Are electronic signatures valid?

Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.

Who must sign the RSU agreement?

Typically the grantee and an authorized company signer with delegated authority. If board approval is required, the board resolution authorizing the grant should accompany the agreement.

Can I correct an error after signing?

Corrections generally require an executed amendment signed by both parties. Minor administrative fixes may be documented with an addendum to avoid altering substantive grant terms.

How are RSUs taxed at vesting?

RSUs are taxable to the employee as ordinary income at vesting; amounts are generally reported on Form W-2 for employees and subject to withholding and payroll reporting.

What if the employee leaves before vesting?

Unvested RSUs are commonly forfeited on termination unless the agreement specifies otherwise, such as for retirement, disability, or change in control.

Do RSU agreements need notarization?

Not typically. RSU agreements are contract documents that usually do not require notarization or witnesses, though state-specific documents paired with grants may have different formalities.

Electronic Signature
Templates
HR
Employee RSU Agreement

Employee RSU Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Employee Restricted Stock Unit (RSU) Agreement

This Employee Restricted Stock Unit (RSU) Agreement (the Agreement) is entered into between the parties identified below. The terms and conditions set forth herein govern the grant, vesting, settlement, and forfeiture of restricted stock units awarded by the Company to the Employee.

Parties and Effective Date

Company Name: Company Address: Employee Name: Employee Address:

Effective Date:

Recitals

WHEREAS, the Company desires to grant restricted stock units to the Employee as an inducement and as an incentive to further the interests of the Company; and WHEREAS, the Employee desires to accept such restricted stock units subject to the terms and conditions of this Agreement and the applicable equity plan of the Company.

Grant Details

Number of RSUs Granted:

Grant Date:

Vesting Commencement Date:

Vesting Schedule (describe each tranche, vesting dates, and any performance conditions):

Conditions to Vesting and Forfeiture

Vesting is conditioned upon the Employee's continuous service to the Company through each applicable vesting date and compliance with any performance metrics set forth above. Except as otherwise provided in this Agreement or in connection with a Change of Control, any RSUs that are unvested as of the date of the Employee's termination of service shall be forfeited without consideration.

Termination Treatment (describe good/leaver, bad leaver provisions, and any pro rata calculations):

Settlement; Form of Payment

Each vested RSU shall be settled by issuance of one share of Company common stock or, at the Company's discretion, by a cash payment equal to the Fair Market Value of one share on the settlement date. Settlement shall occur as soon as practicable following each vesting date and in no event later than the applicable settlement period required by law.

Preferred Settlement Method:

Tax Withholding and Related Obligations

The Employee acknowledges that the Company will withhold taxes as required by applicable law in connection with the vesting and settlement of RSUs. The Employee agrees that the Company may satisfy any tax withholding obligation by withholding shares otherwise deliverable, requiring cash payment, or reducing other compensation.

Tax Withholding Election (if applicable):

Transferability and Restrictions

Except as provided in the applicable plan or this Agreement, RSUs are non-transferable by the Employee other than by will or by the laws of descent and distribution. Employee acknowledges that the shares issued upon settlement will be subject to such stop-transfer and other legends and restrictions as the Company reasonably deems appropriate.

Adjustments; Corporate Events

The number and kind of shares subject to the RSUs and the terms of this Agreement shall be equitably adjusted for stock dividends, stock splits, reorganizations, or other similar changes in the Company's capital structure. In the event of a Change of Control, the treatment of outstanding RSUs will be governed by the plan and any applicable acceleration provisions set forth in this Agreement.

Change of Control Provision (describe any acceleration or treatment):

Representations, Covenants and Acknowledgements

The Employee represents that the Employee has read and understands the terms of the applicable equity plan and this Agreement and agrees to be bound thereby. The Employee covenants to comply with all confidentiality, proprietary information, and insider trading policies of the Company.

Governing Law:

Notices

Notices shall be delivered in accordance with the Company's standard notice procedures or to the addresses set forth above. The Employee shall promptly notify the Company of any change in address.

