# EDGAR Filing Document

**Accession Number:** 0002070087
**File Stem:** 0001493152-26-031115
**Filing Date:** 2026-6
**Character Count:** 1217548
**Document Hash:** d798ebd366229c50b363096ec9f641d5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-031115.hdr.sgml**: 20260629

**ACCESSION NUMBER**: 0001493152-26-031115

**CONFORMED SUBMISSION TYPE**: F-1

**PUBLIC DOCUMENT COUNT**: 45

**FILED AS OF DATE**: 20260629

**DATE AS OF CHANGE**: 20260629

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Koei Group Co., Ltd.
- **CENTRAL INDEX KEY:** 0002070087
- **STANDARD INDUSTRIAL CLASSIFICATION:** REFUSE SYSTEMS [4953]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** F-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-297131
- **FILM NUMBER:** 261136881

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SHINAGAWA GRAND CENTRAL TOWER 2-16-3
- **CITY:** KONAN, MINATO-KU
- **NON US STATE TERRITORY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 108-0075
- **BUSINESS PHONE:** 81-45-785-1133

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** SHINAGAWA GRAND CENTRAL TOWER 2-16-3
- **CITY:** KONAN, MINATO-KU
- **NON US STATE TERRITORY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 108-0075

**As filed with the U.S. Securities and Exchange Commission on June 29, 2026** 

**Registration No. 333-[________]**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form F-1**

**REGISTRATION STATEMENT**

**UNDER THE SECURITIES ACT OF 1933**

**Koei Group Co., Ltd.**

(Exact name of Registrant as specified in its charter)

**Not Applicable**

(Translation of Registrant's name into English)

---

| | | |
|:---|:---|:---|
| **Japan** | **4953** | **Not Applicable** |
| (State or other jurisdiction<br> of incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification No.) |

---

**Koei Group Co., Ltd. <br> Shinagawa Grand Central Tower 2-16-3 Konan, Minato-ku, Tokyo, 108-0075 Japan**

**Telephone: +81-3-3450-0581**

(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

 **Robert Wagner**

 **Chief Business Officer**

 **7001 I-10, Unit 110**

 **San Antonio, Texas 78213**

**Telephone: (210) 802-5643** 

(Name, address, including zip code, and telephone number, including area code, of agent for service)

***Copies to:***

---

| | |
|:---|:---|
| **Laura Anthony, Esq.**<br> **Craig D. Linder, Esq.**<br> **Anthony, Linder & Cacomanolis, PLLC**<br> **1700 Palm Beach Lakes Blvd., Suite 820**<br> **West Palm Beach, Florida 33401**<br> **Telephone: (561) 514-0936** | **M. Ali Panjwani, Esq.**<br> **Pryor Cashman LLP**<br> **7 Times Square, 40th Floor**<br> **New York, NY 10036**<br> **Telephone: (212) 351-2626**<br>|

---

Approximate date of commencement of proposed sale to the public: **As soon as practicable after the effective date of this registration statement.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant files a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement becomes effective on such date as the Commission, acting pursuant to Section 8(a), may determine.**

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary prospectus does not constitute an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where offer or sale is not authorized.**

---

| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED JUNE 29, 2026** |

---

![](formdrs_001.jpg)

**Koei Group Co., Ltd.**

 **[_______] Common Shares**

We are offering [________] common shares, no par value. This is our initial public offering. Prior to the offering, there has been no public market for our common shares. We expect the initial public offering price to be between US$[___] and US$[___] per share. For purposes of this prospectus, the assumed initial public offering price per share is US$[___], the low-end of the anticipated price range.

We are also seeking to register the (i) warrants to purchase [________] common shares (or warrants to purchase [________] common shares if the underwriters exercise the over-allotment option in full) (the "Representative's Warrants"), being issued to the representative of the underwriters (the "Representative") in connection with the offering, as well as (ii) [________] common shares (or [________] common shares if the underwriters exercise the over-allotment option in full) issuable upon exercise of the Representative's Warrants at an exercise price of $[___] per share (110% of the assumed initial public offering price).

