Document:

Exhibit
10.2

 

2021
OMNIBUS INCENTIVE PLAN

 

The
Proposal

 

On
April 12, 2021, our Board adopted, subject to stockholder approval at the Annual Meeting, the Inspired Entertainment, Inc. 2021 Omnibus
Incentive Plan (the “2021 Plan”). A copy of the 2021 Plan is annexed as Annex A to this proxy statement.

 

Reasons
for the 2021 Plan

 

The
2018 Omnibus Incentive Plan (the “2018 Plan”) is the only stockholder approved equity plan under which awards can currently
be made. As of April 9, 2021, only 221,799 shares remain available for grant under the 2018 Plan. Since adoption of the 2018 Plan, we
completed the acquisition of the Gaming Technology Group of Novomatic UK in October 2019 and our operations have grown significantly.
Accordingly, our Board believes that the approval of the 2021 Plan by our stockholders is essential to our ability to continue to grow
our business, hire critical talent and retain and motivate executives, employees, consultants, advisors and non-employee directors. Our
Board believes that our interests and the interests of our stockholders will be advanced if we can offer equity incentive awards that
further our long-term business objectives in a manner aligned with our shareholders’ interests.

 

The
2021 Plan is intended to provide for anticipated rewards through December 31, 2023 including awarding the 750,000 Sign-On RSUs pursuant
to the terms of our new employment agreement with Mr. Weil, our Executive Chairman.

 

If
our stockholders approve the 2021 Plan, it would become effective on the date of such approval and would replace the 2018 Plan except
that outstanding awards subject to the 2018 Plan would remain governed by the terms of the 2018 Plan and applicable grant agreements.
If our stockholders do not approve the 2021 Plan, the 2018 Plan will remain in effect in its current form and we will not have sufficient
shares available to grant an appropriate level of equity awards in the next annual award cycle.

 

Governance
Highlights

 

The
2021 Plan continues to incorporate numerous governance best practices from the 2018 Plan, including:

 

	 	☒	No
    “liberal share recycling” of any awards.
	 	 	 
	 	☒ 	Minimum
    100% fair market value exercise price for options and SARs.
	 	 	 
	 	☒	No
    “liberal” change in control definition or automatic “single-trigger” change in control vesting.
	 	 	 
	 	☒ 	No
    “evergreen” share increases or automatic “reload” awards.
	 	 	 
	 	☒ 	No
    tax gross-ups.

 

Additionally,
the following corporate governance best practices have been added to the 2021 Plan:

 

	 	☒	Clarified
    that dividends and dividend equivalent rights, if any, on all awards will be subject to the same vesting requirements as the underlying
    award and will only be paid at the time those vesting requirements are satisfied. Additionally, clarified that there are no dividends
    or dividend equivalents on options or SARs.
	 	 	 
	 	☒ 	No
    repricing of options or SARs and no cash buyout of underwater options and SARs without shareholder approval, except for equitable
    adjustments in connection with certain corporate transactions.
	 	 	 
	 	☒ 	Provides
    that all awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i)
    any clawback, forfeiture or other similar policy as in effect from time to time; and (ii) applicable law.

 

    	 

    	 

    

 

	 	☒	Provides
    a default settlement timing provision for vested RSUs.
	 	 	 
	 	☒ 	Subject
    to the enhancements noted above and certain other conforming or administrative changes, the 2021 Plan is substantially similar to
    the 2018 Plan.

 

Impact
on Dilution and Fully-Diluted Overhang

 

Our
Board recognizes the impact of dilution on our shareholders and has evaluated this share request carefully in the context of the need
to motivate, retain and ensure that our leadership team and key employees are focused on our strategic priorities. If the Plan is approved,
the total fully-diluted overhang as of December 31, 2020, would be approximately 20.9%. In this context, fully-diluted overhang is calculated
as the sum of unvested awards outstanding under all prior plans plus the proposed share reserve under the 2021 Plan (numerator) divided
by the sum of the numerator and basic common shares outstanding, with all data effective as of December 31, 2020. The calculation excludes
1,373,022 vested but unsettled restricted stock units outstanding under the Company’s prior equity plans. Our Board believes that
the proposed share reserve represents a reasonable amount of potential equity dilution to accommodate our long-term strategic and growth
priorities.

 

Expected
Duration of the Share Reserve

 

We
expect that the share reserve under the 2021 Plan, if this proposal is approved by our shareholders, will be sufficient for equity-based
incentive awards for approximately three years. Expectations regarding future share usage could be impacted by a number of factors such
as award type mix; hiring and promotion activity at the executive level; the rate at which shares are returned to the 2021 Plan’s
reserve under permitted addbacks; the future performance of our stock price; the consequences of acquiring other companies; and other
factors. While we believe that the assumptions we used are reasonable, future share usage may differ from current expectations.

