judgment in carrying out the responsibilities of a director. Messrs. Ruttenberg, Rotman and Peterson and Mses. Godsoe, Robinson and Philips have been determined by the Board to be independent pursuant to the NYSE listing rules.

**Code of Business Conduct and Ethics**

We have adopted a code of business conduct and ethics applicable to all of our directors, officers and employees. Our code of business ethics and conduct is available on our website, at *www.accelentertainment.com* on the *"Investor Relations"* page. Any waiver for a director or an executive officer will be disclosed as required by applicable laws, rules and regulations.

**Board Committees** 

Our Board has the authority to appoint committees to perform certain oversight and other functions as directed by the Board. Our Board has an Audit Committee, a Compensation Committee, a Nominating and Corporate Governance Committee and a Compliance Committee. The composition and responsibilities of each committee are described below. Members will serve on these committees until their resignation or until otherwise determined by the Board.

***Audit Committee***

Our Audit Committee provides oversight of our accounting and financial reporting process, the audit of our financial statements and our internal control function. Among other matters, the Audit Committee is responsible for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting a firm to serve as the independent registered public accounting firm to audit the Company's consolidated financial statements, evaluating the performance of our independent registered public accounting firm and deciding whether to retain their services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensuring the independence of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing the scope and results of the audit with the independent registered public accounting firm and reviewing, with management and that firm, the Company's interim and year-end operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing procedures for employees to anonymously submit concerns about questionable accounting or audit matters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• considering the adequacy of the Company's internal controls and internal audit function:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing proposed waivers of the global code of conduct for directors, executive officers, and employees (with waivers for directors or executive officers to be approved by the board of directors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing material related party transactions or those that require disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preparing the audit committee report required by the SEC to be included in our annual proxy statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving or, as permitted, pre-approving all audit and non-audit services to be performed by the independent registered public accounting firm.

Our Audit Committee has the authority to retain advisors as the committee deems appropriate. Our Audit Committee is comprised of Mr. Ruttenberg, the chair of the committee, and Mses. Godsoe and Philips. All members of our Audit Committee qualify as independent directors according to the rules and regulations of the SEC and the NYSE with respect to audit committee membership. Mr. Ruttenberg is an "audit committee financial expert," as such term is defined in Item 401(h) of Regulation S-K. Our Audit Committee has a written charter that sets forth our Audit Committee's purpose and responsibilities.

***Compensation Committee***

Our Compensation Committee adopts, administers and reviews the compensation policies, plans and benefit programs for our executive officers and all other members of our executive team. Our Compensation Committee also oversees succession planning with respect to our management team. Pursuant to its written charter, the Compensation Committee may delegate its authority to subcommittees, may delegate to management the administration of the Company's cash-based and equity-based compensation plans, and may delegate to the company's Chief Executive Officer, including in connection with other officers, the authority to approve cash awards or make grants of certain equity awards. Our Compensation Committee is also responsible for the duties set forth in its written charter, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving the compensation of the Company's executive officers ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the performance of the Company's chief executive officer in light of the Company's goals and objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending to the Board the compensation of the Company's directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administering the Company's cash and equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or making recommendations to the Board with respect to, incentive compensation and equity plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the Company's overall compensation philosophy and policies.

Our Compensation Committee is comprised of Ms. Godsoe, the chair of the committee, Mr. Peterson and Ms. Philips. Mr. Peterson and Mses. Godsoe and Philips are independent directors according to the rules and regulations of the SEC and the NYSE with respect to compensation committee membership. Our Compensation Committee has a written charter that sets forth the Compensation Committee's purpose and responsibilities.

***Nominating and Corporate Governance Committee***

Our Nominating and Corporate Governance Committee is responsible for, among other things, making recommendations regarding corporate governance, the composition of our Board, identification, evaluation and

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nomination of director candidates and the structure and composition of committees of our board of directors. In addition, our nominating and corporate governance is responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying and recommending candidates for membership on the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommending directors to serve on board committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending the Company's corporate governance guidelines and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing senior management succession, including with respect to the chief executive officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating, and overseeing the process of evaluating, the performance of the Board and individual directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting the Board on corporate governance matters.

Our Nominating and Corporate Governance Committee has the authority to retain advisors as the committee deems appropriate. Our Nominating and Corporate Governance Committee is comprised of Mr. Peterson, the chair of the committee, Mses. Philips and Robinson and Mr. Ruttenberg. Our Nominating and Corporate Governance Committee has a written charter that sets forth the committee's purpose and responsibilities.

***Compliance Committee***

Our Compliance Committee is responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensuring compliance with gaming laws, regulations, policies applicable to the operations of the Company in all jurisdictions in which it conducts business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing appropriate reports to gaming authorities advising the authorities of the Company's compliance efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performing due diligence in respect of proposed transactions and associations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collecting information from gaming authorities to help the Company maintain and enhance its compliance with gaming laws and regulations.

Our Compliance Committee is comprised of Ms. Philips, the chair of the committee, Ms. Godsoe, Mr. Peterson, and Ms. Robinson. Our Compliance Committee has a written charter that sets forth the committee's purpose and responsibilities.

**Identifying and Evaluating Director Candidates** 

Our Nominating and Corporate Governance Committee will consider persons recommended by stockholders for inclusion as nominees for election to our board of directors. Stockholders wishing to recommend director candidates for consideration by the Nominating and Corporate Governance Committee may do so by writing to the attention of the General Counsel and Chief Compliance Officer at 140 Tower Drive, Burr Ridge, Illinois 60527, and giving the recommended nominee's name, biographical data and qualifications, accompanied by the written consent of the recommended nominee.

With the goal of developing an experienced and highly qualified board of directors, our Nominating and Corporate Governance Committee is responsible for developing and recommending to our Board the desired qualifications, expertise and characteristics of members of our Board, including qualifications that the committee believes must be met by a committee-recommended nominee for membership on our Board and specific qualities or skills that the committee believes are necessary for one or more of the members of our Board to possess. Such factors include

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independence, integrity, diversity, age, skills, financial and other expertise, breadth of experience, knowledge about the Company's business or industry and willingness and ability to devote adequate time and effort to Board responsibilities in the context of the existing composition, other areas that are expected to contribute to the Board's overall effectiveness and needs of the Board and its committees.

**Board Diversity** 

While we do not have a formal policy outlining the diversity standards to be considered when evaluating director candidates, our objective is to foster diversity of thought on our Board. To accomplish that objective, the Nominating and Corporate Governance Committee considers ethnic and gender diversity, as well as differences in perspective, professional experience, education, skill, and other qualities in the context of the needs of our board of directors. Nominees are not to be discriminated against on the basis of race, religion, national origin, sex, sexual orientation, disability, or any other basis prohibited by law. The Nominating and Corporate Governance Committee evaluates its effectiveness in achieving diversity on the board of directors through its annual review of board member composition. The table below summarizes the gender and ethnic diversity of our directors. Their diversity of experiences and expertise facilitates robust dialogue and thoughtful decision-making on our Board.

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| | | | |
|:---|:---|:---|:---|
| **Total Number of Directors - 8** | | | |
|  | Male | Female | Declined to Disclose |
| Directors | 3 | 3 | 2 |
| Number of Directors Who Identify in Any of the Categories Below: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;White | 3 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Black |  | 1 |  |

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**Availability of Corporate Governance Information** 

Our Board has adopted charters for our Audit, Compensation, Nominating and Corporate Governance and Compliance Committees describing the authority and responsibilities delegated to the committee by our Board. Our Board has also adopted a code of ethics that applies to all of our employees, including our executive officers and directors, and those employees responsible for financial reporting. We post on our website, at *www.accelentertainment.com* on the *"Investor Relations"* page, the charters of our Audit, Compensation, Nominating and Corporate Governance and Compliance Committees and the code of business conduct and ethics referenced above. A copy of the code of ethics has been provided to each member of our management team. We intend to disclose any amendments to our code, or any waivers of its requirements, on our website to the extent required by applicable SEC or NYSE rules. The inclusion of our website address in this proxy statement does not include or incorporate by reference the information on or accessible through our website into this proxy statement. These documents are also available in print to any stockholder requesting a copy in writing from our General Counsel and Chief Compliance Officer at 140 Tower Drive, Burr Ridge, Illinois 60527.

**Communications with our Board of Directors** 

Stockholders and other interested parties wishing to communicate with our Board or with an individual member of our Board may do so by writing to our Board or to the particular member of our Board, and mailing the correspondence to the attention of our General Counsel and Chief Compliance Officer at 140 Tower Drive, Burr Ridge, Illinois 60527. All such communications will be forwarded to the appropriate member or members of our Board, or if none is specified, to the Chairman of our Board.

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**PROPOSAL 1: ELECTION OF DIRECTORS**

**Nominees**

Our Nominating and Corporate Governance Committee recommended, and the board of directors nominated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Karl Peterson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Dee Robinson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Andrew Rubenstein

as nominees for election as Class I members of our Board. Mr. Peterson, Ms. Robinson and Mr. Rubenstein are presently Class I directors of our Company. Each nominee and has consented to serve a three-year term if elected, concluding at the 2026 annual meeting of stockholders. Biographical information about each of our directors, including Mr. Rubenstein, Mr. Peterson and Ms. Robinson, is contained in the section above. At the Annual Meeting, three directors will be elected to our board of directors.

**Required Vote**

The three nominees receiving the highest number of affirmative "FOR" votes shall be elected as directors. Unless marked to the contrary, proxies received will be voted "FOR" each of these three nominees.

**Recommendation of the Board**

**OUR BOARD OF DIRECTORS RECOMMENDS A VOTE "*FOR*" ELECTION OF EACH OF THE ABOVE-NAMED NOMINEES.**

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**DIRECTOR COMPENSATION**

Non-employee directors other than the Vice Chairman receive an annual cash retainer of $60,000, payable quarterly, a restricted stock unit (*"RSU"*) grant with a grant date value of $100,000 that vests annually and reimbursement of expenses relating to attendance at board and committee meetings. In recognition of the additional leadership responsibilities and substantial time requirements of the Vice Chairman role, Gordon Rubenstein receives an annual RSU award with a grant date value of $300,000. Mr. Peterson agreed to waive all non-employee director compensation in 2022.

Members of our Audit Committee receive an additional annual cash retainer of $5,000 and the chairperson of our Audit Committee receives an additional cash retainer of $25,000. Members of our Compensation Committee receive an additional annual cash retainer of $5,000. The chairperson of our Compensation Committee receives an additional cash retainer of $20,000. Members of our Nominating and Corporate Governance Committee receive an additional annual cash retainer of $5,000. Members of our Compliance Committee receive an additional annual cash retainer of $5,000 and the chairperson of our Compliance Committee receives an additional cash retainer of $15,000. The Company's non-employee directors may elect to defer receipt of payment of their annual cash retainer and chair and committee member fees in the form of Company RSUs.

In addition, on February 27, 2020, our Board approved the entry by the Company into an advisor agreement with Gordon Rubenstein, pursuant to which Gordon Rubenstein will serve as a strategic advisor to the Company and consult with and advise the Company's senior management regarding, among other things, industry trends and opportunities, recruitment of executive leadership and other strategic aspects of the Company's business, based on his particular industry knowledge and insight. As compensation for the services to be provided by Gordon Rubenstein pursuant to his advisor agreement, our Board approved a grant to Gordon Rubenstein in 2020 of 90,000 stock options and 60,000 RSUs, which will vest over a 5-year period subject to Gordon Rubenstein's continued service to the Company pursuant to the advisor agreement.

**2022 Director Compensation Table**

The following table sets forth a summary of the compensation paid to our non-employee directors pursuant to our compensation policies for the year ended December 31, 2022. Andrew Rubenstein is not paid any fees or other compensation for services as a member of our Board of Directors.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees earned or paid in cash ($)**<sup>(1)</sup> | **Stock awards $**<sup>(2)(3)</sup> | **Total ($)** |
| Karl Peterson | $— | $— | $— |
| Gordon Rubenstein |  | 299994 | 299994 |
| Kathleen Philips |  | 189989 | 189989 |
| David W. Ruttenberg |  | 189989 | 189989 |
| Eden Godsoe |  | 189989 | 189989 |
| Kenneth B. Rotman |  | 159981 | 159981 |
| Dee Robinson |  | 169984 | 169984 |

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_____________________

<sup>(1)</sup> Each of our non-employee directors entitled to receive cash fees in calendar year 2022 has elected to receive such fees in the form of restricted stock units.

<sup>(2)</sup> Represents the full grant date fair value of the awards granted to the non-employee directors in 2022, as calculated in accordance with Financial Accounting Standards Board ("*FASB*") Accounting Standards Codification ("*ASC*") Topic 718 — Stock Compensation. The full grant date fair value is the amount the Company will expense over the awards' vesting period. The amounts do not reflect the actual amounts that may be realized by the non-employee directors. A discussion of the assumptions used in the valuation of the stock awards may be found in Note 18 to the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

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<sup>(3)</sup> As of December 31, 2022, our non-employee directors held the following outstanding option awards and unvested RSU awards:

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| | | |
|:---|:---|:---|
| **Name** | **Shares Underlying Option Awards** | **Unvested RSU Awards** |
| Karl Peterson |  |  |
| Gordon Rubenstein | 90000 | 63603 |
| Kathleen Philips |  | 14948 |
| David W. Ruttenberg |  | 14948 |
| Eden Godsoe |  | 14948 |
| Kenneth B. Rotman |  | 12587 |
| Dee Robinson |  | 13374 |

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**EXECUTIVE OFFICERS**

The following table sets forth information regarding our executive officers as of March 15, 2022:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Titles** | **Officer Since** |
| Andrew Rubenstein | 54 | Chief Executive Officer and President | 2010 |
| Mathew Ellis | 37 | Chief Financial Officer | 2022 |
| Derek Harmer | 55 | General Counsel and Chief Compliance Officer | 2012 |
| Mark Phelan | 54 | Chief Revenue Officer | 2019 |

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***Andrew Rubenstein's*** biography is set forth under the heading "*Our Board*" above.

***Mathew Ellis*** has served as Accel's Chief Financial Officer since 2022. Mr. Ellis was the Company's Senior Vice President of Corporate Strategy since June 2019 and previously served as the Vice President of Operational Strategy from December 2015 to June 2017. From June 2017 to May 2019, Mr. Ellis was the Vice President of Financial Planning and Analysis at TSI - Transworld Systems, Inc., an accounts receivable management company. Prior to that, Mr. Ellis served as a manager at International Trading Group, Inc., a proprietary futures and commodities trading company, from January 2012 to December 2015 and an Audit Senior at Deloitte & Touche LLP from August 2009 to January 2012. Mr. Ellis earned a Bachelor of Arts in Economics and a Master of Accounting from the University of Michigan in 2008 and 2009, respectively.

***Derek Harmer*** has served as Accel's General Counsel, Chief Compliance Officer and Secretary since 2012, and currently serves as Secretary of the Company. Mr. Harmer has served as Vice President and Secretary of the Illinois Gaming Machine Operators Association for the past four years. Prior to joining Accel in 2012, Mr. Harmer was the President of Stadium Technology Group, a software and systems company dedicated to creating race and sports book management systems for kiosk and mobile platforms. Prior to joining Stadium Technology Group, Mr. Harmer served as Senior Vice President of Progressive Gaming International Corporation where he oversaw a strategic business unit created to commercialize emerging gaming technologies. Prior to joining Progressive Gaming International Corporation, Mr. Harmer served in various management positions at WMS Gaming Inc. and as Deputy Attorney General in the state of Nevada, Gaming Division, where he was in house counsel to the Nevada Gaming Control Board and Nevada Gaming Commission. Mr. Harmer received his Bachelor of Arts degree in Criminal Justice from the University of Illinois-Chicago and his Juris Doctor degree from Drake University.

***Mark Phelan*** has served as Accel's Chief Revenue Officer since 2017. Prior to joining Accel in 2017, Mr. Phelan has worked as a Director of Research and Portfolio Manager at SFG Asset Advisors, an investment office. Prior to this experience, Mr. Phelan was the Chief Executive Officer of M22 Capital LLC, a Registered Investment Advisor that managed capital for high net worth individuals, from 2011 to 2013. He also served as a Managing Director of Piper Jaffray & Co., an investment banking platform, from 2004 to 2011. Prior to Piper Jaffray, Mr. Phelan served as the Head of Asian Derivatives Trading at DRW Trading Group. Mr. Phelan received his Bachelor of Arts in

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English Language and Literature/Letters from the University of Chicago, a Masters of Arts in International Relations and Affairs from the University of Chicago and a Master of Business Administration from the University of Chicago Booth School of Business.

Each of our executive officers serves at the discretion of our board of directors and holds office until his or her successor is duly elected and qualified or until his or her earlier resignation or removal.

**Compensation Committee Interlocks and Insider Participation**

Our Compensation Committee is comprised of Eden Godsoe, Karl Peterson and Kathleen Philips. Other than Mr. Peterson, who served as President and Chief Executive Officer of Pace prior to the consummation of the Business Combination, none of the foregoing individuals has ever served as an officer or employee of the Company. For information required to be disclosed under Item 404(a) of Regulation S-K, if any, for Mr. Peterson and Mses. Godsoe or Philips, please see the section entitled "*Certain Relationships and Related Party Transactions*".

None of our executive officers currently serves, or in the past year has served, as a member of the board or compensation committee of any other entity at which any of our executive officers have served on the board, or the Compensation Committee, of the Company.

**EXECUTIVE COMPENSATION**

**Compensation Discussion and Analysis**

***Introduction***

Accel's business consists of the installation, maintenance and operation of gaming terminals, redemption devices that disburse winnings and contain automated teller machine ("*ATM*") functionality, and other amusement devices in authorized non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. Accel currently operates in Illinois, Montana, Nevada, Georgia, Nebraska and Iowa.

The information contained in this Compensation Discussion and Analysis ("*CD&A*") and the executive compensation disclosures below is provided for the individuals who were our named executive officers for the year ended December 31, 2022, whom we refer to collectively as the "*NEOs*":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Andrew Rubenstein, Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mathew Ellis, Chief Financial Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Brian Carroll, Former Chief Financial Officer <sup>(1)</sup>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Derek Harmer, General Counsel and Chief Compliance Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mark Phelan, Chief Revenue Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Michael Marino, Former Chief Commercial Officer <sup>(2)</sup>

_____________________

<sup>(1)</sup> Mr. Carroll retired as our Chief Financial Officer in April 2022 and continues to be employed and provide transition services to the Company through his expected retirement at the end of 2023.

<sup>(2)</sup> Mr. Marino left the Company in August 2022.

***Executive Summary***

*2022 Business Highlights* 

Despite the current inflationary environment, Accel's performance continues to demonstrate the strength and resilience of its business model. The Company believes, and results demonstrate, that players continue to seek out its hyper-local, high quality offering due to its convenience and appeal. Accel's business partners continue to see the

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benefits of gaming in their establishments, and Accel believes they will continue to invest in gaming due to the incremental profits they receive. During 2022, Accel achieved a number of notable successes, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Setting a new record with total revenue of $970 million, net income of $74 million and Adjusted EBITDA of $162 million, year-over-year increases of 32%, 135% and 16%, respectively, despite macro-economic headwinds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executing a key first step in our long-term strategy by consummating the acquisition of Century Gaming, Inc. in June, expanding our operations to Montana, Nevada, Louisiana, South Dakota and West Virginia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entering into the Nebraska market in March both organically and through the strategic acquisitions of VVS, Inc. and River City Amusement Company in August and September, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Returning $79 million of capital to Accel's shareholders through our previously announced $200 million share repurchase program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Actively managing Accel's exposure to interest rate risk by hedging $300 million of debt in January.

For additional discussion of Accel's results, including a reconciliation of Adjusted EBITDA to net income, refer to "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" section in Accel's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023.

***Compensation Philosophy and Objectives***

The primary objectives of our executive compensation program are: (i) to be competitive with compensation paid by companies in the same market in which we compete for executive talent; (ii) to align executive compensation with our corporate strategies, business objectives and the interests of our stockholders by rewarding successful execution of our business plan and key corporate objectives; and (iii) to provide the majority of total compensation in the form of variable compensation, comprised of annual cash incentive awards and long-term equity incentive awards, with compensation dependent upon corporate performance results and the creation of long-term stockholder value.

We seek to achieve these objectives by providing compensation that is competitive with the practices of companies in our peer group and market for executive talent in our geography, with individual pay decisions approved in the context of both company and individual performance. In addition to our peer group, we compete with much larger casino, gaming and entertainment companies for world class talent.

In addition, the Compensation Committee seeks to ensure that we maintain sound governance and compensation policies and practices. In designing and overseeing our executive compensation program, we strive to employ best practices and regularly assess our policies and practices.

