【Tokushu Tokai Paper】Introduction of Executive Compensation System | May 14, 2026

Review of Executive Compensation System

Tokushu Tokai Paper has resolved to introduce a restricted stock compensation system with the aim of improving director incentives and sharing the benefits and risks associated with stock price fluctuations with shareholders. Details of the system entail providing targeted directors with either restricted stock or monetary compensation claims, subject to approval at the general meeting of shareholders. The introduction of this system is designed to motivate directors to enhance corporate value and to increase long-term shareholder value.

System Details and Future Schedule

Under the system, the allocation of restricted stock will be conducted either through free transfer or in-kind contribution, with a maximum total of 45,000 shares. Targeted directors will be restricted from transferring or pledging the shares during the restriction period, and the restrictions will be解除 under certain conditions. The approval for the system is scheduled at the shareholders' meeting in June 2026. After implementation, the system is expected to contribute to the long-term enhancement of corporate value by directors.