 

Key
Stock Plan Data

 

The
following table sets forth information regarding stock-settled equity awards granted over each of the last three years:

 

	 	 	2020	 	 	2019	 	 	2018	 	 	3-Year Avg.	 
	Stock Options/Stock Appreciation Rights (SARs) Granted	 	 	0	 	 	 	0	 	 	 	0	 	 	 	—	 
	Target Number of Stock-Settled Restricted Shares/Units Granted	 	 	1,117,039	 	 	 	746,522	 	 	 	737,078	 	 	 	—	 
	Weighted-Average Basic Common Shares Outstanding	 	 	22,399,333	 	 	 	21,892,964	 	 	 	20,859,407	 	 	 	—	 
	Share Usage Rate	 	 	5.0	%	 	 	3.4	%	 	 	3.5	%	 	 	4.0	%

 

Our
three-year average share usage rate of 4.0% is below the 75th percentile of our peer group practice1, which is
4.6%. Additionally, as part of our effort to carefully manage our share usage, the Compensation Committee has committed to the following:

 

	 	●	Any
    annual equity awards granted to employees will be converted from target award values to a number of shares using the higher of
    the twenty-day average closing price preceding the grant date of an award or the twenty-day average closing price preceding the
    previous year’s high price for our common stock, but in any event at a price no lower than $7.00.
	 	 	 
	 	●	Until
    the Company’s average closing stock price exceeds $10.00 for a one-year period, the maximum payout opportunity under annual
    employee equity awards will be capped at 100% of target.

 

1
The peer group was developed in 2019 includes the following comparably sized companies in similar industries: Agilysys, Inc., Avid
Technology, Inc., Everi Holdings Inc., Glu Mobile Inc., Golden Entertainment, Inc., IMAX Corporation, PlayAGS, Inc., Rosetta Stone Inc.,
Synchronoss Technologies, Inc., and TiVo Corporation

 

    	 

    	 

    

 

The
following table sets forth certain overhang information as of December 31, 2020 with respect to the Company’s equity compensation
plans:

 

	Stock Options/SARs Outstanding	 	 	0	 
	Total Unvested Stock-Settled Full-Value Awards Outstanding	 	 	2,773,234	 
	—Excludes 1,373,022 Vested but Unsettled Awards	 	 	—	 
	Shares Available for Grant under 2018 Plan *	 	 	267,311	 
	Proposed Share Reserve under 2021 Plan	 	 	2,900,000	 
	Basic Common Shares Outstanding	 	 	22,430,475	 

 

*
For reference purposes, the remaining shares available for grant under the 2018 Plan is denoted as of fiscal year end. The number of
shares to be rolled-over into the 2021 Plan will be equal to the actual number of shares which remain available for grant under the 2018
Plan as of the effective date of the 2021 Plan. Upon shareholder approval of the 2021 Plan, no further awards will be made under the
2018 Plan.

 

As
of December 31, 2020, our fully-diluted overhang was 11.9%, which would increase to 20.9% upon shareholder approval of the proposed share
reserve under the 2021 Plan. This overhang compares above the 75th percentile of our peer group, which is 17.7%. However,
our overhang as of December 31, 2020 includes 1,092,633 shares of restricted stock or units that are subject to satisfaction of stock
price targets of $15.00 and $17.50 that will either vest as of December 23, 2021 or will be forfeited and are not eligible to be added
back to the share reserve. Excluding these stock price target awards, our overhang would be 17.8%, which is near the 75th percentile
of our peer group.

 

As
of April 9, 2021, the per-share closing price of our common stock as reported on the Nasdaq was $9.26.

 

The
material terms of the 2021 Plan are summarized below. This summary of the 2021 Plan is not intended to be a complete description of the
Plan, and is qualified in its entirety by the actual text of the 2021 Plan to which reference is made, which is attached to this proxy
statement as Annex A.

 

Purpose

 

The
2021 Plan is designed to assist us in attracting and retaining key personnel and to provide a means whereby certain employees, officers,
managers, directors, consultants and advisors of the Company and its affiliates can acquire and maintain an equity interest in the Company,
or be paid incentive compensation, which may be measured by reference to the value of shares of our common stock, thereby strengthening
their commitment to the welfare of the Company and its affiliates, and aligning the interests of such individuals with those of our stockholders.

 

Administration

 

The
2021 Plan is administered by the Compensation Committee, which has the authority to designate participants, grant awards, determine the
types of awards and the number of shares of common stock to be covered by awards, determine the terms and conditions of any awards, construe
and interpret the 2021 Plan and related award agreements, accelerate the vesting of any outstanding awards and make other decisions and
determinations for the administration of the 2021 Plan. To the extent permitted by applicable law, the Compensation Committee is generally
permitted to delegate certain of its authority under the 2021 Plan to our board of directors, or to a special committee consisting of
one or more members of our board of directors who may be officers of the Company. However, the Compensation Committee may not delegate
its authority to a member of our board of directors who is an executive officer of the Company with regard to the participation of, or
the timing, pricing or amount of an award to, an officer, director or other person subject to Section 16 of the Exchange Act.

 

    	 

    	 

    

 

Shares
Available for Issuance under the 2021 Plan

 

Under
the 2021 Plan, we would be authorized to issue grants for equity awards with respect to 2,900,000 shares, plus the shares which, as of
the effective date, are available for grant under the 2018 Plan and that are subject to outstanding awards under the 2018 Plan that would
again become available for grant as a result of cancellations or other terminations.

