Irrevocable Proxy: Definition, Terms, Example
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What is an Irrevocable Proxy?
An irrevocable proxy is a contract between a principal and an agent in which the principal gives representation rights to the agent. Proxy agreements are used in a variety of industries but are commonly executed when a shareholder appoints a proxy to exercise voting rights within a corporation. Usually a proxy is revocable, however an irrevocable proxy includes language in the contract that prohibits revocation for an agreed upon amount of time. Certain circumstances that make a proxy irrevocable include:
- If the proxy is already a shareholder of the company
- The proxy has an employment contract with the company
- The proxy has advanced credit to the company
Common Sections in Irrevocable Proxies
Below is a list of common sections included in Irrevocable Proxies. These sections are linked to the below sample agreement for you to explore.
Irrevocable Proxy Sample
Exhibit 10.6
[FORM OF] IRREVOCABLE PROXY
In accordance with the Securities Purchase Agreement (the “Agreement”) by and among Solomon Technologies, Inc., a Delaware corporation, and certain Investors, as designated in the Stock Purchase Agreement, dated April 15, 2004, the undersigned agrees as follows:
1. Grant of Irrevocable Proxy.
(a) The undersigned stockholder (the “Stockholder”) with respect to all of the shares (the “Shares”) of Series A Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”) owned by the Stockholder in Solomon Technologies, Inc., a Delaware corporation, (the “Company”) hereby grants to Woodlaken, LLC, a Connecticut limited liability company, (the “Holder”) an irrevocable proxy under Section 212 of the Delaware General Corporation Law to vote the Shares in any manner that the Holder may determine in its sole and absolute discretion to be in the Holder’s own best interest, all of the Shares with respect to which the Stockholder has voting power at the date hereof at any meeting of stockholders of the Company or action by written consent with respect to any matter or the transactions contemplated thereby; provided, however, that the rights granted by the Stockholder to the Holder contained herein shall not permit the Holder to vote, and the Stockholder reserves the right to vote, the Shares with respect to any proposal to amend, delete or waive any rights of the Stockholder under Section 7, Preemptive Rights, in the Amended and Restated Certificate of Designation of Series and Determination of Rights and Preferences of Series A Preferred Stock of Solomon Technologies, Inc. It is expressly understood and agreed that the foregoing irrevocable proxy is hereby granted to the Holder by the Stockholder pursuant to the Agreement and is coupled with an interest.
(b) Because of this interest in the Shares, the Holder shall have no duty, liability and obligation whatsoever to the Stockholder arising out of the exercise by the Holder of the foregoing irrevocable proxy. The Stockholder expressly acknowledges and agrees that (i) the Stockholder will not impede the exercise of the Holder’s rights under the irrevocable proxy and (ii) the Stockholder waives and relinquishes any claim, right or action the Stockholder might have, as a stockholder of the Company or otherwise, against the Holder or any of his affiliates in connection with any exercise of the irrevocable proxy granted hereunder.
(c) The Stockholder has the right to notice of or to any and all special and general meetings of stockholders during the term of this Irrevocable Proxy and further severally agrees that if any notice is given by the Company to the Stockholder, such notice will be deemed to have been validly given to the Stockholder for all purposes.
(d) This irrevocable proxy shall expire as to those Shares on the date that such Shares are converted into Common Stock on the Company, but shall continue as to any Shares not so converted.
2. Legend. The Stockholder agrees to permit an appropriate legend on certificates evidencing the Shares reflecting the grant of the irrevocable proxy contained in the foregoing Section 1.
3. Representations and Warranties. The Stockholder represents and warrants to the Holder as follows:
(a) The Stockholder has the all necessary rights, power and authority to execute, deliver and perform his obligations under this Irrevocable Proxy. This Irrevocable Proxy has been duly executed and delivered by the Stockholder and constitutes his legal and valid obligation enforceable against the Stockholder in accordance with its terms.
