According to the contract, Min has the right to sell 13 percent of his 18 percen

> According to the contract, Min has the right to sell 13 percent of his 18 percent stake in Adore to Hive (put option) in the future. It can be exercised from the end of this year. The remaining 5 percent cannot be sold to Hive or outside without Hive's consent. Min cannot give up his right to the remaining stake except for the sale without Hive's consent.

> From Min's point of view, there is no put option for 5 percent of his stake, and he cannot dispose of it without Hive's consent, so if Hive decides to take it as hostage, he may be concerned that he will block the competition indefinitely. This is because there are no investors who should pay attention to the minority stake of Adore, which is blocked by the way to recover investment such as listing. This seems to be the part where Min said, "I will be tied to Hive for life." An investment industry source said, "It is an unusual contract to tie the ban on competition not only in my position but also in both sides of my stake."

(...)

> Hive said in response, "According to the previously disclosed contents of KakaoTalk, management will exercise put options on January 2, 2025. How can that be a slave contract when you're quitting the company next year?" However, according to the contract, Hive's competition ban is valid even after the put option exercise.

https://m.news.nate.com/view/20240426n18186

If it's like this, isn't this ban on competition really strange?

It's a ban on competition itself, but if you tie up the remaining 5% of your stake so that you can't sell it and ban it because you have it, Min Hee-jin will only be told to leave the idol group forever.

Of course, there is a question of why you signed such a contract, and not all contracts in the world sell their souls to some devil, and if it is very unfair to see it in the future, it should be amended. It's been so long since I graduated from an undergraduate school that I don't remember, but anyway. There are various forms of stock options. And the part in the text that says you have no right to give up the remaining 5% of the stake can be misunderstood.

In the case of Min Hee-jin, if you want to do EXIT, the answer is simple. After the stock you received is tested at the end of this year, 13 percent of it is sold through put options, and 5 percent of it is just given up. The premise itself should be calculated from the beginning, excluding 18 to 5. (It is difficult to know whether Min Hee-jin's stock is a hypothetical share or a share with voting rights just by looking at the text.)

Detailed conditions such as the period until Vesting, the market sale of listed stocks, or the exercise of the company's (including its parent company) flavor option can be discussed in various ways.

Looking at the above, it seems rather a good condition for Min Hee-jin. The period to Vesting is also reasonable.

If you have a complaint, the stock is worth too much more than it was at the time of the contract. If you give up 5%, the unit of money grows, so how can you throw this away.

And the first step was to induce an employee to work with a sense of ownership, and the employee who received a stake in the company to not easily leave because of the stake. (That's also why it's often used in startups that induce passionate buying in the early days of the company.) HiveOfficial: 8. On the claim that it's a slave contract

The prohibition of competition in the contract between shareholders is obliged to keep confidentiality, but CEO Min mentioned it at a press conference. The prohibition is a clause required by buyers to prevent unfair competition by starting a business in the same industry after selling shares held by shareholders. It is a common clause in any industry.

It is also not true that he is tied up forever. He can sell his shares from November this year, and if he sells them, they will not be subject to a competition ban from November 2026, when his contract with the company expires.

CEO Min himself is guaranteed a large amount of money, which he said would make 100 billion won even if he stays still, and the conditions under which he can monetize and start a business in the next year are not considered slave contracts. These are exceptional compensation conditions that ordinary people can't even imagine.

Even in the Kakao Talk conversation that CEO Min had with his aides, it is stated that he will exercise the put option and EXIT on January 2, 2025.

In the case of the sale-related provisions in the contract, which CEO Min claims to be a slave contract, there was a difference in interpretation of whether the two provisions were prioritized or not, and he already sent an answer in December last year, saying, "If the interpretation is ambiguous, we will revise the ambiguous provisions so that they do not become a problem." CEO Min said, "I am not interested in money," but the key issue that triggered the discussion was the scale of compensation. As you mentioned last time, it would be better if it was actually a slave contract. Then it is invalid in the first place lol

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8. About the claim that it's a slave contract

The prohibition of competition in the contract between shareholders is obliged to keep confidentiality, but CEO Min mentioned it at a press conference. The prohibition is a clause required by buyers to prevent unfair competition by starting a business in the same industry after selling shares held by shareholders. It is a common clause in any industry.

It is also not true that he is tied up forever. He can sell his shares from November this year, and if he sells them, they will not be subject to a competition ban from November 2026, when his contract with the company expires.

CEO Min himself is guaranteed a large amount of money, which he said would make 100 billion won even if he stays still, and the conditions under which he can monetize and start a business in the next year are not considered slave contracts. These are exceptional compensation conditions that ordinary people can't even imagine.

Even in the Kakao Talk conversation that CEO Min had with his aides, it is stated that he will exercise the put option and EXIT on January 2, 2025.

In the case of the sale-related provisions in the contract, which CEO Min claims to be a slave contract, there was a difference in interpretation of whether the two provisions were prioritized or not, and he already sent an answer in December last year, saying, "If the interpretation is ambiguous, we will revise the ambiguous provisions so that they do not become a problem." CEO Min said, "I am not interested in money," but the key issue that triggered the discussion was the scale of compensation.