 

If
any award granted under the 2021 Plan or the 2018 Plan expires or is canceled, forfeited, or settled in cash, the undelivered shares
will again become available for awards under the 2021 Plan. Shares subject to an award will not be again available for issuance under
the 2021 Plan if such shares are delivered to or withheld by the Company to pay withholding taxes, subject to an option or stock appreciation
right and were not issued upon the net settlement or exercise of such option or stock appreciation right, or delivered to the Company
to pay the purchase price related to an outstanding option or stock appreciation right.

 

Awards
and the shares of common stock authorized under the 2021 Plan, are subject to adjustment as described below under “Changes in Capital
Structure and Similar Events.”

 

Limits
on Awards

 

A
director who is not an employee of ours or an affiliate may not be granted awards denominated in shares of our common stock, the aggregate
date of grant fair market value of which exceeds, in any calendar year, $250,000; provided, that the foregoing limitation shall not apply
to any award made pursuant to an election by a director to receive an award in lieu of all or a portion of the annual and/or committee
retainers or other cash fees payable to such director.

 

Eligibility

 

Participants
in the 2021 Plan will consist of such officers, other employees, non-employee directors, consultants, and advisors of the Company or
its affiliates, as selected by the Compensation Committee in its sole discretion. As of the date hereof, there are approximately 1,500
employees, including officers, who would be eligible to participate in the 2021 Plan, if selected by the Compensation Committee. There
are currently six non-employee directors who would be eligible to participate in the 2021 Plan.

 

Grants
of Awards

 

Pursuant
to the 2021 Plan, the Compensation Committee may grant awards of non-qualified stock options, incentive stock options, stock appreciation
rights, restricted stock, restricted stock units, and stock bonus awards. No awards may be granted under the 2021 Plan following the
10th anniversary of the date the 2021 Plan was adopted by the Board.

 

Stock
Options. The 2021 Plan allows the grant of both incentive stock options, within the meaning of Section 422 of the Code, and non-qualified
stock options.

 

A
stock option granted under the 2021 Plan provides a participant with the right to purchase, within a specified period of time, a stated
number of shares of common stock at the price specified in the applicable award agreement. The exercise price applicable to a stock option
will be set by the Compensation Committee at the time of grant and, except with respect to substitute awards granted in connection with
a corporate transaction, will not be less than the fair market value of the underlying shares of common stock on the date of grant (or
not less than 110% of the fair market value of the underlying shares in the case of an incentive stock option if the recipient is a 10%
stockholder of the Company).

 

Stock
options will vest in accordance with the terms of the applicable award agreement. The maximum term of a stock option granted under the
2021 Plan is 10 years from the date of grant (or five years in the case of an incentive stock option if the recipient is a 10% stockholder
of the Company). Payment of the exercise price of a stock option may be made in a manner approved by the Compensation Committee, which
may include any of the following payment methods: cash, check (subject to collection), cash equivalent and/or vested shares of common
stock (valued at fair market value on the date of exercise), pursuant to a broker- assisted cashless exercise in accordance with procedures
approved by the Compensation Committee, pursuant to a delivery of a notice of “net exercise” (whereby the Company withholds
from the delivery of shares for which the option is exercised shares having a fair market value equal to the aggregate exercise price
of the option), or in any other form of consideration approved by the Compensation Committee.

 

    	 

    	 

    

 

A
maximum of 1,450,000 shares may be granted in the form of incentive stock options under the 2021 Plan.

 

Stock
Appreciation Rights. A stock appreciation right is a conditional right to receive an amount equal to the value of the appreciation in
the shares of common stock over a specified period. Stock appreciation rights may be granted in connection with an option, and may be
settled in shares of common stock, cash, other securities or property or a combination thereof, as determined by the Compensation Committee.
The base price applicable to a stock appreciation right will be set by the Compensation Committee at the time of grant and, except with
respect to substitute awards granted in connection with a corporate transaction, will not be less than the fair market value of a share
of common stock on the date of grant. The maximum term of a stock appreciation right granted in connection with an option shall be the
maximum term for the corresponding option, and for a stock appreciation right granted independent of an option is a period determined
by the Compensation Committee, but no longer than 10 years from the date of grant.

 

Restricted
Stock. An award of restricted stock is a grant of shares of common stock which are subject to a substantial risk of forfeiture during
a restricted period established in the applicable award agreement. Except as otherwise provided in an award agreement, holders of restricted
stock will generally have the right to vote the shares during the period of restriction and to receive dividends subject to vesting and
forfeiture to the same degree as the shares of restricted stock to which such dividends relate.

 

Restricted
Stock Units. A restricted stock unit (“RSU”) is a notional unit representing the right to receive one share of common stock
at a future date, subject to satisfaction of the conditions of the restricted stock unit award established by the Compensation Committee
in the applicable award agreement. Unless otherwise set forth in an award agreement, an award as to which the applicable conditions have
been satisfied will be settled in shares of common stock, upon a participant’s termination of service (including due to death or
disability) or, if earlier, a change in control; provided, the Compensation Committee may, in its discretion, and subject to the requirements
of Section 409A of the Code, elect to pay cash or part cash and part shares of common stock in lieu of delivering only shares of common
stock in respect of such award. Unless otherwise set forth in an award agreement, a participant will not be entitled to any dividends
with respect to the restricted stock units prior to settlement.