(b) The Stockholder is the record owner of the Shares listed under his name on Appendix A and the Stockholder has plenary voting and dispositive power with respect to such Shares; the Stockholder owns no other
shares of the capital stock of the Company; there are no proxies, voting trusts or other agreements or understandings to which such Stockholder is a party or bound by and which expressly require that any of the Shares be voted in any specific manner other than this Irrevocable Proxy; and such Stockholder has not entered into any agreement or arrangement inconsistent with this Irrevocable Proxy.
4. Equitable Remedies. The Stockholder acknowledges that irreparable damage would result if this Irrevocable Proxy is not specifically enforced and that, therefore, the rights and obligations of the Holder may be enforced by a decree of specific performance issued by a court of competent jurisdiction, and appropriate injunctive relief may be applied for and granted in connection therewith. Such remedies shall, however, not be exclusive and shall be in addition to any other remedies which the Holder may otherwise have available.
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APPENDIX A
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Number of Shares | |
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2
Reference:
Security Exchange Commission - Edgar Database, EX-10.6 9 dex106.htm FORM OF IRREVOCABLE PROXY, Viewed November 10, 2021, View Source on SEC.
Who Helps With Irrevocable Proxies?
Lawyers with backgrounds working on irrevocable proxies work with clients to help. Do you need help with an irrevocable proxy?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate irrevocable proxies. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Irrevocable Proxy Lawyers
Ralph S.
Ralph graduated from University of Florida with his JD as well as an LLM in Comparative Law. He has a Master's in Law from Warsaw University , Poland (summa cum laude) and holds a diploma in English and European Law from Cambridge Board of Continuous Education. Ralph concentrates on business entity formation, both for profit and non profit and was trained in legal drafting. In his practice he primarily assists small to medium sized startups and writes tailor made contracts as he runs one of Florida disability non profits at the same time. T l Licensed. in Florida Massachusetts and Washington DC this attorney speaks Polish.
"Raph did a great job. His attention to detail, professionalism, and willingness to really understand what we wanted made the entire process easy and efficient. He is knowledgeable, responsive, and highly skilled at what he does. He took the time to address our questions and make sure everything was completed exactly as we needed. I would definitely recommend working with him!"
Rodrigo M.
Mexican Lawyer specialized in Corporate, Fintech and Financial Law
"Rodrigo was absolutely amazing!! Full of legal knowledge and an incredible help for us. He thoroughly drew up our contract for us and fixed many errors and omissions that were already present and went over everything with me. I am so happy we found him. No way we could have done it without him. HIGHLY RECOMMEND."
Jessica P.
"Jessica was very responsive and helpful with completing my project."
Ramanathan C.
Triple Qualified New York Attorney, Australian Lawyer & Enrolled NZ Barrister & Solicitor
"Rama was timely and responsive to all my needs & questions. From day one, he presented a tailored proposal for my project that felt personalized and thoughtful. He is pleasant to work with and professional with his legal advice. I'd be happy to work with him again."
October 31, 2021
Melanie C.
Melanie Cunningham specializes in helping entrepreneurs remain creative and expansive by establishing the foundation of their business and protecting and maximizing their intellectual property. It’s her belief that entrepreneurs and micro and small business owners play a critical role in our communities, which propelled Melanie to return to private practice after more than a decade working for global financial institutions. Melanie’s practice is dedicated to delivering excellent legal support and protection to this vital, but an often underserved, community. Melanie credits her business training and the skills developed as a senior compliance officer with enabling her to help small business owners have a legally compliant business, while proactively advising clients during the growth process. She’s helped diverse entrepreneurs do business in a way that focuses more on collaboration than competition. Melanie has counseled small business owners in determining what is protection worthy (helping them obtain trademarks and copyrights) and making contact on their behalf in the case of infringement.
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Christopher B.
Former litigator now focusing on transactional business work
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Josiah Y.
Attorney licensed to practice in both California and New York, Josiah is focused on helping people understand what's in their contracts, and do business with confidence.
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