May 26, 2016
Notice Regarding Issuance of Stock Compensation-type Stock Options to Directors
Star Micronics Co., Ltd. (“the Company”) hereby announces that the Company decided, at its Board ofDirectors’ meeting held on May 26, 2016, the issuance of stock acquisition rights (SARs) as stockcompensation-type stock options to the Company’s Directors (excluding Outside Directors and Directors
who serve as an Audit and Supervisory Committee Members) and Senior Executive Officers inaccordance with the provisions in Articles 236, 238 and 240 of the Companies Act of Japan. Details are asfollows.
1. Reason for Issuing SARs as Stock Compensation-type 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) and Senior Executive Officers isto further increase their resolve and enthusiasm for improving business results and corporate value overthe long term. This will be accomplished by aligning the interests of Directors, Senior ExecutiveOfficers and shareholders by having the Directors and Senior Executive Officers share the benefits ofan increase in the stock price as well as the risk of a decrease in the stock price.
2. Details of the SARs Issuance(1) Name of the SARs
Star Micronics Co., Ltd. Series 3 Stock Compensation-type Stock Acquisition Rights(2) 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
230 units
Senior Executive Officers
3 persons
132 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) 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 36,200 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.
(4) Amount to be paid-in upon exercise of SARs
The amount to be paid in per SAR shall be determined based on the fair value of the SARs computed
using impartial calculation methods such as the Black-Scholes model upon the allocation date of theSARs.
The persons who have received an allocation of SARs (“SARs Holders”) shall offset the amount to bepaid-in with monetary compensation receivable from the Company, in lieu of payment.

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(5) Total amount to be invested upon exercise of SARs
The total amount to be invested upon exercise of SARs shall be the amount to be paid-in per share, foreach share that can be granted due to the exercise of SARs (“the Exercise Price”), which shall be 1 yen,multiplied by the number of shares granted.
(6) Exercise period for the SARs
The exercise period for the SARs shall be from June 13, 2016 to June 12, 2046.
However, the final date of the exercise period shall be the previous business day in the event the final
date as set forth above falls on a day the Company is closed for business.
(7) Conditions for exercising the SARsa) SARs Holders who have lost their position as a Director or Executive Officer of the Company
during the exercise period may exercise their SARs in a lump-sum within 10 days from the day after
the day they lose their position (if the 10th day falls on a Company holiday, the following businessday).
b) In the event of the death of a SARs Holder, the SARs of the deceased holder may be inherited by one(1) of the deceased’s legal inheritors. The inheritor of the SARs may exercise the inherited SARs inlump-sum during a six-month period commencing a day after the death of the holder, and fallingwithin the exercise period of SARs herein, notwithstanding the conditions stipulated in (a) above.
Further inheritance of such SARs will cease upon the death of the first inheritor of the SARs.
c) 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.
(8) 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 be
one-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.
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.
(9) Conditions for acquiring the SARsa) In the event the conditions for exercising the SARs stipulated in (7) 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 transferplan in which the Company becomes a wholly-owned subsidiary, the Company is entitled to acquire
all existing SARs at no consideration on a date to be determined by its Board of Directors.
(10) 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.
(11) 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 and2/3

spin-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 (3) above upon consideration of such factors as theconditions of the Reorganization.
d) Total amount to be invested upon exercise of new SARs
The total amount to be invested upon exercise of the new SARs allotted shall be the amount to bepaid-in per share, for each share of the Reorganized Company that can be granted due to theexercise of new SARs (“the Exercise Price”), as stipulated in (c) above, which shall be 1 yen,multiplied by the number of shares of the Reorganized Company granted.
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 (7) 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 (8) 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 of
Directors of the Reorganized Company.
i) Other stipulations concerning acquisition of the new SARs
To be determined in accordance with (9) above.
(12) Allocation date of the SARs
June 13, 2016(13) 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.
(14) Issuance of SARs certificate
The Company will not issue SARs certificates for the SARs herein.

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