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| | |
|:---|:---|
| ***What we do*** | ***What we do not do*** |
| We emphasize a pay-for-performance culture through a performance-based annual incentive plan and by delivering a substantial portion of total compensation for our NEOs in the form of long-term equity awards. | We do not provide guaranteed annual bonuses to our executive officers. |
| We maintain and annually review a group of peer companies, which we use as a data point for all compensation decisions for our executives. The peer group is selected to include public companies that have a similar revenue and market capitalization. We compete with these companies for executive talent as well as larger gaming and hospitality companies. | We do not provide significant perquisites or personal benefits to our executives. |
| Our compensation committee directly engages an independent compensation consultant, Aon, to provide analysis for all aspects of our executive compensation decisions and guidance on other executive compensation matters independent of management. | We do not provide any excise tax reimbursement payments (including "gross-ups") with respect to payments or benefits contingent upon a change in control of our Company. |
| We maintain stock ownership guidelines for our Chief Executive Officer, our other executive officers and the non-employee members of our Board of Directors. | We do not offer pension arrangements to our executive officers, other than our 401(k) plan, which is open to all U.S salaried employees. |
| Beginning in 2023, our executive officers will be subject to a compensation recovery "clawback" policy that provides for the recovery of incentive-based compensation under certain circumstances in the event we restate our financial statements. | We do not provide "single trigger" equity acceleration upon a change in control of the Company. |
|  | We do not permit our NEOs, the members of our Board of Directors or other employees to enter into hedging or similar transactions designed to decrease risks associated with holding our equity securities. |

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***Setting Executive Compensation***

*Role of the Compensation Committee*

The Compensation Committee operates under a written charter adopted by the Board of Directors. All decisions regarding compensation of our executive officers are made by the Compensation Committee. The Compensation Committee provides regular updates to the Board of Directors regarding its decisions. The Compensation Committee is responsible for reviewing periodically our compensation plans, philosophy and programs, and overseeing the evaluation and compensation of our executive officers. Historically, and during 2022, our Chief Executive Officer provided recommendations to the Compensation Committee regarding the compensation of our executive officers (other than for himself), which the Compensation Committee took under advisement in establishing and approving compensation of our executive officers. The Compensation Committee also administers our incentive compensation plans.

Going forward, our executive compensation program will be reviewed annually by the Compensation Committee. In the first quarter of each year, the Compensation Committee will review the performance of each of our executive officers during the previous year. At this time, the Compensation will Committee also review our actual corporate performance for the prior year and make the final annual incentive payment determinations based on such performance and the Compensation Committee's evaluation of each executive's individual performance for the prior year. In connection with this annual review, the Compensation Committee will also review and adjust, as appropriate, base salaries and annual target bonus levels for the NEOs and review and grant long-term equity incentive awards to the NEOs, in each case based on the Compensation Committee's performance evaluations,

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competitive market data provided by its independent compensation consultant, and other factors considered appropriate by the Compensation Committee, including internal pay equity. During the year, the Compensation Committee may also evaluate and make compensation adjustments or grants of additional discretionary bonuses and/or long-term incentive awards to our executives and certain other eligible employees, as and to the extent deemed appropriate by the Compensation Committee. The Compensation Committee will be supported by management and its independent compensation consultant, as further described below.

*Compensation Determination Process*

During 2022, the Compensation Committee received and considered the Chief Executive Officer's subjective managerial assessment of each executive officer (other than for himself). The Chief Executive Officer evaluated several key executive performance criteria in his overall evaluation performance with no specific weight being applied to any one factor. Matters evaluated included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance of the business or functional unit or department the executive was responsible for managing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The executive's contributions to achievement of the Company's financial and operational goals and strategic objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ability of the executive to lead and develop key subordinates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Related individualized and function-specific managerial observations and impressions of executive job performance.

Going forward, the Compensation Committee will determine each element of an executive's compensation package within the framework of the objectives of its executive compensation program based on numerous factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The individual's particular background, track record and circumstances, including training and prior relevant work experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The individual's role with us and the compensation paid to similar persons in the peer companies represented in the compensation data that the Compensation Committee reviews;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The demand for individuals with the specific expertise and experience of the executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Internal equity among the executive group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Competitive market data for the role;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance goals and other expectations for the position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Uniqueness of industry skills.

In general, the terms of our executive employment agreements are initially negotiated by management and our legal counsel. The agreements for executives over whose compensation the Compensation Committee has authority are presented to the Compensation Committee for its consideration and approval.

During the review and approval process for the employment agreements for executives under its purview, and during its annual review of executive compensation, the Compensation Committee considers the appropriate amounts for each component of compensation and the compensation design appropriate for the individual executive. We seek to achieve an appropriate mix between equity incentive awards and cash payments in order to meet our objectives. In determining each element of compensation for any given year, the Compensation Committee considers and determines each element individually and then reviews the resulting total compensation and determines whether it is reasonable and competitive.

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*Role of Management*

The Compensation Committee has historically relied and will continue to rely on input and recommendations of our Chief Executive Officer when evaluating factors relative to the compensation of the NEOs. Our Chief Executive Officer provides the Compensation Committee with his assessment of the performance of these individuals and his perspective on the applicable factors described above in developing his recommendations for their compensation, including salary adjustments, cash bonuses and equity incentives. The Compensation Committee discusses our Chief Executive Officer's recommendations, with input from our independent consultant, and then approves or modifies the recommendations in collaboration with the Chief Executive Officer.

Our Chief Executive Officer's compensation is determined solely by the Compensation Committee, which approves any adjustments to his base salary, cash bonus or equity incentives from year to year. The Compensation Committee reviews the Chief Executive Officer's performance for the year and competitive market data from our independent consultant, and makes determinations regarding his compensation independently and without him present. As required by the NYSE listing standards and good corporate governance, the Chief Executive Officer does not participate in deliberations concerning, or vote on, his compensation arrangements.

In addition to recommendations put forth by our Chief Executive Officer, other members of our executive team are involved in the compensation process by assembling data to present to the Compensation Committee. Other members of our executive management team also may attend portions of the Compensation Committee meetings from time to time.

*Role of the Independent Compensation Consultant*

For 2022, the Compensation Committee engaged Aon's Human Capital Solutions Practice, a division of Aon plc ("*Aon*"), an independent compensation consultant, to provide independent executive compensation advisory services. Aon did not provide any other services to us in 2022 beyond its engagement as an advisor to the Compensation Committee on executive and director compensation matters. After review and consultation with Aon and management, the Compensation Committee determined that Aon was independent and that there was no conflict of interest resulting from retaining Aon during the year ended December 31, 2022. In reaching these conclusions, the Compensation Committee considered the factors set forth in Exchange Act Rule 10C-1 and NYSE listing standards. For 2023, the Compensation Committee also engaged Aon, and Aon recommended an appropriate peer group for setting 2023 compensation as described below and will conduct an annual total compensation study for executive and key manager positions.

*Peer Companies and Competitive Market Data*

In September 2019, prior to becoming a public company in November 2019, the Compensation Committee retained Aon to perform a total compensation study for our executive team to assist with compensation decisions for 2020 as a newly public company. The Compensation Committee continued to utilize those study results for assistance with compensation decisions in 2021 and 2022.

The Compensation Committee approved the peer group with input from Aon, based on the following parameters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Similar industries as designated by the GICS code classifications of Casinos and Gaming and Leisure Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual revenues of approximately 0.4x to 3x Accel's annual revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Peer companies being used by the potential peer companies in each of the two GICS code classifications; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Companies that Accel competes with for management talent and business.

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The peer group approved by the Compensation Committee in September 2019 included the following eleven companies:

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| | |
|:---|:---|
| **Company** | **Company** |
| Cedar Fair, L.P. | Monarch Casino & Resort |
| Churchill Downs | Planet Fitness, Inc. |
| Empire Resorts Inc. | Red Rock Resorts, Inc. |
| Everi Holdings Inc. | Speedway Motorsports |
| Golden Entertainment, Inc. | Twin River Worldwide |
| International Speedway | |

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At the time the Compensation Committee approved the peer group, our annual revenues were approximately $480 million and the median of the approved peer companies was approximately $531 million.

In the Fall of 2022, as our annual revenues had grown to nearly $1 billion, the Compensation Committee retained Aon to perform an updated total compensation study to assist with 2023 pay decisions. To that end, the Compensation Committee reviewed and approved a new peer group based on the following parameters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Casino, gaming and entertainment companies, including recommendations from management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Companies using Accel as a peer company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Peer companies utilized by other potential peer companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenues of approximately 0.4x to 3.0x of Accel's annual revenues

The peer group approved by the Compensation Committee for the October 2022 compensation study used to assist with 2023 pay decisions for the Company's executive officers for 2023 consists of the following 16 companies in the casino, gaming and entertainment industries.

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| | |
|:---|:---|
| **Company** | **Company** |
| Bally's Corporation | Light & Wonder, Inc. |
| Boyd Gaming Corporation | Madison Square Garden Entertainment Corp. |
| Century Casinos, Inc. | Monarch Casino & Resort, Inc. |
| Churchill Downs Incorporated | Penn Entertainment, Inc. |
| Everi Holdings, Inc. | PlayAGS, Inc. |
| Full House Resorts, Inc. | Red Rock Resorts, Inc. |
| Golden Entertainment, Inc. | Rush Street Interactive, Inc. |
| International Game Technology PLC | SciPlay Corporation |

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This peer group will be disclosed again in our 2024 proxy covering 2023 pay decisions. Peer group compensation disclosure will be supplemented with survey market data for selected roles, where broader U.S. market comparisons are relevant. We believe the review of both peer group and survey data will provide an appropriate comprehensive market overview for determining compensation adjustments.

The Compensation Committee will use competitive compensation data from the annual total compensation study of peer companies and surveys to inform decisions about overall compensation opportunities and specific compensation elements. Additionally, the Compensation Committee will use multiple reference points when establishing targeted compensation levels. The Compensation Committee will not benchmark specific compensation elements or total compensation to any specific percentile relative to the peer companies or the broader United States market. Instead, the Compensation Committee will apply judgment and discretion in establishing targeted pay levels, taking into account not only competitive market data, but also factors such as Company, business and

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individual performance, scope of responsibility, critical needs and skill sets, leadership potential and succession planning.

***Key Elements of Executive Compensation Program***

*Base Salary*

Base salary is the primary fixed component of our executive compensation program. Base salaries for our executive officers are generally reviewed annually in June of each year. Changes in base salary applicable to fiscal year 2022 were effective as of July, in accordance with our current practice of reviewing and adjusting compensation at the beginning of the fiscal year, for Messrs. Rubenstein, Ellis, Harmer and Phelan.

For Mr. Ellis, his 2022 base salary was determined in connection with his appointment to Chief Financial Officer in April 2022.

For Mr. Carroll, in November 2021 we entered into an amended and restated employment agreement through his expected retirement date of December 2023, including a reduced base salary for 2022 and 2023.

For Mr. Phelan, his 2022 base salary was increased to reflect his expanded responsibilities of developing new markets outside of Georgia.

In August 2022, Mr. Marino resigned from the Company. As a result, his 2022 base salary reflects his annualized base salary as of the date of his resignation.

In fiscal year 2022 and 2021, the base salaries for our NEOs as of December 31 of each respective year was as follows:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **2021 Base Salary** | **2022 Base Salary** | **% Change** |
| Andrew Rubenstein | $780000 | $800000 | 2.56% |
| Mathew Ellis | 252500 | 350000 | 38.61% |
| Brian Carroll | 363000 | 160000 | (55.92)% |
| Derek Harmer | 414000 | 425000 | 2.66% |
| Mark Phelan | 300000 | 400000 | 33.33% |
| Michael Marino | 512500 | 512500 | —% |

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During 2022, base salary adjustments and determinations were recommended by the Chief Executive Officer based on the subjective managerial assessment of each executive officer (other than for himself) as described above under "*—Setting Executive Compensation*" and reviewed, modified as appropriate, and approved by the Compensation Committee based on a review of external market data provided by Aon and internal alignment objectives.

*2022 Short-Term Incentive Programs* 

Accel's short-term incentive plan is designed to help (i) attract and retain talented executive officers, (ii) reward achievement of strategic, operational, and financial objectives that support our goal of enhancing stockholder value, and (iii) motivate executive officers to achieve superior performance in their areas of responsibility. Together with equity awards, Accel's cash bonus compensation is one of the main vehicles for providing performance-based compensation to executive officers. The Compensation Committee and Chief Executive Officer consider various factors in determining the form and structure of the cash bonus arrangement that is most appropriate for attracting, retaining, rewarding, and motivating the individual executive officer.

For 2022, our executive officers' short-term incentive compensation opportunities were based on the achievement against corporate and individual performance objectives. The executives' annual short-term incentive target payouts and the corporate and individual performance objectives were established at the beginning of 2022 based on

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recommendations by the Chief Executive Officer and then reviewed, modified and approved by the Compensation Committee, based on the Chief Executive Officer's subjective evaluation of the appropriate targets to help retain, reward, and motivate the applicable executive officer. In recommending these targets, the Chief Executive Officer took into account the same factors described above in "*—Setting Executive Compensation—Compensation Determination Process*." In recommending target bonus amounts, the Chief Executive Officer also considered his expectations for the business department headed by each executive officer and the executive officers' potential for achieving the expectations.

The Compensation Committee determined that Company and individual performance warranted the annual incentive payments in the following chart based on a review of financial metrics and other important achievements. The Committee considered the following factors in making its determination, as well the Chief Executive Officer's subjective determination of each executive officer's overall performance. No one factor was assigned any specific weighting or dollar amount of the total bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue as against prior year and current year plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA as against prior year and current year plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The results of the executive officers' 360° performance reviews

The table below summarizes the target and annual incentive award earned by each NEO for 2022:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Target Annual Incentive Bonus** <br>**(% of Salary)** | **2022 Target Annual Incentive** | **2022 Actual Annual Incentive** |
| Andrew Rubenstein | 100% | $800000 | $720000 |
| Mathew Ellis | 50% | 175000 | 164500 |
| Brian Carroll | —% |  |  |
| Derek Harmer | 55% | 233750 | 198688 |
| Mark Phelan | 50% | 200000 | 200000 |
| Michael Marino<sup>(1)</sup> | 50% | 256250 |  |

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<sup>(1)</sup> Mr. Marino left Accel on August 1, 2022 and, as a result, was not eligible to receive a 2022 annual incentive payment.

*2023 Short Term Incentive Program* 

In February 2023, the Compensation Committee approved a new short-term incentive program ("*STI*") for fiscal year 2023. The 2023 STI is designed to motivate and reward our NEOs for achieving annual performance objectives by tying the majority of the STI award to attainment of a pre-established financial goal defined as Adjusted EBITDA ("*AEBITDA*"). We believe this program supports our "pay-for-performance" culture.

*Financial Component (80%)*. 80% of the target STI payout will be determined formulaically based on achievement of an annual target for the Company's AEBITDA (as defined in in the Company's annual and quarterly reports filed with the SEC) (the "*Financial Component*"). Each year, the Compensation Committee will set an Adjusted EBITDA target that the Compensation Committee believes is rigorous yet achievable if the Company successfully executes against its operating plan for that year. Potential STI payouts for the Financial Component will range from 0% to 200% of target for performance ranging from 85% to 115% of the AEBITDA target, with payouts interpolated between the performance points.

*Qualitative Component (20%)*. Each year, the Compensation Committee will establish individual performance goals for its executives to be used to determine the vesting of the qualitative component under STI. These goals will be

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based upon a comprehensive assessment of the Company against its long-term strategic plan and its ability to achieve said goals with its current leadership team, with no specific weighting attributed to any one goal.

*2022 Long-Term Incentive Program* 

We grant long-term incentive equity awards with multi-year vesting requirements to incentivize and reward our NEOs for long-term corporate performance based on the value of our Class A-1 common stock and, thereby, to align the interests of our NEOs with those of our stockholders. Time vesting RSUs and stock options have historically represented the majority of the compensation awarded to our NEOs.

During fiscal year 2022, we granted annual long-term incentive awards to Messrs. Rubenstein, Ellis, Harmer, Phelan and Marino. The Compensation Committee approved these grants with a target value with consideration given to the competitive market data provided by Aon, the individual performance and contribution of our executives, as well as our strong Company performance relative to both our compensation peers and broader market.

For Messrs. Rubenstein, Ellis, Harmer, Phelan and Marino, the target value of equity approved by the Compensation Committee was allocated at approximately 60% to 65% into time-vesting RSUs and 35% to 40% into time-vesting stock options, in both cases based on the 30-trading day average closing price of our Class A-1 common stock through the period ending on the date of grant.

For Mr. Carroll, as result of his retirement as our Chief Financial Officer during fiscal 2022, he did not receive long term incentive awards.

For Mr. Ellis, he received additional time-vesting stock options exercisable for 50,000 shares and 50,000 RSUs in connection with his promotion to Chief Financial Officer in April 2022.

For Mr. Marino, his unvested stock options and RSUs were forfeited in connection with his resignation from the Company in August 2022.

The following table summarizes our 2022 equity grants:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number of:** | **Number of:** | **Value of:** <sup>(1)</sup> | **Value of:** <sup>(1)</sup> | |
|<br>**Name** | **Options Granted** | **RSUs Granted** | **Options Granted** | **RSUs Granted** |<br>**Total** |
| Andrew Rubenstein | 111323 | 111323 | $848087 | $1414915 | $2263002 |
| Mathew Ellis<sup>(2)</sup> | 62738 | 62738 | 463697 | 762900 | 1226597 |
| Brian Carroll |  |  |  |  |  |
| Derek Harmer | 29543 | 29543 | 225066 | 375492 | 600558 |
| Mark Phelan | 28544 | 28544 | 217455 | 362794 | 580249 |
| Michael Marino | 36572 | 36572 | 278615 | 464830 | 743445 |

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<sup>(1)</sup> These amounts reflect the Compensation Committee's methodology for determining the equity awards during its compensation review process and do not reflect the actual economic value that may ultimately be realized by the NEOs.

<sup>(2)</sup> In March 2022, Mr. Ellis was granted 12,738 each of stock options and RSUs in respect of his annual grant for 2022. In April 2022, Mr. Ellis was granted an additional 50,000 each of stock options and RSUs in connection with his promotion to Chief Financial Officer.

The stock options and RSUs granted to Messrs. Rubenstein, Harmer and Phelan vest 25% on the first anniversary of the grant date and the remainder will vest as to 1/16 of the total award in quarterly installments thereafter, for a total four-year vesting time horizon.

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For Mr. Ellis, 12,738 each of the stock options and RSUs granted in March 2022 vest 25% on the first anniversary of the grant date and the remainder will vest as to 1/16 of the total award in quarterly installments thereafter, for a total four-year vesting time horizon. The 50,000 of each of the stock options and RSUs granted in April 2022 vest 25% on the second anniversary of the grant date and the remainder will vest in eight equal quarterly installments thereafter.

*2023 Long-Term Incentive Program* 

In February 2023, the Compensation Committee approved a long-term incentive program (the "*LTI*") that will be implemented beginning in 2023. The objective of the LTI is to support the entrepreneurial mindset desired of management by the Board by providing a market-competitive opportunity to earn significant equity in the Company on a regular, predictable, and annual basis for achieving significant performance improvements.

Eligible participants (as determined by the Compensation Committee) may be members of the Company's senior executive team and/or such other executives and key contributors as the Compensation Committee may designate from time to time. Our NEOs will participate in the LTI at a rate determined by the Compensation Committee. No individual will have an automatic right to participate in the LTI.

Our Chief Executive Officer will recommend employees (other than with respect to himself) to the Compensation Committee for participation in the LTI for 2023 and their respective specific levels of proposed participation. Awards will be comprised of 50% RSUs that will vest annually over a three-year period and 50% performance-based restricted stock units ("*PSUs*") that will vest over a three-year performance period.

None of the PSUs will vest if the Company's average performance against the target annual AEBITDA performance goals is less than threshold performance. The number of PSUs that vest will be interpolated in the event of achievement between threshold and maximum performance.

***Compensation Risk Assessment***

The Compensation Committee is responsible for overseeing the risks relating to compensation policies and practices affecting senior management on an ongoing basis. The Compensation Committee believes our governance policies and compensation structure result in a compensation system that is not reasonably likely to lead to management decisions that would have a material adverse effect on Accel. The following features of our programs mitigate this risk:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Compensation Committee retains an independent compensation consultant to assist with annual compensation decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We utilize a mix of cash and equity incentive programs, and all equity awards granted to our NEOs are subject to multi-year vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We utilize a combination of equity award types;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We utilize competitive general and change-in-control severance programs to help ensure executives continue to work towards our shareholders' best interests in light of potential employment uncertainty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executives are subject to minimum stock ownership guidelines and limitations on trading in our securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Beginning in 2023, our executive officers will be subject to a compensation recovery "clawback" policy that provides for the recovery of incentive-based compensation under certain circumstances in the event we restate our financial statements.

