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Share Issuance and Disposal6875MegaChips CorporationElectrical Equipment and Precision Instruments

Notice Concerning the Disposal of Treasury Shares as Restricted Stock Compensation

The Company resolved to dispose of 11,500 treasury shares as restricted stock compensation to a total of 12 directors and executive officers and directors. The disposal price is ¥10,520 per share, for a total of ¥120.98 million.

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Direction
Neutral
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Scale
11500
Shares
Wording
Definitive
How definitive the wording is.

Details of issuance or disposal

Disposal of treasury shares as restricted stock compensation

Who receives how much11,500Shares

11,500 shares of the Company’s common stock (treasury shares)

6 of the Company’s directors, including outside directors8,500 shares
6 of the Company’s executive officers and directors who do not concurrently serve as directors of the Company3,000 shares

The height of each bar represents the proportion of shares received by each allottee. The thin line below represents the number of existing shares to which these shares are added.

¥10,520 per share
Total Stock-Based Compensation

Total monetary claims: ¥120,980,000

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 the allocation date until immediately after the eligible recipient retires or resigns from the designated position at the Company or one of its subsidiaries
Conditions for lifting transfer restrictions
Subject to having continuously held a designated position at the Company or one of its subsidiaries throughout the service period, all of the allocated shares will be released from the transfer restrictions upon expiration of the restriction period.
Categories and Number of Persons Covered
6 of the Company’s directors, including outside directors: 8,500 shares; 6 of the Company’s executive officers and directors who do not concurrently serve as directors: 3,000 shares
Intended allottee's holding policy
Transfers and other dispositions will be prohibited from the allocation date until immediately after the eligible recipient retires or resigns from the designated position at the Company or one of its subsidiaries. Subject to continuous service in the designated position throughout the service period, all of the shares will be released from the transfer restrictions upon expiration of the restriction period.
Payment date
24 July 2026
Basis for determining the amount to be paid
The closing price of the Company’s common stock on the Prime Market of the Tokyo Stock Exchange on the business day immediately preceding the date of the resolution, 25 June 2026, was ¥10,520. No discount or premium applies.
Most recent equity financing
Timing 14 May 2021 / Type Resolution to introduce a restricted stock compensation plan / Amount Not disclosed
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 of11,500 shares of the Company’s common stock (treasury shares)
Issue price and disposal price¥10,520 per share
Payment date24 July 2026
Intended allotteeName 6 of the Company’s directors, including outside directors / Number of Shares 8,500 shares, Name 6 of the Company’s executive officers and directors who do not concurrently serve as directors of the Company / Number of Shares 3,000 shares
Intended allottee's holding policyTransfers and other dispositions will be prohibited from the allocation date until immediately after the eligible recipient retires or resigns from the designated position at the Company or one of its subsidiaries. Subject to continuous service in the designated position throughout the service period, all of the shares will be released from the transfer restrictions upon expiration of the restriction period.
Basis for determining the amount to be paidThe closing price of the Company’s common stock on the Prime Market of the Tokyo Stock Exchange on the business day immediately preceding the date of the resolution, 25 June 2026, was ¥10,520. No discount or premium applies.
Transfer restriction periodFrom the allocation date until immediately after the eligible recipient retires or resigns from the designated position at the Company or one of its subsidiaries
Conditions for lifting transfer restrictionsSubject to having continuously held a designated position at the Company or one of its subsidiaries throughout the service period, all of the allocated shares will be released from the transfer restrictions upon expiration of the restriction period.
Categories and Number of Persons Covered6 of the Company’s directors, including outside directors: 8,500 shares; 6 of the Company’s executive officers and directors who do not concurrently serve as directors: 3,000 shares
Total Stock-Based CompensationTotal monetary claims: ¥120,980,000
Most recent equity financingTiming 14 May 2021 / Type Resolution to introduce a restricted stock compensation plan / Amount Not disclosed
Items this document does not state (16)
Total issue valueAmount of funds to be raisedEstimated issuance expensesSpecific use of fundsDilution RateTotal number of issued sharesExercise priceExercise periodNumber of Stock Acquisition RightsReason for acquisition without considerationUnderwriter / lead underwriterOverallotmentStock Split RatioProcedures under the Corporate Code of ConductMajor 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 the eligible recipients with an incentive to achieve sustained growth in corporate value and promote shared value with shareholders. The Company considered the purpose of the plan, its business performance, and the scope of each recipient’s responsibilities.

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Notice Concerning the Disposal of Treasury Shares as Restricted Stock Compensation | MegaChips Corporation (6875) timely disclosure | Komori