Item 1.01.
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Entry into a Material Definitive Agreement.
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Merger Agreement
On February 1, 2021,
FAST Acquisition Corp. (the “Company”) entered into an agreement and plan of merger (the “Merger Agreement”)
with Fertitta Entertainment, Inc., a Texas corporation (“FEI”), FAST Merger Corp., a Texas corporation and direct subsidiary
of the Company (“FAST Merger Corp.”) and FAST Merger Sub Inc., a Texas corporation and direct subsidiary of FAST Merger
Corp. (“Merger Sub”), pursuant to which (i) the Company will change its jurisdiction of incorporation to Texas by merging
with and into FAST Merger Corp., with FAST Merger Corp. surviving the merger (the “reincorporation”), and (ii) Merger
Sub will merge with and into FEI with FEI surviving the merger (the “Merger”). Upon consummation of the transactions
contemplated by the Merger Agreement (the “Business Combination”), FEI will become a wholly owned subsidiary of FAST
Merger Corp., which is referred to herein as “New FEI.”
Upon the closing of
the Business Combination (the “Closing”), each share of common stock of the Company will be converted into one share
of Class A common stock of New FEI and all of the outstanding equity interests of FEI will be acquired for aggregate consideration
that is current valued at approximately $1.97 billion. Such consideration will be paid to Tilman J. Fertitta, the sole stockholder
of FEI, by the issuance of a number of shares of Class B common stock of New FEI, calculated based on the aggregate closing date
transaction value, as determined pursuant to the Merger Agreement, and a $10 per share price of the Class B common stock. The value
of the aggregate consideration will change between now and the Closing based on (i) the difference between the net debt of FEI
at the Closing and the current target net debt of $4.6 billion and (ii) (x) the difference between the 60-day average closing stock
price of a share of Golden Nugget Online Gaming, Inc. (“GNOG”) as of the day prior to the Closing and $18.46, the closing
stock price of GNOG January 28, 2021, multiplied by (y) 31,350,625 (subject to adjustment by reason of any stock dividend,
subdivision, reclassification, reorganization, recapitalization, split, combination or exchange of shares, or any other similar
event between the date of the Merger Agreement and the Closing). In addition, in connection with the Business Combination, FEI
will complete an internal reorganization and spin out certain assets which are not intended to be part of the Business Combination
(the “Restructuring”).
The shares of Class
B common stock of New FEI will have the same economic terms as the shares of Class A common stock of New FEI, but the shares of
Class B common stock of New FEI will have 10 votes per share. The outstanding shares of Class B common stock of New FEI will be
subject to a “sunset” provision if Mr. Fertitta and other permitted holders of Class B common stock collectively cease
to beneficially own at least 20% of the number of shares of Class B common stock of New FEI collectively held by Mr. Fertitta and
other permitted transferees as of the effective date of the Business Combination.
It is anticipated that
proceeds available from the Company’s trust account, after giving effect to any and all redemptions and proceeds from private
placements of shares of the Company’s Class A common stock to occur immediately prior to the Closing, of which the Company
currently has commitments for approximately $1.24 billion of proceeds (the “Private Placement”) will be used to pay
transaction expenses and to partially pay down FEI’s existing indebtedness.
The parties to the
Merger Agreement have made customary representations, warranties and covenants in the Merger Agreement, including, among others,
covenants with respect to the conduct of FEI, the Company and their respective subsidiaries prior to the Closing. Each of FEI,
the Company, FAST Merger Corp. and Merger Sub has agreed to use its reasonable best efforts to cause the Business Combination to
be consummated as expeditiously as practicable.
The Closing is subject
to certain conditions, including, among other things, (i) approval by the Company’s stockholders, (ii) certain approvals
or other determinations from certain gaming regulatory authorities, as applicable, and the absence of a material adverse regulatory
event with respect to FEI, (iii) the expiration or termination of the waiting period (or any extension thereof) applicable under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iv) the Company having at least $5,000,001 of net tangible assets at
the Closing, (v) the receipt by Florida of certain tax opinions regarding the tax qualification of the Business Combination and
certain aspects of the Restructuring, and (vi) the effectiveness of the Registration Statement (as defined below) and the listing
of New FEI’s Class A common stock to be issued in the Business Combination on the New York Stock Exchange (the “NYSE”).
In connection with the execution of the Merger Agreement, Mr. Fertitta has delivered a written consent approving the Merger Agreement
and the Business Combination.
The Merger Agreement
may be terminated by the Company or FEI under certain circumstances, including, among others, (i) by mutual written consent of
the Company and FEI, (ii) by either the Company or FEI if the Closing has not occurred within nine months and (iii) by the Company
or Florida if the Company has not obtained the required approval of its stockholders.
The foregoing description
of the Merger Agreement and the Business Combination does not purport to be complete and is qualified in its entirety by the terms
and conditions of the Merger Agreement, a copy of which is attached hereto as Exhibit 2.1 and is incorporated herein by reference.
The Merger Agreement contains representations, warranties and covenants that the parties made to each other as of the date of the
Merger Agreement or other specific dates. The assertions embodied in those representations, warranties and covenants were made
for purposes of the contract among the parties and are subject to important qualifications and limitations agreed to by the parties
in connection with negotiating the Merger Agreement. The Merger Agreement has been attached to provide investors with information
regarding its terms and is not intended to provide any other factual information about the Company, FEI or any other party to the
Merger Agreement. In particular, the representations, warranties, covenants and agreements contained in the Merger Agreement, which
were made only for purposes of the Merger Agreement and as of specific dates, were solely for the benefit of the parties to the
Merger Agreement, may be subject to limitations agreed upon by the contracting parties (including being qualified by confidential
disclosures made for the purposes of allocating contractual risk between the parties to the Merger Agreement instead of establishing
these matters as facts) and may be subject to standards of materiality applicable to the contracting parties that differ from those
applicable to investors and reports and documents filed with the U.S. Securities and Exchange Commission (the “SEC”).
