Notice Regarding Issuance of Stock Compensation-Type Stock Options (Subscription Rights to Shares)

Overview of Stock Compensation-Type Stock Option Issuance

CEC Corporation resolved to issue a total of 96 stock compensation-type stock options (subscription rights to shares) to six directors who are not audit and supervisory committee members (excluding outside directors). As a result, the total number of ordinary shares exercisable will be 9,600 shares. The exercise period for the subscription rights to shares is 30 years, from 2026-03-23 to 2056-03-22, with an exercise price set at 1 yen per share. It is also stipulated that the number of granted shares and the exercise price may be adjusted in the event of stock splits, mergers, or other organizational restructuring.

Impact on Shareholders and Exercise Conditions

These subscription rights to shares are granted as part of the remuneration for directors, aiming to share the benefits and risks of stock price fluctuations with shareholders and to promote enhancement of corporate value. Transfer restrictions and exercise conditions are established, including provisions for lump-sum exercise within ten days after the loss of director status and extension of the exercise period upon occurrence of specific events such as mergers. Additionally, in cases of organizational restructuring, provisions cover the gratuitous acquisition of subscription rights to shares and the handling of subscription rights issued by the reorganized company, creating a system designed to respond to changes in shareholder composition.