 

Stock
Bonus Awards. The 2021 Plan authorizes the Compensation Committee to grant other awards that may be denominated in, payable in, valued
in, or otherwise related to shares of the Company’s common stock. Any such award shall be subject to such conditions not inconsistent
with the 2021 Plan as are set forth in the award agreement. Changes in the Capital Structure and Similar Events.

 

Changes
in Capital Structure and Similar Events

 

In
the event of any dividend or other distribution (whether in the form of cash, common stock, other securities or other property), recapitalization,
stock split, reverse stock split, reorganization, merger, amalgamation, consolidation, split-up, split-off, combination, repurchase or
exchange of common stock or other securities, issuance of warrants or other rights to acquire shares of common stock or other securities
of the Company, or other similar corporate transaction or event (including, without limitation, a change in control (as defined in the
2021 Plan)) that affects our common stock, or (b) unusual or nonrecurring events (including, without limitation, a change in control)
affecting the Company, any affiliate, or our financial statements or the financial statements of any affiliate, or changes in applicable
rules, rulings, regulations or other requirements of any governmental body or securities exchange or inter-dealer quotation system, accounting
principles or law, such that in either case an adjustment is determined by the Committee in its sole discretion to be necessary or appropriate
in order to prevent dilution or enlargement of rights, then the Committee shall make any such adjustments that, in its sole discretion,
are equitable and consistent with the requirements of applicable law.

 

    	 

    	 

    

 

Change
in Control

 

Except
to the extent provided in an award agreement or otherwise by the Committee in accordance with its authority under the 2021 Plan, in the
event of a participant’s termination of employment or service without cause by the Company or an affiliate within the twelve (12)
month period immediately following a change in control (such that the participant’s awards would otherwise be cancelled), the following
shall apply:

 

●
any unvested options and stock appreciation rights held by the participant shall become vested and exercisable on the effective date
of such termination; and

 

●
the restricted period applicable to any unvested restricted stock, restricted stock units or other awards held by the participant shall
expire (including without limitation any applicable performance conditions) and such awards shall be deemed vested on the effective date
of such termination.

 

The
Committee shall also have discretion, in the event of a change in control, and subject to the terms of any applicable award agreement
and compliance with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, to accelerate the vesting, payment
or right to exercise of any award effective immediately upon the occurrence of the change in control and cause the restrictions and forfeiture
conditions applicable to any award to lapse and deem such awards fully vested and any performance conditions imposed with respect to
awards to be fully achieved.

 

Prohibition
on Repricing

 

The
2021 Plan provides that, except in connection with certain changes in capital structure and similar corporate events, the Compensation
Committee shall not without the approval of the Company’s stockholders (a) lower the exercise price of an option or stock appreciation
right, (b) cancel an option or stock appreciation right when the exercise price per share exceeds the fair market value of one share
in exchange for cash or another Award, or (c) take any other action with respect to an option or stock appreciation right that would
be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the shares are
listed.

 

Clawback
and Repayment

 

All
awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback,
forfeiture or other similar policy as in effect from time to time; and (ii) applicable law. Further, to the extent that a participant
receives any amount in excess of the amount that the participant should otherwise have received under the terms of the award for any
reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error),
the participant shall be required to repay any such excess amount to the Company.

 

Non-Transferability
of Awards

 

Except
as otherwise permitted by the Compensation Committee, awards are non-transferable other than by will or the laws of descent and distribution
and restricted stock is generally non-transferable. For the avoidance of doubt, awards may not be transferred to an unrelated third party
for consideration.

 

Termination
and Amendment

 

The
Board may amend, alter, suspend, discontinue or terminate the 2021 Plan at any time, except that no amendment may, without stockholder
approval, (a) change the eligibility requirements under the 2021 Plan or (b) violate the stockholder approval requirements of the national
securities exchange on which the shares of common stock are principally listed. The Compensation Committee may amend the terms of any
award granted under the 2021 Plan, provided that any such amendment that would materially and adversely affect the rights of any participant
shall not be effective without the consent of the affected participant. The 2021 Plan shall expire on the tenth anniversary of approval
by stockholders.

 

    	 

    	 

    

 

Material
U.S. Federal Income Tax Consequences

 

The
following is a brief discussion of the U.S. federal income tax consequences for awards granted under the 2021 Plan. The 2021 Plan is
not subject to the requirements of the Employee Retirement Income Security Act of 1974, as amended, and it is not, nor is it intended
to be, qualified under Section 401(a) of the Code. This discussion is based on current law, is not intended to constitute tax advice,
and does not address all aspects of U.S. federal income taxation that may be relevant to a particular participant in light of his or
her personal circumstances, and does not describe foreign, state, or local tax consequences, which may be substantially different. Holders
of awards under the 2021 Plan are encouraged to consult with their own tax advisors.

 

Non-Qualified
Stock Options and Stock Appreciation Rights. With respect to non-qualified stock options and stock appreciation rights, (i) no income
is recognized by a participant at the time the award is granted; (ii) generally, at exercise, ordinary income is recognized by the
participant in an amount equal to the difference between the exercise or base price paid for the shares and the fair market value of
the shares on the date of exercise (or, in the case of a cash-settled stock appreciation right, the cash received), and the Company is
generally entitled to a tax deduction in the same amount subject to applicable tax withholding requirements; and (iii) upon a subsequent
sale of the stock received on exercise, appreciation (or depreciation) after the date of exercise is treated as either short- term or
long-term capital gain (or loss) depending on how long the shares have been held, and no deduction will be allowed to the Company as
a result of such sale.

