Restricted Shares Unit Contract (Cash-Settled) (Public Company) (Non-Employee Directors)

This legal template pertains to a Restricted Shares Unit (RSU) contract specifically designed for a public company and is applicable to non-employee directors. An RSU is a type of equity-based compensation plan regularly utilized by companies to reward their directors' services. Unlike traditional stock options, RSUs do not grant immediate ownership of company shares. Instead, they represent a promise to provide stock or cash equivalent to the value of the underlying shares upon meeting certain conditions.

This template outlines the terms and conditions for a cash-settled RSU agreement between a public company and its non-employee directors. It defines the number of RSUs granted to each director, the vesting schedule (i.e., the period over which the RSUs become eligible for conversion or payout), and any performance criteria the directors must meet for the RSUs to vest fully. The contract also specifies the method of settlement, which in this case is cash, rather than actual stock.

Furthermore, this template addresses various additional provisions and specifications, such as the treatment of RSUs in the event of retirement, disability, or death of a director. It may include terms related to the change of control, outlining the impact on the RSUs in case of a merger, acquisition, or other significant corporate events. Any tax implications, such as withholding requirements, could also be covered within this contract.

Overall, this legal template provides a comprehensive framework for establishing a cash-settled RSU program tailored specifically for non-employee directors serving in a public company. By setting clear guidelines and expectations, this contract helps ensure transparency, fairness, and compliance with relevant legal and regulatory requirements.