Document:

evbg-ex45_206.htm

Exhibit 4.5

 

DESCRIPTION OF THE REGISTRANT'S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

The following description sets forth certain material terms and provisions of the securities of Everbridge, Inc. (the “Company”) that are registered under Section 12 of the Securities Exchange Act of 1934, as amended. This description also summarizes relevant provisions of Delaware law. The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable provisions of Delaware law and our certificate of incorporation and our bylaws, copies of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.5 is a part. We encourage you to read our certificate of incorporation, our bylaws and the applicable provisions of Delaware law for additional information.

Our certificate of incorporation authorizes us to issue up to 100,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share, in one or more series.

Holders of our common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. Subject to the preferences that may be applicable to any outstanding shares of preferred stock, common stockholders are entitled to receive ratably such dividends, if any, as may be declared from time to time by our board of directors out of funds legally available for that purpose. In the event of our liquidation, dissolution or winding up, the common stockholders are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of any shares of preferred stock then outstanding. Common stockholders have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. The common stock currently outstanding is fully paid and nonassessable.

The transfer agent and registrar for the common stock is Computershare.

Our common stock is listed on The Nasdaq Global Market under the trading symbol “EVBG.”

Our board of directors is authorized, without any action by the stockholders, subject to any limitations prescribed by law, to designate and issue preferred stock in one or more series and to designate the powers, preferences and rights of each series, which may be greater than the rights of the common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of the common stock until our board of directors determines the specific rights of the holders of such preferred stock. However, the effects might include, among other things:

	
 
	
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impairing the dividend rights of the common stock;

	
 
	
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diluting the voting power of the common stock;

	
 
	
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impairing the liquidation rights of the common stock; and

	
 
	
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delaying, deferring or preventing a change in control.

 

 

 

Anti-Takeover Provisions

Certain provisions of Delaware law and our certificate of incorporation and bylaws could make the following more difficult:

	
 
	
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our acquisition by means of a tender offer;

	
 
	
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acquisition of control by means of a proxy contest or otherwise; and

	
 
	
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removal of our incumbent officers and directors.

These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids, and are designed to encourage persons seeking to acquire control of the Company to negotiate with the board of directors. The Company believes that the benefits of increased protection against an unfriendly or unsolicited proposal to acquire or restructure the Company outweigh the disadvantages of 

discouraging such proposals. Among other things, negotiation of such proposals could result in an improvement of their terms.

Delaware Anti-Takeover Law. Delaware corporations may elect not to be governed by Section 203 of the General Corporation Law of Delaware (the “DGCL”), i.e., Delaware’s anti-takeover law. The Company has not made this election. Delaware’s anti-takeover law provides that an “interested stockholder,” defined as a person who owns 15% or more of the outstanding voting stock of a corporation or a person who is an associate or affiliate of the corporation and, within the preceding three-year period, owned 15% or more of the outstanding voting stock, may not engage in specified business combinations with the corporation for a period of three years after the date on which the person became an interested stockholder. The law defines the term “business combination” to encompass a wide variety of transactions with or caused by an interested stockholder, including mergers, asset sales and transactions in which the interested stockholder receives or could receive a benefit on other than a pro rata basis with other shareholders. With the affirmative vote of the holders of a majority of the voting power of all then-outstanding shares of our capital stock entitled to vote in the election of directors, voting together as a single class, we may amend our Certificate of Incorporation in the future to no longer be governed by the anti-takeover law. This amendment would have the effect of allowing any person who owns at least 15% of our outstanding voting stock to pursue a takeover transaction that was not approved by our board of directors. However, because the Company has not elected to opt-out of this provision, for transactions not approved in advance by our board of directors, the provision might discourage takeover attempts that might result in a premium over the market price for shares of our common stock.

