Istyle : Notice Concerning Changes to Exercise Conditions of Subscription Rights to Shares (Performance-based Stock Options)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Notice Concerning Changes to Exercise Conditions of Subscription Rights to Shares

(Performance-based Stock Options)

istyle Inc. ("the Company") at its Board of Directors meeting held on February 13, 2023, has resolved to make changes to the exercise conditions of subscription rights to shares (performance-based stock options) ("subscription rights") issued in the past.

1. Reason for the change

The Company issued the 27th series of subscription rights at a set issuance price with performance conditions to its Directors to increase the said personnels' motivation to contribute to increasing its medium- to long-term corporate value, improve morale, and align its management more closely with shareholders' interests. However, in light of the stock price trend after the issuance of these subscription rights, the Company has decided to add an additional exercise condition for 1,400,000 shares out of the 2,000,000 shares of the common stock to be issued upon exercise of these subscription rights.

The change in the exercise condition will add an even higher level of performance target for the fiscal year ending June 30, 2025 and beyond.

2. Subscription rights with exercise conditions to be changed

The 27th series of subscription rights (resolved at the Board of Directors meeting held on August 15, 2022)

3. Details of the change

Details of the additional conditions will be announced at a stage when the Company can reasonably estimate the future growth potential and calculate the target conditions.

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