Notice Regarding Disposal of Treasury Stock as Restricted Stock to Our Executive Officers

Overview of Treasury Stock Disposal

Hokuto Corporation resolved to dispose of 5,310 shares of treasury stock (common shares) as restricted stock at a total price of 10,800,540 yen, with March 27, 2026 as the payment deadline. The recipients scheduled for allocation include nine executive officers: three delegated executive officers not concurrently serving as directors will receive 1,770 shares, and six employed executive officers will receive 3,540 shares. The disposal price was set at 2,034 yen per share, based on the closing price on the Tokyo Stock Exchange on January 15, 2026, and is not considered especially favorable to the recipients.

Details and Purpose of Restricted Stock Allocation Agreement

Transfer restrictions are imposed on the allocated shares; during the period until the executive officer loses their position or is appointed as a director, transfer or setting as collateral, etc., are prohibited. The transfer restrictions will be lifted upon continuous employment until March 31, 2027. Shares for which the restriction is not lifted by the expiry will be acquired by the company without compensation. This mechanism aims to foster executive officers’ awareness of medium- to long-term performance improvement and promote shared value with shareholders.