| (3) |
Relationship between the filing company and its subsidiary when the offeree is a director, etc. of the
subsidiary (as defined in Article 2-12, Paragraph 1, Item (i) of the Cabinet Order for Enforcement of the Financial Instruments and Exchange Act) |
Subsidiaries that are either wholly owned by the Company or in which the Company holds a majority of voting rights on its own account.
| (4) |
Content of the agreement between the filing company and the offeree |
The Company plans to enter into a Restricted Stock Grant Agreement with the Eligible Persons , which will include, in essence, the following
terms. Accordingly, the shares of common stock of the Company subject to this Extraordinary Report are expected to fall under “Specified Restricted Shares” as defined in Article 54, Paragraph 1 of the Corporation Tax Act and Article 84,
Paragraph 1 of the Cabinet Order for Enforcement of the Income Tax Act.
This Disposal will be conducted through in-kind contributions of the monetary claims held by the Eligible Persons, which will be provided by the Company or its subsidiaries as consideration for the Restricted Shares under the Plan. The total amount of the
monetary claims to be contributed is 464,521,280 yen, with 5,732 yen per share to be allocated as the contribution value.
(i) If the
Eligible Persons are employees of the Company or its subsidiaries
1. Transfer Restriction Period
From December 18, 2026 to November 30, 2029
2. Conditions to Lift Transfer Restrictions
If an Eligible Person continues to serve as an employee of the Company or the Company’s subsidiaries in a position determined by the
Company to be eligible (the “Eligible Position,” as used in this Section 2 and Section 3 below) throughout the Transfer Restriction Period, the transfer restrictions will be lifted for all of the Eligible Person’s
Allotted Shares at the end of the Transfer Restriction Period.
However, if the Eligible Person loses such Eligible Position due to
reaching retirement age or in such other circumstances as the Company may deem justifiable, then the transfer restrictions shall be lifted for all of the Allotted Shares held by the Eligible Person as of that date on the first day of June or
December (whichever comes first) following the day such circumstances occur.
3. Acquisition by the Company Without Consideration
If certain events occur during the Transfer Restriction Period, such as the Eligible Person’s loss of the Eligible Position due to
reasons other than those stipulated in 2 above, the Company shall acquire all of the Allotted Shares held by the Eligible Person at that point in time without consideration.
In addition, the Company shall acquire without consideration all of the Allotted Shares held by the Eligible Person at the time immediately
following the expiration of the Transfer Restriction Period if the transfer restrictions have not been lifted at that time.
4. Treatment
in the Event of Organizational Restructuring, Etc.
If, during the Transfer Restriction Period, a merger agreement under which the Company
will become a defunct company, a share exchange agreement under which the Company will become a wholly owned subsidiary, a share transfer plan, or any other matter relating to organizational restructuring, etc. is approved at a general meeting of
the shareholders of the Company (or, if approval at a general meeting of the shareholders of the Company is not required for such organizational restructuring, by the Board of Directors of the Company) (an “Organizational Restructuring
Event”), the Company may, at the Company’s discretion, lift the transfer restrictions on all of the Allotted Shares held by the Eligible Person as of the date of such approval, immediately prior to the business day preceding the
effective date of such Organizational Restructuring Event. Further, on the business day immediately preceding the effective date of such Organizational Restructuring Event, the Company shall acquire without consideration all of the Allotted Shares
held by the Eligible Person as of such business day for which the transfer restrictions have not been lifted.
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