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Non Qualified Stock Option Agreement
"I need a Non Qualified Stock Option Agreement under Indonesian law for our tech startup, granting options to our senior software developer for 10,000 shares with a 4-year vesting period and a cliff period of 1 year, with exercise price set at IDR 5,000 per share."
1. Parties: Identification of the Company granting the options and the Option Holder (employee/consultant)
2. Background: Context of the option grant, reference to any employee stock option plan, and corporate approvals obtained
3. Definitions: Key terms used throughout the agreement including Exercise Price, Option Shares, Grant Date, Expiration Date, etc.
4. Grant of Option: Specific details of the option grant including number of shares, exercise price, and type of shares
5. Vesting Schedule: Details of when and how the options become exercisable
6. Exercise of Option: Process and conditions for exercising the options, including payment methods and notice requirements
7. Term and Expiration: Duration of the option grant and circumstances of expiration
8. Taxation: Tax obligations and responsibilities of both parties under Indonesian tax laws
9. Compliance with Laws: Adherence to Indonesian corporate, securities, and employment laws
10. Transferability: Restrictions on transfer or assignment of the options
11. Adjustment Provisions: Adjustments for corporate actions like stock splits or reorganizations
12. Termination of Employment: Impact of employment termination on option rights
13. Governing Law and Jurisdiction: Application of Indonesian law and dispute resolution mechanisms
1. Change in Control: Provisions for acceleration or special treatment of options in case of company sale or merger
2. Lock-up Period: Restrictions on sale of shares after exercise, typically included for public companies
3. Shareholders' Agreement Compliance: Required when option shares must comply with an existing shareholders' agreement
4. Foreign Investment Provisions: Required when the option holder is a foreign national, addressing Indonesian foreign ownership restrictions
5. Currency Provisions: Required when exercise price or related payments involve foreign currency
6. Clawback Provisions: Optional provisions for recovering shares or profits in case of misconduct
7. Market Standoff Agreement: Required for companies planning an IPO, restricting sale during the IPO period
1. Notice of Exercise Form: Template form for the option holder to exercise their options
2. Vesting Schedule Details: Detailed breakdown of vesting dates and conditions
3. Calculation of Exercise Price: Method and examples of exercise price calculations, particularly if subject to adjustments
4. Required Regulatory Approvals: List of necessary approvals from Indonesian authorities
5. Tax Calculation Examples: Examples of tax implications under different exercise scenarios
6. Consent of Spouse: Required spousal consent form under Indonesian marital property laws
7. Board Resolution: Copy of board resolution approving the option grant
Authors
Technology
Manufacturing
Financial Services
E-commerce
Healthcare
Professional Services
Telecommunications
Consumer Goods
Real Estate
Energy
Education
Transportation and Logistics
Mining and Resources
Retail
Media and Entertainment
Human Resources
Legal
Finance
Compliance
Corporate Secretariat
Executive Leadership
Compensation and Benefits
Employee Relations
Risk Management
Corporate Governance
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Legal Counsel
Compensation and Benefits Manager
Corporate Secretary
Finance Manager
HR Business Partner
Compliance Officer
Employee Relations Manager
Senior Executive
Department Head
Project Manager
Technical Lead
Senior Consultant
Key Employee
Board Member
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