Document background
The Employee Share Option Agreement serves as a crucial instrument for companies operating in Indonesia to attract, retain, and motivate key employees by offering them the opportunity to acquire ownership in the company through share options. This document is typically used when a company implements an employee share option plan (ESOP) and needs to formalize individual grant agreements with eligible employees. The agreement must comply with Indonesian regulations, including Law No. 40 of 2007 on Limited Liability Companies, Law No. 13 of 2003 on Manpower, and relevant OJK regulations governing securities and employee benefits. It outlines essential details such as the number of options granted, exercise price, vesting schedule, exercise procedures, and tax implications, while ensuring alignment with Indonesian corporate governance requirements and market practices.