 

Incentive
Stock Options. No income is recognized by a participant upon the grant or exercise of an incentive stock option. However, such participant
will generally be required to include the excess of the fair market value of the shares at exercise over the exercise price in his or
her alternative minimum taxable income. If shares are issued to a participant pursuant to the exercise of an incentive stock option,
and if no sale or taxable disposition of such shares is made by such participant within two years after the date of grant or within one
year after the transfer of such shares to such participant, then (i) upon sale of such shares, any amount realized in excess of the exercise
price will be taxed to such participant as a long-term capital gain, and any loss sustained will be a long-term capital loss, and (ii)
no deduction will be allowed to the Company for federal income tax purposes.

 

If
shares acquired upon the exercise of an incentive stock option are disposed of prior to the expiration of either of the holding periods
described above, generally (i) the participant will recognize ordinary income in the year of disposition in an amount equal to the excess
(if any) of the fair market value of such shares at exercise (or, if less, the amount realized on the disposition of such shares) over
the exercise price paid for such shares and (ii) the Company will generally be entitled to deduct such amount for federal income tax
purposes. Any gain (or loss) recognized by the participant upon a subsequent sale or taxable exchange of the shares will be taxed as
short-term or long-term capital gain (or loss), depending on the applicable holding period, and no deduction will be allowed by the Company.

 

Subject
to certain exceptions for disability or death, if an incentive stock option is exercised more than three months following termination
of employment, the exercise of the stock option will generally be taxed as the exercise of a non-qualified stock option.

 

Restricted
Stock. Unless a participant makes a valid Section 83(b) election as described below, such participant will generally not recognize federal
taxable income when he or she receives a grant of restricted stock, and the Company will not be entitled to a deduction until the stock
is transferable by the participant or is otherwise no longer subject to a substantial risk of forfeiture. When the stock is either transferable
or is no longer subject to a substantial risk of forfeiture, the participant will recognize ordinary income in an amount equal to the
fair market value of the shares at that time (less any amounts paid for the shares), and generally, the Company will be entitled to a
deduction in the same amount. Any gain or loss recognized by the participant upon a later disposition of the common stock will be capital
gain or loss. A participant’s holding period for purposes of determining whether that capital gain or loss is long-term or short-term
will be counted from the date the stock became transferable or ceased to be subject to a substantial risk of forfeiture.

 

A
participant may elect to recognize ordinary income at the time that a restricted stock award is granted in an amount equal to the fair
market value of the shares subject to the award (less any amounts paid for such shares) at the time of grant, determined without regard
to certain restrictions. This election is referred to as a Section 83(b) election. In that event, the Company will be entitled to a corresponding
deduction in the same year. Any gain or loss recognized by the participant upon a later disposition of the shares will be capital gain
or loss. A participant’s holding period for purposes of determining whether that capital gain or loss is long-term or short-term
will be counted from the date of the original transfer to the participant. The participant may not claim a credit for any tax previously
paid on stock that is later forfeited.

 

    	 

    	 

    

 

Restricted
Stock Units. If a participant is granted an award of restricted stock units, he or she will not be required to recognize any taxable
income at the time of grant or at the time that the award vests. Upon distribution of shares or cash in respect of a restricted stock
units, the fair market value of those shares or the amount of that cash will be taxable to the participant as ordinary income and the
Company will receive a deduction equal to the income recognized thereby. The subsequent disposition of shares acquired pursuant to an
award of restricted stock units will result in capital gain or loss (based on the difference between the price received on disposition
and the market value of the shares at the time of their distribution). The capital gain tax rate will depend on a number of factors,
including the length of time the participant held the shares prior to selling them.

 

Stock
Bonus Awards. A participant will have taxable compensation equal to the difference between the fair market value of the shares on the
date the common shares subject to the award is transferred to the participant over the amount the participant paid for such shares, if
any. The company will be able to deduct, at the same time as it is recognized by the participant, the amount of taxable compensation
to the participant for Federal income tax purposes.

 

Withholding.
At the time a participant is required to recognize ordinary compensation income resulting from an award, such income will be subject
to federal and applicable state and local income tax and applicable tax withholding requirements with respect to an employee participant.

 

Section
162(m) of the Internal Revenue Code. Section 162(m) of the Internal Revenue Code generally limits to $1 million the amount that a publicly
held corporation is allowed each year to deduct for the compensation paid to each of the corporation’s chief executive officer,
the corporation’s chief financial officer and certain other current and former executive officers of the corporation.

 

New
Plan Benefits

 

The
following table summarizes the aggregate grants approved by the Compensation Committee, subject to approval by the Company’s stockholders,
to each of the named executive officers, all current executive officers as a group, all current directors who are not executive officers
as a group, and all other participants as a group, as of April 9, 2021. Such awards consist solely of the 750,000 Sign-On RSUs to be
awarded pursuant to Mr. Weil’s employment agreement.

