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Share Issuance and Disposal1788SANTO CORPORATIONConstruction and Materials

Notice Concerning the Disposal of Treasury Shares as Restricted Stock Compensation

The Company resolved to dispose of 800 treasury shares as restricted stock compensation for 8 employees in recognition of their long-standing contributions. The shares will be allocated on 17 July 2026, and the transfer restrictions will, in principle, be lifted if the recipients remain continuously employed through 16 July 2027.

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Direction
Neutral
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Scale
800
Shares
Wording
Definitive
How definitive the wording is.

Details of issuance or disposal

Disposal of treasury shares as restricted stock compensation

Who receives how much800Shares

800 treasury shares

8 employees of the Company: 800 shares

The lower thin line represents the existing number of shares to which these shares will be added.

¥4,520 per share
Total Stock-Based Compensation

Total monetary compensation receivables: ¥3,616,000

Conditions on transfer restrictions

Restricted stock is stock awarded as compensation that cannot be sold during a specified period, with the restrictions lifted once the applicable conditions are met.

Transfer restriction period
From 17 July 2026 until the date on which the recipient ceases to hold any position as a director, executive officer or employee of the Company. In principle, the recipient must remain continuously employed through 16 July 2027.
Conditions for lifting transfer restrictions
Provided that the recipient continuously holds a position as a director, executive officer or employee of the Company from 17 July 2026 through 16 July 2027, the transfer restrictions on all of the allocated shares held as of 16 July 2027 will be lifted. If the recipient leaves office or employment for a legitimate reason, the restrictions will be lifted in part in proportion to the number of months employed.
Reason for acquisition without consideration
If the recipient leaves office or employment without a legitimate reason by 16 July 2027, or if the transfer restrictions have not been lifted as of the end of the restriction period. The Company will also acquire without consideration any shares whose restrictions are not lifted due to a corporate reorganization or similar event.
Categories and Number of Persons Covered
8 employees of the Company: 800 shares
Payment date
17 July 2026
Basis for determining the amount to be paid
The closing price of the Company's common shares on the Tokyo Stock Exchange on 24 June 2026, ¥4,520. No discount or premium.
Details of issuance or disposal
ItemDetails
Type of issuance or disposalDisposal of treasury shares as restricted stock compensation
Number of shares to be issued or disposed of800 treasury shares
Issue price and disposal price¥4,520 per share
Payment date17 July 2026
Intended allottee8 employees of the Company: 800 shares
Basis for determining the amount to be paidThe closing price of the Company's common shares on the Tokyo Stock Exchange on 24 June 2026, ¥4,520. No discount or premium.
Transfer restriction periodFrom 17 July 2026 until the date on which the recipient ceases to hold any position as a director, executive officer or employee of the Company. In principle, the recipient must remain continuously employed through 16 July 2027.
Conditions for lifting transfer restrictionsProvided that the recipient continuously holds a position as a director, executive officer or employee of the Company from 17 July 2026 through 16 July 2027, the transfer restrictions on all of the allocated shares held as of 16 July 2027 will be lifted. If the recipient leaves office or employment for a legitimate reason, the restrictions will be lifted in part in proportion to the number of months employed.
Reason for acquisition without considerationIf the recipient leaves office or employment without a legitimate reason by 16 July 2027, or if the transfer restrictions have not been lifted as of the end of the restriction period. The Company will also acquire without consideration any shares whose restrictions are not lifted due to a corporate reorganization or similar event.
Categories and Number of Persons Covered8 employees of the Company: 800 shares
Total Stock-Based CompensationTotal monetary compensation receivables: ¥3,616,000
Items this document does not state (17)
Total issue valueAmount of funds to be raisedEstimated issuance expensesSpecific use of fundsIntended allottee's holding policyDilution RateTotal number of issued sharesExercise priceExercise periodNumber of Stock Acquisition RightsUnderwriter / lead underwriterOverallotmentStock Split RatioProcedures under the Corporate Code of ConductMost recent equity financingMajor shareholders after the offeringImpact on Business Performance

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

To recognize the employees' long-standing contributions. The amount of monetary compensation receivables for each employee was determined after comprehensively considering factors including the employee's contribution.

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Notice Concerning the Disposal of Treasury Shares as Restricted Stock Compensation | SANTO CORPORATION (1788) timely disclosure | Komori