Notice Regarding Disposal of Treasury Shares as Restricted Stock Compensation

Overview

Air Water Inc. resolved the disposal of treasury shares under its restricted stock compensation plan. The recipients are two directors (excluding Audit and Supervisory Committee members) and one executive officer. Monetary claims totaling 11,997,008 yen will be contributed in kind and allocated as 4,208 shares. The transfer restriction period runs from November 2, 2026 to November 1, 2056. Lifting of transfer restrictions for the allocated shares is governed by multiple conditions, including continuity of the relevant position and provisions for treatment upon resignation. Dilution is expected to be negligible (0.002%).

Impact on Shareholders and Future Outlook

The purpose of this scheme is to align the benefits and risks of share price movements with shareholders and to enhance incentive to contribute to share price appreciation and corporate value improvement. Transfer restrictions are imposed until the recipients reach the next annual shareholders meeting, and conditions for lifting at the end of the restriction period, treatment upon resignation, and special provisions in case of organizational restructuring are stipulated. Dilution is extremely small at 0.002%, and the impact on shareholders is considered limited.