Genscript Biotech amends RSU schemes for settlement flexibility, clarity

Genscript Biotech Corporation announced amendments to its 2019 and 2021 Restricted Share Unit Schemes, adopted on March 22, 2019, and August 23, 2021, respectively, with the latest changes effective June 21, 2024. Key modifications include enabling the use of treasury shares as a flexible source for settling vested awards and clarifying that awards are structured as restricted share units rather than restricted share awards.

For the 2019 RSU Scheme, Section 6.3 now allows the company's obligation to issue shares to selected participants to be satisfied through existing shares acquired on the market, authorized and unissued shares, treasury shares (subject to applicable laws), or new shares allotted by the company directly to participants or to the trustee. These methods are all within the Scheme Mandate Limit, with costs borne by the company.

Similarly, amendments to the 2021 RSU Scheme, also effective June 21, 2024, introduce the same flexibility for award settlement as the 2019 scheme. Additionally, the 2021 scheme's changes include enabling the trustee to hold award shares for US participants until vesting conditions are met. These procedure-related and housekeeping amendments align with prevailing market practice and good corporate governance standards.