 

	Name and Position	 	Time Based
 RSUs (1)
	 	 	Adjusted EBITDA Based RSUs (2)	 	 	Stock Price

                                                                                Based RSUs (3)
	 
	A. Lorne Weil
 Executive
Chairman
	 	 	250,000	 	 	 	250,000	 	 	 	250,000	 
	Brooks H. Pierce
 President and Chief Operating Officer	 	 	 	 	 	 	 	 	 	 	 	 
	Daniel B. Silvers
 Executive VP and Chief Strategy Officer	 	 	 	 	 	 	 	 	 	 	 	 
	Executive Group	 	 	250,000	 	 	 	250,000	 	 	 	250,000	 
	Non-Executive Director Group	 	 	 	 	 	 	 	 	 	 	 	 
	Non-Executive Employee Group	 	 	 	 	 	 	 	 	 	 	 	 

 

	(1)	The
    Time Based RSUs would vest in the following increments subject to Mr. Weil’s continued employment through the vesting date
    – 85,000 RSUs on December 31, 2022; 80,000 RSUs on December 31, 2023; and 85,000 RSUs on December 31, 2024.
	 	 
	(2)	The
    number of Adjusted EBITDA Based RSUs reflect the target number of RSUs which is the maximum number eligible to vest based on the
    performance level attained. Each year in the period of 2021 to 2024, Mr. Weil will have the opportunity to earn a tranche of 62,500
    of such Adjusted EBITDA Based RSUs. For a year in which the Committee determines that the performance level has been attained in
    excess of the 100% target amount, such excess EBITDA will be applied to the subsequent year in determining whether the subsequent
    year’s target has been met.
	 	 
	(3)	The
    Stock Price Based RSUs are earned by meeting the stock price targets as determined by the average closing price of the Company’s
    common stock for any consecutive 45 calendar day period commencing on the effective date of Mr. Weil’s employment agreement
    (i.e., January 1, 2020). The tranches are as follows – 80,000 RSUs at $6.25; 85,000 RSUs at $8.25; and 85,000 RSUs at $15.00.
    The stock price targets applicable to the first two tranches were met — $6.25 in December 2020 and $8.25 in March 2021. Compared
    to the closing stock price of $3.49 on October 9, 2020, the date that the Company entered into the employment agreement with Mr.
    Weil, the stock price targets required growth of 79%, 136%, and 330%, respectively.

 

Because
future awards under the 2021 Plan are in the discretion of the Compensation Committee and will also depend on the fair market value of
the shares at various future dates, it is not possible to determine additional benefits that may be received if the 2021 Plan is approved
by stockholders. In addition, please see “Long-Term Equity Awards” section above for a description of the RSUs approved as
formula awards to our executive officers in August 2020 and please see “Director Compensation” section above for a description
of the equity grant program for our non-employee directors.Exhibit 10.3

 

Inspired
Entertainment

 

Short-Term
Incentive
Bonus Plan

 

(adopted
as of June 9, 2021)

 

I.
PURPOSE

 

The
Inspired Entertainment
fiscal year
2021 Short-Term
Incentive
Bonus Plan (the “Plan”)
is intended
to provide incentives
to certain employees
of Inspired Entertainment,
Inc.,
its subsidiaries
and its participating
affiliates
(collectively,
the “Company”) to contribute
to the success of
the Company in its fiscal year
commencing
January
1, 2021 and ending
December
31, 2021 (“2021”).
The Plan offers
eligible
participants an
opportunity to earn compensation
in addition to their salaries
and other
incentives,
based upon the performance
of the Company and the satisfaction
of individual performance
targets
determined
for each eligible
participant.

 

II.
PLAN ADMINISTRATION

 

The Plan
has been approved
by the Compensation Committee
of the Company’s Board of Directors
(the “Committee”), and
the Committee is responsible
for administering
the Plan. The Committee
may delegate, on such
terms and conditions
as it may determine, certain authority and
powers with respect
to administration
of the Plan
to one or more directors
serving on the Committee and/or
to one or more officers
or other personnel of
the Company (including
with respect to the participation
of, and awards
to, participants who are
not executive
officers
of the Company). Subject to the
terms of the Plan,
the Committee
will receive recommendations
for 2021 from members of the
Company’s Office
of the Executive
Chairman,
or as may be otherwise determined
by the Committee,
with respect to the
operation and
management of the Plan
for the year including recommendations
for the selection
of eligible
participants,
bonus opportunity levels,
performance criteria, and
the amount and timing
of any bonus payments.

 

III.
ELIGIBILITY

 

The
executives
and other employees
eligible
for participation
in the Plan will be determined
by the Committee subject
to Section
II. Duly determined
participants under
the Plan are
also referred
to herein as
“Covered Employees”.
A determination
that an employee
is an eligible
employee
under the Plan with respect
to 2021 shall not be determinative
as to such employee’s
eligibility
with respect to
any subsequent
fiscal year.

 

Any
bonus payment made under the Plan
shall be purely discretionary and
shall not form part
of the employee’s contractual
remuneration.

 

An
individual whose employment
is terminated
for any reason,
or who is under notice
of termination
(whether
given by the individual
or the Company), in each
case prior to the date
on which bonus would otherwise
be paid, will not be eligible
to receive any payment
under the Plan, notwithstanding
any prior determinations
made by the Committee.

