Restricted Shares Unit Contract (Cash-Settled) (Public Company) (Employees)

This legal template is a contract specifically designed for a public company to provide restricted shares units (RSU) to its employees. RSUs are a form of compensation often offered as an incentive to employees in publicly traded companies. Unlike traditional stock options, RSUs do not grant immediate ownership of the company's stocks, but instead represent a promise to deliver the shares at a later date upon certain conditions being met.

The contract focuses on cash-settled RSUs, meaning that instead of receiving actual company shares, the employees will be provided with a cash equivalent based on the stock's value at the time of settlement. This type of RSU ensures that employees still benefit from the company's stock performance without directly owning shares.

The template is designed to govern the legal agreement between the company and its employees, setting out the terms and conditions under which the RSUs will be granted, vested, and settled. It covers essential elements such as the number of units to be granted, the vesting schedule, the settlement date, and any performance criteria that need to be met for the RSUs to become available to the employee.

Additionally, the contract may also address other critical aspects such as the treatment of RSUs in case of job termination, retirement, or a change in control of the company. It may outline procedures for adjustment, redemption, or transfer of RSUs. Confidentiality and non-disclosure clauses may also be included to protect any sensitive company information.

By utilizing this legal template, both the company and its employees gain a clear understanding of the terms and obligations regarding the RSUs, ensuring transparency, compliance, and the fair provision of compensation.