Limitations of Director Liability and Indemnification. Our certificate of incorporation provides that directors shall not be personally liable to the corporation or to its shareholders for monetary damages for breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. Delaware law currently provides that this waiver may not apply to liability:

	
 
	
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for any breach of the director’s duty of loyalty to us or our shareholders;

	
 
	
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for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;

	
 
	
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under Section 174 of the DGCL (governing distributions to shareholders); or

	
 
	
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for any transaction from which the director derived any improper personal benefit.

In the event the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of our directors will be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. Our bylaws further provide that we will indemnify each of our directors and officers, trustees, fiduciaries, employees and agents to the fullest extent permitted by Delaware law.

Election and Removal of Directors. Our certificate of incorporation provides that a director can only be removed from the board of directors for cause and only by the affirmative vote of stockholders holding a majority of the outstanding voting power of all classes of stock entitled to vote in an election of directors, voting together as a single class. The board of directors has the exclusive right to increase or decrease the size of the board and to fill vacancies on the board. These provisions may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of the Company because they generally make it more difficult for stockholders to replace a majority of the directors.

Stockholder Meetings. Under our certificate of incorporation, only our chairman of the board, chief executive officer, president or board of directors may call a special meeting of stockholders pursuant to a resolution adopted by at least a majority of the total number of authorized directors.

Requirements for Advance Notification of Stockholder Nominations and Proposals. Our bylaws contain advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.

Elimination of Stockholder Action by Written Consent. Our certificate of incorporation eliminates the right of stockholders to act by written consent without a meeting. This provision will make it more difficult for stockholders to take action opposed by the board of directors.

No Cumulative Voting. Our certificate of incorporation does not provide for cumulative voting in the election of directors, which, under Delaware law, precludes stockholders from cumulating their votes in the election of directors, frustrating the ability of minority stockholders to obtain representation on the board of directors.

Undesignated Preferred Stock. The authorization of undesignated preferred stock makes it possible for the board of directors, without stockholder approval, to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to obtain control of the Company. These and other provisions may have the effect of deferring hostile takeovers or delaying changes in the control or management of the Company.

Amendment of Provisions in the Certificate of Incorporation. Our certificate of incorporation requires the affirmative vote of the holders of a majority of the outstanding voting power of our stock to amend or repeal any provision of the certificate of incorporation concerning the:

	
 
	
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absence of the necessity of the directors to be elected by written ballot;

	
 
	
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management of the business of the Company by the board of directors;

	
 
	
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absence of the authority of stockholders to act by written consent;

	
 
	
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authority to call a special meeting of stockholders;

	
 
	
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number of directors and structure of the board of directors;

	
 
	
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removal of directors and the filling of vacancies on the board of directors;

	
 
	
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authority of the bylaws to govern advance notice provisions with respect to nominations by stockholders for the election of directors and other business to be brought before any meeting of stockholders;

	
 
	
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the method of amending and authority to amend the bylaws and certificate of incorporation of the Company;

	
 
	
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personal liability of directors to the Company and the stockholders;

	
 
	
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indemnification of the directors, officers, employees and agents of the Company; and

	
 
	
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authority or vote required to amend or repeal the section of the certificate of incorporation providing for the right to amend or repeal provisions of the certificate of incorporation.

Amendment of Provisions in the Bylaws. The certificate of incorporation requires the affirmative vote of the holders of a majority of the outstanding voting power of our stock to amend any provision of the bylaws concerning:

	
 
	
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meetings of or actions taken by stockholders;

	
 
	
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number of directors and their term of office;

	
 
	
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election and qualification of directors;

	
 
	
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removal of directors and the filling of vacancies on the board of directors;

	
 
	
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indemnification of the directors, officers, employees and agents of the Company; and

	
 
	
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amendments to the bylaws.evbg-ex1020_59.htm

Exhibit 10.20

 

Everbridge, Inc.

2021 Management Incentive Plan

 

Introduction

 

The 2021 Management Incentive Plan (“The Plan”) is designed as an incentive to participants to perform at their most effective level, as a reward for strong performance and as a way of sharing in the success of the Company. The Plan is designed to be self-funded and is incorporated in the business targets and budgets.