 

    	1 

    	 	 	 

    

 

If
a person is hired
for a position with the Company
during 2021 and the position is within
the category recommended
to be eligible
to receive a bonus under
the Plan, that person may be eligible
to receive a prorated
portion of the annual
bonus, as determined
by the Committee,
depending on the person’s
particular position,
subject to such other considerations
as the Committee
may determine.

 

IV.
BONUS POTENTIAL

 

The
bonus potential for Covered Employees
shall be determined
for 2021, including applicable
threshold, target
and maximum
bonus potential for the year. Bonus potential
for 2021 will be based
on a percentage
of the Covered
Employee’s base
salary as
of the beginning
or end of the year,
the prorated amount for the year
or a fixed dollar
amount, each
as determined
by the Committee.
To the extent applicable,
award
opportunity levels
corresponding
to threshold, target
and maximum levels of performance
may vary by participant.
The name and
bonus potential
of each
Covered
Employee will be set forth
in a schedule
to be approved
by the Committee for 2021 (the “Bonus
Potential Schedule”).
The bonus potential set forth
in the Bonus Potential Schedule
may, at any time
prior to payment of the
bonus, be adjusted
to reflect
changes
in the list of Covered
Employees or to the bonus potential for Covered
Employees (upward
or downward),
in the absolute discretion
of the Committee as
it deems appropriate,
to reflect,
without limitation,
changes
to a Covered Employee’s
position, title,
or responsibilities,
or, as appropriate,
to reflect
a transformative
transaction
(as determined
by the Board or the Committee
in its sole discretion).

 

V.
PLAN COMPONENTS

 

The
Plan components applicable
for 2021 may include financial metrics,
strategic (non-financial)
metrics, and/or individual
performance
metrics. The
weighting of
the Plan components will also
be established
for 2021; Given the impact
of the COVID pandemic
on the Company’s business,
the Committee can
use a variety
of methods in determining
STIP award
levels including but not limited
to achievement
of metrics
or a discretionary
scorecard
approach.
The Committee
acknowledges
that establishing
a budget is difficult
given COVID pandemic
as it is not known how much of
the company’s
revenue
generation
may be prevented,
or for how long, by Government lockdowns.
In evaluating
performance,
the Committee may therefore
exercise
both positive and negative
discretion
based on a number
of factors.

 

A.
Company Performance
Targets

 

Bonuses are contingent
upon the Company achieving specific
Company performance
targets as
determined
by the Committee with respect
to each financial
year (the “Company Performance
Targets”).
The following are examples of criteria that could
be used to set Company Performance
Targets and are
not an exclusive
list: (i) revenue;
(ii) sales; (iii) profit (net
profit, gross
profit, operating
profit, economic
profit, profit
margins or other corporate
profit measures);
(iv) earnings (which may include any calculation of earnings,
including but not limited to earnings
before interest and
taxes, earnings
before taxes, earnings
before interest,
taxes, depreciation and amortization and
net earnings);
(v) net income (before or after
taxes, operating
income or other income measures);
(vi) cash (cash
flow, cash generation
or other cash measures); and
(vii) stock price or performance; and
(viii) total stockholder
return. The Company Performance
Targets
may be financial,
strategic (non-financial),
or a combination, and
may be based
on performance against
predetermined
goals or based
on the committee’s
subjective evaluation of achievement against
Company Performance
Targets at
year end. As determined
by the Committee,
the Company Performance
Targets may
be based on GAAP
or non-GAAP results and any actual results
may be adjusted
by the Committee
for one-time
or exceptional
items or unbudgeted
or unexpected items
when determining
whether the performance
goals have been
met. In certain cases,
the Office of the Executive
Chairman may recommend
to the Committee that an element
of Bonus is a divisional, as opposed to a
Company-wide, target.

 

    	2 

    	 	 	 

    

 

The
Office
of the Executive
Chairman shall
recommend
to the Committee the applicable
Company Performance
Targets
for 2021. Such recommendations
shall be subject
to the review
and approval
by the Committee.

 

B.
Individual
Performance
Targets

 

Even
if the Company has fully achieved
the Company Performance
Targets, an
individual participant’s
bonus potential
will be subject to an
assessment of the individual’s
achievement
of individual performance
targets,
as determined
by the Committee
in its sole discretion.
The following are examples
of criteria
that could be used
to set individual performance
targets
and are
not an exclusive
list: (i) budget
management; (ii) cost
of service;
(iii) quality
and service
levels;
(iv) product line
achievements;
(v) leadership/team
participation and
support and (vi) adherence
to and compliance
with Company values and behaviors.

 

The
Committee may, in its
sole discretion and at any
time, reduce or eliminate
a Covered Employee’s award
if it determines
that such reduction
or elimination
is appropriate.

 

VI.TRANSFER/PROMOTION/DEMOTION

 

If
a Covered
Employee is transferred
to a new role during 2021,
the Committee may, in its
discretion, calculate
the bonus payment for 2021 based
on the base salary
the Covered Employee
received
during the relevant
portions of 2021 in each
role at the applicable
target percentage(s)
for each role.

