May 25, 2017
Notice Regarding Issuance of Stock Acquisition Rights as Ordinary Stock Options
STAR MICRONICS CO., LTD. (“the Company”) hereby announces that the Company decided, at its
Board of Directors’ meeting held on May 25, 2017, the issuance of Stock Acquisition Rights (“SARs”) to
be issued as Ordinary Stock Options to Directors (excluding Outside Directors and Directors who serve as
an Audit and Supervisory Committee Members), Executive Officers, Employees and Directors of ourconsolidated subsidiary companies, pursuant to Articles 236, 238 and 239 of the Companies Act of Japan.

Details are as follows.
1. Reason for Issuing SARs as Ordinary Stock Options
The reason for issuing SARs to the Company’s Directors (excluding Outside Directors and Directors
who serve as an Audit and Supervisory Committee Members), Executive Officers,
Employees and Directors of our consolidated subsidiary companies is to further increase theirresolve and enthusiasm for improving consolidated business results and corporate value over themedium term.
2. Details of the SARs Issuance(1) Name of the SARs
Star Micronics Co., Ltd. Series 11 Ordinary Stock Acquisition Rights(2) The total number of SARs
1,550 units
The total above is the number SARs scheduled for allotment. In the event the total number of SARs forallotment declines, due for instance to failure to apply for acceptance, the actual total of SARs allotted
as a result shall be the total number of SARs issued.
(3) Persons receiving allocation of SARs, total SARs for allotment, and the total number of recipients
Directors (excluding Outside Directors and Directors who serveas an Audit and Supervisory Committee Members)
3 persons
300 units
Executive Officers
6 persons
300 units
Employees
19 persons
380 units
Directors of the consolidated subsidiary companies
9 persons
570 units(4) Class and number of shares underlying the SARs
The class of shares underlying the SARs shall be the Company’s common stock. The number of shares
underlying each SAR (hereinafter, “the Number of Shares To Be Granted”) shall be 100 shares. And
the number of the Company’s common stock issued or transferred upon exercise of all the SARs
discussed herein shall be 155,000 shares.
In the event that the Company conducts a stock split or stock consolidation after the day on which theSARs are allotted (“the Allotment Date”) the Company shall adjust the Number of Shares To Be
Granted according to the formula below. This adjustment, however, shall only be conducted for thenumber of shares subject to the SARs that have not been exercised at that time. Any fraction under one(1) share resulting from such adjustment shall be rounded down.
Number of shares to be granted
after adjustment=

Number of shares to be granted
before adjustment

×

Stock split or stock consolidation
ratio

In other cases that require the adjustment of the number of shares, the Company shall be able to adjust
the number of shares within a scope deemed rational under the circumstances.
(5) Amount to be paid-in upon exercise of SARs
No payment shall be required in exchange for the SARs. The SARs are granted as incentive-based
remuneration. Accordingly, the fact that the payment of money is not required does not mean that theSARs are issued on advantageous terms.
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(6) Total amount to be invested upon exercise of SARs
The total amount to be invested upon exercise of SARs shall be the paid amount per share deliverable
upon the exercise of SARs (“the Exercise Price”) multiplied by the number of shares granted.
The Exercise Price shall be an amount 1.05 times the average of the prices of the Company’s common
stock on the Tokyo Stock Exchange as at the closing of regular trading for each day in the month prior
to the month in which SARs were issued (except on dates where there was no trading) and the amountshall be rounded up to the closest 1 yen unit. However, where that amount is less than the closing priceof the Company’s common stock at the end of regular trading on the Tokyo Stock Exchange on theallotment date (where there was no trading on that day, the closing price on the last day of trading
prior to that date), the amount shall be the closing price on that date.
In the event of a stock split or stock consolidation by the Company after the allotment date, theexercise price will be adjusted using the following formula, with fractional shares less than 1 yen
resulting from this adjustment rounded up.
Exercise price after
Exercise price prior
1=×adjustment
to adjustment
Stock split or consolidation ratio
In the event that the Company issues new shares at a price below market value, or conducts acancellation of treasury stock (excluding the exercise of SARs), the exercise price shall be adjusted
using the following formula, with fractional amounts less than 1 yen resulting from the adjustment
rounded up.
Number of new shares to be issued