 

The Plan is designed to reward high performance at the corporate, team and individual level. Awards payable under the Plan will be determined through a combination of overall bonus pool funding, which will be based upon predefined corporate financial objectives, and achievement of specific team and individual/development goals.

 

This Plan is CONFIDENTIAL, and details may not be disclosed outside the Company by any participants.

Eligibility for Participation

 

Designated employees (“Participants”) are eligible for inclusion in The Plan for the calendar year January 1, 2021 to December 31, 2021. Participation in The Plan is at the discretion of the Company. Employees considered for participation include management level employees and individual contributors in functions that meet established criteria. Eligibility for participation is not automatic and will be reviewed annually.

 

Participation for new hires designated as eligible to participate will be pro-rated based on days in The Plan during the plan year. 

 

There is no contractual commitment on the part of the Company in relation to future years of participation and in this respect the Plan does not confer on any employees any rights to future participation, future employment, or give rise to any cause of action against the Company.

 

Operation of The Plan

 

For each Participant, a fixed cash amount or fixed percentage of base salary will be specified for the purposes of participation in The Plan. The overall Plan funding will be based on the achievement of predefined corporate financial targets. Individual bonus achievement will be based upon achievement of business unit/departmental business plans and team, individual and development-based performance goals as agreed to by you and your manager and maintained within Reflektive. A copy of the business plan will be on file with the People Department and each participant will be provided a copy. 

 

Each participant must sign a copy of The Plan document acknowledging that the document was reviewed. 

 

Everbridge management reserves the right to modify the Plan at any time. Notification of changes to the Plan will be made in writing to affected participants. Changes may be made to the Plan periodically in order to revise goals, update strategies or correct errors.

 

Performance against predefined corporate financial targets will be assessed at the end of the fiscal year once all financial results of the Company have been prepared and approved. The CEO will have the discretion to adjust, up or down any department’s bonus funding based on department KBPI performance.  Everbridge management will then have the discretion to adjust, up or down, any employee’s payout based on subjective assessment of the employee’s individual performance throughout the year. 

2021 Everbridge Management Incentive PlanPage 1 of 2

 

Payment

 

Bonus payments will be made annually after the official close of the operating year, estimated to occur no later than May of the year following. Payment will be made to each participant provided that the participant:

 

	
 
	
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Has not given notice to resign employment before any payment is made, and

 

	
 
	
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Remains an active employee at the time of payout.

 

Any payment to which participants in the following categories may be entitled will be pro-rated:

 

	
 
	
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Employees whose eligibility for participation in The Plan begins after January 1, 2021, or

 

	
 
	
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Employees who are transferred to another position, business unit, department or group within the Company during the plan year and their new position does not qualify them as eligible to participate in The Plan.

 

	
 
	
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Employees who transfer to a position and become eligible to participate in the Plan during the plan year.

 

Any payment in whole or in part shall be made through the Company’s normal payroll process and will be net of any appropriate Income Tax, Social Security Contributions or other relevant deductions.

 

The Chief Executive Officer and Board of Directors of Everbridge, Inc. reserves the right to amend the plan at any time based on business conditions.

 

Contractual Status 

 

Payments under The Plan are not contractual. No legally enforceable right to payment will arise under The Plan, nor any right to compensation or damages for non-payment as a result of the termination of employment (however caused), or for any other reason.

 

The Plan is not a guarantee of employment for a definite period of time. The participant acknowledges and understands that they or Everbridge may terminate the employment relationship at any time with or without cause.

 

The Plan terminates, for the participant, on the date the participant’s employment with Everbridge is terminated.

 

This Plan shall be construed and governed in accordance with the laws of the Commonwealth of Massachusetts.

 

Validity 

 

The Plan is valid only for the calendar year January 1, 2021 – December 31, 2021. At the expiration of this Plan, Everbridge will establish a new Plan for Participants.

 

2021 Everbridge Management Incentive PlanPage 2 of 2

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