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**Additional Information** 

***Stock Ownership Guidelines***

To further align the interests of our executive officers with those of our stockholders and to promote a long-term perspective in managing our company, in February 2023, we adopted a stock ownership policy for our Chief Executive Officer, Chief Financial Officer and other executive officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) reporting directly to our Chief Executive Officer, including each of our NEOs. Our stock ownership policy requires each executive officer to acquire and hold a number of shares of our common stock equal in value to a multiple of such executive officer's annual base salary, in each case, until he or she ceases to be an executive officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CEO ownership guideline: 6x base salary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive officers: 1x base salary

The following items are included for our stock ownership policy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directly-owned and beneficially-owned shares, including shares purchased through our 401(k) Plan, if applicable,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares underlying vested RSUs that are held or deferred,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares underlying unvested RSUs,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares received on exercise of stock options, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares held in trust.

Unearned PSUs are not included in the stock ownership calculation. Each executive officer has until the last day of our fiscal year that includes the fifth anniversary of the later of his or her designation as an executive officer and the effective date of the policy to obtain the required ownership level. The Compensation Committee may make exceptions in situations where the stock ownership policy would cause a severe hardship. All of our executive officers currently meet or exceed our stock ownership guidelines.

***Policy Regarding Certain Transactions in Company Securities***

Our Insider Trading Policy prohibits our directors, officers and employees from engaging in certain hedging transactions (see "*Corporate Governance—Hedging Policy*" above). Aside from such prohibitions, we do not maintain any other policies regarding hedging transactions by our directors, officer and employees.

***Retirement and Other Benefits***

Accel maintains a tax-qualified defined contribution plan that meets the requirements of Section 401(k) of the Code, commonly called a 401(k) plan, for substantially all of its employees. The 401(k) plan is available on the same basis to all employees, including the NEOs. Each participant in the 401(k) plan may elect to defer from 0% to 90% of compensation, subject to limitations under the Code and Employee Retirement Income Security Act. Accel matches up to 50% of its employees' contributions to the 401(k) plan, so long as the employee contributes at least 5% of their annual compensation (not including any bonus, severance or legal settlements). Accel does not provide any pension benefits. Accel maintains various other employee benefit plans, including medical, dental and life insurance.

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***Equity Incentive Plans of Accel***

*Accel Entertainment, Inc. 2011 Equity Incentive Plan*

On April 13, 2011, the Legacy Accel Board approved the Accel Entertainment, Inc. 2011 Equity Incentive Plan (the "*2011 Plan*"), which was subsequently approved by Accel stockholders on December 2, 2011. The Legacy Accel Board, or a committee thereof appointed by the Legacy Accel Board, administered the 2011 Plan and the awards granted under it.

A total of 270,000 shares of Class A common stock, no par value, of Accel (the "*Accel Class A Common Stock*") were initially reserved for issuance pursuant to future awards under the 2011 Plan. The 2011 Plan provided for the grant of incentive stock options, which qualify for favorable tax treatment to their recipients under Section 422 of the Internal Revenue Code (the "*Code*"), nonqualified stock options, restricted stock awards, and stock appreciation rights. Such awards could be granted under the 2011 Plan to Accel's employees, directors and consultants.

*Accel Entertainment, Inc. 2016 Equity Incentive Plan*

On June 20, 2016, the Legacy Accel Board approved the Accel Entertainment, Inc. 2016 Plan ("*2016 Plan*"), which was subsequently approved by Accel stockholders on December 13, 2016. The Legacy Accel Board, or a committee thereof appointed by the Legacy Accel Board, administered the 2016 Plan and the awards granted under it.

A total of 305,724 shares of Accel Class A Common Stock were initially reserved for issuance pursuant to future awards under the 2016 Plan.

The 2016 Plan provided for the grant of incentive stock options, which qualified for favorable tax treatment to their recipients under Section 422 of the Code, nonqualified stock options, restricted stock awards, and stock appreciation rights. Such awards could be granted under the 2016 Plan to Accel's employees, directors and consultants.

In connection with the Business Combination, any vested and unexercised stock options outstanding under the 2011 Plan or the 2016 Plan were cancelled for no consideration and ceased to exist upon the consummation of the Business Combination. In addition, any unvested stock options outstanding under the 2011 Plan or the 2016 Plan were converted into a stock option that will be exercisable for a number of shares of Class A-1 common stock calculated as specified in the transaction agreement pursuant to which the Business Combination was consummated, in accordance with the vesting schedule as in effect prior to the Business Combination. The total number of stock options subject to such vesting following the Business Combination was 71,467.

*Long Term Incentive Plan*

On the closing date of the Business Combination, the Accel Entertainment, Inc. Long Term Incentive Plan (the "*LTIP*") became effective. The purpose of the LTIP is to enhance the Company and its affiliates' ability to attract, retain and motivate persons who make important contributions to the Company and its affiliates by providing those individuals with equity ownership opportunities. The LTIP provides for grants of a variety of awards, including, but not limited to: incentive stock options qualified as such under U.S. federal income tax laws, stock options that do not qualify as incentive stock options, stock appreciation rights, restricted stock awards, RSUs, cash incentive awards, and other stock-based awards. Officers or employees of the Company or any of its affiliates or any other person who provides services to the Company or any of its affiliates, including directors of the Company, will be eligible for grants under the LTIP. The Company has reserved a total of 6,000,000 shares of Class A-1 common stock for issuance pursuant to the LTIP, subject to certain adjustments set forth therein.

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***Tax and Accounting Treatment of Compensation***

*Deductibility of Executive Compensation*

Section 162(m) of the Internal Revenue Code places a limit of $1,000,000 on the annual amount of compensation that publicly held companies may deduct for federal income tax purposes for any "covered employee" (as defined in Section 162(m)). Under Section 162(m), compensation above $1,000,000 is generally non-deductible for any covered employee. Our objectives are not always consistent with the requirements for full deductibility. Therefore, deductibility is not the sole factor used in setting the appropriate compensation levels paid by us and decisions leading to future compensation levels may not be fully deductible under Section 162(m). We believe this flexibility enables us to respond to changing business conditions or to an executive's exceptional individual performance.

*Accounting for Share-Based Compensation*

Accel accounts for share-based payments, including its long-term equity incentive program, in accordance with the requirements of the ASC 718.

**Compensation Committee Report**

This report of the Compensation is required by the SEC and, in accordance with the SEC's rules, will not be deemed to be part of or incorporated by reference by any general statement incorporating by reference this Proxy Statement into any filing under the Securities Act of 1933, as amended (the "*Securities Act*") or under the Exchange Act, except to the extent that we specifically incorporate this information by reference, and will not otherwise be deemed "soliciting material" or "filed" under either the Securities Act or the Exchange Act.

The Compensation Committee has reviewed and discussed the "Compensation Discussion and Analysis" section of this Proxy Statement with the Company's management. Based on that review and those discussions, the Compensation Committee recommended to the Board of Directors that the "Compensation Discussion and Analysis" section be included in this Proxy Statement and incorporated by reference into the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2022.

*By: The Compensation Committee* 

*Eden Godsoe (Chair)*

*Kathleen Philips* 

*Karl Peterson*

**Summary Compensation**

The following table sets forth the annual base salary and other compensation paid to each of the NEOs for the fiscal years ended December 31, 2022, December 31, 2021 and December 31, 2020.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fiscal Year** | **Salary<br>($)** | **Stock**<br>**Awards**<br>**($)**<sup>(1)</sup> | **Option Awards**<br>**($)**<sup>(2)</sup> | **Non-Equity**<br>**Incentive**<br>**Plan Compensation** <br>**$**<sup>(3)</sup> | **All Other**<br>**Compensation**<br> **($)**<sup>(4)</sup> | **Total<br>($)** |
| Andrew Rubenstein | 2022 | $789231 | $1414915 | $848087 | $720000 | $23962 | $3796195 |
| *Chief Executive Officer* | 2021 | 763846 | 1067062 | 630351 | 1053000 | 22824 | 3537083 |
| *Chief Executive Officer* | 2020 | 530962 | 2474818 | 1206196 | 375000 | 13867 | 4600843 |
| Mathew Ellis<br>*Chief Financial Officer* | 2022 | 315288 | 762900 | 463697 | 164500 | 21927 | 1728312 |
| Brian Carroll<br>*Former Chief Financial Officer* | 2022 | 234173 |  |  |  | 13798 | 247971 |
| Derek Harmer | 2022 | 419077 | 375492 | 225066 | 198688 | 22188 | 1240511 |
| *General Counsel and Chief Compliance Officer* | 2021 | 406461 | 384140 | 226925 | 310000 | 20081 | 1347607 |
| *General Counsel and Chief Compliance Officer* | 2020 | 274765 | 746927 | 373300 | 147620 | 17759 | 1560371 |
| Mark Phelan<br>*Chief Revenue Officer* | 2022 | 396154 | 362794 | 217455 | 200000 | 21963 | 1198366 |
| Michael Marino | &nbsp;&nbsp;&nbsp;&nbsp;2022<sup>(5)</sup> | 317356 | 464830 | 278615 |  | 190462 | 1251263 |
| *Former Chief Commercial Officer* | 2021 | 505769 | 567543 | 333549 | 192188 | 12045 | 1611094 |
| *Former Chief Commercial Officer* | &nbsp;&nbsp;&nbsp;&nbsp;2020<sup>(6)</sup> | 269231 | 4165139 | 1597127 | 101994 | 5537 | 6139028 |

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<sup>(1)</sup> The amounts reported in the "Stock Awards" column represent the grant date fair value of the RSUs granted to the NEOs during the fiscal years ended December 31, 2022, December 31, 2021 and December 31, 2020 as computed in accordance with Financial Accounting Standards Board ("*FASB*") Accounting Standards Codification ("*ASC*") Topic 718, Compensation – Stock Compensation. Note that the amounts reported in this column reflect the accounting cost for these RSU grants and do not correspond to the actual economic value that may be received by the NEOs from the RSUs.

<sup>(2)</sup> The amounts reported in the "Option Awards" column represent the grant date fair value of the stock options granted to the NEOs during the fiscal years ended December 31, 2022, December 31, 2021 and December 31, 2020 as computed in accordance with FASB ASC Topic 718. Note that the amounts reported in this column reflect the accounting cost for these stock options and do not correspond to the actual economic value that may be received by the NEOs from the stock options.

<sup>(3)</sup> The amount reported in the "Non-Equity Incentive Plan Compensation" column represents the annual cash bonuses, which were approved by the Board, earned by the NEOs pursuant to the achievement of certain Accel and individual performance objectives.

<sup>(4)</sup> "All Other Compensation" consists of Accel's matching contributions to Accel's 401(k) plan or other retirement plan, health insurance premiums, vehicle allowances and travel expenses.

<sup>(5)</sup> Mr. Marino left Accel on August 1, 2022 and, as a result, his compensation for 2022 shown above represents compensation for a partial year of service.

<sup>(6)</sup> Mr. Marino joined Accel on March 8, 2020 and, as a result, his compensation for 2020 shown above represents compensation for a partial year of service.

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**2022 Grants of Plan-Based Awards**

The following table provides information concerning each grant of an award made in 2022 for each of our NEOs under any plan. This information supplements the information about these awards set forth in the "2022 Summary Compensation Table" above.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Type of Award** | **Grant Date** | **Estimated Future Payouts Under**<br>**Non-Equity Incentive Plan Awards($)**<sup>(1)</sup> | **All Other**<br>**Stock**<br>**Awards:**<br>**Number of**<br>**Shares of**<br>**Stock or**<br>**Units (#)**<sup>(2)</sup> | **All Other**<br>**Stock**<br>**Awards:**<br>**Number of**<br>**Shares of**<br>**Stock**<br>**Options(#)**<sup>(2)</sup> | **Exercise <br>Price $** | **Grant Date Fair Value of Stock and Option Awards($)**<sup>(3)</sup> |
| Andrew Rubenstein | Annual Incentive | N/A | $720000 |  |  | $— | $— |
|  | Stock Awards | 3/14/2022 |  | 111323 |  |  | 1414915 |
|  | Stock Options | 3/14/2022 |  |  | 111323 | 12.71 | 848087 |
| Mathew Ellis | Annual Incentive | N/A | 164500 |  |  |  |  |
|  | Stock Awards | 3/14/2022 |  | 12738 |  |  | 161900 |
|  | Stock Awards | 4/28/2022 |  | 50000 |  |  | 601000 |
|  | Stock Options | 3/14/2022 |  |  | 12738 | 12.71 | 97041 |
|  | Stock Options | 4/28/2022 |  |  | 50000 | 12.02 | 366655 |
| Brian Carroll | Annual Incentive | N/A |  |  |  |  |  |
| Derek Harmer | Annual Incentive | N/A | 198688 |  |  |  |  |
|  | Stock Awards | 3/14/2022 |  | 29543 |  |  | 375492 |
|  | Stock Options | 3/14/2022 |  |  | 29543 | 12.71 | 225066 |
| Mark Phelan | Annual Incentive | N/A | 200000 |  |  |  |  |
|  | Stock Awards | 3/14/2022 |  | 28544 |  |  | 362794 |
|  | Stock Options | 3/14/2022 |  |  | 28544 | 12.71 | 217455 |
| Michael Marino | Annual Incentive | N/A |  |  |  |  |  |
|  | Stock Awards | 3/14/2022 |  | 36572 |  |  | 464830 |
|  | Stock Options | 3/14/2022 |  |  | 36572 | 12.71 | 278615 |

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<sup>(1)</sup> The amounts reported reflect the threshold, target and maximum performance-based cash incentive compensation amounts that could have been paid for Fiscal Year 2022 under the 2022 annual incentive program for the NEOs. The types and weighting of the performance measures under that program are described in the "—*Compensation Discussion & Analysis*" section of this proxy statement.

<sup>(2)</sup> The vesting of each RSU and stock option granted is set forth in the "*—Outstanding Equity Awards at Fiscal Year-End Table*" below.

<sup>(3)</sup> The assumptions used in calculating the grant date fair value of the RSUs and stock options reported in the column are set forth in Note 18 of the notes to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2022. Such grant-date fair market value does not take into account any forfeitures related to service-based vesting conditions that may occur.

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**2022 Outstanding Equity Awards at Fiscal Year-End**

The following table sets forth specified information concerning unexercised stock options and RSU awards for each of the NEOs outstanding as of December 31, 2022. Mr. Mariano is omitted from the table as he departed prior to fiscal year end and held no equity awards at such date.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Option Awards** | **Option Awards** | **Option Awards** | | **Stock Awards** | **Stock Awards** |
| **Name** | **Grant Date**<sup>(1)</sup> | **Number of securities underlying unexercised options (#)** | **Number of securities underlying unexercised options (#)** | **Option Exercise Price($)** | **Option Expiration Date** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#)** | **Equity Incentive Plan** <br>**Awards: Market or Payout** <br>**Value of Unearned Shares,**<br> **Units or Other Rights that** <br>**Have not Vested($)**<sup>(2)</sup> |
| **Name** | **Grant Date**<sup>(1)</sup> | **Exercisable** | **Unexercisable** | **Option Exercise Price($)** | **Option Expiration Date** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#)** | **Equity Incentive Plan** <br>**Awards: Market or Payout** <br>**Value of Unearned Shares,**<br> **Units or Other Rights that** <br>**Have not Vested($)**<sup>(2)</sup> |
| **Andrew Rubenstein** | 2/27/2020<sup>(3)</sup> |  | 165000 | $12.25 | 2/27/2030 |  | $— |
| **Andrew Rubenstein** | 2/27/2020<sup>(3)</sup> |  |  |  |  | 110000 | 847000 |
|  | 7/13/2020<sup>(4)</sup> | 6500 | 45500 | 9.41 | 7/13/2030 |  |  |
|  | 7/13/2020<sup>(4)</sup> |  |  |  |  | 52412 | 403572 |
|  | 3/16/2021<sup>(4)</sup> | 39296 | 50524 | 11.88 | 3/16/2031 |  |  |
|  | 3/16/2021<sup>(4)</sup> |  |  |  |  | 50524 | 389035 |
|  | 3/14/2022<sup>(4)</sup> |  | 111323 | 12.71 | 3/14/2032 |  |  |
|  | 3/14/2022<sup>(4)</sup> |  |  |  |  | 111323 | 857187 |
| **Mathew Ellis** | 2/27/2020<sup>(3)</sup> |  | 30000 | 12.25 | 2/27/2030 |  |  |
| **Mathew Ellis** | 2/27/2020<sup>(3)</sup> |  |  |  |  | 30000 | 231000 |
|  | 3/16/2021<sup>(4)</sup> | 5158 | 6631 | 11.88 | 3/16/2031 |  |  |
|  | 3/16/2021<sup>(4)</sup> |  |  |  |  | 6631 | 51059 |
|  | 3/14/2022<sup>(4)</sup> |  | 12738 | 12.71 | 3/14/2032 |  |  |
|  | 3/14/2022<sup>(4)</sup> |  |  |  |  | 12738 | 98083 |
|  | 4/28/2022<sup>(5)</sup> |  | 50000 | 12.02 | 4/28/2032 |  |  |
|  | 4/28/2022<sup>(5)</sup> |  |  |  |  | 50000 | 385000 |
| **Brian Carroll** | 12/12/2017<sup>(6)</sup> | 12891 |  | 4.07 | 12/12/2023 |  |  |
| **Brian Carroll** | 12/11/2018<sup>(6)</sup> | 12891 | 4297 | 5.24 | 12/11/2024 |  |  |
|  | 2/27/2020<sup>(3)</sup> |  | 54000 | 12.25 | 2/27/2030 |  |  |
|  | 2/27/2020<sup>(3)</sup> |  |  |  |  | 36000 | 277200 |
|  | 7/13/2020<sup>(4)</sup> | 5625 | 4375 | 9.41 | 7/13/2030 |  |  |
|  | 7/13/2020<sup>(4)</sup> |  |  |  |  | 7744 | 59629 |
|  | 3/16/2021<sup>(4)</sup> | 12378 | 15915 | 11.88 | 3/16/2031 |  |  |
|  | 3/16/2021<sup>(4)</sup> |  |  |  |  | 15915 | 122546 |
| **Derek Harmer** | 12/12/2017<sup>(6)</sup> | 13750 |  | 4.07 | 12/12/2023 |  |  |
| **Derek Harmer** | 12/11/2018<sup>(6)</sup> | 13751 | 6875 | 5.24 | 12/11/2024 |  |  |
|  | 2/27/2020<sup>(3)</sup> |  | 63000 | 12.25 | 2/27/2030 |  |  |
|  | 2/27/2020<sup>(3)</sup> |  |  |  |  | 42000 | 323400 |
|  | 7/13/2020<sup>(4)</sup> | 9000 | 7000 | 9.41 | 7/13/2030 |  |  |
|  | 7/13/2020<sup>(4)</sup> |  |  |  |  | 10806 | 83206 |
|  | 3/16/2021<sup>(4)</sup> | 14147 | 18188 | 11.88 | 3/16/2031 |  |  |
|  | 3/16/2021<sup>(4)</sup> |  |  |  |  | 18188 | 140048 |
|  | 3/14/2022<sup>(4)</sup> |  | 29543 | 12.71 | 3/14/2032 |  |  |
|  | 3/14/2022<sup>(4)</sup> |  |  |  |  | 29543 | 227481 |
| **Mark Phelan** | 12/11/2018<sup>(6)</sup> | 6875 | 3438 | 5.24 | 12/11/2024 |  |  |
| **Mark Phelan** | 2/27/2020<sup>(3)</sup> |  | 49500 | 12.25 | 2/27/2030 |  |  |
|  | 2/27/2020<sup>(3)</sup> |  |  |  |  | 33000 | 254100 |
|  | 7/13/2020<sup>(4)</sup> | 5063 | 3937 | 9.41 | 7/13/2030 |  |  |
|  | 7/13/2020<sup>(4)</sup> |  |  |  |  | 7131 | 54909 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Option Awards** | **Option Awards** | **Option Awards** | | **Stock Awards** | **Stock Awards** |
| **Name** | **Grant Date**<sup>(1)</sup> | **Number of securities underlying unexercised options (#)** | **Number of securities underlying unexercised options (#)** | **Option Exercise Price($)** | **Option Expiration Date** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#)** | **Equity Incentive Plan** <br>**Awards: Market or Payout** <br>**Value of Unearned Shares,**<br> **Units or Other Rights that** <br>**Have not Vested($)**<sup>(2)</sup> |
| **Name** | **Grant Date**<sup>(1)</sup> | **Exercisable** | **Unexercisable** | **Option Exercise Price($)** | **Option Expiration Date** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#)** | **Equity Incentive Plan** <br>**Awards: Market or Payout** <br>**Value of Unearned Shares,**<br> **Units or Other Rights that** <br>**Have not Vested($)**<sup>(2)</sup> |
|  | 3/14/2022<sup>(4)</sup> |  | 28544 | 12.71 | 3/14/2032 |  |  |
|  | 3/14/2022<sup>(4)</sup> |  |  |  |  | 28544 | 219789 |

---

<sup>(1)</sup> This table does not include warrants or performance-based shares that the NEOs have received in connection with the consummation of the Business Combination. For additional information, please see the section entitled "Security Ownership of Certain Beneficial Owners and Management."

