Restricted Stock Unit Award Agreement Template for Hong Kong

The Restricted Stock Unit Award Agreement is a crucial document used when companies want to provide equity-based compensation to employees in Hong Kong. It serves as the legal framework for granting RSUs, which are promises to deliver company shares to employees upon meeting specific vesting conditions. The agreement must comply with Hong Kong's regulatory requirements, including the Securities and Futures Ordinance, Companies Ordinance, and relevant tax laws. This document is particularly important for companies looking to attract and retain talent while aligning employee interests with company performance. It typically forms part of a broader equity incentive plan and includes detailed provisions on vesting schedules, settlement methods, tax withholding obligations, and restrictions on transfer. The agreement is essential for both listed and private companies in Hong Kong implementing equity-based compensation programs.

1. Parties: Identifies the company granting the RSUs and the employee receiving them

2. Background: References the equity incentive plan under which RSUs are granted and purpose of the agreement

3. Definitions: Defines key terms including 'RSUs', 'Vesting Date', 'Share', 'Plan', etc.

4. Grant of RSUs: Specifies the number of RSUs granted and grant date

5. Vesting Schedule: Details the vesting timeline and conditions for the RSUs

6. Settlement of RSUs: Describes how vested RSUs will be settled (shares or cash) and timing

7. Restrictions on Transfer: Prohibits transfer or assignment of unvested RSUs

8. Termination of Employment: Explains treatment of RSUs upon various types of employment termination

9. Tax Obligations: Addresses tax withholding requirements and employee's tax responsibilities

10. Data Privacy: Covers collection and processing of personal data related to RSU administration

11. Notices: Specifies how formal communications between parties should be made

12. Governing Law: Establishes Hong Kong law as governing law and jurisdiction

13. General Provisions: Standard boilerplate including amendments, entire agreement, and severability