Investors should not rely on the representations, warranties, covenants and agreements, or any descriptions thereof, as characterizations
of the actual state of facts or condition of any party to the Merger Agreement. In addition, the representations, warranties, covenants
and agreements and other terms of the Merger Agreement may be subject to subsequent waiver or modification. Moreover, information
concerning the subject matter of the representations and warranties and other terms may change after the date of the Merger Agreement,
which subsequent information may or may not be fully reflected in the Company’s public disclosures.
Subscription Agreements
In connection with
the Company’s entrance into the Merger Agreement, the Company entered into subscription agreements (the “Subscription
Agreements”), each dated as of February 1, 2021, with certain institutional investors, including , Jefferies LLC (with respect
to 2,500,000 shares of Class A common stock) and Tilman Fertitta (with respect to 5,606,656 shares of Class A common stock) (the
“Investors”), pursuant to which, among other things, the Company agreed to issue and sell, in private placements to
close immediately prior to the Closing, an aggregate of 124,000,000 shares of its Class A common stock for $10.00 per share, including
48,970,200 shares of Class A common stock to be issued upon the surrender of $ $489,702,000 aggregate principal amount of indebtedness
of FEI at Closing. The Subscription Agreements contain customary representations, warranties, covenants and agreements of the Company
and the Investors and are subject to customary closing conditions (including, without limitation, that there is no amendment or
modification to the Merger Agreement that is material and adverse to the Investor) and termination rights (including a termination
right if the transaction contemplated by the Subscription Agreement has not been consummated by February 1, 2022).
The foregoing description
of the Subscription Agreements does not purport to be complete and is qualified in its entirety by the terms and conditions of
the form Subscription Agreement, the form of which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.
Stockholders Agreement
In connection with
the Company’s entrance into the Merger Agreement, it also entered into a Stockholders Agreement (the “Stockholders
Agreement”) with Mr. Fertitta, FAST Merger Corp. and FAST Sponsor, LLC (the “Sponsor”), pursuant to which, among
other things, (i) Mr. Fertitta and the Sponsor will have the right to nominate seven and one director(s), respectively, to the
board of directors of New FEI.
The foregoing description
of the Stockholders Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the
Stockholders Agreement which is filed as Exhibit 10.2 hereto and is incorporated by reference herein.
Sponsor Agreement
In connection with
the Company’s entrance into the Merger Agreement, it also entered into a Sponsor Agreement (the “Sponsor Agreement”)
with FEI, the Sponsor and certain officers and the members of the Company’s board of directors (the “SPAC Insiders”),
pursuant to which, among other things, the SPAC Insiders agreed to vote any of the Company’s shares of common stock held
by them in favor of the Business Combination and to not redeem any such shares at the special meeting of stockholders to be held
in connection with the Business Combination. In addition, the SPAC Insiders agreed to not transfer (i) any of the Company’s
shares of Class B common stock, par value $0.0001 per share (the “Founder Shares”) held by them for one year after
the Closing, subject to certain permitted transfers and a potential early release of such restrictions as set forth therein, and
(ii) any private placement warrants or any shares of Class A common stock issued or issuable upon exercise thereof until 30 days
after the Closing. In addition, the Sponsor agreed to surrender and forfeit 2,000,000 Founder Shares for no consideration. The
Sponsor Agreement amends and restates that certain letter, dated as of August 20, 2020 between the Company and the SPAC Insiders
that was entered into in connection with the Company’s initial public offering.
The foregoing description
of the Sponsor Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Sponsor
Agreement, which is filed as Exhibit 10.3 hereto and is incorporated by reference herein.
Amended and Restated
Registration Rights Agreement
In connection with
the Company’s entrance into the Merger Agreement, it also entered into an Amended and Restated Registration Rights Agreement
(the “A&R RRA”) with Mr. Fertitta, the Sponsor and FAST Merger Corp., which, among other things, amends and restates
the registration rights agreement entered into by and among the Company, the Company’s initial directors and officers and
the Sponsor at the time of the Company’s initial public offering. Pursuant to the terms of the A&R RRA, among other things,
New FEI will be obligated to file, not later than 30 days after the Closing, a registration statement covering the shares of Class
A common stock issuable to Mr. Fertitta upon the conversion of the shares of Class B common stock Mr. Fertitta received in the
Business Combination.
The foregoing description
of the A&R RRA does not purport to be complete and is qualified in its entirety by the terms and conditions of the A&R
RRA, which is filed as Exhibit 10.4 hereto and is incorporated by reference herein.
Lockup Agreement
In connection with
the Company’s entrance into the Merger Agreement, it also entered into a Lockup Agreement (the “Lockup Agreement”)
with FAST Merger Corp. and Mr. Fertitta, pursuant to which, among other things, Mr. Fertitta agreed to not transfer the Company’s
shares of common stock held by them prior to one year after the Closing, subject to certain permitted transfers and a potential
early release of such restrictions as set forth therein.
The foregoing description
of the Lockup Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Lockup
Agreement, which is filed as Exhibit 10.5 hereto and is incorporated by reference herein.