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Restricted Stock Unit Award Agreement Template for Malaysia

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Key Requirements PROMPT example:

Restricted Stock Unit Award Agreement

"I need a Restricted Stock Unit Award Agreement under Malaysian law for our new Chief Technology Officer, with a grant of 50,000 RSUs vesting over 4 years starting March 1, 2025, with standard clawback provisions and tax clauses."

Document background
The Restricted Stock Unit Award Agreement serves as a crucial document in Malaysian corporate practice for companies implementing equity-based compensation programs. It is typically used when a company wishes to grant employees the right to receive company shares at a future date, subject to specific vesting conditions. The agreement must comply with Malaysian regulatory requirements, including the Capital Markets and Services Act 2007, Securities Commission guidelines, and relevant tax laws. It outlines the complete terms of the RSU grant, including grant date, number of units, vesting schedule, settlement procedures, and tax implications. This document is particularly important for companies looking to attract and retain talent while aligning employee interests with long-term company success, whether they are listed on Bursa Malaysia or private entities.
Suggested Sections

1. Parties: Identification of the Company (Grantor) and the Employee (Grantee)

2. Background: Context of the RSU grant, reference to any equity incentive plan, and corporate approvals obtained

3. Definitions: Key terms used throughout the agreement including 'RSUs', 'Vesting Date', 'Share', 'Plan', etc.

4. Grant of RSUs: Details of the RSU grant including number of units and grant date

5. Vesting Schedule: Specific conditions and timeline for RSU vesting

6. Rights and Restrictions: Rights attached to RSUs, including voting rights, dividend equivalents, and transfer restrictions

7. Settlement of RSUs: Process and timing for converting vested RSUs into shares or cash

8. Tax Obligations: Treatment of tax liabilities and withholding requirements

9. Termination of Employment: Impact of employment termination on unvested and vested RSUs

10. Compliance with Laws: Requirements for compliance with Malaysian securities laws and regulations

11. Data Privacy: Consent for collection and processing of personal data

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

13. General Provisions: Standard contractual provisions including notices, amendments, and entire agreement clause

Optional Sections

1. Change in Control: Provisions addressing the treatment of RSUs in case of corporate restructuring or acquisition - include if company anticipates potential M&A activity

2. Malus and Clawback: Provisions allowing company to recoup or cancel RSUs in cases of misconduct - include for senior executives or if required by corporate governance policies

3. International Provisions: Additional terms for cross-border grants - include if recipient is not based in Malaysia

4. Non-Competition and Non-Solicitation: Restrictive covenants tied to the RSU grant - include for senior employees or in sensitive positions

5. Electronic Acceptance: Provisions for electronic grant acceptance and administration - include if using electronic equity management system

6. Shareholder Rights: Detailed shareholder rights pre and post vesting - include if recipients get special rights different from ordinary shareholders

Suggested Schedules

1. Schedule 1 - Grant Notice: Specific details of the grant including number of RSUs, grant date, and vesting schedule

2. Schedule 2 - Vesting Conditions: Detailed performance or time-based conditions for vesting

3. Schedule 3 - Administrative Procedures: Procedures for RSU administration, settlement, and tax withholding

4. Appendix A - Equity Incentive Plan: Copy or summary of the main equity incentive plan under which RSUs are granted

5. Appendix B - Tax Summary: Summary of tax implications and withholding requirements in Malaysia

6. Appendix C - Consent Forms: Required regulatory and data privacy consent forms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































Clauses






























Relevant Industries

Technology

Financial Services

Banking

Telecommunications

Manufacturing

Professional Services

Oil and Gas

E-commerce

Healthcare

Education

Real Estate

Consumer Goods

Digital Services

Relevant Teams

Human Resources

Legal

Finance

Corporate Secretarial

Compensation and Benefits

Executive Management

Board Secretariat

Compliance

Tax

Payroll

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Senior Vice President

Vice President

Director

Senior Manager

Manager

Software Engineer

Financial Analyst

Product Manager

Sales Executive

Research Scientist

Legal Counsel

Human Resources Manager

Department Head

Technical Lead

Business Development Manager

Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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