Exhibit 2.2
SHAREHOLDER SUPPORT
AGREEMENT
This SHAREHOLDER SUPPORT AGREEMENT
(this “ Agreement ”) is entered into as of
September 14, 2008, by and among Best Buy Co., Inc., a
Minnesota corporation (“ Parent ”), Puma Cat
Acquisition Corp., a Delaware corporation and a wholly-owned
subsidiary of Parent (“ Merger Sub ”) and the
holders of capital stock of Napster, Inc., a Delaware
corporation (“ Company ”) identified on
Exhibit A attached hereto (each a “
Shareholder ,” and collectively the “
Shareholders ”).
RECITALS
In order to induce Parent and Merger
Sub to enter into that certain Agreement and Plan of Merger, dated
as of even date herewith, by and among Parent, Merger Sub and
Company (as amended from time to time, the “ Merger
Agreement ”), Merger Sub has requested that the
Shareholders, and the Shareholders have agreed to, enter into this
Agreement.
As of the date hereof, each
Shareholder is the holder of the shares of Company capital stock
and/or options to purchase shares of Company capital stock listed
opposite such Shareholder’s name on Exhibit A
.
Capitalized terms used but not
separately defined herein shall have the meanings ascribed to them
in the Merger Agreement.
AGREEMENT
NOW, THEREFORE, the parties hereto
agree as follows:
ARTICLE 1
Agreement to
Tender
Section 1.01
Agreement to Tender
. Each Shareholder agrees to
validly tender or cause to be validly tendered pursuant to and in
accordance with the terms of the Offer all of the shares of Company
capital stock that such Shareholder owns as of the date hereof, as
well as any additional shares of Company capital stock that such
Shareholder may own, whether acquired by purchase, exercise of
Options or otherwise, at any time after the date hereof
(collectively, the “ Shareholder Shares ”).
Within ten (10) business days after the commencement of the
Offer (or within ten (10) business days after any Shareholder
Shares are acquired by Shareholder during pendency of the Offer, if
later), each Shareholder shall deliver to the depositary designated
in the Offer all documents or instruments required to be delivered
pursuant to the terms of the Offer. Each Shareholder agrees
that, once its Shareholder Shares are tendered, such Shareholder
will not withdraw any of such Shareholder Shares from the Offer,
unless and until (i) the Offer shall have been terminated by
Merger Sub in accordance with the terms of the Merger Agreement or
(ii) this Agreement shall have been terminated in accordance
with Section 6.01.
ARTICLE 2
Voting Agreement; Grant of
Proxy
Section 2.01
Voting Agreement
.
(a)
Until the Termination Date (as
defined in Section 6.01 hereof), each Shareholder
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hereby agrees to vote or cause to be voted all
Shareholder Shares that such Shareholder is entitled to vote at the
time of any vote of the shareholders of Company where such matters
arise (i) in favor of the approval and adoption of the Merger
Agreement and the Merger, (ii) against any proposal or
transaction which could prevent or delay the consummation of the
Merger, and (iii) against any corporate action which would
frustrate the purposes of, or prevent or delay the consummation of,
the Merger.
(b)
If any shareholder vote in respect
of the Merger Agreement or the Merger is taken by written consent,
the provisions of this Agreement imposing obligations in respect of
or in connection with any vote of shareholders shall apply
thereto.
(c)
Each Shareholder shall retain at all
times the right to vote his or her Shareholder Shares in such
Shareholders’ sole discretion and without any other
limitation on those matters other than those set forth in this
Section 2.01 that are at any time or from time to time
presented for consideration to the Company’s shareholders
generally.
