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Share Issuance and Disposal3984User Local,Inc.Information and Communications, Services and Others

Notice Concerning the Disposal of Treasury Shares as Restricted Stock for the Company's Employees

The Company has resolved to dispose of 90,200 common shares of treasury stock to 63 employees by making monetary compensation receivables available as in-kind contributions. The shares will be subject to phased transfer restrictions over a period of 1 to 4 years.

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Direction
Neutral
Direction inferred from the company’s description.
Scale
90200
Shares
Wording
Definitive
How definitive the wording is.

Details of issuance or disposal

Disposal of treasury shares as restricted stock compensation

Who receives how much90,200Shares

90,200 common shares of the Company (treasury shares)

63 employees of the Company, 90,200 shares

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

¥1,540 per share
Total issue value

¥138,908,000

Total Stock-Based Compensation
Total monetary compensation receivables of ¥138,908,000
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
One-quarter of the shares each, from 9 June 2026 to 9 June 2027, 9 June 2028, 9 June 2029 and 9 June 2030
Conditions for lifting transfer restrictions
The transfer restrictions on all applicable shares will be lifted upon the expiry of each restriction period, provided that the recipient has continuously held a position as an officer or employee of the Company or one of its subsidiaries throughout the relevant transfer restriction period. In the event of death, inability to perform duties due to illness or injury, leave of absence or a similar circumstance, the restrictions will be lifted on the number of shares calculated according to the prescribed formula based on the period of service.
Reason for acquisition without consideration
Upon expiry of the transfer restriction period, the Company will automatically acquire without consideration any shares for which the transfer restrictions have not been lifted.
Categories and Number of Persons Covered
63 employees of the Company, 90,200 shares
Payment date
9 June 2026
Basis for determining the amount to be paid
The closing price of the Company's common shares on the Tokyo Stock Exchange on 1 May 2026, ¥1,540. 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 of90,200 common shares of the Company (treasury shares)
Issue price and disposal price¥1,540 per share
Total issue value¥138,908,000
Payment date9 June 2026
Intended allottee63 employees of the Company, 90,200 shares
Basis for determining the amount to be paidThe closing price of the Company's common shares on the Tokyo Stock Exchange on 1 May 2026, ¥1,540. No discount or premium.
Transfer restriction periodOne-quarter of the shares each, from 9 June 2026 to 9 June 2027, 9 June 2028, 9 June 2029 and 9 June 2030
Conditions for lifting transfer restrictionsThe transfer restrictions on all applicable shares will be lifted upon the expiry of each restriction period, provided that the recipient has continuously held a position as an officer or employee of the Company or one of its subsidiaries throughout the relevant transfer restriction period. In the event of death, inability to perform duties due to illness or injury, leave of absence or a similar circumstance, the restrictions will be lifted on the number of shares calculated according to the prescribed formula based on the period of service.
Reason for acquisition without considerationUpon expiry of the transfer restriction period, the Company will automatically acquire without consideration any shares for which the transfer restrictions have not been lifted.
Categories and Number of Persons Covered63 employees of the Company, 90,200 shares
Total Stock-Based CompensationTotal monetary compensation receivables of ¥138,908,000
Items this document does not state (16)
Amount 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 provide employees with an incentive to achieve sustained growth in the Company's corporate value, promote value sharing with shareholders, and encourage medium- to long-term, continuous service and other related objectives.

How to read this page

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Notice Concerning the Disposal of Treasury Shares as Restricted Stock for the Company's Employees | User Local,Inc. (3984) timely disclosure | Komori