Personal Information

Full Legal Name: Phone Number: Email Address:

Position Information

Job Title: Department: Reporting Manager:

Start Date:

Annual Base Salary:

Employment History

Employer 1 - Company: Employer 1 - Title and Dates: Employer 1 - Responsibilities: Employer 1 - Reason for Leaving: Employer 2 - Company: Employer 2 - Title and Dates: Employer 2 - Responsibilities: Employer 2 - Reason for Leaving:

Education

Degree: Institution:

Graduation Date:

References

Reference 1 - Name: Reference 1 - Phone: Reference 1 - Email: Reference 1 - Relationship: Reference 2 - Name: Reference 2 - Phone: Reference 2 - Email: Reference 2 - Relationship: Reference 3 - Name: Reference 3 - Phone: Reference 3 - Email: Reference 3 - Relationship:

Legal Disclosures

At-Will Employment: Nothing in this Agreement shall be construed to alter the at-will employment relationship between the Employee and the Company. Either the Employee or the Company may terminate the employment relationship at any time for any lawful reason, subject to the provisions of this Agreement governing the treatment of RSUs upon termination.

Equal Opportunity: The Company is an equal opportunity employer. Hiring, promotion, compensation, and other employment decisions are made without regard to protected characteristics.

I acknowledge receipt of and understand the foregoing disclosures:

I acknowledge At-Will Employment

I acknowledge Equal Opportunity statement

Applicant/Employee Certification and Authorizations

I certify that all information provided in connection with this Agreement and any accompanying forms is true, complete and correct to the best of my knowledge. I authorize the Company to verify my employment history, references and any other information reasonably necessary to effect administration of the RSUs and to conduct such background checks as permitted by law.

I certify that the information provided is true and complete.

I authorize the Company to contact prior employers and to conduct background checks as necessary for administration of this Agreement.

Miscellaneous

Amendment and Waiver: This Agreement may be amended only by a written instrument signed by both the Company and the Employee. No waiver of any provision shall be effective unless in writing and signed by the party waiving compliance.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Additional Provisions (optional):

Employee Printed Name:

By:

Date:

Company Printed Name:

By:

Date:

What an Employee RSU Agreement Covers

An Employee RSU Agreement documents restricted stock unit grants made by an employer to an employee. It defines the number of RSUs granted, vesting schedule, conditions for settlement, treatment on termination or change in control, and tax withholding obligations. The agreement also references the governing equity plan, specifies whether shares are subject to forfeiture until vesting, and sets procedures for issuing or delivering underlying shares. Employers use RSU agreements to formalize equity compensation, align employee incentives with company performance, and ensure consistent administrative treatment across recipients.

Why a Clear RSU Agreement Matters

A well-drafted Employee RSU Agreement reduces ambiguity about vesting, tax obligations, and post-termination rights, helping both employer and employee understand obligations and timing. It also supports compliance with tax and securities rules by documenting grant terms and tying them to the equity plan.

Who Typically Prepares and Signs an RSU Agreement

Employers, HR and equity administrators, and receiving employees are the primary parties involved in preparing and executing an RSU agreement.

HR and Compensation Teams — Draft and approve grant terms, coordinate tax withholding, and maintain plan records for audit and reporting.
Employees and New Hires — Review vesting schedules, acknowledge tax treatments, and sign to accept grant terms and conditions.
Company Officers or Authorized Signers — Execute on behalf of the company when board or delegated authority requires formal signature.

Legal counsel, payroll, and brokerage partners often review or receive copies for administration, tax withholding, and share delivery.

Step-by-Step: Signing an RSU Agreement

Follow a concise sequence from grant to final record to ensure valid acceptance and accurate administration.

01

Receive Grant: Employer issues grant notice and agreement for review.
02

Review Terms: Employee reads vesting, tax, and post-termination provisions.
03

Sign Electronically: Employee signs using a compliant e-signature method.
04

File and Administer: HR records grant, updates equity ledger, and notifies payroll/broker.

Key Clauses to Include in an Employee RSU Agreement

A standard RSU agreement contains defined grant mechanics, vesting triggers, settlement procedures, and provisions for termination, change in control, and tax withholding. Each clause should be clear and consistent with the controlling equity plan.

Grant Description

Specifies the number of RSUs, class of underlying shares, and authority for the grant under the company’s equity plan.

Vesting Terms

Details timing and conditions for vesting, whether time-based, performance-based, or a combination, and how partial vesting is handled.

Settlement Mechanics

Explains when RSUs convert into shares or cash, methods of delivery, and applicable brokerage or transfer restrictions.