<sup>(2)</sup> The dollar amounts shown are determined by multiplying the number of unvested shares or units by the closing price of our Class A-1 common stock on the New York Stock Exchange as of December 31, 2022, which was $7.70.

<sup>(3)</sup> Granted under the Accel Entertainment, Inc. Long Term Incentive Plan. 1/3 of the shares subject to the option awards or restricted stock unit awards, as applicable, will vest on January 1, 2023, 1/3rd of the underlying shares will vest on January 1, 2024 and the remaining 1/3rd underlying shares will vest on January 1, 2025, in each case, so long as the grantee remains continuously employed or engaged by the Company or an affiliate, as applicable, from the date of grant through each such vesting date.

<sup>(4)</sup> Granted under the Accel Entertainment, Inc. Long Term Incentive Plan. 1/4 of the shares subject to the option awards or restricted stock unit awards, as applicable, will vest on the first anniversary of the grant date, and the remainder will vest as to 1/16 of the total award in quarterly installments thereafter, so long as the grantee remains continuously employed or engaged by the Company or an affiliate, as applicable, from the date of grant through each such vesting date.

<sup>(5)</sup> Granted to Mr. Ellis connection with his promotion to Chief Financial Officer in April 2022. 1/4 of the shares subject to the option awards or restricted stock unit awards, as applicable, will vest on the second anniversary of the grant date, with the remainder vesting ratably on a quarterly basis over the subsequent two years, so long as the grantee remains continuously employed or engaged by the Company or an affiliate, as applicable, from the date of grant through each such vesting date.

<sup>(6)</sup> Granted under the Accel Entertainment, Inc. 2016 Equity Incentive Plan. The shares subject to the stock option vest over a five-year period, with 20% of the shares vesting on each anniversary of the grant date, subject to continued service with Accel through each vesting date. The options may be exercised for twelve months after the termination of the grantee's employment with Accel.

**2022 Stock Option Exercises and Stock Vested Table**

The following table presents, for each of our Named Executive Officers, the number of shares of our Class A-1 common stock acquired upon the exercise of stock options or vesting and settlement of RSUs during fiscal year 2022 and the aggregate value realized upon the exercise of stock options and the vesting and settlement of RSUs.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
|<br>**Name** | **Number of<br>Shares<br>Acquired on<br>Exercise(#)** | **Value Realized**<br>**on Exercise($)** <sup>(1)</sup> | **Number of Shares<br>Acquired on Vesting(#)** | **Value Realized**<br>**on Vesting($)**<sup>(2)</sup> |
| Andrew Rubenstein | 38000 | $33195 | 69246 | $778381 |
| Mathew Ellis |  |  | 5158 | 58424 |
| Brian Carroll | 8594 | 41552 | 16803 | 189449 |
| Derek Harmer | 27502 | 100245 | 20322 | 228956 |
| Mark Phelan | 42555 | 336610 | 4075 | 45343 |
| Michael Marino | 11924 | 17796 | 129472 | 1616163 |

---

<sup>(1)</sup> The aggregate value realized upon the exercise of a stock option represents the difference between the aggregate market price of the shares of our Class A-1 common stock on the date of exercise and the aggregate exercise price of the stock option. Amounts shown are presented on an aggregate basis for all exercises that occurred during 2022.

<sup>(2)</sup> The aggregate value realized upon the vesting and settlement of an RSU is based on the closing price on NYSE of our Class A-1 common stock on the date prior to the day of vesting. Amounts shown are presented on an aggregate basis for all vesting and settlement that occurred during 2022.

**Employment Agreements** 

We have entered into employment agreements with each of our NEOs. Each of these employment agreements provide for at-will employment and generally include the named executive officer's initial base salary and an indication of eligibility for an annual cash incentive award opportunity. Each of our NEOs is also eligible to participate in our annual performance bonus plan and employee benefit plans, including health insurance, that we offer to our employees. In addition, each of our NEOs has executed a form of our standard indemnification agreement.

*Andrew Rubenstein*

On January 28, 2013, Accel entered into an employment agreement with Andrew Rubenstein (as amended on April 7, 2017 (with an effective date of December 12, 2016) and January 31, 2019, and as amended and restated on July 15, 2020). Under the terms of his employment agreement, Mr. Rubenstein is employed as the Chief Executive Officer of Accel, reporting to the Board. Mr. Rubenstein is entitled to receive an annual salary of $750,000 starting July 15, 2020, and, subject to Accel meeting certain performance objectives and the discretion of the Board, is eligible to receive an annual bonus with a target level of 100% of his base salary and earn a number of additional grants of equity-based incentive compensation awards on an annual basis in accordance with our annual grants to similarly situated senior executives and with a target level of 200% of his base salary starting July 15, 2020.

Accel or Mr. Rubenstein may terminate the employment at any time. In the event that Mr. Rubenstein is terminated by Accel for any reason other than cause, death or disability, he resigns for good reason, or the employment agreement is not renewed or otherwise extended by Accel after the third anniversary of the effective date, and the reason for such non-renewal or extension is not related to a termination for cause, disability or his death, Mr. Rubenstein will be entitled to receive an amount equal to the sum of his two most recent annual base salary and annual bonus payments made to him during the two fiscal years prior to the date of termination and two years of continued COBRA coverage. Under the employment agreement, Mr. Rubenstein is subject to non-competition and non-solicitation restrictions during his employment and for a period of three years thereafter.

The Board and Mr. Rubenstein are currently negotiating the terms of his employment agreement as his current agreement is set to expire in July 2023.

------

*Mathew Ellis* 

On June 6, 2019, Accel entered into an employment agreement with Mr. Ellis (as amended and restated on April 24, 2022, with an effective date of May 1, 2022). Under the terms of his employment agreement, Mr. Ellis is employed as Chief Financial Officer of Accel, reporting to the Chief Executive Officer. Mr. Ellis is entitled to receive an annual base salary of $350,000, and, subject to discretion of the Board and he will be eligible to receive a discretionary annual bonus with a target amount equal to 50% of the annual base salary and a discretionary annual equity-based incentive award grant commencing in calendar year 2023 with a target grant date value equal to 100% of the annual base salary.

Accel or Mr. Ellis may terminate the employment at any time upon prior written notice to the other party. In the event that Mr. Ellis is terminated by Accel for any reason other than cause, death or disability, he resigns for good reason, or the employment agreement is not renewed or otherwise extended and the reason for such non-renewal is not related to a termination for cause, disability or his death, Mr. Ellis will be entitled to receive an amount equal to the base salary and target bonus he received during the 12-month period prior to the date of such termination of employment, payable in installments over a 12-month period, and up to 12 months of continued COBRA coverage. Under the employment agreement, Mr. Ellis is subject to non-competition and non-solicitation restrictions during his employment and for a period of one year thereafter.

*Brian Carroll*

On March 18, 2014, Accel entered into an employment agreement with Brian Carroll (as amended on November 9, 2017, July 9, 2018 and July 16, 2020, and as amended and restated on November 10, 2021, with an effective date of April 30, 2022). Pursuant to his employment agreement, on April 30, 2022, Mr. Carroll ceased to serve as our Chief Financial Officer and continues to be employed by the Company as a non-executive management advisor through December 29, 2023 (the "Termination Date"), at which date Mr. Carroll's employment with the Company will terminate. The employment agreement provides that Mr. Carroll will receive (a) an annual base salary of $160,000 as of the April 30, 2022; (b) a 2021 incentive payment equal to $400,000; (c) a 2023 incentive payment equal to $200,000, subject to Mr. Carroll's continued employment through the Termination Date; and (d) and other customary employee benefits. Mr. Carroll is not eligible to receive annual bonuses or long-term incentive equity grants from the Company.

In the event that Mr. Carroll is terminated by Accel for any reason, Mr. Carroll will be entitled to receive his accrued but unpaid base salary or wages, accrued vacation pay, unreimbursed business expenses, and other vested amounts and benefits earned by (but not yet paid to) or owed to Mr. Carroll under any applicable benefit plan or incentive equity plan of our company through and including the date of termination of Mr. Carroll's employment. In addition, if Mr. Carroll's employment with the Company is terminated by Accel without Cause or by Mr. Carroll for Good Reason (each as defined in his employment agreement), Mr. Carroll will also be entitled to receive the following payments and benefits: (a) an amount equal to the sum of the aggregate base salary that would have otherwise been payable to Mr. Carroll for the period beginning on the date of such termination and ending on December 29, 2023, (b) to the extent unpaid as of such termination, the 2023 incentive payment, and (c) certain continued healthcare coverage. Under the employment agreement, Mr. Carroll is subject to non-competition and non-solicitation restrictions during his employment and for a period of one year thereafter.

*Derek Harmer*

On July 9, 2012, Accel entered into an employment agreement with Derek Harmer (as amended on November 8, 2017 and July 9, 2018 and as amended and restated on July 16, 2020). Under the terms of his employment agreement, Mr. Harmer is employed as the General Counsel and Chief Compliance Officer of Accel, reporting to the Chief Executive Officer. Mr. Harmer is entitled to receive an annual salary of $400,000, and, subject to discretion of the Board, long-term equity incentives with a target level of 100% of his base salary and an annual cash bonus with a target level of 55% of his base salary.

------

Accel or Mr. Harmer may terminate the employment at any time upon prior written notice to the other party. In the event that Mr. Harmer is terminated by Accel for any reason other than cause, death or disability, he resigns for good reason, or the employment agreement is not renewed or otherwise extended and the reason for such non-renewal is not related to a termination for cause, disability or his death, Mr. Harmer will be entitled to receive an amount equal to the base salary and target bonus he received during the 12-month period prior to the date of such termination of employment, payable in installments over a 12-month period, and up to 12 months of continued COBRA coverage. Under the employment agreement, Mr. Harmer is subject to non-competition and non-solicitation restrictions during his employment and for a period of one year thereafter.

*Mark Phelan*

On February 7, 2017, Accel entered into an employment agreement with Mr. Phelan (as amended and restated on March 15, 2021 and as amended on February 24, 2023). Under the terms of his employment agreement, Mr. Phelan is employed as Chief Revenue Officer of Accel, reporting to the Chief Executive Officer. Mr. Phelan is entitled to receive an annual base salary of $400,000, and, subject to discretion of the Board, long-term equity incentives with a target level of 100% of his base salary and an annual cash bonus with a target level of 50% of his base salary.

Accel or Mr. Phelan may terminate the employment at any time upon prior written notice to the other party. In the event that Mr. Phelan is terminated by Accel for any reason other than cause, death or disability, he resigns for good reason, or the employment agreement is not renewed or otherwise extended and the reason for such non-renewal is not related to a termination for cause, disability or his death, Mr. Phelan will be entitled to receive an amount equal to the base salary and target bonus he received during the 12-month period prior to the date of such termination of employment, payable in installments over a 12-month period, and up to 12 months of continued COBRA coverage. Under the employment agreement, Mr. Phelan is subject to non-competition and non-solicitation restrictions during his employment and for a period of one year thereafter.

*Michael Marino*

On March 8, 2020, Accel entered into an employment agreement with Michael Marino. Under the terms of his employment agreement, Mr. Marino was employed as the Chief Commercial Officer of Accel, reporting to the Chief Executive Officer. Mr. Marino was entitled to receive an annual salary of $500,000, and, subject to discretion of the Board, long-term equity incentives with a target grant date value of 200% of his annual base salary and an annual cash bonus with a target level of 50% of his base salary.

In August 2022, Mr. Marino left the Company. Pursuant to his employment agreement with the Company, Mr. Marino is entitled to receive an amount equal to the sum of the aggregate base salary and the annual bonus payments he received during the 12-month period prior to August 1, 2022, payable in installments over a 12-month period, and up to 12 months of continued COBRA coverage.

**Potential Payments upon Termination or Change in Control**

Except in the case of Mr. Marino, the information below describes and quantifies certain compensation that would have been payable to each NEO if the NEO's employment had terminated, or a change in control had occurred, on December 31, 2022, given the NEO's compensation as of such date and, if applicable, based on our closing stock price on December 31, 2022, the last trading day of the year. In the case of Mr. Marino, who left the Company in August 2022, the table provides information regarding the termination payments received pursuant to his employment agreement. These benefits are in addition to benefits available generally to salaried employees upon a termination of employment, such as payment of accrued but unpaid base salary, accrued but unpaid annual bonus, and vacation pay and distributions under our 401(k) plan (assuming the executive participated in the plan). The terms of their respective separation arrangements with us are described above in "*—Employment Agreements*."

Except where otherwise noted, the following table provides information concerning the estimated payments and benefits that would be provided in the circumstances described above for each of our NEOs. Except where otherwise noted, payments and benefits are estimated assuming that the triggering event took place on December 31, 2022, and

------

the price per share of our Class A-1 common stock was the closing price on the NYSE as of December 31, 2022, which was $7.70. There can be no assurance that a triggering event would produce the same or similar results as those estimated below if such event occurs on any other date or at any other price, or if any other assumption used to estimate potential payments and benefits is not correct. Due to the number of factors that affect the nature and amount of any potential payments or benefits, any actual payments and benefits may be different.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Qualifying Termination - No Change in Control** | **Qualifying Termination - No Change in Control** | **Qualifying Termination - No Change in Control** | **Qualifying Termination - No Change in Control** | **Qualifying Termination - Change in Control** | **Qualifying Termination - Change in Control** | **Qualifying Termination - Change in Control** | **Qualifying Termination - Change in Control** | **Qualifying Termination - Change in Control** |
|<br>**Name** | **Cash Severance** <br>**$**<sup>(1)</sup> | **Bonus Payment<br>($)** | **Continuation of Medical Benefits** <br>**$**<sup>(2)</sup> | **Total<br>$** | **Cash Severance** <br>**$**<sup>(1)</sup> | **Bonus Payment<br>($)** | **Continuation of Medical Benefits** <br>**$**<sup>(2)</sup> | **Value of Accelerated Vesting**<br>**$**<sup>(3)</sup> | **Total<br>$** |
| Andrew Rubenstein<sup>(4)</sup> | $1553077 | $1428000 | $12291 | $2993368 | $1553077 | $2228000 | $12291 | $2496794 | $6290162 |
| Mathew Ellis<sup>(5)</sup> | 315288 | 200000 | 14200 | 529488 | 315288 | 200000 | 14200 | 765141 | 1294629 |
| Brian Carroll<sup>(6)</sup> | 160000 | 200000 | 8291 | 368291 | 160000 | 200000 | 8291 | 469945 | 838236 |
| Derek Harmer<sup>(5)</sup> | 419077 | 310000 | 14830 | 743907 | 419077 | 310000 | 14830 | 791047 | 1534954 |
| Mark Phelan<sup>(5)</sup> | 396154 | 400000 | 14830 | 810984 | 396154 | 400000 | 14830 | 537255 | 1348239 |
| Michael Marino<sup>(5)(7)</sup> | 515433 | 192188 | 7743 | 715364 |  |  |  |  |  |

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<sup>(1)</sup> The severance amount related to base salary was determined based on the amounts actually paid to the NEOs during the relevant periods.

<sup>(2)</sup> Reflects the estimated cost of Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (medical, dental and vision) continuation coverage, as applicable, during the severance period.

<sup>(3)</sup> The value of accelerated vesting is calculated based on the per share closing price on NYSE as of December 31, 2022, which was $7.70, less, if applicable, the aggregate exercise price of each outstanding unexercisable stock option. Each of the executive's then outstanding unvested equity awards, including awards that would otherwise vest upon satisfaction of performance metrics or other factors, if applicable, other than the continuation of the executive's employment with the Company, shall accelerate and become vested and exercisable with respect to 100% of the then-unvested shares subject to all equity awards. Does not include options which have an exercise price that exceeds per share closing price on NYSE as of December 31, 2022, referred to as "underwater" stock options. As of December 31, 2022, Mr. Rubenstein had 372,347 underwater options, Mr. Ellis had 99,369 underwater options, Mr. Carroll had 69,915 underwater options, Mr. Harmer had 1217,731 underwater options and Mr. Phelan had 81,981 underwater options.

<sup>(4)</sup> Amount represents two years of base salary and target annual bonus paid.

<sup>(5)</sup> Amount represents 12 months of base salary and annual bonus paid.

<sup>(6)</sup> Cash severance represents an annual salary of $160,000 pro-rated for 51 weeks. Bonus payment for "Qualifying Termination—Change in Control" represents 2023 incentive payment (as described above).

<sup>(7)</sup> Reflects amounts actually received by Mr. Marino pursuant to his employment agreement upon his separation from the Company in August 2022.

**Chief Executive Officer Pay Ratio** 

The following table presents the median of the annual total compensation of all our employees (other than Mr. Rubenstein, our Chief Executive Officer), the annual total compensation of Mr. Rubenstein, our Chief Executive Officer, and the ratio between the two. This ratio is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K under the Securities Act.

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| | |
|:---|:---|
| Fiscal year 2022 Chief Executive Officer Compensation | $3796195 |
| Fiscal year 2022 median employee annual total compensation | $57871 |
| Ratio of Chief Executive Officer to median employee annual total compensation | 66:1 |

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In identifying our median employee, we chose December 31, 2022, which is the last day of our most recently completed fiscal year, as the determination date. 1,236 employees based in the United States were considered for identifying the median employee.

To identify our median employee, we used a consistently applied compensation measure consisting of gross wages as reported on Form W-2, annualized for permanent employees who did not work for the entire year, excluding our Chief Executive Officer, for the 12-month period from January 1, 2022 through December 31, 2022. This compensation measure was consistently applied to all employees included in the calculation and reasonably reflects the annual compensation of our employees. We did not make any cost-of-living adjustment. We did not include any independent contractors or other non-employee workers in our employee population.

Using this approach, we selected the individual at the median of our employee population. We then calculated annual total compensation for this employee using the same methodology we use for our NEOs as set forth in our Summary Compensation table. With respect to the annual total compensation of our Chief Executive Officer, we used the amount reported in the "Total" column for fiscal 2022 in our Summary Compensation table.

SEC rules and guidance provide significant flexibility in how companies identify the median employee, and each company may use a different methodology and make different assumptions particular to that company. As a result, and as the SEC explained when it adopted these rules, in considering the pay-ratio disclosure, stockholders should keep in mind that the rules were not designed to facilitate comparisons of pay ratios among different companies, even companies within the same industry, but rather were designed to allow stockholders to better understand and assess each particular company's compensation practices and pay-ratio disclosures.

**Pay Versus Performance**

In accordance with rules adopted by the Securities and Exchange Commission pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, we provide the following disclosure regarding executive compensation for our principal executive officer ("*PEO*") and Non-PEO NEOs and Company performance for the fiscal years listed below. The Compensation Committee did not consider the pay versus performance disclosure below in making its pay decisions for any of the years shown.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year** | **Summary Compensation Table Total for PEO**<sup>(1)</sup><br>**($)** | **Compensation Actually Paid to PEO**<sup>(1),(2),(3)</sup><br> **($** | **Average Summary Compensation Table Total for Non-PEO NEOs**<sup>(1)</sup> **($)** | **Average Compensation Actually Paid to Non-PEO NEOs**<sup>(1),(2),(3)</sup><br> **($)** | **Value of Initial Fixed $100 Investment Based On:**<sup>(4)</sup> | **Value of Initial Fixed $100 Investment Based On:**<sup>(4)</sup> | **Net Income ($ Millions)** | **Adjusted EBITDA**<sup>(5)</sup><br> **($ Millions)** |
| **Year** | **Summary Compensation Table Total for PEO**<sup>(1)</sup><br>**($)** | **Compensation Actually Paid to PEO**<sup>(1),(2),(3)</sup><br> **($** | **Average Summary Compensation Table Total for Non-PEO NEOs**<sup>(1)</sup> **($)** | **Average Compensation Actually Paid to Non-PEO NEOs**<sup>(1),(2),(3)</sup><br> **($)** | **Total Shareholder Return ($)** | **Peer Group Total Shareholder Return ($)** | **Net Income ($ Millions)** | **Adjusted EBITDA**<sup>(5)</sup><br> **($ Millions)** |
| (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) |
| 2022 | $3796195 | $475620 | $1213285 | $(893684) | $61.60 | $82.86 | $74.1 | $162.4 |
| 2021 | 3537083 | 5169869 | 1479351 | 2785193 | 104.16 | 110.71 | 31.6 | 139.7 |
| 2020 | 4600843 | 3713806 | 1421253 | 1028794 | 80.80 | 112.35 | (0.4) | 33.9 |

---

<sup>(1)</sup> Andrew Rubenstein was our PEO for each year presented. The individuals comprising the Non-PEO NEOs for each year presented are listed below.

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| | | |
|:---|:---|:---|
| **2020** | **2021** | **2022** |
| Brian Carroll | Michael Marino | Mathew Ellis |
| Derek Harmer | Derek Harmer | Brian Carroll |
| | | Derek Harmer |
| | | Mark Phelan |
| | | Michael Marino |

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<sup>(2)</sup> The amounts shown for Compensation Actually Paid have been calculated in accordance with Item 402(v) of Regulation S-K and do not reflect compensation actually earned, realized, or received by the Company's NEOs. These amounts reflect the Summary Compensation Table Total with certain adjustments as described in footnote 3 below.

