March 27, 2024
Company Name: Canon Marketing Japan Inc.
Representative: Masachika Adachi, President
TSE Code: 8060
Tokyo Stock Exchange (Prime Market)

Notice Regarding Details of Issuance of Stock Compensation-type Stock Options
Canon Marketing Japan Inc. (the “Company”) hereby announces that the Board of Directors
meeting, held on March 27, 2024, passed a resolution on issuance of stock acquisition rights as stockcompensation-type stock options for Executive Officers who are Vice Presidents or higher (including
persons serving concurrently as Directors; hereinafter referred to as “Eligible Officers”) as follows:
1. Purpose of Issuance of Stock Compensation-type Stock Options
To further motivate the Eligible Officers to improve business performance and enhance corporate
value in the medium to long term by sharing both the benefits and risks of fluctuating stock prices
with the shareholders.
2. Specific Details of Stock Compensation-type Stock Options(1) Date of Allotment of Stock Acquisition Rights and Due Date of Monetary Payment in exchange
for Stock Acquisition Rights April 26, 2024
(2) Persons to Be Allotted Stock Acquisition Rights, the Number of Stock Acquisition Rights to Be
Allotted, and the Total Number of Stock Acquisition Rights
The persons to be allotted stock acquisition rights and the number of stock acquisition rights tobe allotted to such persons shall be as follows. However, the foregoing shall be on the condition
that persons to be allotted stock acquisition rights shall apply for the subscription of stockacquisition rights. In the event that the number of applications for stock acquisition rights is lessthan the number of stock acquisition rights to be allotted, the number of stock acquisition rights
applied for shall be allotted.

1Persons to be allotted stock

Number of

Number of stock acquisitionacquisition rights

personsrights to be allotted

DirectorVice President or
higher-level Executive OfficerTotal

456

657

10113(3) Name of the Stock Acquisition Rights
Stock Acquisition Rights Issued in April 2024 of Canon Marketing Japan Inc.
(4) Class and Number of Shares Subject to Stock Acquisition Right
The class and number of shares subject to each stock acquisition right (hereinafter referred to as
the “Number of Shares Granted”) shall be 100 shares of common stock of the Company.
However, in the case where the Company carries out a share split (including gratis allotment ofcommon stock of the Company; the same applies hereinafter with regard to references to theshare split) or share consolidation of its common stock after the date of allotment of stockacquisition rights as set forth in (1) above (hereinafter referred to as the “Allotment Date”), theNumber of Shares Granted shall be adjusted according to the formula as below. The resulting
fractions of less than one share occurring upon such adjustment shall be rounded down.
Number of Shares Granted
after adjustment

Number of Shares Granted=before adjustment

Ratio of share split
×or share consolidation

Furthermore, in addition to the preceding, the Company may make appropriate adjustments to theNumber of Shares Granted within a reasonable range in the case where the Company carries out acorporate merger, corporate division, or other similar action after the Allotment Date that makes it
necessary to adjust the Number of Shares Granted.
(5) Calculation Method of Payment Amount for Stock Acquisition Rights
The payment amount for stock acquisition rights shall be the amount obtained by multiplying thefair value per stock acquisition right on the Allotment Date by the total number of stockacquisition rights to be allotted to the Eligible Officers in office on the Allotment Date. The fairvalue of the stock acquisition rights shall be calculated using Black-Scholes Model, based on
various conditions to be applied on the Allotment Date.
As the payment amount is the fair value of the stock acquisition rights as stated above, it does notconstitute a favorable price issue. When allotting stock acquisition rights, eligible persons shall be2

paid the same amount of monetary compensation as the payment amount set forth above, and theholder of the stock acquisition rights shall, in lieu of delivery of such payment amount, offset thesaid compensation receivables against the payment obligation for the payment amount for thestock acquisition rights.
(6) Amount of Property to be Contributed upon Exercise of Stock Acquisition Rights
The payment amount per share that may be delivered by exercising each stock acquisition rightshall be one yen, and the amount of property to be contributed upon the exercise of each stockacquisition right shall be the amount calculated by multiplying this amount by the Number ofShares Granted.
(7) Period during which Stock Acquisition Rights May be Exercised
The period during which stock acquisition rights may be exercised shall be from April 27, 2024
to April 26, 2054.
(8) Matters regarding the Stated Capital and Capital Reserves to be Increased due to the Issuance ofShares upon Exercise of Stock Acquisition Rights(a) The amount of stated capital to be increased due to the issuance of shares upon exercise ofstock acquisition rights shall be one half (1/2) of the maximum amount of increase in statedcapital to be calculated in accordance with Article 17, Paragraph 1 of the Regulations on
Corporate Accounting, with any amount less than one yen arising from such calculation to berounded up.
(b) The amount of capital reserves to be increased due to the issuance of shares upon exercise ofstock acquisition rights shall be the amount obtained by deducting the amount of stated capital
to be increased set forth in (a) above, from the maximum amount of increase in stated capitalset forth in (a) above.
(9) Restrictions on the Acquisition of Stock Acquisition Rights by Means of Transfer
Acquisitions of stock acquisition rights by means of transfer shall require the approval of theBoard of Directors of the Company.
(10) Conditions for the Exercise of Stock Acquisition Rights(a) Persons in receipt of stock acquisition rights may, in accordance with the provisions of thestock acquisition rights allotment agreement to be executed between the Company and aholder of the stock acquisition rights, exercise their stock acquisition rights within the rangeof 0% to 100% according to the degree of achievement of “Management indicators set by3

