For immediate release
July 28, 2016
Company name:
Representative:
Stock ticker code:

Makita Corporation
Shiro Hori, President, Representative Director
6586

Notice Concerning Issuing ofStock-Compensation-Type Stock Options (Stock Acquisition Rights) for Directors
Makita Corporation (the “Company”) hereby announces that it has determined, at the meeting of its Board ofDirectors held on July 28, 2016, the subscription requirements for issuing the stock acquisition rights as
stock-compensation-type stock options for its Directors (excluding Outside Directors) and the solicitation of subscribersof the said stock acquisition rights. The details are as follows:(Please note that this English translation is only for reference purpose. When there are any discrepancies between
Japanese version and English translation version, the original Japanese version always prevails.)
I. Reasons for the Introduction of Stock-Compensation-Type Stock Options
The purpose is that its Directors (excluding Outside Directors; hereinafter the same in this agenda) strengthen themorale and preparedness to contribute to enhancing the corporate value of the Corporation over the medium and long term
as well as enabling them to share the advantages and risks of share price fluctuations with our shareholders.
II. Procedure for Issuing Stock Acquisition Rights
1. Name of Stock Acquisition Rights: 2nd Stock Acquisition Rights of Makita Corporation
2. Total Number of Stock Acquisition Rights: 682 units
The aforementioned total number represents the planned number to be allotted. In the case where there is adecrease in the total number of the stock acquisition rights to be allotted, due to lack of applicants, etc., the total
number of the stock acquisition rights to be issued.
3. Type and Number of Shares to be Issued for Stock Acquisition Rights
The type of shares to be issued for the stock acquisition rights shall be common shares of the Company. The
number of shares to be issued for a stock acquisition right (hereinafter referred to as “the number of granted shares”)
shall be ten (10) shares. Provided, however, that in the event the Company conducts a share split (including gratis
allotments of common shares of the Company) or a consolidation of common shares, on or after the date of allotmentof stock acquisition rights (hereinafter referred to as “the allotment date”), the number of granted shares shall beadjusted according to the formula below. Any fractional shares of less than one (1) share as a result of the adjustment
shall be disregarded.
Number of Granted Shares after Adjustment = Number of Granted Shares before Adjustment x Ratio of Share Split orConsolidation of Shares
The number of granted shares after adjustment shall apply on or after the day following the record date of theapplicable share split (or its effective date if the record date has not been specified) in the event of a share split, or on
or after its effective date in the event of a consolidation of shares. Provided, however, that in the event the Company
conducts a share split conditional on approval at a general meeting of shareholders of the Company of a proposal todecrease the amount of surplus and to increase the amount of capital or reserves, and the record date for the share split
is set on the day prior to the date of the conclusion of the applicable general meeting of shareholders, the number ofgranted shares after adjustment shall apply retroactive to the day following the said record date on or after the day
following the date of the conclusion of the applicable general meeting of shareholders.
English Translation of press release originally issued in Japanese1

