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A Stock Option Agreement gives employees the right to buy company shares at a fixed price within a specific timeframe - a common practice among Indonesian startups and tech companies to attract top talent. The agreement spells out key details like the strike price, vesting schedule, and exercise period, all while following Indonesia's Capital Market Law (UUPM) regulations.

Under Indonesian law, these agreements must clearly state the option terms, exercise conditions, and tax implications for both the company and employee. They're particularly valuable for growing companies that want to offer competitive benefits without spending immediate cash, while helping align employee interests with long-term company success.

Use a Stock Option Agreement when your Indonesian company needs to incentivize key employees without spending immediate cash. This tool works especially well for startups and growth-stage businesses looking to attract talented professionals who can help build long-term value. Many tech companies in Jakarta's bustling startup scene use these agreements during hiring negotiations.

The agreement becomes crucial before offering share options to employees, particularly when expanding your team or preparing for future funding rounds. Indonesian business law requires clear documentation of option terms, so having this agreement in place protects both the company and employees while ensuring compliance with OJK regulations and capital market rules.

• Employee Stock Option Agreement: Standard format for regular employees, covering basic vesting schedules and exercise terms
• Non Qualified Stock Option Agreement: Offers more flexible tax treatment and fewer restrictions, commonly used for consultants and advisors
• Phantom Share Agreement: Provides cash bonuses based on share value without actual equity ownership
• Option Grant Agreement: Focused on initial option grants with detailed performance conditions
• Stock Option Purchase Agreement: Used when employees exercise their options to purchase shares

• Company Board and Management: Approve and oversee the Stock Option Agreement program, set terms, and ensure compliance with Indonesian corporate regulations
• Legal Counsel: Draft and review agreements to comply with OJK requirements and capital market laws
• HR Department: Administers the program, explains terms to employees, and maintains documentation
• Eligible Employees: Sign agreements and exercise options according to vesting schedules
• Corporate Secretary: Manages shareholder records and ensures proper filing with regulatory authorities
• Tax Advisors: Guide both company and employees on tax implications under Indonesian tax laws

• Company Details: Gather current share price, total authorized shares, and board approval documentation
• Option Terms: Define exercise price, vesting schedule, and expiration dates that align with Indonesian labor laws
• Employee Information: Collect recipient details, position, and employment status under local regulations
• Tax Structure: Document the tax implications for both company and employees under Indonesian tax codes
• Corporate Approvals: Secure necessary internal authorizations and OJK compliance documentation
• Agreement Draft: Use our platform to generate a legally-sound document that includes all mandatory elements
• Final Review: Check alignment with company policies and Indonesian capital market regulations

• Grant Details: Number of options, exercise price, and grant date following OJK guidelines
• Vesting Schedule: Clear timeline of when options become exercisable, including any cliff period
• Exercise Terms: Procedures and conditions for converting options into shares
• Expiration Conditions: Specific circumstances causing option termination under Indonesian law
• Tax Provisions: Treatment of tax obligations for both company and employee
• Compliance Statement: Reference to relevant Indonesian capital market regulations
• Dispute Resolution: Jurisdiction and settlement procedures under Indonesian law
• Signature Block: Authorized company representative and employee endorsement sections

While both documents deal with company shares, a Stock Option Agreement differs significantly from a Stock Purchase Agreement in several key aspects under Indonesian law. The main distinction lies in their timing and purpose - options represent a future right to buy shares, while purchase agreements facilitate immediate share transfers.

• Timing of Ownership: Stock Option Agreements grant future rights to buy shares at a preset price, while Purchase Agreements transfer ownership immediately
• Payment Structure: Options typically require no upfront payment beyond a nominal sum, with the main payment occurring at exercise time
• Vesting Requirements: Option agreements include vesting schedules and performance conditions; Purchase Agreements involve immediate full payment
• Tax Treatment: Different tax implications under Indonesian regulations, with options generally taxed upon exercise rather than grant
• Regulatory Oversight: Options face additional OJK scrutiny regarding employee compensation, while Purchase Agreements focus on standard share transfer rules