Section 2.02
Proxy . Except with respect to any proxy
delivered in connection with the Company’s 2008 annual
meeting of shareholders and then only to the extent such proxy is
not inconsistent with the voting agreement set forth in
Section 2.01 above, each Shareholder hereby revokes any and
all previous proxies granted with respect to the Shareholder
Shares. By entering into this Agreement, each Shareholder hereby
grants a limited irrevocable proxy, within the meaning of the DGCL,
appointing Merger Sub as such Shareholder’s attorney-in-fact
and proxy, with full power of substitution, for and in such
Shareholder’s name, to vote, express consent or dissent, or
otherwise to utilize such voting power in such manner and upon and
limited to only those matters described in Section 2.01 above,
as Merger Sub or its proxy or substitute shall, in Merger
Sub’s sole discretion, deem proper with respect to the
Shareholder Shares. The proxy granted by each Shareholder pursuant
to this Section 2.02 is irrevocable and is granted in
consideration of Merger Sub’s entering into the Merger
Agreement, and such irrevocable proxy shall remain in effect until
the Termination Date, notwithstanding the death or incapacity of
such Shareholder. Such proxy shall be revoked on the
Termination Date. Each Shareholder intends this limited proxy
to be irrevocable and will take such further action and execute
such other instruments as may be necessary to effectuate the intent
of such proxy, including, without limitation, filing written notice
thereof with the secretary of the Company or permitting Merger Sub,
as such Shareholder’s attorney-in-fact, to file a copy of
this Agreement with the secretary of the Company.
Section 2.03
Capacity . Each Shareholder is only obligating
himself or herself in his or her capacity as a shareholder of the
Company and not agreeing to take any action or forego taking any
action in his or her capacity as an officer or director of the
Company. Nothing contained in this Agreement shall be
construed to prohibit any Shareholder, solely in such
Shareholder’s capacity as an officer or director of the
Company, from discharging such Shareholder’s obligations as
an officer or director, including, but not limited to, the exercise
of fiduciary duties under applicable law and all actions permitted
under Section 5.10 of the Merger Agreement.
Section 2.04
Shareholder Obligations Several
and Not Joint. The
obligations of each Shareholder hereunder shall be several and not
joint and no Shareholder shall be liable for any breach of the
terms of this Agreement by any other Shareholder.
ARTICLE 3
Representations and Warranties of
Shareholders
Each Shareholder represents and
warrants to Merger Sub that:
Section 3.01
Valid Title
. There are no restrictions on
Shareholder’s voting rights or rights of
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disposition with respect to the Shareholder
Shares, except securities Law requirements. None of the
Shareholder Shares are subject to any voting trust or other
agreement or arrangement with respect to the voting of such
Shareholder Shares (other than this Agreement).
Section 3.02
Binding Effect
. Assuming due and valid
execution and delivery by Parent and Merger Sub, this Agreement is
the valid and binding agreement of Shareholder, enforceable against
Shareholder in accordance with its terms, except as enforcement may
be limited by bankruptcy, insolvency, moratorium or other similar
laws relating to creditors’ rights generally. The
execution and delivery by Shareholder of this Agreement does not,
and the performance by Shareholder of Shareholder’s
obligations under this Agreement will not, require any consent,
approval, authorization or permit of, or filing with or
notification to, any Governmental Authority, except where the
failure to obtain such consent, approval, authorization or permit
would not materially interfere with Shareholder’s ability to
perform its obligations hereunder.
Section 3.03
Ownership of Company
Securities . The
shares of Company capital stock and options to purchase shares of
Company capital stock set forth next to Shareholder’s name on
Exhibit A hereto are the only securities of Company
beneficially owned by Shareholder.
Section 3.04
Power and Authority
. If Shareholder is an
individual, Shareholder has the full legal right and capacity to
execute and deliver this Agreement, perform Shareholder’s
obligations hereunder and consummate the transactions contemplated
under this Agreement. If Shareholder is not an individual,
Shareholder (i) is duly organized or formed, validly existing
and in good standing under the laws of its jurisdiction of
organization or formation, (ii) has the requisite power and
authority to carry on its business as it is now being conducted,
and (iii) has all necessary power and authority to execute and
deliver