the Company including consolidated profit before income taxes” in the business year that
includes the Allotment Date, and holders of the stock acquisition rights may exercise all theexercisable stock acquisition rights in their entirety within a period of 10 days from the day
immediately following the day when they lose their position as Eligible Officers (the next
business day, if the tenth day is a holiday).
(b) In the event that the Company recognizes any acts by the Eligible Officers that are inviolation of laws and regulations or misconduct in the course of their duties, acts conflictingwith the duty of due diligence or duty of loyalty, or any other act equivalent thereto, or ifthey are deemed to have resigned without good cause, the Company may limit the numberof stock acquisition rights that may be exercised by the said holder of the stock acquisitionrights, subject to a resolution of the Board of Directors of the Company. In this case, the said
holder of the stock acquisition rights may not exercise stock acquisition rights in a quantity
exceeding such limit.
(c) In addition to the above, the conditions specified in the agreement to be executed between
the Company and a holder of the stock acquisition rights shall apply, based on a resolutionof the Board of Directors of the Company.
(11) Matters regarding the Acquisition of Stock Acquisition Right
In the event that a proposal for a merger agreement whereby the Company becomes adisappearing company, a proposal for a corporate division agreement or a corporate division
plan whereby the Company becomes a split company, or a proposal for a share exchange
agreement or a share transfer plan whereby the Company becomes a wholly-owned subsidiary,is approved by a General Meeting of Shareholders of the Company (or by resolution of theBoard of Directors of the Company, if resolution by a General Meeting of Shareholders is not
required), the Company may acquire the stock acquisition rights without consideration, on adate separately determined by the Board of Directors of the Company.
(12) Treatment of Stock Acquisition Rights upon Organization Restructuring Actions
In case that the Company carries out a corporate merger (limited to the case where theCompany becomes a disappearing company as a result of the corporate merger), an absorptiontype company split or an incorporation type company split (limited to the case where theCompany becomes a split company, respectively), or a share exchange or a share transfer(limited to the case where the Company becomes a wholly-owned subsidiary, respectively)(hereinafter referred to collectively as “Restructuring Actions”), stock acquisition rights of thestock companies listed in (a) to (e) of Article 236, Paragraph 1, Item 8 of the Companies Act(hereinafter referred to as the “Restructuring Company”) shall be delivered, in each of the4

above cases, to holders of the stock acquisition rights remaining immediately before theeffective date of Restructuring Actions (for an absorption-type merger, the effective date on
which the absorption-type merger takes effect; for a consolidation-type merger, the date ofincorporation of the stock company incorporated in the consolidation-type merger; for anabsorption-type company split, the effective date on which the absorption-type company split
takes effect; for an incorporation type company split; the date of incorporation of the stockcompany incorporated in the incorporation-type split; for a share exchange, the effective dateon which the share exchange takes effect; for a share transfer, the date of incorporation of thewholly owning parent company incorporated in the share transfer, the same applies hereinafter)(hereinafter referred to as “Remaining Stock Acquisition Rights”). However, the foregoing shallbe on the condition that delivery of stock acquisition rights of the Restructuring Company inaccordance with each of the following conditions is set forth in an absorption-type merger
agreement, a consolidation-type merger agreement, an absorption-type company splitagreement, an incorporation-type company split plan, a share exchange agreement or a sharetransfer plan.
(a) Number of stock acquisition rights of the Restructuring Company to be delivered
The same number of stock acquisition rights as the number of the Remaining StockAcquisition Rights held by a holder of the stock acquisition rights shall be delivered to thatholder.
(b) Class of shares of the Restructuring Company subject to stock acquisition rights
The class of shares of the Restructuring Company subject to stock acquisition rights shall beshares of common stock of the Restructuring Company.
(c) Number of shares of the Restructuring Company subject to stock acquisition rights
The number of shares of the Restructuring Company subject to stock acquisition rights shallbe determined in accordance with (4) above, based on the consideration of conditions forRestructuring Actions and other factors.
(d) Value of property to be contributed upon exercise of stock acquisition rights
The value of property to be contributed upon the exercise of each stock acquisition right tobe delivered shall be the value obtained by multiplying the exercise price after restructuring
actions as set forth below by the number of shares of the Restructuring Company subject tostock acquisition rights to be determined in accordance with (c) above. The exercise priceafter restructuring actions shall be one (1) yen per share of the Restructuring Company thatcan be delivered by exercising each stock acquisition right to be delivered.
(e) Period during which stock acquisition rights may be exercised
The period during which stock acquisition rights may be exercised shall be from thecommencement date of the exercise period during which stock acquisition rights may be5

exercised as set forth in (7) above, or the effective date of the Restructuring Actions,whichever is later, to the expiration date of the exercise period during which stockacquisition rights may be exercised as set forth in (7) above.
(f) Matters regarding the stated capital and capital reserves to be increased due to the issuanceof shares upon exercise of stock acquisition rights
The matters regarding the stated capital and capital reserves to be increased due to theissuance of shares upon exercise of stock acquisition rights shall be determined inaccordance with (8) above.
(g) Restrictions on the acquisition of stock acquisition rights by means of transfer
Acquisition of stock acquisition rights by means of transfer shall require approval of theBoard of Directors of the Restructuring Company(h) Conditions for the exercise of stock acquisition rights
The conditions for the exercise of stock acquisition rights shall be determined in accordancewith (10) above.
(i) Matters regarding the acquisition of stock acquisition rights
The matters regarding the acquisition of stock acquisition rights shall be determined inaccordance with (11) above.
(13) Handling of Certificates for Stock Acquisition Rights when They are Issued
Certificates for stock acquisition rights shall not be issued by the Company.
(14) Handling of any Fraction Less Than One Share to be Delivered
In the case that the number of shares to be delivered to a holder of the stock acquisition rights
who has exercised stock acquisition rights includes any fraction less than one share, such
fraction shall be rounded down.

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