Forfeiture and Termination

Describes what happens to unvested RSUs on resignation, termination for cause, disability, death, or retirement.

Change in Control

States acceleration or treatment rules if the company is acquired, merged, or reorganized; clarifies board discretion and any cash-out terms.

Tax and Withholding

Specifies withholding methods, employee responsibilities for taxes, and whether the employer can withhold shares or require sell-to-cover.

Security and Compliance Items to Note

Encryption: TLS 1.2/1.3; AES-256

Audit Trail: IP, timestamp, action log

Authentication: Email/SMS/KBA options

BAA Availability: HIPAA BAA required

Regulatory Standards: ESIGN and UETA

Certifications: SOC 2 Type II, ISO 27001

Common Risks and Consequences of Errors

Incorrect Grantee Name: May delay brokerage setup

Wrong Grant Date: Alters vesting and tax timing

Missing Tax Withholding: Leads to employee tax liability

Improper Authority: Risk of unenforceable grant

Ambiguous Vesting: Triggers disputes

Failure to Retain: Compliance and audit gaps

Preparation Pitfalls to Avoid

Relying on verbal grant confirmations instead of a signed agreement creates enforceability and recordkeeping issues that complicate administration.
Using inconsistent terminology between the RSU agreement and the governing equity plan can void protections or cause conflicting interpretations.
Neglecting to specify withholding mechanics and who bears tax obligations at vesting can produce unexpected employee tax liabilities.
Failing to coordinate with payroll and brokerage platforms delays settlement and can lead to missed tax reporting deadlines.

How to Configure an Online RSU Approval Workflow

Set a digital workflow that routes the agreement from compensation to legal, then to the grantee, and finally to payroll and broker reconciliation.

Step	Configuration
Upload Document	PDF or DOCX master template
Assign Reviewers	Compensation → Legal → Payroll
Add Signers	Employee and company authorized signer
Archive	Store executed copy in secure repository

Typical Route for an RSU Agreement

A streamlined path reduces delays and ensures all administrative systems are updated at each handoff.

Issuer Prepares: Compensation team drafts grant under the equity plan
Legal Reviews: Legal confirms compliance and approvals
Employee Signs: Grantee electronically accepts the agreement
Admin Records: Payroll, broker, and equity ledger updated

Digital Signing and Filing Considerations

Choose a platform that provides secure e-signatures, an audit trail, and integration with payroll or broker systems.

Document Formats: PDF, DOCX supported
Integrations: Payroll and broker APIs
Authentication: Email, SMS, or KBA

Ensure the provider supports ESIGN/UETA compliance, robust audit trails, and secure storage to satisfy internal and external audit requirements.

eSignature Vendor Pricing and Feature Comparison

Below is a concise comparison of starting price and selected capabilities. signNow is listed first per platform comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Varies by plan	Varies by plan	Varies by plan	Varies by plan

Key Dates and Deadlines to Track for an RSU Grant

Track grant, vesting, settlement, and tax reporting dates to ensure correct withholding and regulatory filings.

Grant Date:

Establishes the official date for grant and any board approvals

Vesting Commencement:

Date when service period begins for vesting calculations

Vesting Dates:

Specific dates when units vest and settlement obligations arise

Settlement Date:

When shares or cash are delivered following vesting

Tax Reporting:

W-2 reporting occurs in the calendar year of vesting; employer must coordinate with payroll

Frequently Asked Questions About Employee RSU Agreements

Answers to common questions on enforceability, signatures, corrections, and tax consequences for RSU agreements.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are legally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.
Who must sign the RSU agreement?
Typically the grantee and an authorized company signer with delegated authority. If board approval is required, the board resolution authorizing the grant should accompany the agreement.
Can I correct an error after signing?
Corrections generally require an executed amendment signed by both parties. Minor administrative fixes may be documented with an addendum to avoid altering substantive grant terms.
How are RSUs taxed at vesting?
RSUs are taxable to the employee as ordinary income at vesting; amounts are generally reported on Form W-2 for employees and subject to withholding and payroll reporting.
What if the employee leaves before vesting?
Unvested RSUs are commonly forfeited on termination unless the agreement specifies otherwise, such as for retirement, disability, or change in control.
Do RSU agreements need notarization?
Not typically. RSU agreements are contract documents that usually do not require notarization or witnesses, though state-specific documents paired with grants may have different formalities.

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