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

The Restricted Shares Unit Contract (Shares-Settled) (Public Company) (Employees) legal template is a document that outlines the terms and conditions of a stock compensation plan provided by a public company to its employees in the form of restricted share units (RSUs).

RSUs are a popular form of equity compensation granted to employees as a means to incentivize their performance, retention, and alignment with the company's long-term success. This contract is specifically designed for public companies, which have publicly traded shares available in the stock market.

The template will include key provisions such as the number of RSUs granted to the employee, the vesting period during which the shares are restricted, and the settlement terms for these units. The settlement is typically done in shares of the company's stock upon the achievement of certain conditions, such as meeting specific performance goals or the elapse of a pre-determined time period.

Furthermore, the contract may also cover provisions related to the transferability of the RSUs, potential adjustments in the case of events like stock splits or mergers, and restrictions on selling or transferring the shares received through settlement. It may also address any tax implications or withholding requirements associated with the RSUs.

This legal template serves as a binding agreement between the public company and its employees, clearly defining the rights, obligations, and limitations for both parties regarding the RSUs. It is important for both the employer and employee to fully understand and agree upon these terms to protect their interests and ensure compliance with all relevant laws and regulations.