<sup>(3)</sup> Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEO and the Non-PEO NEOs as set forth below. Equity values are calculated in accordance with FASB ASC Topic 718. Amounts in the Exclusion of Stock Awards and Option Awards column are the totals from the Stock Awards and Option Awards columns set forth in the Summary Compensation Table.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Year** | **Summary Compensation <br>Table Total for <br>PEO <br>($)** | **Exclusion of <br>Stock Awards and <br>Option Awards for <br>PEO<br>($)** | **Inclusion of <br>Equity Values for <br>PEO<br>($)** | **Compensation <br>Actually Paid to <br>PEO<br>($)** |
| 2022 | $3796195 | $(2263002) | $(1057573) | $475620 |
| 2021 | 3537083 | (1697413) | 3330199 | 5169869 |
| 2020 | 4600843 | (3681014) | 2793977 | 3713806 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Year** | **Average Summary Compensation <br>Table Total for <br>Non-PEO NEOs <br>($)** | **Average Exclusion of <br>Stock Awards and <br>Option Awards for <br>Non-PEO NEOs <br>($)** | **Average Inclusion of <br>Equity Values for <br>Non-PEO NEOs <br>($)** | **Average Compensation <br>Actually Paid to <br>Non-PEO NEOs <br>($)** |
| 2022 | $1213285 | $(630170) | $(1476799) | $(893684) |
| 2021 | 1479351 | (756079) | 2061921 | 2785193 |
| 2020 | 1421253 | (1017044) | 624585 | 1028794 |

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The amounts in the Inclusion of Equity Values in the tables above are derived from the amounts set forth in the following tables:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year for <br>PEO <br>($)** | **Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards for <br>PEO<br>($)** | **Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year for PEO<br>($)** | **Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year for <br>PEO <br>($)** | **Total - Inclusion of<br>Equity Values for <br>PEO<br>($)** |
| 2022 | $1319234 | $(2220384) | $(156423) | $— | $(1057573) |
| 2021 | 1868025 | 1050515 | 411659 |  | 3330199 |
| 2020 | 3796352 | (420854) | (581521) |  | 2793977 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Average Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year for <br>Non-PEO NEOs<br>($)** | **Average Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards for <br>Non-PEO NEOs<br>($)** | **Average Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year for <br>Non-PEO NEOs<br>($)** | **Average Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year for <br>Non-PEO NEOs <br>($)** | **Total - Average Inclusion of<br>Equity Values for <br>Non-PEO NEOs<br>($)** |
| 2022 | $287436 | $(441999) | $(92973) | $(1229263) | $(1476799) |
| 2021 | 841546 | 1123846 | 96529 |  | 2061921 |
| 2020 | 1010857 | (178049) | (208223) |  | 624585 |

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<sup>(4)</sup> The Peer Group TSR set forth in this table utilizes the Russell 3000 Casinos & Gambling Industry Index, which we also utilize in the stock performance graph required by Item 201(e) of Regulation S-K included in our Annual Report for the year ended December 31, 2022. The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the Company and in the Russell 3000 Casinos & Gambling Industry, respectively. Historical stock performance is not necessarily indicative of future stock performance.

<sup>(5)</sup> We determined Adjusted EBITDA (as defined in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023) to be the most important financial performance measure used to link Company performance to Compensation Actually Paid to our PEO and Non-PEO NEOs in 2022. This performance measure may not have been the most important financial performance measure for years 2021 and 2020 and we may determine a different financial performance measure to be the most important financial performance measure in future years.

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*Description of Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Company Total Shareholder Return ("TSR")*

The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and the Company's cumulative TSR over the three most recently completed fiscal years.

![acel-20230324_g2.jpg](acel-20230324_g2.jpg)

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*Description of Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Net Income*

The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and our net income during the three most recently completed fiscal years.

![acel-20230324_g3.jpg](acel-20230324_g3.jpg)

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*Description of Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Adjusted EBITDA*

The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our Non-PEO NEOs, and our Adjusted EBITDA during the three most recently completed fiscal years.

![acel-20230324_g4.jpg](acel-20230324_g4.jpg)

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*Description of Relationship Between Company TSR and Peer Group TSR*

The following chart compares our cumulative TSR over the three most recently completed fiscal years to that of the Russell 3000 Casinos & Gambling Industry Index over the same period.

![acel-20230324_g5.jpg](acel-20230324_g5.jpg)

*Most Important Financial Performance Measures*

Adjusted EBITDA and revenues are the financial performance measure that the Company considers to have been the most important in linking Compensation Actually Paid to our PEO and other NEOs for 2022 to Company performance.

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**PROPOSAL 2: ADVISORY VOTE ON EXECUTIVE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS**

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), our stockholders are entitled to vote at the Annual Meeting to provide advisory approval of the compensation of our NEOs as disclosed in this proxy statement pursuant to the compensation disclosure rules of the SEC. This proposal, commonly known as a "say-on-pay" proposal, gives our stockholders the opportunity to express their views on our NEOs' compensation. This vote is not intended to address any specific item of compensation, but rather the overall total compensation of our NEOs and the philosophy, policies and practices described in this proxy statement. Pursuant to the Dodd-Frank Act, the stockholder vote on executive compensation is an advisory vote only, and it is not binding on us or our Board or the Compensation Committee.

As described more fully in the Compensation Discussion and Analysis section of this proxy statement, our executive compensation program is designed to attract and retain superior employees in key positions to enable our Company to succeed in the highly competitive market for talent, while simultaneously aligning actual pay to Company performance and stockholder returns. We intend to provide a competitive target compensation package to our executives, tie a significant portion of pay to performance and utilize programs that align the interests of our executives with those of our stockholders. Our Compensation Committee and our Board believe that our executive compensation program fulfills these goals and is reasonable, competitive and appropriately aligned with our Company performance and the performance of our executives. We urge stockholders to read the Compensation Discussion and Analysis section of this proxy statement, which describes in detail how our executive compensation policies and procedures operate and are intended to operate in the future.

We are asking our stockholders to indicate their support for the advisory approval of Accel's executive compensation as described in this proxy statement. Accordingly, we ask that our stockholders vote "FOR" the following resolution:

"RESOLVED, that the Company's stockholders approve, on an advisory basis, the Company's executive compensation as disclosed in the Company's Proxy Statement for the Annual Meeting of Stockholders, pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the Compensation Discussion and Analysis, the 2022 Summary Compensation Table and the other related tables and disclosure."

While this advisory vote is non-binding, our Board values the opinions that stockholders express in their votes and will, as a matter of good corporate practice, take into account the outcome of the vote when considering future compensation decisions.

**Required Vote** 

Stockholder approval, on an advisory basis, of this Proposal Two will require the affirmative vote of a majority of the votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

**Recommendation of the Board**

**OUR BOARD OF DIRECTORS RECOMMENDS A VOTE "*FOR*" THE ADVISORY APPROVAL OF ACCEL'S EXECUTIVE COMPENSATION AS DISCLOSED IN THIS PROXY STATEMENT.**

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**PROPOSAL 3: ADVISORY VOTE ON THE FREQUENCY OF FUTURE ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS**

In accordance with the rules of the SEC, we are providing our stockholders with an opportunity to make a non-binding, advisory vote on the frequency of future non-binding advisory votes on the compensation of our NEOs. This non-binding advisory vote must be submitted to stockholders at least once every six years.

You have four choices for voting on this proposal. You can choose whether future non-binding advisory votes on the compensation of our NEOs should be conducted every "ONE YEAR," "TWO YEARS," or "THREE YEARS." You may also "ABSTAIN" from voting. The frequency that receives the greatest number of votes cast by stockholders on this matter at the meeting will be deemed to be the preferred frequency of our stockholders.

After careful consideration, our Board recommends that future non-binding advisory votes on the compensation of our NEOs be held every year so that stockholders may express annually their views on our executive compensation program.

Stockholders are not voting to approve or disapprove our Board's recommendation. Instead, stockholders may indicate their preference regarding the frequency of future non-binding advisory votes on the compensation of our NEOs by selecting every one year, two years, or three years. Stockholders that do not have a preference regarding the frequency of future advisory votes may abstain from voting on the proposal.

As an advisory vote, this proposal is not binding. However, our Board and Nominating and Corporate Governance Committee value the opinions expressed by stockholders in their vote on this proposal and will consider the outcome of the vote when making future decisions regarding the frequency of holding future non-binding advisory votes on the compensation of our NEOs.

**Required Vote**

As described above, the frequency that receives the highest number of affirmative votes cast shall be the approved frequency.

**Recommendation of the Board**

**OUR BOARD OF DIRECTORS RECOMMENDS HOLDING FUTURE NON-BINDING ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS EVERY "*ONE YEAR.*"**

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**REPORT OF THE AUDIT COMMITTEE**

The Audit Committee has reviewed and discussed the audited consolidated financial statements for the fiscal year ended December 31, 2022 with our management. The Audit Committee has discussed with its independent registered public accounting firm, KPMG LLP, the matters required to be discussed by Auditing Standard No. 1301, *Communications with Audit Committees,* as issued by the Public Company Accounting Oversight Board ("*PCAOB*"). The Audit Committee has also received the written communications from KPMG LLP required by applicable requirements of the PCAOB regarding the independent accountants' communications with the Audit Committee concerning independence, and has discussed with KPMG LLP its independence. Based on the foregoing, the Audit Committee has recommended to our Board that the audited consolidated financial statements be included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

By: *The Audit Committee*

*David W. Ruttenberg (Chair)*

*Eden Godsoe*

*Kathleen Philips*

*The information contained in the "Report of the Audit Committee" is not considered to be "soliciting material," "filed" or incorporated by reference in any past or future filing by the Company under the Exchange Act or the Securities Act of 1933 unless and only to the extent that the Company specifically incorporates it by reference.*

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**PROPOSAL 4: RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Our Audit Committee has appointed KPMG LLP, an independent registered public accounting firm, to audit the consolidated financial statements of the Company for the fiscal year ending December 31, 2023, and recommends that stockholders vote in favor of the ratification of such appointment. In the event of a negative vote on such ratification, the Audit Committee will reconsider its selection. We anticipate that representatives of KPMG LLP will be present at the Annual Meeting, will have the opportunity to make a statement if they desire, and will be available to respond to appropriate questions.

Prior to the Business Combination, KPMG LLP served as the independent registered public accounting firm for Pace. In addition, Accel had also engaged KPMG LLP as its independent registered public accounting firm prior to the Business Combination. Accordingly, KPMG LLP has provided auditing and accounting services to both Pace and Accel for the periods prior to and following the Business Combination.

**Independent Registered Public Accounting Firm Fees and Services**

Aggregate fees billed to the Company for audit services rendered by KPMG LLP for the audits of the Company's annual financial statements for 2022 and 2021 and other services rendered by KPMG LLP during 2022 and 2021 are as follows:

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| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| Audit fees | $3598500 | $2811000 |
| Audit-related fees |  |  |
| Tax fees |  |  |
| All other fees<sup>(1)</sup> | 127923 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3726423 | $2811000 |

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<sup>(1)</sup> "All other fees" includes all fees paid that are not audit, audit-related, or tax services. These fees relate to permissible advisory services.

**Audit Committee Pre-Approval Policies and Procedures**

Our Audit Committee has adopted policies and procedures for the pre-approval of audit services, internal control-related services and permitted non-audit services rendered by our independent registered public accounting firm. Pre-approval may also be given as part of our Audit Committee's approval of the scope of the engagement of the independent registered public accounting firm or on an individual, case-by-case basis before the independent registered public accounting firm is engaged to provide each service.

All of the services provided by KPMG LLP described above were approved by our Audit Committee pursuant to our Audit Committee's pre-approval policies.

**Vote Required**

Ratification of the appointment of KPMG LLP to audit the consolidated financial statements of our Company for the fiscal year ending December 31, 2023 will require the affirmative vote of a majority of the votes cast by stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

**Recommendation of the Board**

**OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE "*FOR*" THE RATIFICATION OF KPMG LLP AS THE COMPANY'S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2023.**

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**PROPOSAL 5 – APPROVAL OF THE AMENDMENT AND RESTATEMENT OF OUR LONG TERM INCENTIVE PLAN**

**Background of the Plan Increase**

On March 23, 2023, subject to stockholder approval, the Board adopted the Amended and Restated Long Term Incentive Plan (the "Restated LTIP"). If our stockholders do not approve the amendment and restatement of the LTIP, then the LTIP will continue without the amendments in accordance with its terms. The purpose of the LTIP is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to our success.

*Amendment to the LTIP*

The principal terms of the Restated LTIP are summarized below. This summary is not a complete description of the Restated LTIP, and it is qualified in its entirety by reference to the complete text of the Restated LTIP document. The Restated LTIP is attached as Annex A to this proxy statement.

The following is the primary amendment to the LTIP contained in the Restated LTIP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an increase to the available share reserve by 2,000,000 shares of our Class A-1 common stock (for a cumulative aggregate share authorization of 8,000,000 shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain clarifying changes.

If our stockholders approve this proposal, we intend to file, pursuant to the Securities Act, a registration statement on Form S-8 to register the 2,000,000 additional shares of Class A-1 common stock available for issuance pursuant to the Restated LTIP.

**Why We are Seeking Stockholder Approval of the Amendment and Restatement of the LTIP**

*Equity Compensation Is a Critical Element of Our Compensation Policy.* 

We believe that long-term incentive compensation programs align the interests of management, employees and stockholders to create long-term stockholder value. We strongly believe that the approval of the Restated LTIP is essential to our continued success because we otherwise may not have sufficient shares available under our LTIP to attract and retain new employees or to motivate and retain our existing employees. This is particularly critical since our employees are our most valuable asset.

Accordingly, approving the Restated LTIP is in the best interest of our stockholders because equity awards help us to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attract, motivate and retain talented employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• align employee and stockholder interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• link employee compensation with company performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain a culture based on employee stock ownership.

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*The Restated LTIP Conforms to Best Practices in Equity Incentive Plans.* 

We believe the Restated LTIP conforms to best practices in equity incentive plans in that it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contains:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a restriction that the following shares will not be available for future grant under the Restated LTIP: (A) shares tendered or withheld in payment of the exercise price of any stock option or stock appreciation right or taxes relating to a stock option or stock appreciation right, (B) shares that were subject to a stock option or stock appreciation right but were not issued or delivered as a result of the net settlement or net exercise of such stock option or stock appreciation right, (C) shares repurchased on the open market with the proceeds of a stock option's exercise price, and (D) shares surrendered or withheld by us in payment of taxes relating to an award to the extent such shares are withheld in an amount greater than the minimum statutory rate in the participant's relevant tax jurisdiction(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an "evergreen" provision to increase automatically the number of shares reserved for issuance under the Restated LTIP;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax gross-ups.

*Current LTIP Information.*

As of February 1, 2023, there were 86,690,124 total shares of our Class A-1 common stock outstanding. Also as of February 1, 2023, there were (i) 1,171,046 shares issuable upon the exercise of outstanding stock options with a weighted-average exercise price of $11.89 per share and weighted-average remaining term of 7.8 years, (ii) 1,187,465 shares subject to outstanding RSUs with no exercise price, (iii) 2,597,118 shares available for grant under the LTIP, and (vi) 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 23, 2023, was $8.65.

*We Carefully Consider and Forecast Our Need for Shares*.

We are requesting approval of an increase of 2,000,000 shares for the Restated 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 Restated 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 number of shares of Class A-1 common stock outstanding as of the end of each applicable fiscal year. The burn rate

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measures the potential dilutive effect of our outstanding equity grants. During the past three fiscal years, we granted equity awards under our LTIP as summarized in the chart below. Based on the numbers in the table below, our three-year average gross burn rate was approximately 2% for fiscal years 2020 through 2022. This calculation of our burn rate is based on equity awards granted under our LTIP and does not include an adjustment for any shares returned to the LTIP or as a result of the forfeiture, lapse, repurchase or other termination of awards.

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| | | | |
|:---|:---|:---|:---|
| **Fiscal Year** | **Options Granted** | **RSUs Granted** | **Burn Rate** |
| 2020 | 1449779 | 1665968 | 4% |
| 2021 | 262097 | 558193 | 1% |
| 2022 | 315881 | 569600 | 1% |

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*Potential Dilution.*

We define "overhang" as the stock options outstanding but not exercised and outstanding full value awards (which include RSUs), 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 LTIP plus shares available for grant under our LTIP. Please see the table below for a breakdown of these categories as of February 1, 2023. Based on the values included in the table below, our fully-diluted overhang rate as of February 1, 2023 was 6% , and is within the limits recommended by certain independent shareholder advisory groups. If approved, the new shares reserved for issuance under the Restated 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 LTIP, and do not include an adjustment for any shares returned to the LTIP or as a result of the forfeiture, lapse, repurchase or other termination of awards.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Outstanding options under all plans** | **Weighted-average**<br>**exercise price**<br>**of options** | **Weighted-average**<br>**remaining term**<br>**of options** | **Full value awards**<br>**outstanding under**<br>**all plans (including**<br>**RSUs)** | **Number of shares**<br>**available for grant**<br>**under all plans** |
| 1298409 | $11.18 | 7.2 | 2485874 | 2597118 |

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*We Broadly Distribute Equity Awards.*

Our equity awards are widely spread among our employees. For example, during 2022, our named executive officers received an aggregate of stock options and RSUs for 537,440 shares, or approximately 60% of aggregate equity awards we granted to all employees in 2022.

**Purpose of the Restated LTIP**

Our Board adopted the Restated LTIP to provide a means to retain the services of our employees, directors, consultants, independent contractors and advisors, and those of any parent or subsidiary of ours, to attract and retain the new talent to our company that we will require to execute our strategy and grow our business, and to provide a means by which these eligible individuals may be given an opportunity to benefit from increases in the value of our Class A-1 common stock through the grant of equity awards, thereby aligning the long-term compensation and interests of those individuals with our stockholders.

We will continue to review our compensation plans and strategies as our business evolves and will continue to use equity and performance-based incentives to drive accountability by our leadership team and to reward for sustained strong performance. We believe that increasing the number of shares available for grant under the Restated LTIP will enable us to continue to provide competitive equity compensation to our employees and directors while continuing to comply with best practices for equity incentive plan grant practices.

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**Share Reserve**

As of February 1, 2023, there were 2,597,118 shares of Class A-1 common stock available for future grant under our LTIP.

In addition, if all or any portion of an award expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares, the shares of Class A-1 common stock subject to such award (including (i) shares forfeited with respect to restricted stock, and (ii) the number of shares withheld or surrendered to us in payment of taxes relating to awards other than stock options and stock appreciation rights) shall again be available for issuance under the Restated LTIP.

**Eligibility**

Our Restated LTIP provides for the grant of awards to our officers, employees, any of our affiliates or any other person who provides services to us or any of our affiliates, including directors ("Participants"). As of February 1, 2023, we had four (4) executive officers, seven (7) non-employee directors and approximately 1,290 other employees who were eligible to participate in the Restated LTIP.

**Administration**

Our Restated LTIP is administered by our Compensation Committee, all of the members of which are non-employee directors under applicable federal securities laws and outside directors as defined under applicable federal tax laws, or by our Board acting in place of our Compensation Committee. The Compensation Committee has the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determine which Participants receive Awards (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prescribe the form, amount, vesting and other terms and conditions of each Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• modify, waive or adjust any term or condition of an Award that has been granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determine the treatment of an Award upon a termination of employment or other service relationship;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impose a holding period with respect to an Award or the shares of Class A-1 common stock received in connection with an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interpret and administer the Restated LTIP and any award agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make all other determinations and take any other action that the committee deems necessary or desirable for the administration of the Restated LTIP.

**Equity Awards**

The Restated LTIP permits us to grant the following types of awards ("*Awards*"):

***Stock Options.*** Options ("Options") may be granted to Participants in form of (i) Incentive Stock Options ("ISOs") that comply with Section 422 of the Code and (ii) Nonstatutory Options ("NSOs"). The exercise price of each Option granted under the Restated LTIP is determined by the Compensation Committee. The exercise price for Options, other than an Option granted as a substitute award or adjusted in connection with a recapitalization, in each case as allowed under the Restated LTIP, cannot be less than the greater of (A) the par value per share of Class A-1 common stock or (B) 100% of the fair market value per share of Class A-1 common stock as of the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes of stock of Accel, its parent or any of its subsidiaries, 110% of the fair market value per share of Class A-1 common stock on the date of grant).

***Stock Appreciation Rights.*** As stock appreciation right ("SAR") is the right to receive a share of Class A-1 commons stock, or an amount equal to the excess of the fair market value of one Class A-1 Share on the date of exercise over the base price of the SAR, as determined by the Compensation Committee. The grant price of each

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SAR granted under the Restated LTIP is determined by the Compensation Committee; provided that, the grant price for a SAR, other than a SAR granted as a substitute award or adjusted in connection with a recapitalization, in each case as allowed under the Restated LTIP, cannot be less than the greater of (A) the par value per shares of Class A-1 common stock or (B) 100% of the fair market value per share of Class A-1 common stock as of the date of grant of the SAR.

