Launch of "1 yen SO Trust (Retirement Income Type)" compliant with stock compensation plans

Kotaeru Trust Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Hiroaki Kudo; hereinafter "the Company") announces that it has started offering the 1-yen stock option trust (hereinafter "1-yen SO Trust (Retirement Income Type)"), a stock-price-linked retirement benefit scheme corresponding to the stock compensation plan, as a new lineup of trust-type stock options provided by the Company. In addition, as the first project of this scheme, it is scheduled to be introduced to Kamakura Shinsho Co., Ltd. (Headquarters: 2-14-1 Kyobashi, Chuo-ku, Tokyo; Representative Director, President and COO: Fumio Kobayashi), a company listed on the TSE Prime market.

1. Overview of the "1-yen SO Trust (Retirement Income Type)" Scheme

The "1-yen SO Trust (Retirement Income Type)" is a new scheme that complements the traditional cash-based retirement benefit system in terms of incentives, providing executives and employees with retirement benefits linked to corporate value (stock price) as stock compensation.

[About the Scheme]

The issuing company sets up a trust and issues 1-yen stock options (stock acquisition rights with an exercise price of 1 yen) to the trustee, Kotaeru Trust, free of charge through a third-party allotment. The issuing company grants points to eligible persons (executives and employees) according to their contribution, and the eligible persons (executives and employees) receive stock options from the trust corresponding to their points upon retirement/resignation. The eligible persons (executives and employees) exercise their rights and acquire shares within 10 days after retirement/resignation.

Because it is a full-value design with an exercise price of 1 yen, the stock price at the time of retirement/resignation directly translates into the received value, functioning as an incentive to improve corporate value while employed.

[Scheme Diagram] (Image omitted)

[Features of the Scheme]

Corporate Value Linked Type Due to the full-value design with an exercise price of 1 yen, the stock price at the time of retirement directly translates into the amount received. It realizes an alignment of interests with shareholders to increase corporate value, promoting medium- to long-term enhancement of corporate value.

Company-wide Engagement Improvement Because the compensation received upon retirement is linked to the stock price, it creates motivation for everyone from executives to employees to unite and commit to improving corporate value.

Enhancement of Talent Retention