Restricted Stock Unit Agreement Template for Indonesia

The Restricted Stock Unit Agreement is essential for companies operating in Indonesia that wish to offer equity-based compensation to their employees. This document is typically used when a company wants to grant RSUs as part of its employee compensation strategy, whether for retention, motivation, or alignment of interests with shareholders. The agreement must comply with Indonesian regulatory requirements, including securities laws, employment regulations, and tax provisions. It details the RSU grant's terms, vesting conditions, settlement procedures, and obligations of both the company and the recipient. The document becomes particularly important in the context of Indonesia's complex regulatory environment, where foreign ownership restrictions and specific corporate governance requirements must be carefully considered.

1. Parties: Identification of the company granting the RSUs and the employee receiving them

2. Background: Context of the RSU grant, reference to equity incentive plan, and employment relationship

3. Definitions: Key terms including RSUs, vesting date, settlement date, plan, market price, etc.

4. Grant of RSUs: Details of RSU award including number of units and grant date

5. Vesting Conditions: Timeline and conditions for RSU vesting, including service requirements

6. Settlement of RSUs: Process and timing for converting vested RSUs into shares or cash

7. Tax Obligations: Tax withholding requirements and responsibilities under Indonesian tax law

8. Compliance with Securities Laws: Confirmation of compliance with Indonesian securities regulations

9. Employment Rights: Statement that RSUs don't affect employment terms as per Indonesian labor law

10. Restrictions on Transfer: Limitations on transferring or pledging RSUs

11. Corporate Events: Treatment of RSUs in case of mergers, acquisitions, or corporate restructuring

12. Data Privacy: Consent for personal data processing related to RSU administration

13. Governing Law: Application of Indonesian law and jurisdiction

14. General Provisions: Standard clauses including notices, amendments, and severability