Number of shares
Exercise priceafter adjustment=Exercise priceprior to adjustment ×

previously issued+× Paid amount per share
Market value per share

Number of shares previously issued+ Number of new shares to be issued“Number of shares previously issued” in the above formula is the figure after deduction of total sharesof treasury stock held by the Company from its total number of issued shares. In the event of acancellation of treasury stock, “Number of new shares to be issued” shall be read as “Number ofshares of treasury stock for cancellation.”
Should an adjustment in exercise price become necessary due to a stock consolidation, corporate
separation, reduction in capital, or other comparable events after the allotment date, the Company may
adjust the exercise price within a scope deemed rationale and appropriate under the circumstances.
(7) Exercise period for the SARs
The exercise period for the SARs shall be from July 1, 2019 to June 30, 2023.
(8) Conditions for exercising the SARsa) The persons who have received an allocation of SARs (“SAR Holders”) shall, at the time of theexercise of those rights, be Directors or Executive Officers or current Employees of the Company or
the Company’s subsidiaries. However, this paragraph shall not apply to SAR Holders who have losttheir position or ceased to hold office due to reaching compulsory retirement age or through theexpiration of their term of office or as a result of actions taken at the Company’s discretion.
b) Upon the death of a SAR Holders, this right may not pass by way of succession.
c) SARs are non-negotiable instruments and may not be pledged or transferred in any form whatsoever.
d) Other conditions pertaining to the exercise of SARs shall be set forth in the SARs allocation contract
to be concluded between the Company and the SARs Holder.
(9) Matters concerning increase in capital and capital reserve in case of issuance of shares throughexercise of SARsa) When shares are issued through the exercise of SARs, the amount of capital increase shall beone-half of the maximum limit for increases in capital, etc., calculated in accordance with Article 17,
Paragraph 1 of the Corporate Accounting Rules. Fractions of less than 1 yen shall be rounded up incalculations.
2/4b) When shares are issued through the exercise of SARs, the amount of capital reserve to be added shallbe determined by subtracting the amount of capital increase as stipulated in (a) above from themaximum limit for increases in capital, etc., indicated in (a) above.
(10) Conditions for acquiring the SARsa) In the event the conditions for exercising the SARs stipulated in (8) above no longer apply to a SARs
Holder, the Company is entitled to acquire the said SARs for the said SARs Holder at noconsideration.
b) In the event the Company’s General Meeting of Shareholders approves (or resolves by its Board ofDirectors where the resolution of the General Meeting of Shareholders is not necessary) a resolution
for a merger agreement in which the Company ceases to exist, resolution for a merger agreement orplan in which the Company is spun-off, or a resolution for a stock swap agreement or stock transfer
plan in which the Company becomes a wholly-owned subsidiary, the Company is entitled to acquireall existing SARs at no consideration on a date to be determined by its Board of Directors.
(11) Limits on acquisition of SARs via assignment
Approval of the Board of Directors of the Company shall be required for the acquisition of SARs via
assignment.
(12) Treatment of the SARs in the event of Reorganization
If the Company is subject to a merger (limited to a case where the Company ceases to exist after tothe merger), merger by absorption and spin-off, demerger, stock swap or stock transfer (hereinafter“Reorganization”), it shall, pursuant to the provisions below, deliver new SARs covering shares inthe Reorganized Company as indicated in Article 236, Paragraph 1, Items 8a through e of theCompanies Act for the respective cases (hereinafter “Reorganized Company”), to the Grantee of theCompany’s existing SARs prior to the date the Reorganization becomes effective. In this case, theexisting SARs will cease to exist and the Reorganized Company will issue new SARs. However, thisshall be limited to the case whereby the delivery of new SARs for the Reorganized Company isstipulated in the merger by absorption, merger by new incorporation and merger by absorption andspin-off agreements, demerger plans, stock swap agreements or stock transfer plans in accordancewith the conditions below.
a) Number of new SARs of the Reorganized Company to be delivered
The same number as the number of existing SARs that remain in the hands of the SARs Holders
shall be delivered.
b) Class of shares of the Reorganized Company underlying the new SARs
The class of shares underlying the new SARs shall be the Reorganized Company’s commonstock.
c) Number of shares of the Reorganized Company underlying the new SARs
To be determined in accordance with (4) above upon consideration of such factors as theconditions of the Reorganization.
d) Total amount to be invested upon exercise of new SARs
Total amount to be invested upon the exercise of each new SAR deliverable, after accounting forrequirements and other factors regarding the reorganized company, shall be derived bymultiplying the paid amount after reorganization following adjustments to the exercise pricestipulated in (6) above by the number of shares of the reorganized company to be used for theapplicable SARs, determined pursuant to (c) above.
e) Exercise period for the new SARs
The exercise period for the new SARs shall be from the effective date of the Reorganization or, if
it falls on a later date, the starting date of the exercise period for the existing SARs, to the final
date of the exercise period for the existing SARs.
f) Conditions for exercising the new SARs
To be determined in accordance with (8) above.
g) Matters concerning increase in capital and capital reserve in case of issuance of shares throughexercise of the new SARs
To be determined in accordance with (9) above.
h) Limits on acquisition of the new SARs via assignment
The acquisition of the new SARs by assignment shall require the approval of the Board ofDirectors of the Reorganized Company.
3/4i) Other stipulations concerning acquisition of the new SARs
To be determined in accordance with (10) above.

(13) Allotment Date of the SARs
June 12, 2017(14) Treatment of fractions arising from the allocation
Any fraction under one (1) share involved in shares allocated upon exercise of SARs by a SARs
Holder shall be rounded down.
(15) Issuance of SARs certificate
The Company will not issue SARs certificates for the SARs herein.

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