In addition, in the event that the Company is subject to a merger, company split or any other similar cases on orafter the allotment date, in which it is necessary to adjust the number of granted shares, the Company may
appropriately adjust the number of granted shares within a reasonable range.
When adjusting the number of granted shares, the Company will notify or give public notice of necessary
matters to the holders of the stock acquisition rights listed in the register of stock acquisition rights (hereinafterreferred to as “stock acquisition rights holders”) no later than the day before the date on which the number of granted
shares after adjustment is applied. Provided, however, that in the case where the Company cannot notify or give public
notice no later than the day before the date of the said application date, it will do so immediately thereafter.
4. Amount of Assets to be Contributed upon Exercise of Stock Acquisition Rights
The amount of assets to be contributed upon exercise of each stock acquisition rights shall be the amountobtained by multiplying the exercise price per share to be issued upon exercise of such stock acquisition rights (whichshall be one (1) yen), by the number of granted shares.
5. Period during which Stock Acquisition Rights may be Exercised
From August 19, 2016 to August 18, 2066, both inclusive
6. Matters Regarding Capital and Capital Reserves to be Increased in the event that Shares are Issued upon Exercise ofStock Acquisition Rights(1) The amount of capital to be increased when shares are issued upon exercise of the stock acquisition rights shallbe one-half (1/2) of the maximum limit of increased capital, which is calculated in accordance with Paragraph 1of Article 17 of the Corporate Accounting Regulations. Any of the resulting fractions of less than one (1) yen
shall be rounded up.
(2) The amount of capital reserves to be increased when shares are issued upon exercise of the stock acquisitionrights shall be the amount obtained by deducting the increased amount of capital which is set forth in Item (1)above, from the maximum limit of increased capital stated in Item (1) above.
7. Restriction on Acquisition of Stock Acquisition Rights by Way of Transfer
Approval by a resolution of the Board of Directors shall be required for the acquisition of stock acquisitionrights by way of transfer.
8. Clauses of Acquisition of Stock Acquisition Rights
In the event any of the following proposals (1), (2), (3), (4) or (5) has been approved at a general meeting ofshareholders of the Company (or a resolution by the Board of Directors of the Company when such a resolution at ageneral meeting of shareholders is not required), the Company may acquire stock acquisition rights free of charge on adate separately designated by the Board of Directors of the Company.
(1) Proposal for approval of a company split agreement under which the Company will become an extinct company;(2) Proposal for approval of a company split agreement or a company split plan under which the Company will
become a split company;(3) Proposal for approval of a share exchange agreement or a share transfer plan under which the Company will
become a wholly-owned subsidiary of another company;(4) Proposal for approval of an amendment to the Articles of Incorporation in order to establish a provision to theeffect that, as a feature of all shares issued by the Company, approval of the Company is required to acquire suchtype shares by way of transfer; and(5) Proposal for approval of an amendment to the Articles of Incorporation in order to establish a provision to theeffect, as a feature of all shares to be issued upon exercise of stock acquisition rights, approval of the Company isrequired to acquire such type of shares by way of transfer or the Company will acquire all shares of the said typeby resolution at a general meeting of shareholders

English Translation of press release originally issued in Japanese2

9. Decision- Making Policy on Grant of Stock Acquisition Rights of a Reorganized Company in the Event ofReorganization
In the event the Company conducts a merger (limited to the case where the Company is to be extinct as aresult of the merger); an absorption-type company split or an incorporation-type company split (limited to the casewhere the Company is to become a wholly-owned company) (hereinafter collectively referred to as the“Reorganization”), the Company shall grant stock acquisition rights of the company listed in sub-items (a) through(e) of Item 8, Paragraph 1of Article 236 of the Companies Act (hereinafter the “Reorganized Company”) to those
holders of stock acquisition rights that remain unexercised (hereinafter the “Remaining Stock Acquisition Rights”)
at the time immediately prior to the day on which the Reorganization takes effect (in the case of absorption-typemerger, the day on which absorption-type merger takes effect; in the case of incorporation-type merger, the day on
which the new company incorporated by the incorporation-type merger; in case of absorption-type company split,
the day on which absorption-type company split takes effect; in the case of incorporation-type company split, theday on which the new company is incorporated by the incorporation-type company split; in the case of shareexchange, the day on which the share exchange take effect; and in the case of share transfer, the day on which thewholly owning parent company is incorporated by the share transfer. The same shall apply hereunder.). Provided,
however, that the foregoing shall be limited to cases where the grant of stock acquisition rights of the ReorganizedCompany is stipulated in an applicable absorption-type merger agreement, incorporation-type merger agreement,
absorption-type company split agreement, incorporation-type company split agreement, share exchange agreementor share transfer plan.
(1) Number of Stock Acquisition Rights of Reorganized Company to be Granted
The same number of stock acquisition rights as the Remaining Stock Acquisition Rights possessed by each of thePerson with the Stock Acquisition Rights shall be granted.
(2) Type of Shares of Reorganized Company to be Issued upon Exercise of Stock Acquisition Rights
The type of shares to be issued upon exercise of the stock acquisition rights shall be common shares of theReorganized Company.
(3) Number of Shares of Reorganized Company to be Issued upon Exercise of Stock Acquisition Rights
The number of shares of Reorganized Company to be issued upon exercise of stock acquisition rights shall bedetermined in accordance with Paragraph 3 taking into account of terms and conditions of the Reorganization.
(4) Amount of Assets to be Contributed upon Exercise of Stock Acquisition Rights
The amount of assets to be contributed upon the exercise of each stock acquisition right to be granted shall be theamount obtained by multiplying the exercise price after Reorganization stipulated below by the number of sharesof Reorganized Company to be issued for the applicable stock acquisition rights as determined in accordancewith Item (3) above. The exercise price after Reorganization shall be one (1) yen per share of the ReorganizedCompany that can be issued upon exercise of each stock acquisition right to be granted.
(5) Period during which Stock Acquisition Rights may be Exercised
The period shall be from the first day of the “Period during which Stock Acquisition Rights may be Exercised”
stipulated in Paragraph 5 or the effective date of the Reorganization, whichever is later, to the last day of the“Period during which Stock Acquisition Rights may be Exercised” stipulated in Paragraph 5 above.
(6) Matters Regarding Capital and Capital Reserves to be Increased in the Event that Shares are Issued upon
Exercise of Stock Acquisition Rights
The matters shall be determined in accordance with Paragraph 6 above.
(7) Restriction on the Acquisition of Stock Acquisition Rights by Way of Transfer
Approval by a resolution of the Board of Directors of the Reorganized Company shall be required for theacquisition of stock acquisition rights by way of transfer.
(8) Clauses of Acquisition of Stock Acquisition Rights
The clauses shall be determined in accordance with Paragraph 8 above.
(9) Other Conditions for Exercise of Stock Acquisition Rights
The other conditions shall be determined in accordance with Paragraph 11 below.

