Non-Employee Director Compensation Policy
Exhibit 10.6
Non-Employee Director Compensation Policy
Cash Compensation
Effective upon the closing of the initial underwritten public offering of common stock (the Common Stock) of Everbridge, Inc. (the Company), each non-employee member of the board of directors (the Board) of the Company will receive an annual cash retainer of $30,000. The chairpersons of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee will receive additional annual cash retainers of $10,000, $5,000 and $5,000, respectively. Other members of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee will receive additional annual cash retainers of $3,000 for each such committee of which they are a member. Such annual cash retainers shall be payable in equal quarterly installments, in arrears, following the end of each quarter in which the service occurred, prorated for any partial quarters of service.
The Company will also reimburse all reasonable out-of-pocket expenses incurred by non-employee directors in attending meetings of the Board or any committee of the Board; provided, that such non-employee director timely submits to the Company appropriate documentation substantiating such expenses in accordance with the Companys travel and expense policy, as in effect from time to time.
Equity Compensation
Commencing on the next annual meeting of the Companys stockholders, each continuing non-employee director as of the date of the annual meeting of the Companys stockholders will receive an annual grant of a non-qualified stock option to purchase 7,500 shares of Common Stock, having an exercise price equal to the fair market value of the Common Stock on such grant date, which will vest in full on the earlier of the first anniversary of such grant date or the date of the next annual stockholders meeting, provided that the applicable non-employee director is, as of such vesting date, then a director of the Company.
All equity awards granted pursuant to this policy will be granted under and shall be subject to the Companys 2016 Equity Incentive Plan (the Plan), as amended, or any successor equity incentive plan and the applicable award agreements thereunder, including the limitations on compensation payable to non-employee directors set forth therein. All equity awards granted pursuant to this policy will vest in full upon, but subject to the occurrence of, a Change in Control (as defined in the Plan).