Notice on Grant of Stock Options (Subscription Rights to Shares)

Overview of Grant of Subscription Rights to Shares

The Board of Directors has resolved to submit a proposal to the 36th Ordinary General Meeting of Shareholders to grant subscription rights to shares as remuneration, etc., to one Representative Director and one Director other than the Representative Director (excluding outside directors). The total number of subscription rights is 1,200 units, the underlying shares are common shares with an upper limit of 120,000 shares, and adjustment provisions are established for share splits and consolidations. Detailed clauses stipulate the exercise price, vesting conditions, and the exercise period.

Impact on Financial Position and Shareholders and Subsequent Procedures

Capital increase resulting from exercise of the subscription rights will be allocated in accordance with the prescribed formula, with half of the increase applied to capital and the other half to capital surplus within the legal limits. Vesting will allocate 1,000 units to the Representative Director and 200 units to the Director (excluding outside directors), and vesting will proceed in stages over the applicable periods. Transfer restrictions and requirements to meet tax-qualified status are set, and treatment in the event of corporate reorganizations is also specified. Implementation is subject to approval at the shareholders' meeting.