Notice Regarding the Introduction of an Incentive Plan Utilizing Employee Stock Ownership Plan

Purpose and Overview of ESOP Trust Introduction

Yokoo Co., Ltd. has resolved to introduce a trust-type incentive plan (ESOP trust) utilizing the employee stock ownership plan with the purpose of improving corporate value in the medium to long term. This plan enhances employee welfare benefits, provides incentives linked to stock price appreciation, and aims to increase employee awareness of performance and stock value. The ESOP trust designates employees who meet certain criteria among the company's stock ownership plan participants as beneficiaries. During the trust period, the company stock ownership plan will collectively acquire shares, sell them on certain monthly dates, and distribute the trust income to employees.

Mechanism and Operation System of the ESOP Trust

In the ESOP trust, the company is the grantor, Mitsubishi UFJ Trust and Banking Corporation serves as trustee, and the trust administrator directs the exercise of voting rights and other matters. Using funds borrowed from the bank, treasury stock is acquired via third-party allotment and transferred to the company stock ownership plan. The repayment of the loan is made from the transfer price and dividends received by the stock ownership plan. If the stock price rises by the end of the trust period, trust income will be distributed to employees; in case of a decline, the company fulfills guarantee obligations and employees bear no additional burden. The trust period is scheduled from March 3, 2026, to March 15, 2031.