Notice Regarding Issuance of Paid Stock Options (Share Acquisition Rights)

Overview of Issuance of Share Acquisition Rights

The Company resolved at a Board of Directors meeting to issue paid stock options (share acquisition rights). The allocation targets are 2 directors and 9 employees, totaling 1,072 rights. Each share acquisition right is set as the right to 100 shares, and will be adjusted in the event of future stock splits or consolidations. The payment amount is 500 yen per right; fractional handling below 505 yen will not be performed. The exercise price is initially based on the closing price and thereafter adjusted each settlement date to 105% of the closing price on trading days. However, under certain conditions it may be reset to the initial exercise price. The scheme is intended to function as an incentive, with the exercise price adjusted depending on achievement of performance targets.

Future Schedule and Impact on Shareholders

The exercise period is from November 4, 2026 to October 31, 2033, and only full-time employees who meet certain conditions from the allocation date onward can continuously exercise. Dilution corresponds to 1.7% of the issued shares. When performance targets are met, market-price-linked adjustments to the exercise price will be applied, and appropriate adjustments will be made in the event of stock splits or consolidations. Appropriate adjustments will be made upon stock splits or changes to the capital structure after the allocation date.