***Restricted Stock Awards.*** A Restricted Stock Award ("Restricted Stock") is a grant of shares of Class A-1 common stock subject to restrictions, terms and conditions imposed by the Compensation Committee in its discretion. Unless the Compensation Committee determines otherwise, upon the issuance of Restricted Stock, a Participant has all of the rights of a stockholder with respect to the shares of Class A-1 common stock represented by the Restricted Stock, including the right to vote such shares of Class A-1 common stock and to receive all dividends or other distributions made with respect to the shares of Class A-1 common stock; provided that (i) the Compensation Committee may require any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock, applied to the purchase of additional Awards or deferred without interest to the date of vesting of the associated Award of Restricted Stock and (ii) any non-cash property distributed as a dividend shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such property was distributed.

***Restricted Stock Units.*** An RSU Award represents the right of a Participant to receive shares of Class A-1 common stock or cash, or a combination thereof, to a Participant in the future in consideration of the performance of services, but subject to the fulfillment of conditions (which may include the achievement of performance goals which may or may not be coterminous with the vesting schedule of the RSU), as specified by the Compensation Committee. RSUs may be paid in shares of Class A-1 common stock, cash or a combination thereof.

***Other Stock-Based Awards.*** The Compensation Committee may grant Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, shares of Class A-1 common stock or factors that may influence the value of such shares of Class A-1 common stock, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into shares of Class A-1 common stock, purchase rights for shares of Class A-1 common stock, awards with value and payment contingent upon our performance or any other factors designated by the Compensation Committee or valued by reference to the book value of shares of Class A-1 common stock or the value of securities of, or the performance of, our specified affiliates.

***Dividend equivalents rights.*** Our Board or Compensation Committee may permit participants holding RSUs to receive dividend equivalent payments if and when dividends are paid to stockholders. In the discretion of our board or the compensation committee thereof, such dividend equivalent payments may be paid in cash, shares of our Class A-1 common stock, other awards, or other property equal in value to the dividends, and may either be paid at the same time as dividend payments are made to stockholders or delayed until shares are issued pursuant to the RSU grants and may be subject to the same vesting or performance requirements as the RSUs.

***Cash Awards.*** The Compensation Committee may grant an Award denominated in cash to a Participant on such terms and conditions as the Compensation Committee may determine at the time of grant.

***Substitute Awards.*** Substitute awards may be granted in substitution or exchange for any other award granted under the Restated LTIP or under another plan of the Company or any other right of a participant to receive payment from the Company. Substitute awards may also be granted in substitution for awards held by individuals who become participants as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with the Company. Awards may be granted in substitution or exchange for similar awards held by individuals who become Participants as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with us or one of our subsidiaries. Such substitute awards that are Options or SARs may have an exercise price that is less than the Fair Market Value of a Class A-1 Share on the date of the substitution if such substitution complies with the limitations or requirements of Section 409A of the Code, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto and other applicable laws and the NYSE rules.

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**Performance Criteria**

Our Compensation Committee may establish performance goals by selecting such business criteria and other measures of performance as it may deem appropriate in establishing any performance goal.

**Changes in Capital Structure** 

In the event of any change in our capital structure or business or other corporate transaction or event that would be considered an "equity restructuring" within the meaning of the Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation—Stock Compensation, as amended or any successor accounting standard ("ASC Topic 718") and, in each case, that would result in an additional compensation expense to us pursuant to the provisions of ASC Topic 718, if adjustments to Awards with respect to such event were discretionary or otherwise not required (each such an event, an "Adjustment Event"), then the Compensation Committee shall equitably adjust (i) the aggregate number or kind of shares that thereafter may be delivered under the Restated LTIP, (ii) the number or kind of shares or other property (including cash) subject to an Award, (iii) the terms and conditions of Awards, including the purchase price or exercise price of Awards and performance goals, as applicable and (iv) the applicable limitations with respect to Awards (other than cash limits) to equitably reflect such Adjustment Event. In the event of any change in our capital structure or business or other corporate transaction or event that would not be considered an Adjustment Event, and is not otherwise addressed in the Restated LTIP, the Compensation Committee has complete discretion to make equitable adjustments (if any) in such manner as it deems appropriate with respect to such other event.

**Clawback**

All awards will be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by our Board or the Compensation Committee thereof or required by law during the term of service of the participant, to the extent set forth in such policy or applicable agreement.

**Transferability of Awards**

The Restated LTIP generally restricts the transfer of Awards, except for (1) transfer by will or the laws of descent and distribution, (2) to one or more members of a Participant's immediate family or (3) pursuant to domestic order. Notwithstanding the foregoing, ISOs will not, under any circumstances, be transferable other than by will or the laws of descent and distribution.

**Change in Control**

Except to the extent otherwise provided in any applicable award agreement, in the event of a Change in Control (as defined in the Restated LTIP) or other changes in our outstanding Class A-1 Share by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change occurring after the date of the grant of any Award, the Compensation Committee, acting in its sole discretion without the consent or approval of any holder, may exercise any power enumerated in the Restated LTIP and may also effect one or more of the following alternatives, which may vary among individual holders and which may vary among Awards held by any individual holder: (i) accelerate the time of exercisability of an Award; (ii) redeem in whole or in part outstanding Awards by requiring the mandatory surrender to us by selected holders of some or all of the outstanding Awards held by such holders in exchange for payment therefor based on the amount payable to stockholders in connection with such transaction or (iii) make such adjustments to Awards then outstanding as the Compensation Committee deems appropriate to reflect such Change in Control or other such event (including the substitution, assumption, or continuation of Awards by the successor company or a parent or subsidiary thereof); provided, however, that so long as the event is not an Adjustment Event, the Committee may determine in its sole discretion that no adjustment is necessary to Awards then outstanding. If an Adjustment Event occurs, this treatment in the foregoing sentence shall only apply to the extent it is not in conflict with the treatment upon an Adjustment Event.

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**Duration, Termination and Amendment**

Our Compensation Committee may terminate or amend the Restated LTIP at any time; provided, however, (i) no such change may be made that would materially adversely alter or impair the rights of a Participant with respect to an Award theretofore granted without the consent of such Participant and (ii) that the committee will not, without the approval of our stockholders, amend the Restated LTIP in any manner that requires stockholder approval. Unless sooner terminated, the Restated 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 Restated 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 not 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 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.

***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.

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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 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 Restated LTIP is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended.

**Effect on Current Stockholders if the Amendment and Restatement of the LTIP is Not Approved**

If our stockholders do not approve the Restated LTIP, our plans to operate our business would be materially adversely affected because we otherwise may not have sufficient shares available under our LTIP to attract and retain new employees or to motivate and retain our existing employees. Additionally, if the shares available for grant under the 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 NYSE with respect to non-stockholder approved plans. This could require us to offer material cash-based incentives as well as annual cash incentive bonus plans for our eligible officers rather than utilizing performance awards to compete for talent, which could have a significant impact upon our quarterly results of operations and balance sheet. Moreover, this would not be competitive with most of our peer companies with which we compete for talent. We believe that a cash-based incentive program for all of our executive leadership would not have significant long-term retention value and would not serve to align our employees' interests as closely with those of our stockholders in the absence of equity incentives.

Our future success depends heavily on our ability to attract and retain high caliber employees. The ability to grant equity awards is a necessary and powerful recruiting and retention tool for us to hire and motivate the quality personnel we need to compete.

For these reasons, we request that our stockholders approve the Restated LTIP. If the Restated LTIP is not approved, we do not expect to be able to offer competitive equity packages to retain our current employees and hire new employees.

**Interests of Certain Persons in the Amendment and Restatement of the LTIP**

Our executive officers and members of our Board have an interest in this proposal by virtue of their being eligible to receive equity awards under the Restated LTIP.

As discussed in further detail in the section titled "Director Compensation" of this Proxy Statement, under our current non-employee director compensation practices and subject to approval by our Board, each non-employee

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director (other than the Vice Chairman) will receive an annual RSU grant with a grant date value of $100,000 and our Vice Chairman will receive an annual RSU grant with a grant date value of $300,000.

It is not possible to determine the benefits that will be received by participants in the Restated LTIP, including our NEOs and our non-employee directors, in the future because all grants are made in the discretion of our Board or our Compensation Committee. Neither our Board nor our Compensation Committee has approved any awards that are conditioned upon stockholder approval of the Restated LTIP.

Other than as described herein, we do not believe that our executive officers or directors have substantial interests in this proposal that are different from or greater than those of any other of our stockholders.

**Vote Required** 

The approval of the amendment and restatement of the LTIP will require the affirmative vote of a majority of the votes cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote thereon.

**OUR BOARD OF DIRECTORS RECOMMENDS A VOTE "*FOR*" THE APPROVAL OF THE AMENDMENT AND RESTATEMENT OF OUR LONG-TEM INCENTIVE PLAN**

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**EQUITY COMPENSATION PLAN INFORMATION**

**Securities Authorized for Issuance Under Equity Compensation Plans**

The following table includes information as of December 31, 2022 for equity compensation plans:

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of<br>securities to be issued<br>upon exercise of<br>outstanding options,<br>warrants and rights** | **Weighted-average<br>exercise price of<br>outstanding options,<br>warrants and rights** | **Number of securities<br>remaining available for<br>future issuance<br>under equity<br>compensation plans** |
| Equity compensation plans approved by security holders<sup>(1)(2)</sup> | 2717118 | $11.18 | 2595118 |
| Equity compensation plans not approved by securityholders | n/a | n/a | n/a |

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<sup>(1)</sup> Includes our 2016 Plan and LTIP.

<sup>(2)</sup> Includes 2,595,118 shares of common stock available for issuance under the LTIP, as of December 31, 2022. There are no shares of common stock available for issuance under our 2011 Plan or our 2016 Plan, but these plans continue to govern the terms of equity awards granted thereunder.

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**DELINQUENT SECTION 16(A) REPORTS**

Section 16(a) of the Exchange Act requires our directors, executive officers, and persons who beneficially own more than ten percent of our Class A-1 common stock to file with the SEC initial reports of beneficial ownership and reports of changes in beneficial ownership of common stock. Directors, executive officers, and ten percent stockholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.

Based solely on our review of these reports filed by the Company's officers, directors and shareholders, and written representations from our executive officers and directors that they filed such reports, we believe that our officers, directors, and shareholders complied with all filing requirements under Section 16(a) of the Exchange Act on a timely basis during fiscal year 2022, except that a Form 4 with respect to sales of shares of Class A-1 common stock on April 1, 2022 by Brian Carroll was filed one day late on April 6, 2022 and a Form 3 for Mathew Ellis was filed five days late on May 16, 2022.

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**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT** 

The following table sets forth information as of March 15, 2023 regarding the beneficial ownership of the Company's Class A-1 common stock by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known to be the beneficial owner of more than 5% of the outstanding shares of Class A-1 common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each director and named executive officer of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all current executive officers and directors as a group.

The information below is based on an aggregate of 86,569,067 shares of Class A-1 common stock issued and outstanding as of March 15, 2023. Beneficial ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if she, he or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or exercisable within 60 days.

Unless otherwise indicated, we believe that all persons named in the table below have sole voting and investment power with respect to all shares of Class A-1 common stock beneficially owned by the individuals below:

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owners**<sup>(1)</sup> | **Number of** <br>**Shares**<br>**Beneficially**<br>**Owned** | **Approximate**<br>**Percentage of**<br>**Outstanding Class A-1**<br>**Common Stock** |
| **5% Stockholders:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Clairvest <sup>(2)</sup> | 16898868 | 19.52% |
| &nbsp;&nbsp;&nbsp;&nbsp;Darlington Partners Capital Management, LP <sup>(3)</sup> | 7430908 | 8.58% |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenvale Capital LLP <sup>(4)</sup> | 5350000 | 6.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;American Century Companies, Inc<sup>(5)</sup> | 4698892 | 5.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;BlackRock, Inc.<sup>(6)</sup> | 4443629 | 5.13% |
| **Executive Officers and Directors:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Andrew Rubenstein <sup>(7)</sup> | 8813974 | 10.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brian Carroll  |  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Mathew Ellis <sup>(8)</sup> | 46810 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Derek Harmer <sup>(9)</sup> | 281200 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Michael Marino |  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Mark Phelan <sup>(10)</sup> | 201003 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Karl Peterson <sup>(11)</sup> | 2788145 | 3.22% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gordon Rubenstein <sup>(12)</sup> | 2869386 | 3.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;Eden Godsoe | 14948 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Kathleen Philips | 40000 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Dee Robinson |  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Ken Rotman <sup>(13)</sup> |  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;David W. Ruttenberg <sup>(14)</sup> | 1600527 | 1.85% |
| **All current executive officers and directors as a group** <br>**(11 persons)**<sup>(15)</sup> | 16655993 | 19.17% |

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\*Less than 1 percent.

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<sup>(1)</sup> Unless otherwise noted, the business address of each of the persons and entities listed above is 140 Tower Drive, Burr Ridge, IL 60527.

<sup>(2)</sup> Includes shares beneficially owned by Clairvest Equity Partners V-A Limited Partnership, Clairvest Equity Partners V Limited Partnership and CEP V Co-Investment Limited Partnership. The address of each of the foregoing is c/o Clairvest Group Inc., 22 St. Clair Avenue East, Suite 1700, Toronto, Ontario, Canada M4T 2S3.

<sup>(3)</sup> Based solely on information contained in Amendment No. 3 to a Schedule 13G filed with the SEC jointly by Darlington Partners Capital Management, LP ("*DPCM LP*"), Darlington Partners GP, LLC ("*DP GP*"), Scott W. Clark, Ramsey B. Jishi and Darlington Partners, L.P. ("*Darlington*") on February 14, 2023. Of the shares beneficially owned, DPCM LP, DP GP, Mr. Clark and Mr. Jishi reported that each had sole voting and dispositive power with respect to 0 shares and shared voting and dispositive power with respect to 7,596,178 shares, and Darlington reported that it had sole voting and dispositive power with respect to 0 shares and shared voting and dispositive power with respect to 5,918,390 shares. DPCM LP is the investment adviser of private investment funds, including Darlington (together, the "*Funds*"). DP GP is the general partner of DPCM LP and the Funds. Mr. Clark and Mr. Jishi are the managers of DP GP. The address for each of the Reporting Persons is 300 Drakes Landing Road, Suite 250, Greenbrae, CA 94904.

<sup>(4)</sup> Based solely on information contained in Amendment No. 1 to a Schedule 13G filed with the SEC by Greenvale Capital LLP ("*Greenvale*") on February 14, 2023. Of the shares beneficially owned, Greenvale reported that it had sole voting and dispositive power with respect to 5,450,000 shares and shared voting and dispositive power with respect to 0 shares. Greenvale, an English limited liability partnership, serves as an investment manager to certain funds and accounts that hold the shares. The address of the principal business office of Greenvale is 1st Floor, 1 Vere Street, London W1G 0DF, United Kingdom.

<sup>(5)</sup> Based solely on information contained in a Schedule 13G filed with the SEC jointly by American Century Investment Management, Inc. ("*ACIM*"), American Century Companies, Inc. ("*ACC*") and Stowers Institute for Medical Research ("*Stowers*") on February 8 2023. Of the shares beneficially owned, ACIM, ACC and Stowers reported that each had sole voting power with respect to 5,140,275 shares and sole dispositive power with respect to 5,246,371 shares. Stowers is the control entitiy of ACC. The address of the principal business office of each of ACIM, ACC and Stowers is 4500 Main Street 9th Floor, Kansas City, Missouri 64111.

<sup>(6)</sup> Consists of 4,443,629 shares beneficially owned by Blackrock, Inc. ("*Blackrock*"). The address of the principal business office of Blackrock is 50 Hudson Yards, New York, NY 10001.

<sup>(7)</sup> Includes 4,286,146 shares beneficially owned by Mr. Rubenstein through Harry R, LLC, and 160,343 shares issuable upon settlement of options and RSUs that will vest within 60 days of March 15, 2023 and pursuant to options that are currently exercisable or may be exercised within 60 days of March 15, 2023.

<sup>(8)</sup> Includes 19,817 shares issuable upon settlement of options and RSUs that will vest within 60 days of March 15, 2023 and pursuant to options that are currently exercisable or may be exercised within 60 days of March 15, 2023.

<sup>(9)</sup> Includes 86,619 shares issuable upon settlement of options and RSUs that will vest within 60 days of March 15, 2023 and pursuant to options that are currently exercisable or may be exercised within 60 days of March 15, 2023.

<sup>(10)</sup> Includes 37,717 shares issuable upon settlement of options and RSUs that will vest within 60 days of March 15, 2023 and pursuant to options that are currently exercisable or may be exercised within 60 days of March 15, 2023.

<sup>(11)</sup> Includes 2,788,145 shares beneficially owned by Mr. Peterson through Peterson Capital Partners, L.P. Peterson Capital Partners, L.P.'s address if 301 Commerce Street, Suite 3300, Fort Worth, TX 76102.

<sup>(12)</sup> Includes 2,463,243 shares beneficially owned by Mr. Rubenstein through Fund Indy LLC, The PrivateBank & Trust Company, as Custodian of the Gordon Rubenstein SEP RIA, and Gordon S. Rubenstein and Krista M. Ramonas Joint Revocable Trust.

<sup>(13)</sup> The address of Mr. Rotman is c/o Clairvest Group Inc., 22 St. Clair Avenue East, Suite 1700, Toronto, Ontario, Canada M4T 2S3.

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<sup>(14)</sup> Includes shares beneficially owned by Mr. Ruttenberg, solely as trustee, or his successors in trust, of the David W. Ruttenberg Revocable Trust, as now or hereafter amended, and trough Crilly Court Trust and Grant Place Fund LLC.

<sup>(15)</sup> Includes (i) 16,331,497 shares held directly and indirectly by all current directors and current executive officers of the Company as a group and (ii) 324,496 shares held directly by all current directors and executive officers of the Company as a group issuable upon settlement of options and RSUs that will vest within 60 days of March 15, 2023 and pursuant to options that are currently exercisable or may be exercised within 60 days of March 15, 2023.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

Other than as described in "*—Executive Compensation*" the following is a summary of transactions since January 1, 2022 to which Accel has been a participant, in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount involved exceeded or will exceed $120,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of its directors, executive officers, or holders of more than 5% of its Class A-1 common stock, or any member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest, other than compensation and other arrangements that are described in the section entitled "*Executive Compensation*."

**Indemnification Agreements**

We have entered into indemnity agreements with each of our directors and executive officers. Each indemnity agreement provides that, subject to limited exceptions, and among other things, Accel will indemnify the director or officer to the fullest extent not prohibited by the provisions of its bylaws and the Delaware General Corporation Law for claims arising in his or her capacity as our director or officer.

**Review, Approval or Ratification of Transactions with Related Persons**

The Board adopted a written related party transactions policy and charters of its Audit Committee and Nominating and Corporate Governance Committee that require that any transaction with a related person that must be reported under applicable rules of the SEC must be reviewed and approved or ratified by the Audit Committee, unless the related party is, or is associated with, a member of that committee, in which event the transaction must be reviewed and approved by the Nominating and Corporate Governance Committee.

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**DEADLINE FOR RECEIPT OF STOCKHOLDER PROPOSALS**

Pursuant to Rule 14a-8 under the Exchange Act, any proposal that a stockholder of our Company wishes to have included in the proxy statement in connection with our 2024 Annual Meeting of Stockholders must be submitted to us no later than November 25, 2023.

In accordance with our current bylaws, stockholder proposals, including stockholder nominations for candidates for election as directors, that are intended to be presented by stockholders at the annual meeting of stockholders for the fiscal year ending December 31, 2023 but not submitted for inclusion in the proxy statement for our 2024 Annual Meeting of Stockholders pursuant to Rule 14a-8, must be received by us no earlier than January 5, 2024 and no later than February 4, 2024, unless we change the date of our 2024 annual meeting more than 30 days before or more than 60 days after May 5, 2024, in which case stockholder proposals must be received by us not later than the later of the 90th day prior to the date of the 2024 annual meeting or the close of business on the 10th day following the day on which we first make a public announcement of the date of such meeting. These time limits also apply in determining whether notice is timely for purposes of rules adopted by the SEC relating to the exercise of discretionary voting authority. All stockholder proposals must include the specified information described in our bylaws and follow the procedures outlined in Rule 14a-8 under the Exchange Act. Stockholders are advised to review the bylaws, which contain additional requirements with respect to advance notice of stockholder proposals and nominations.

In addition to satisfying the requirements under our bylaws, to comply with the SEC's universal proxy rules, stockholders who intend to solicit proxies in support of director nominees other than the Company's nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act no later than March 5, 2024.

