Notice Regarding Disposal of Treasury Stock as Restricted Stock Compensation

Overview of Treasury Stock Disposal

EM Systems Corporation resolved to dispose of 49,400 shares of treasury stock on May 11, 2026. The disposal price is 673 yen per share, totaling 33,246,200 yen. The shares will be allocated as follows: 23,600 shares to three directors (excluding outside directors and audit & supervisory committee members), 11,200 shares to five executive officers, 2,300 shares to five employees, and 12,300 shares to twelve directors and employees of subsidiaries.

Purpose and Details of the Restricted Stock Compensation Plan

This disposal will be carried out based on a restricted stock compensation plan aimed at sustainable enhancement of corporate value and sharing of shareholder value. The eligible persons include directors, executive officers, employees, and directors and employees of subsidiaries. Three types of restricted stock compensation are established: continuous employment types (long-term and medium-term stock compensation) and a management performance condition type. The restriction periods are 50 years for the long-term stock compensation and management performance condition type, and approximately 3 years for the medium-term stock compensation. During the restriction period, transfer or pledging of the shares is prohibited, and shares may be acquired free of charge under certain conditions.