 

If
a Covered
Employee becomes
ineligible for the Plan
due to a transfer or demotion,
the Covered Employee
may be eligible
to receive a prorated
bonus based
on the period of participation
in the Plan, as determined
by the Committee.
Any such prorated bonus would
be paid at the same
time as other
bonus payments under
the Plan.

 

VII.
PAYOUT AND TAXATION

 

Bonus
payments that are approved
by the Committee
for 2021 shall be made as soon as administratively
practicable after
the delivery of
the audit report
issued by the Company’s
independent public accountants
with respect
to the Company’s 2021 consolidated financial
statements,
subject to IX below. Further,
if the Committee determines
(in accordance
with Section 409A
of the U.S. Internal
Revenue Code of
1986, as amended
(the “Code”))
that payment
of bonuses would jeopardize
the ability
of the Company to continue as
a going concern
or meet its banking
covenants,
bonuses may be reduced, eliminated
or delayed.

 

    	3 

    	 	 	 

    

 

Payroll
taxes shall be withheld
from bonus payments as
required
by law. Bonus payments that Covered
Employees receive are
includable as
income in the year in which they are paid.

 

VIII.INTEGRATION
WITH BENEFIT PROGRAMS

 

Any
bonus payment that
a Covered Employee
receives
is not intended
to be considered
compensation
for purposes
of life assurance,
401(k) or any other pension
scheme,
disability, holiday
pay or any other
benefit plan
unless specified
by the applicable
plan document.

 

IX.
CONDITIONS FOR
RECEIVING
PAYMENT

 

Notwithstanding
anything to the contrary
herein,
a Covered
Employee whose employment
is terminated
for any
reason,
or who is under notice of termination
(whether
given by the individual or the Company) in both cases
prior to the date on which bonus would otherwise
be paid, shall
not be eligible
to receive a bonus payment
under the Plan (e.g.,
a Covered Employee
on garden leave
on the date of payment will not be eligible
for a bonus). However,
the Committee retains
the authority in its absolute
discretion to make
exceptions
to the foregoing policy
in unusual or meritorious
cases including,
but not limited to, approving
a prorated
bonus in the event
of a Covered Employee’s
death, disability,
call to active
military
service, or retirement
with the written consent
of the Company.

 

X.
CLAWBACK

 

By
accepting a bonus payment
under the Plan, each
Covered Employee
agrees
that the Company may recover some or all
of the amounts paid
with respect
to such bonus payment,
or recoup some or all
of the value thereof
via offset from
other amounts owed
to the Covered
Employee by the Company or an
affiliate,
at any time during the three
fiscal years
following payment
hereunder,
if and to the extent
that the Committee concludes
that (i) U.S. federal
or state law,
the laws of any
other jurisdiction
in which the Covered
Employee has been
employed
by the Company during the fiscal year,
or the listing requirements
of the exchange
on which the Company’s
stock is listed for trading so require,
(ii) the performance
criteria required
for the bonus payment were
not met, or not met to the extent
necessary to support the amount
of the bonus payment that was paid,
or (iii) as required
by Section
304 of the U.S. Sarbanes-Oxley
Act of 2002, Section
954 of the Dodd- Frank
Wall Street
Reform and
Consumer Protection
Act or otherwise
after a restatement
of the Company’s financial
results as reported
to the U.S. Securities and
Exchange Commission.
Covered Employees
are deemed to have
agreed
to promptly comply
with any Company demand for recovery
or recoupment
by accepting any
payment
hereunder.

 

XI.
LIMITATIONS AND/OR
ADJUSTMENTS

 

The
Company reserves
the right to review,
amend, suspend, withdraw
and/or terminate
the Plan, the incentive
calculation
formulas, performance
targets
and all other
aspects
of the Plan at any
time and in its
sole and absolute
discretion
and without prior notice.

 

    	4 

    	 	 	 

    

 

A
Covered Employee’s
participation in the Plan
shall not be construed
as a contractual
right or form part of his or her
contractual remuneration
under a services
or employment
agreement nor shall
it be construed as
a promise of continuing employment
between the Company and
the Covered Employee.
Any bonus payment made in respect
of 2021 is not indicative of any
payments that may be made in subsequent fiscal
years. Employment
with the Company is terminable
at will subject to the terms
of any written
services or employment
agreement
between
the Company and the Covered
Employee and
applicable
laws. Neither
a Covered Employee’s
employment with the Company, nor a Covered
Employee’s
employment
within any particular
category
of employees,
shall entitle
the Covered Employee
to either participate in the
Plan or to be eligible
to receive any bonus pursuant
thereto. All determinations
of eligibility
and awards
under the Plan shall
be made by the Committee in its
absolute discretion
and may be revised
or adjusted
in accordance
with the Plan.

 

The
Plan is intended
to comply with the applicable
requirements of Section
409A of the Code and shall be operated
and interpreted
consistent therewith.
To the extent that any
provision of the Plan would cause a conflict
with the requirements
of Section
409A of the Code,
or would cause the administration
of the Plan to
fail to satisfy
the requirements of Section
409A of the Code, such
provision shall be deemed
null and void to the extent permitted
by applicable
law. Notwithstanding the foregoing,
the Company makes no representation
that the Plan complies
with Section
409A of the Code and shall have
no liability
to any Participant
for any failure
to comply with Section
409A of the Code.

 

    	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]