Proposals and other items of business should be directed to the attention of the General Counsel and Chief Compliance Officer at our principal executive offices, 140 Tower Drive, Burr Ridge, Illinois 60527.

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**OTHER MATTERS**

We know of no other matters to be submitted at the meeting other than those previously mentioned. If any other matters properly come before the annual meeting, it is the intention of the persons named in the enclosed proxy card to vote the shares they represent as the board of directors may recommend.

Dated: March 24, 2023

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**<u>ANNEX A: AMENDED AND RESTATED LONG TERM INCENTIVE PLAN</u>**

**Accel Entertainment, Inc.** 

**Amended and Restated Long Term Incentive Plan** 

1. **Purpose**. The purpose of the Amended and Restated Accel Entertainment, Inc. Long Term Incentive Plan (the "***Plan***") is to provide a means through which (a) Accel Entertainment, Inc., a Delaware corporation (the "***Company***"), and its Affiliates may attract, retain and motivate qualified persons as employees, directors and consultants, thereby enhancing the profitable growth of the Company and its Affiliates and (b) persons upon whom the responsibilities of the successful administration and management of the Company and its Affiliates rest, and whose present and potential contributions to the Company and its Affiliates are of importance, can acquire and maintain stock ownership or awards the value of which is tied to the performance of the Company, thereby strengthening their concern for the Company and its Affiliates. Accordingly, the Plan provides for the grant of Options, SARs, Restricted Stock, Restricted Stock Units, Stock Awards, Dividend Equivalents, Other Stock-Based Awards, Cash Awards, Substitute Awards, or any combination of the foregoing, as determined by the Committee in its sole discretion

2. **Definitions**. For purposes of the Plan, the following terms shall be defined as set forth below:

(a) "***Affiliate***" means any corporation, partnership, limited liability company, limited liability partnership, association, trust or other organization that, directly or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding sentence, "control" (including, with correlative meanings, the terms "controlled by" and "under common control with"), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power (i) to vote more than 50% of the securities having ordinary voting power for the election of directors of the controlled entity or organization or (ii) to direct or cause the direction of the management and policies of the controlled entity or organization, whether through the ownership of voting securities, by contract, or otherwise.

(b) "***ASC Topic 718***" means the Financial Accounting Standards Board Accounting Standards Codification Topic 718, *Compensation – Stock Compensation*, as amended or any successor accounting standard.

(c) "***Award***" means any Option, SAR, Restricted Stock, Restricted Stock Unit, Stock Award, Dividend Equivalent, Other Stock-Based Award, Cash Award, or Substitute Award, together with any other right or interest, granted under the Plan.

(d) "***Award Agreement***" means any written instrument, which may be in electronic form (including any employment, severance or change in control agreement), that sets forth the terms, conditions, restrictions and/or limitations applicable to an Award, in addition to those set forth under the Plan.

(e) "***Board***" means the Board of Directors of the Company.

(f) "***Cash Award***" means an Award denominated in cash granted under <u>Section 6(i)</u>.

(g) "***Change in Control***" means, except as otherwise provided in an Award Agreement, the occurrence of any of the following events after the Effective Date:

(i) The consummation of an agreement to acquire or a tender offer for beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) by any Person, of 50% or more of either (x) the then outstanding shares of Stock (the "***Outstanding Stock***") or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "***Outstanding Company Voting Securities***"); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the

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Company or any entity controlled by the Company or (D) any acquisition by any entity pursuant to a transaction that complies with clauses (A), (B) and (C) of paragraph (iii) below;

(ii) Individuals who constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board;

(iii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or an acquisition of assets of another entity (a "***Business Combination***"), in each case, unless, following such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the then outstanding shares of common stock or common equity interests and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity which as a result of such transaction owns the Company, or all or substantially all of the Company's assets either directly or through one or more subsidiaries), (B) no Person (excluding any employee benefit plan (or related trust) of the Company or the entity resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock or common equity interests of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or other governing body of such entity to the extent that such ownership results solely from ownership of the Company that existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors or similar governing body of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

(iv) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing, for purposes of an Award that provides for a deferral of compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change in Control on such Award would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change in Control for purposes of such Award will mean both a Change in Control and a "change in the ownership of a corporation," "change in the effective control of a corporation," or a "change in the ownership of a substantial portion of a corporation's assets" within the meaning of the Nonqualified Deferred Compensation Rules as applied to the Company.

(h) "***Change in Control Price***" means the amount determined in the following clause (i), (ii), (iii), (iv) or (v), whichever the Committee determines is applicable, as follows: (i) the price per share offered to holders of Stock in any merger or consolidation, (ii) the per share Fair Market Value of the Stock immediately before the Change in Control or other event without regard to assets sold in the Change in Control or other event and assuming the Company has received the consideration paid for the assets in the case of a sale of the assets, (iii) the amount distributed per share of Stock in a dissolution transaction, (iv) the price per share offered to holders of Stock in any tender offer or exchange offer whereby a Change in Control or other event takes place, or (v) if such Change in Control or other event occurs other than pursuant to a transaction described in clauses (i), (ii), (iii), or (iv) of this <u>Section 2(h)</u>, the value per share of the Stock that may otherwise be obtained with respect to such Awards or to which such Awards track, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Awards. In the event that the consideration offered to stockholders of the Company in any transaction described in this <u>Section 2(h)</u> or in <u>Section 8(e)</u> consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash and such determination shall be binding on all affected Participants to the extent applicable to Awards held by such Participants.

(i) "***Code***" means the Internal Revenue Code of 1986, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance and regulations thereto.

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(j) "***Committee***" means a committee of two or more directors designated by the Board to administer the Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two or more Qualified Members.

(k) "***Dividend Equivalent***" means a right, granted to an Eligible Person under <u>Section 6(g)</u>, to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified number of shares of Stock, or other periodic payments.

(l) "***Effective Date***" means November 20, 2019.

(m) "***Eligible Person***" means any individual who, as of the date of grant of an Award, is an officer or employee of the Company or of any of its Affiliates, and any other person who provides services to the Company or any of its Affiliates, including directors of the Company; provided, however, that, any such individual must be an "employee" of the Company or any of its parents or subsidiaries within the meaning of General Instruction A.1(a)(1) to Form S-8 if such individual is granted an Award that may be settled in Stock. An employee on leave of absence may be an Eligible Person.

(n) "***Exchange Act***" means the Securities Exchange Act of 1934, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

(o) "***Fair Market Value***" of a share of Stock means, as of any specified date, (i) if the Stock is listed on a national securities exchange, the closing sales price of the Stock, as reported on the stock exchange composite tape on that date (or if no sales occur on such date, on the last preceding date on which such sales of the Stock are so reported); (ii) if the Stock is not traded on a national securities exchange but is traded over the counter on such date, the average between the reported high and low bid and asked prices of Stock on the most recent date on which Stock was publicly traded on or preceding the specified date; or (iii) in the event Stock is not publicly traded at the time a determination of its value is required to be made under the Plan, the amount determined by the Committee in its discretion in such manner as it deems appropriate, taking into account all factors the Committee deems appropriate, including the Nonqualified Deferred Compensation Rules. Notwithstanding this definition of Fair Market Value, with respect to one or more Award types, or for any other purpose for which the Committee must determine the Fair Market Value under the Plan, the Committee may elect to choose a different measurement date or methodology for determining Fair Market Value so long as the determination is consistent with the Nonqualified Deferred Compensation Rules and all other applicable laws and regulations.

(p) "***Incumbent Board***" means the portion of the Board constituted of the individuals who are members of the Board as of the Effective Date and any other individual who becomes a director of the Company after the Effective Date and whose election or appointment by the Board or nomination for election by the Company's stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Incumbent Board.

(q) "***ISO***" means an Option intended to be and designated as an "incentive stock option" within the meaning of Section 422 of the Code.

(r) "***Nonqualified Deferred Compensation Rules***" means the limitations or requirements of Section 409A of the Code.

(s) "***Nonstatutory Option***" means an Option that is not an ISO.

(t) "***Option***" means a right, granted to an Eligible Person under <u>Section 6(b)</u>, to purchase Stock at a specified price during specified time periods, which may either be an ISO or a Nonstatutory Option.

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(u) "***Other Stock-Based Award***" means an Award granted to an Eligible Person under <u>Section 6(h)</u>.

(v) "***Participant***" means a person who has been granted an Award under the Plan that remains outstanding, including a person who is no longer an Eligible Person.

(w) "***Person***" means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a corporation, a partnership, a limited liability company, a trust or other entity; a Person, together with that Person's Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act, provided that "registrant" as used in Rule 12b-2 shall mean the Company), and any Persons acting as a partnership, limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting jointly or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any express agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a single "Person."

(x) "***Qualified Member***" means a member of the Board who is (i) a "non-employee director" within the meaning of Rule 16b-3(b)(3), and (ii) "independent" under the listing standards or rules of the securities exchange upon which the Stock is traded, but only to the extent such independence is required in order to take the action at issue pursuant to such standards or rules.

(y) "***Restricted Stock***" means Stock granted to an Eligible Person under <u>Section 6(d)</u> that is subject to certain restrictions and to a risk of forfeiture.

(z) "***Restricted Stock Unit***" means a right, granted to an Eligible Person under <u>Section 6(e)</u>, to receive Stock, cash or a combination thereof at the end of a specified period (which may or may not be coterminous with the vesting schedule of the Award).

(aa) "***Rule 16b-3***" means Rule 16b-3, promulgated by the SEC under Section 16 of the Exchange Act.

(bb) "***SAR***" means a stock appreciation right granted to an Eligible Person under <u>Section 6(c)</u>.

(cc) "***SEC***" means the Securities and Exchange Commission.

(dd) "***Securities Act***" means the Securities Act of 1933, as amended from time to time, including the guidance, rules and regulations promulgated thereunder and successor provisions, guidance, rules and regulations thereto.

(ee) "***Stock***" means the Company's Class A-1 Common Stock, par value $0.0001 per share, and such other securities as may be substituted (or re-substituted) for Stock pursuant to <u>Section 8</u>.

(ff) "***Stock Award***" means unrestricted shares of Stock granted to an Eligible Person under <u>Section 6(f)</u>.

(gg) "***Substitute Award***" means an Award granted under <u>Section 6(j)</u>.

3. **Administration**.

(a) <u>Authority of the Committee</u>. The Plan shall be administered by the Committee except to the extent the Board elects to administer the Plan, in which case references herein to the "Committee" shall be deemed to include references to the "Board." Subject to the express provisions of the Plan, Rule 16b-3 and other applicable laws, the Committee shall have the authority, in its sole and absolute discretion, to:

(i) designate Eligible Persons as Participants;

(ii) determine the type or types of Awards to be granted to an Eligible Person;

(iii) determine the number of shares of Stock or amount of cash to be covered by Awards;

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(iv) determine the terms and conditions of any Award, including whether, to what extent and under what circumstances Awards may be vested, settled, exercised, cancelled or forfeited (including conditions based on continued employment or service requirements or the achievement of one or more performance goals);

(v) modify, waive or adjust any term or condition of an Award that has been granted, which may include the acceleration of vesting, waiver of forfeiture restrictions, modification of the form of settlement of the Award (for example, from cash to Stock or vice versa), early termination of a performance period, or modification of any other condition or limitation regarding an Award;

(vi) determine the treatment of an Award upon a termination of employment or other service relationship;

(vii) impose a holding period with respect to an Award or the shares of Stock received in connection with an Award;

(viii) interpret and administer the Plan and any Award Agreement;

(ix) correct any defect, supply any omission or reconcile any inconsistency in the Plan, in any Award, or in any Award Agreement; and

(x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. Any action of the Committee shall be final, conclusive and binding on all persons, including the Company, its Affiliates, stockholders, Participants, beneficiaries, and permitted transferees under <u>Section 7(a)</u> or other persons claiming rights from or through a Participant.

(b) <u>Exercise of Committee Authority</u>. At any time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company where such action is not taken by the full Board may be taken either (i) by a subcommittee, designated by the Committee, composed solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; <u>provided</u>, <u>however</u>, that upon such abstention or recusal, the Committee remains composed solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of the Plan. For the avoidance of doubt, the full Board may take any action relating to an Award granted or to be granted to an Eligible Person who is then subject to Section 16 of the Exchange Act in respect of the Company.

(c) <u>Delegation of Authority</u>. The Committee may delegate any or all of its powers and duties under the Plan to a subcommittee of directors or to any officer of the Company, including the power to perform administrative functions and grant Awards; <u>provided</u>, <u>however</u>, that such delegation does not (i) violate state or corporate law, or (ii) result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company. Upon any such delegation, all references in the Plan to the "Committee," other than in <u>Section 8</u>, shall be deemed to include any subcommittee or officer of the Company to whom such powers have been delegated by the Committee. Any such delegation shall not limit the right of such subcommittee members or such an officer to receive Awards; <u>provided</u>, <u>however</u>, that such subcommittee members and any such officer may not grant Awards to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate, or take any action with respect to any Award previously granted to himself or herself, a member of the Board, or any executive officer of the Company or an Affiliate. The Committee may also appoint agents who are not executive officers of the Company or members of the Board to assist in administering the Plan, <u>provided</u>, <u>however</u>, that such individuals may not be delegated the authority to grant or modify any Awards that will, or may, be settled in Stock.

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(d) <u>Limitation of Liability</u>. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee of the Company or any of its Affiliates, the Company's legal counsel, independent auditors, consultants or any other agents assisting in the administration of the Plan. Members of the Committee and any officer or employee of the Company or any of its Affiliates acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination.

(e) <u>Participants in Non-U.S. Jurisdictions</u>. Notwithstanding any provision of the Plan to the contrary, to comply with applicable laws in countries other than the United States in which the Company or any of its Affiliates operates or has employees, directors or other service providers from time to time, or to ensure that the Company complies with any applicable requirements of foreign securities exchanges, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which of the Company's Affiliates shall be covered by the Plan; (ii) determine which Eligible Persons outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to Eligible Persons outside the United States to comply with applicable foreign laws or listing requirements of any foreign exchange; (iv) establish sub-plans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such sub-plans and/or modifications shall be attached to the Plan as appendices), provided, however, that no such sub-plans and/or modifications shall increase the share limitations contained in <u>Section 4(a)</u>; and (v) take any action, before or after an Award is granted, that it deems advisable to comply with any applicable governmental regulatory exemptions or approval or listing requirements of any such foreign securities exchange. For purposes of the Plan, all references to foreign laws, rules, regulations or taxes shall be references to the laws, rules, regulations and taxes of any applicable jurisdiction other than the United States or a political subdivision thereof.

4. **Stock Subject to Plan**.

(a) <u>Number of Shares Available for Delivery</u>. Subject to adjustment in a manner consistent with <u>Section 8</u>, 8,000,000 shares of Stock are reserved and available for delivery with respect to Awards, and such total shall be available for the issuance of shares upon the exercise of ISOs.

(b) <u>Application of Limitation to Grants of Awards</u>. Subject to <u>Section 4(c)</u>, no Award may be granted if the number of shares of Stock that may be delivered in connection with such Award exceeds the number of shares of Stock remaining available under the Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or Substitute Awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award.

(c) <u>Availability of Shares Not Delivered under Awards</u>. If all or any portion of an Award (including, for the avoidance of doubt, Awards granted prior to the A&R Effective Date) expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares (Awards of Restricted Stock shall not be considered "delivered shares" for this purpose), the shares of Stock subject to such Award (including (i) shares forfeited with respect to Restricted Stock, and (ii) the number of shares withheld or surrendered to the Company in payment of taxes relating to Awards other than Options and SARs) shall again be available for delivery with respect to Awards. Notwithstanding the foregoing, (A) the number of shares tendered or withheld in payment of the Exercise Price of any Option or SAR or taxes relating to an Option or an SAR, (B) shares that were subject to an Option or an SAR but were not issued or delivered as a result of the net settlement or net exercise of such Option or SAR, (C) shares repurchased on the open market with the proceeds of an Option's Exercise Price will not, in each case, be available for Awards and (D) shares surrendered or withheld by the Company or any Affiliate, as applicable, pursuant to <u>Section 9(a)</u> herein, in payment of taxes relating to an Award will not be available for future Awards under the Plan to the extent such shares are withheld in an amount greater than the minimum statutory rate in the Participant's relevant tax jurisdiction(s). If an Award may be settled only in cash, such Award need not be counted against any share limit under this <u>Section 4</u>.

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(d) <u>Shares Available Following Certain Transactions</u>. Substitute Awards granted in accordance with applicable stock exchange requirements and in substitution or exchange for awards previously granted by a company acquired by the Company or any subsidiary or with which the Company or any subsidiary combines shall not reduce the shares authorized for issuance under the Plan or the limitations on grants to non-employee members of the Board under <u>Section 5(b)</u>, nor shall shares subject to such Substitute Awards be added to the shares available for issuance under the Plan as provided above (whether or not such Substitute Awards are later cancelled, forfeited or otherwise terminated). Additionally, in the event that a company acquired by the Company or any subsidiary or with which the Company or any subsidiary combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may, if and to the extent determined by the Board and subject to compliance with applicable stock exchange requirements, be used for Awards under the Plan and shall not reduce the shares authorized for issuance under the Plan (and shares subject to such Awards shall not be added to the shares available for issuance under the Plan as provided above); provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not, prior to such acquisition or combination, employed by (and who were not non-employee directors or consultants of) the Company or any of its subsidiaries immediately prior to such acquisition or combination.

(e) <u>Stock Offered</u>. The shares of Stock to be delivered under the Plan shall be made available from (i) authorized but unissued shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market.

5. **Eligibility**. Awards may be granted under the Plan only to Eligible Persons.

6. **Specific Terms of Awards**.

(a) <u>General</u>. Awards may be granted on the terms and conditions set forth in this <u>Section 6</u>. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone, in addition to, or in tandem with any other Award. In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to <u>Section 10</u>), such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine. Without limiting the scope of the preceding sentence, the Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance goals applicable to an Award, and any such performance goals may differ among Awards granted to any one Participant or to different Participants. To the extent provided in an Award Agreement, the Committee may exercise its discretion to reduce or increase the amounts payable under any Award.

(b) <u>Options</u>. The Committee is authorized to grant Options, which may be designated as either ISOs or Nonstatutory Options, to Eligible Persons on the following terms and conditions:

(i) <u>Exercise Price</u>. Each Award Agreement evidencing an Option shall state the exercise price per share of Stock (the "***Exercise Price***") established by the Committee; <u>provided</u>, <u>however</u>, that except as provided in <u>Section 6(j)</u> or in <u>Section 8</u>, the Exercise Price of an Option shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or any of its subsidiaries, 110% of the Fair Market Value per share of the Stock on the date of grant).

(ii) <u>Time and Method of Exercise; Other Terms</u>. The Committee shall determine the methods by which the Exercise Price may be paid or deemed to be paid, the form of such payment, including cash or cash equivalents, Stock (including previously owned shares or through a cashless exercise, i.e., "net settlement", a broker-assisted exercise, or other reduction of the amount of shares otherwise issuable pursuant to the Option), other Awards or awards granted under other plans of the Company or any Affiliate, other property, or any other legal consideration the

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Committee deems appropriate (including notes or other contractual obligations of Participants to make payment on a deferred basis), the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including the delivery of Restricted Stock subject to <u>Section 6(d)</u>, and any other terms and conditions of any Option. In the case of an exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued based on the Stock's Fair Market Value as of the date of exercise. No Option may be exercisable for a period of more than ten years following the date of grant of the Option (or in the case of an ISO granted to an individual who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or its parent or any of its subsidiaries, for a period of more than five years following the date of grant of the ISO).

(iii) <u>ISOs</u>. The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code. ISOs may only be granted to Eligible Persons who are employees of the Company or employees of a parent or any subsidiary corporation of the Company. Except as otherwise provided in <u>Section 8</u>, no term of the Plan relating to ISOs (including any SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any ISO under Section 422 of the Code, unless notice has been provided to the Participant that such change will result in such disqualification. ISOs shall not be granted more than ten years after the earlier of the adoption of the Plan or the approval of the Plan by the Company's stockholders. Notwithstanding the foregoing, to the extent that the aggregate Fair Market Value of shares of Stock subject to an ISO and the aggregate Fair Market Value of shares of stock of any parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) subject to any other incentive stock options of the Company or a parent or subsidiary corporation (within the meaning of Sections 424(e) and (f) of the Code) that are exercisable for the first time by a Participant during any calendar year exceeds $100,000, or such other amount as may be prescribed under Section 422 of the Code, such excess shall be treated as Nonstatutory Options in accordance with the Code. As used in the previous sentence, Fair Market Value shall be determined as of the date the ISO is granted. If a Participant shall make any disposition of shares of Stock issued pursuant to an ISO under the circumstances described in Section 421(b) of the Code (relating to disqualifying dispositions), the Participant shall notify the Company of such disposition within the time provided to do so in the applicable award agreement.

(c) <u>SARs</u>. The Committee is authorized to grant SARs to Eligible Persons on the following terms and conditions:

(i) <u>Right to Payment</u>. An SAR is a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee.