English Translation of press release originally issued in Japanese3

10. Arrangement of Fractions of Less Than One (1) Share Resulting from the Exercise of Stock Acquisition Rights
In the event the shares to be issued to a stock acquisition rights holder who has exercised the stockacquisition rights include any fractions less than one (1) share, such fractions shall be disregarded.
11. Other Conditions for Exercise of Stock Acquisition Rights(1) Stock acquisition rights holders may exercise their stock acquisition rights from the day following the date on
which they lose their positions as Director of the Company.
(2) Item (1) above shall not be applied to successors who have inherited the stock acquisition rights.
(3) In the event a stock acquisition rights holder abandons his or her rights, such rights shall not be exercised.
12. Calculation Method of the Amount to be Paid in for the Stock Acquisition Rights
The amount to be paid in for each stock acquisition right shall be the amount obtained by multiplying theoptional price per share (any fractions less than one (1) yen shall be rounded off) calculated by the following
formula: Black-Scholes model on the basis of the basic values given in (2) to (7) below, by the number of grantedshares.

C  Se  qT N d   Xe  rT N d   T

2S Tln    r  q 2 X d T(1) Optional price per share (C);(2) Share price (S): the closing price of the common shares of the Company in regular transactions on the Tokyo
Stock Exchange on August18, 2016 (In the event no closing price is available on the said date, the standard
price on the following trading day shall apply.);(3) Exercise price (X): One (1) yen;
(4) Expected remaining period (T): 6.1 years;(5) Share price volatility (σ): share price volatility calculated on the basis of the closing price of the commonshares of the Company in regular transactions on each of the trading days for 6.1 years (from July 18, 2010 toAugust 18, 2016, both inclusive);(6) Risk-free interest rate (r): interest rate of the Japanese government bonds for the remaining years to maturity
corresponding to the expected remaining period;(7) Dividend yield (q): dividend per share (actual dividend during the fiscal year ended March 2016) / share pricedefined in Item (2) above.
(8) Cumulative distribution function of standard normal distribution (N(・))Note: The amount calculated by the above formula is the fair price of the stock acquisition rights, and does not
fall under discounted share issues. The amount of compensation receivable by the persons to whom thestock acquisition rights are to be allotted from the Company that is equivalent to the total amount payablefor the stock acquisition rights shall be offset by the amount payable for the stock acquisition rights.
13. Allotment Date of Stock Acquisition Rights
August 18, 2016
14. Deadline for Cash Payment in Exchange for Stock Acquisition Rights
August 18, 201615. Persons to be Allotted Stock Acquisition Rights, and their Number, and the Number of Stock Acquisition Rights tobe allotted
Persons to be Allotted
NumberNumber of Stock Acquisition Rights to be allotted
Makita Corporation’s Directors
11682units(excluding Outside Directors)

English Translation of press release originally issued in Japanese4