(ii) <u>Grant Price</u>. Each Award Agreement evidencing an SAR shall state the grant price per share of Stock established by the Committee; <u>provided</u>, <u>however</u>, that except as provided in <u>Section 6(j)</u> or in <u>Section 8</u>, the grant price per share of Stock subject to an SAR shall not be less than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock as of the date of grant of the SAR.

(iii) <u>Method of Exercise and Settlement; Other Terms</u>. The Committee shall determine the form of consideration payable upon settlement, the method by or forms in which Stock (if any) will be delivered or deemed to be delivered to Participants, and any other terms and conditions of any SAR. SARs may be either free-standing or granted in tandem with other Awards. No SAR may be exercisable for a period of more than ten years following the date of grant of the SAR.

(iv) <u>Rights Related to Options</u>. An SAR granted in connection with an Option shall entitle a Participant, upon exercise, to surrender that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount determined by multiplying (A) the difference obtained by subtracting the Exercise Price with respect to a share of Stock specified in the related Option from the Fair Market Value of a share of Stock on the date of exercise of the SAR, by (B) the number of shares as to which that SAR has been exercised. The Option shall then cease to be exercisable to the extent surrendered. SARs granted in connection with an Option shall be subject to the terms and conditions of the Award Agreement governing the Option, which shall provide that the SAR is exercisable only at such time or times and only to the extent that the related Option is exercisable and shall not be transferable except to the extent that the related Option is transferrable.

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(d) <u>Restricted Stock</u>. The Committee is authorized to grant Restricted Stock to Eligible Persons on the following terms and conditions:

(i) <u>Restrictions</u>. Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose. Except as provided in <u>Section 7(a)(iii)</u> and <u>Section 7(a)(iv)</u>, during the restricted period applicable to the Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hedged, hypothecated, margined or otherwise encumbered by the Participant.

(ii) <u>Dividends and Splits</u>. As a condition to the grant of an Award of Restricted Stock, the Committee may allow a Participant to elect, or may require, that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock, applied to the purchase of additional Awards or deferred without interest to the date of vesting of the associated Award of Restricted Stock. Stock distributed in connection with a Stock split or Stock dividend, and other property (other than cash) distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or other property has been distributed.

(e) <u>Restricted Stock Units</u>. The Committee is authorized to grant Restricted Stock Units to Eligible Persons on the following terms and conditions:

(i) <u>Award and Restrictions</u>. Restricted Stock Units shall be subject to such restrictions (which may include a risk of forfeiture) as the Committee may impose.

(ii) <u>Settlement</u>. Settlement of vested Restricted Stock Units shall occur upon vesting or upon expiration of the deferral period specified for such Restricted Stock Units by the Committee (or, if permitted by the Committee, as elected by the Participant). Restricted Stock Units shall be settled by delivery of (A) a number of shares of Stock equal to the number of Restricted Stock Units for which settlement is due, or (B) cash in an amount equal to the Fair Market Value of the specified number of shares of Stock equal to the number of Restricted Stock Units for which settlement is due, or a combination thereof, as determined by the Committee at the date of grant or thereafter.

(f) <u>Stock Awards</u>. The Committee is authorized to grant Stock Awards to Eligible Persons as a bonus, as additional compensation, or in lieu of cash compensation any such Eligible Person is otherwise entitled to receive, in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate.

(g) <u>Dividend Equivalents</u>. The Committee is authorized to grant Dividend Equivalents to Eligible Persons, entitling any such Eligible Person to receive cash, Stock, other Awards, or other property equal in value to dividends or other distributions paid with respect to a specified number of shares of Stock. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award (other than an Award of Options, SARs, Restricted Stock or a Stock Award). The Committee may provide that Dividend Equivalents may be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles or accrued in a bookkeeping account without interest, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may specify. With respect to Dividend Equivalents granted in connection with another Award such Dividend Equivalents shall be subject to the same restrictions and risk of forfeiture as the Award with respect to which the dividends accrue and shall not be paid unless and until such Award has vested and been earned.

(h) <u>Other Stock-Based Awards</u>. The Committee is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, as deemed by the Committee to be consistent with the purposes of the Plan, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of, or the performance of, specified Affiliates of the Company. The Committee shall determine the terms and conditions of such Other Stock-Based Awards. Stock delivered pursuant to an Other-Stock Based Award in the nature of a purchase right granted under this <u>Section 6(h)</u> shall be purchased for such consideration, paid for at

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such times, by such methods, and in such forms, including cash, Stock, other Awards, or other property, as the Committee shall determine.

(i) <u>Cash Awards</u>. The Committee is authorized to grant Cash Awards, on a free-standing basis or as an element of, a supplement to, or in lieu of any other Award under the Plan to Eligible Persons in such amounts and subject to such other terms as the Committee in its discretion determines to be appropriate.

(j) <u>Substitute Awards; No Repricing</u>. Awards may be granted in substitution or exchange for any other Award granted under the Plan or under another plan of the Company or an Affiliate or any other right of an Eligible Person to receive payment from the Company or an Affiliate. Awards may also be granted under the Plan in substitution for awards held by individuals who become Eligible Persons as a result of a merger, consolidation or acquisition of another entity or the assets of another entity by or with the Company or an Affiliate. Such Substitute Awards referred to in the immediately preceding sentence that are Options or SARs may have an exercise price that is less than the Fair Market Value of a share of Stock on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules and other applicable laws and exchange rules. Except as provided in this <u>Section 6(j)</u> or in <u>Section 8</u>, without the approval of the stockholders of the Company, the terms of outstanding Awards may not be amended to (i) reduce the Exercise Price or grant price of an outstanding Option or SAR, (ii) grant a new Option, SAR or other Award in substitution for, or upon the cancellation of, any previously granted Option or SAR that has the effect of reducing the Exercise Price or grant price thereof, (iii) exchange any Option or SAR for Stock, another Award, cash or other consideration when the Exercise Price or grant price per share of Stock under such Option or SAR exceeds the Fair Market Value of a share of Stock or (iv) take any other action that would be considered a "repricing" of an Option or SAR under the applicable listing standards of the national securities exchange on which the Stock is listed (if any).

7. **Certain Provisions Applicable to Awards**.

(a) <u>Limit on Transfer of Awards</u>.

(i) Except as provided in <u>Sections 7(a)(iii)</u> and <u>(iv)</u>, each Option and SAR shall be exercisable only by the Participant during the Participant's lifetime, or by the person to whom the Participant's rights shall pass by will or the laws of descent and distribution. Notwithstanding anything to the contrary in this <u>Section 7(a)</u>, an ISO shall not be transferable other than by will or the laws of descent and distribution.

(ii) Except as provided in <u>Sections 7(a)(i)</u>, <u>(iii)</u> and <u>(iv)</u>, no Award and no right under any Award, may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

(iii) To the extent specifically provided by the Committee, an Award may be transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish.

(iv) An Award may be transferred pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of a written request for such transfer and a certified copy of such order.

(b) <u>Form and Timing of Payment under Awards; Deferrals</u>. Subject to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or any of its Affiliates upon the exercise or settlement of an Award may be made in such forms as the Committee shall determine in its discretion, including cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis (which may be required by the Committee or permitted at the election of the Participant on terms and conditions established by the Committee); <u>provided</u>, <u>however</u>, that any such deferred or installment payments will be set forth in the Award Agreement. Payments may include, without limitation, provisions for the payment or

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crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Stock.

(c) <u>Evidencing Stock</u>. The Stock or other securities of the Company delivered pursuant to an Award may be evidenced in any manner deemed appropriate by the Committee in its sole discretion, including in the form of a certificate issued in the name of the Participant or by book entry, electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which such Stock or other securities are then listed, and any applicable federal, state or other laws, and the Committee may cause a legend or legends to be inscribed on any such certificates to make appropriate reference to such restrictions. Further, if certificates representing Restricted Stock are registered in the name of the Participant, the Company may retain physical possession of the certificates and may require that the Participant deliver a stock power to the Company, endorsed in blank, related to the Restricted Stock.

(d) <u>Consideration for Grants</u>. Awards may be granted for such consideration, including services, as the Committee shall determine, but shall not be granted for less than the minimum lawful consideration.

(e) <u>Additional Agreements</u>. Each Eligible Person to whom an Award is granted under the Plan may be required to agree in writing, as a condition to the grant of such Award or otherwise, to subject an Award that is exercised or settled following such Eligible Person's termination of employment or service to a general release of claims and/or a noncompetition or other restricted covenant agreement in favor of the Company and its Affiliates, with the terms and conditions of such agreement(s) to be determined in good faith by the Committee.

8. **Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization**.

(a) <u>Existence of Plans and Awards</u>. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Company, the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

(b) <u>Additional Issuances</u>. Except as expressly provided herein, the issuance by the Company of shares of stock of any class, including upon conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the purchase price per share of Stock, if applicable.

(c) <u>Subdivision or Consolidation of Shares</u>. The terms of an Award and the share limitations under the Plan shall be subject to adjustment by the Committee from time to time, in accordance with the following provisions:

(i) If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by the issuance of a distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of Stock, then, as appropriate (A) the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations with respect to Awards provided in <u>Section 4</u> and <u>Section 5</u> (other than cash limits) shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any then outstanding Award shall be increased proportionately, and (C) the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be reduced proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions.

(ii) If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, by reverse Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock,

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then, as appropriate (A) the maximum number of shares of Stock available for delivery with respect to Awards and applicable limitations with respect to Awards provided in <u>Section 4</u> and <u>Section 5</u> (other than cash limits) shall be decreased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any then outstanding Award shall be decreased proportionately, and (C) the price (including the Exercise Price or grant price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions.

(d) <u>Recapitalization</u>. In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would be considered an "equity restructuring" within the meaning of ASC Topic 718 and, in each case, that would result in an additional compensation expense to the Company pursuant to the provisions of ASC Topic 718, if adjustments to Awards with respect to such event were discretionary or otherwise not required (each such an event, an "***Adjustment Event***"), then the Committee shall equitably adjust (i) the aggregate number or kind of shares that thereafter may be delivered under the Plan, (ii) the number or kind of shares or other property (including cash) subject to an Award, (iii) the terms and conditions of Awards, including the purchase price or Exercise Price of Awards and performance goals, as applicable, and (iv) the applicable limitations with respect to Awards provided in <u>Section 4</u> and <u>Section 5</u> (other than cash limits) to equitably reflect such Adjustment Event ("***Equitable Adjustments***"). In the event of any change in the capital structure or business of the Company or other corporate transaction or event that would not be considered an Adjustment Event, and is not otherwise addressed in this <u>Section 8</u>, the Committee shall have complete discretion to make Equitable Adjustments (if any) in such manner as it deems appropriate with respect to such other event.

(e) <u>Change in Control and Other Events</u>. Except to the extent otherwise provided in any applicable Award Agreement, in the event of a Change in Control or other changes in the Company or the outstanding Stock by reason of a recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant change occurring after the date of the grant of any Award, the Committee, acting in its sole discretion without the consent or approval of any holder, may exercise any power enumerated in <u>Section 3</u> (including the power to accelerate vesting, waive any forfeiture conditions or otherwise modify or adjust any other condition or limitation regarding an Award) and may also effect one or more of the following alternatives, which may vary among individual holders and which may vary among Awards held by any individual holder:

(i) accelerate the time of exercisability of an Award so that such Award may be exercised in full or in part for a limited period of time on or before a date specified by the Committee, after which specified date all unexercised Awards and all rights of holders thereunder shall terminate;

(ii) redeem in whole or in part outstanding Awards by requiring the mandatory surrender to the Company by selected holders of some or all of the outstanding Awards held by such holders (irrespective of whether such Awards are then vested or exercisable) as of a date, specified by the Committee, in which event the Committee shall thereupon cancel such Awards and pay to each holder an amount of cash or other consideration per Award (other than a Dividend Equivalent or Cash Award, which the Committee may separately require to be surrendered in exchange for cash or other consideration determined by the Committee in its discretion) equal to the Change in Control Price, less the Exercise Price with respect to an Option and less the grant price with respect to a SAR, as applicable to such Awards; <u>provided</u>, <u>however</u>, that to the extent the Exercise Price of an Option or the grant price of an SAR exceeds the Change in Control Price, such Award may be cancelled for no consideration; or

(iii) make such adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change in Control or other such event (including the substitution, assumption, or continuation of Awards by the successor company or a parent or subsidiary thereof); <u>provided</u>, <u>however</u>, that Awards subject to performance conditions shall be treated as provided in the applicable Award Agreement; <u>provided</u>, <u>further</u>, that so long as the event is not an Adjustment Event, the Committee may determine in its sole discretion that no adjustment is necessary to Awards then outstanding. If an Adjustment Event occurs, this <u>Section 8(e)</u> shall only apply to the extent it is not in conflict with <u>Section 8(d)</u>.

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9. **General Provisions**.

(a) <u>Tax Withholding</u>. The Company and any of its Affiliates are authorized to withhold from any Award granted, or any payment relating to an Award, including from a distribution of Stock, taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company, its Affiliates and Participants to satisfy the payment of withholding taxes and other tax obligations relating to any Award in such amounts as may be determined by the Committee. The Committee shall determine, in its sole discretion, the form of payment acceptable for such tax withholding obligations, including the delivery of cash or cash equivalents, Stock (including previously owned shares, net settlement, a broker-assisted sale, or other cashless withholding or reduction of the amount of shares otherwise issuable or delivered pursuant to the Award), other property, or any other legal consideration the Committee deems appropriate. Any determination made by the Committee to allow a Participant who is subject to Rule 16b-3 to pay taxes with shares of Stock through net settlement or previously owned shares shall be approved by either a committee made up of solely two or more Qualified Members or the full Board. If such tax withholding amounts are satisfied through net settlement or previously owned shares, the maximum number of shares of Stock that may be so withheld or surrendered shall be the number of shares of Stock that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, foreign and/or local tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to such Award, as determined by the Committee.

(b) <u>Limitation on Rights Conferred under Plan</u>. Neither the Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or any of its Affiliates, (ii) interfering in any way with the right of the Company or any of its Affiliates to terminate any Eligible Person's or Participant's employment or service relationship at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and/or employees and/or other service providers, or (iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award.

(c) <u>Governing Law; Submission to Jurisdiction</u>. All questions arising with respect to the provisions of the Plan and Awards shall be determined by application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent Delaware law is preempted by federal law. The obligation of the Company to sell and deliver Stock hereunder is subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock. With respect to any claim or dispute related to or arising under the Plan, the Company and each Participant who accepts an Award hereby consent to the exclusive jurisdiction, forum and venue of the state and federal courts located in Delaware.

(d) <u>Severability and Reformation</u>. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. If any of the terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are subject to Section 16 of the Exchange Act) or Section 422 of the Code (with respect to ISOs), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or Section 422 of the Code, in each case, only to the extent Rule 16b-3 and such sections of the Code are applicable. With respect to ISOs, if the Plan does not contain any provision required to be included herein under Section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; <u>provided</u>, further, that, to the extent any Option that is

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intended to qualify as an ISO cannot so qualify, that Option (to that extent) shall be deemed a Nonstatutory Option for all purposes of the Plan.

(e) <u>Unfunded Status of Awards; No Trust or Fund Created</u>. The Plan is intended to constitute an "unfunded" plan for certain incentive awards. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or such Affiliate.

(f) <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable. Nothing contained in the Plan shall be construed to prevent the Company or any of its Affiliates from taking any corporate action which is deemed by the Company or such Affiliate to be appropriate or in its best interest, whether or not such action would have an adverse effect on the Plan or any Award made under the Plan. No employee, beneficiary or other person shall have any claim against the Company or any of its Affiliates as a result of any such action.

(g) <u>Fractional Shares</u>. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine in its sole discretion whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares of Stock or whether such fractional shares of Stock or any rights thereto shall be cancelled, terminated, or otherwise eliminated with or without consideration.

(h) <u>Interpretation</u>. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. Words in the masculine gender shall include the feminine gender, and, where appropriate, the plural shall include the singular and the singular shall include the plural. In the event of any conflict between the terms and conditions of an Award Agreement and the Plan, the provisions of the Plan shall control. The use herein of the word "including" following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as "without limitation", "but not limited to", or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. References herein to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by the Plan.

(i) <u>Facility of Payment</u>. Any amounts payable hereunder to any individual under legal disability or who, in the judgment of the Committee, is unable to manage properly his financial affairs, may be paid to the legal representative of such individual, or may be applied for the benefit of such individual in any manner that the Committee may select, and the Company shall be relieved of any further liability for payment of such amounts.

(j) <u>Conditions to Delivery of Stock</u>. Nothing herein or in any Award Agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect. In addition, each Participant who receives an Award under the Plan shall not sell or otherwise dispose of Stock that is acquired upon grant, exercise or vesting of an Award in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or the rules, regulations or other requirements of the SEC or any stock exchange upon which the Stock is then listed. At the time of any exercise of an Option or SAR, or at the time of any grant of any other Award, the Company may, as a condition precedent to the exercise of such Option or SAR or settlement of any other Award, require from the Participant (or in the event of his or her death, his or her legal representatives, heirs, legatees, or distributees) such written representations, if any, concerning the holder's intentions with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such written covenants and agreements, if any, as to the

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manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the event of the holder's death, his or her legal representatives, heirs, legatees, or distributees) will not involve a violation of the Securities Act, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities association, as then in effect. Stock or other securities shall not be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including any Exercise Price, grant price, or tax withholding) is received by the Company.

(k) <u>Section 409A of the Code</u>. It is the general intention, but not the obligation, of the Committee to design Awards to comply with or to be exempt from the Nonqualified Deferred Compensation Rules, and Awards will be operated and construed accordingly. Neither this <u>Section 9(k)</u> nor any other provision of the Plan is or contains a representation to any Participant regarding the tax consequences of the grant, vesting, exercise, settlement, or sale of any Award (or the Stock underlying such Award) granted hereunder, and should not be interpreted as such. In no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Nonqualified Deferred Compensation Rules. Notwithstanding any provision in the Plan or an Award Agreement to the contrary, in the event that a "specified employee" (as defined under the Nonqualified Deferred Compensation Rules) becomes entitled to a payment under an Award that would be subject to additional taxes and interest under the Nonqualified Deferred Compensation Rules if the Participant's receipt of such payment or benefits is not delayed until the earlier of (i) the date of the Participant's death, or (ii) the date that is six months after the Participant's "separation from service," as defined under the Nonqualified Deferred Compensation Rules (such date, the "***Section 409A Payment Date***"), then such payment or benefit shall not be provided to the Participant until the Section 409A Payment Date. Any amounts subject to the preceding sentence that would otherwise be payable prior to the Section 409A Payment Date will be aggregated and paid in a lump sum without interest on the Section 409A Payment Date. The applicable provisions of the Nonqualified Deferred Compensation Rules are hereby incorporated by reference and shall control over any Plan or Award Agreement provision in conflict therewith.

(l) <u>Clawback</u>. The Plan and all Awards granted hereunder are subject to any written clawback policies that the Company, with the approval of the Board or an authorized committee thereof, may adopt either prior to or following the Effective Date, including any policy adopted to conform to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and rules promulgated thereunder by the SEC and that the Company determines should apply to Awards. Any such policy may subject a Participant's Awards and amounts paid or realized with respect to Awards to reduction, cancelation, forfeiture or recoupment if certain specified events or wrongful conduct occur, including an accounting restatement due to the Company's material noncompliance with financial reporting regulations or other events or wrongful conduct specified in any such clawback policy.

(m) <u>Status under ERISA</u>. The Plan shall not constitute an "employee benefit plan" for purposes of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended.

(n) <u>Plan Effective Date and Term</u>. The Plan originally became effective on the Effective Date. The amendment and restatement of this Plan as approved by the Board on March 23, 2023 will become effective on the date it is approved by the Company's stockholders (the "***A&R Effective Date***"). No Awards may be granted under the Plan on and after the tenth anniversary of the Effective Date. However, any Award granted prior to such termination (or any earlier termination pursuant to <u>Section 10</u>), and the authority of the Board or Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award in accordance with the terms of the Plan, shall extend beyond such termination until the final disposition of such Award.

10. **Amendments to the Plan and Awards.** The Committee may amend, alter, suspend, discontinue or terminate any Award or Award Agreement, the Plan or the Committee's authority to grant Awards without the consent of stockholders or Participants, except that any amendment or alteration to the Plan, including any increase in any share limitation, shall be subject to the approval of the Company's stockholders not later than the annual meeting next following such Committee action if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and

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the Committee may otherwise, in its discretion, determine to submit other changes to the Plan to stockholders for approval; <u>provided</u>, that, without the consent of an affected Participant, no such Committee action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award. For purposes of clarity, any adjustments made to Awards pursuant to <u>Section 8</u> will be deemed not to materially and adversely affect the rights of any Participant under any previously granted and outstanding Award and therefore may be made without the consent of affected Participants.

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