We have applied to list our common shares on the Nasdaq Capital Market (the "Nasdaq") under the symbol "KOEI." We believe that upon the completion of the offering contemplated by this prospectus, we will meet the standards for listing on the Nasdaq. We cannot guarantee that we will be successful in listing our common shares on the Nasdaq; however, we will not complete this offering unless we are so listed.

Unless otherwise noted, the share and per share information in this prospectus have been adjusted to give effect to the 30,000-for-1 stock split ("Forward Stock Split") of our outstanding common shares, which was effective on September 8, 2025.

We are an "emerging growth company" under the federal securities laws and, as such, we have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary— Implications of Being an Emerging Growth Company and a Foreign Private Issuer*."

**Investing in our common shares involves a high degree of risk. Before purchasing any shares, potential investors should carefully read the discussion of the material risks of investing in our common shares under the heading "*Risk Factors*" beginning on page 20 of this prospectus.**

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or recognized the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

---

| | | |
|:---|:---|:---|
|  | **Per share** | **Total** |
| Public offering price | $[●] | $[●] |
| Underwriting discounts and commissions (1) | $[●] | $[●] |
| Proceeds, before expenses, to us | $[●] | $[●] |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) We
 have also agreed to issue warrants to Roth Capital Partners LLC, the Representative of the underwriters. Additionally, we have agreed
 to reimburse the Representative for accountable expenses. See "*Underwriting*" beginning on page 110 of this prospectus
 for additional information regarding the compensation payable to the underwriters.

We have granted a 45-day option to the underwriters to purchase up to [______] additional common shares solely to cover over-allotments, if any. If the underwriters exercise the option in full, the total underwriting cash discounts and commissions payable by us will be US$[____], and the total proceeds to us, before expenses, will be US$[____].

Delivery of the common shares is expected to be made on or about [____], 2026.

**Roth Capital Partners**

**The date of this prospectus is , 2026**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_001) | 1 |
| [ABOUT THIS PROSPECTUS](#a_002) | 2 |
| [MARKET AND INDUSTRY DATA](#a_003) | 2 |
| [TRADEMARKS AND COPYRIGHTS](#a_004) | 2 |
| [PROSPECTUS SUMMARY](#a_005) | 3 |
| [RISK FACTORS](#a_006) | 20 |
| [USE OF PROCEEDS](#a_007) | 42 |
| [DIVIDEND POLICY](#a_008) | 42 |
| [CAPITALIZATION](#a_009) | 43 |
| [DILUTION](#a_010) | 43 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_011) | 46 |
| [DESCRIPTION OF BUSINESS](#a_012) | 55 |
| [MANAGEMENT](#a_013) | 84 |
| [PRINCIPAL SHAREHOLDERS](#a_014) | 94 |
| [CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS](#a_015) | 95 |
| [DESCRIPTION OF SHARE CAPITAL](#a_016) | 96 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_017) | 102 |
| [CERTAIN TAX CONSIDERATIONS](#a_018) | 103 |
| [UNDERWRITING](#a_019) | 110 |
| [EXPENSES RELATED TO THIS OFFERING](#a_020) | 122 |
| [LEGAL MATTERS](#a_021) | 123 |
| [EXPERTS](#a_022) | 123 |
| [DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES](#a_023) | 123 |
| [ENFORCEABILITY OF CIVIL LIABILITIES](#a_024) | 123 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#a_025) | 124 |
| [INDEX TO FINANCIAL STATEMENTS](#a_026) | F-1 |

---

**You should rely only on the information contained in this prospectus and any free writing prospectus prepared by us. Neither we nor the underwriters have authorized anyone to provide you with information that is different, and neither we nor the underwriters take any responsibility for, and provide any assurance as to the reliability of, any information, other than the information in this prospectus and any free writing prospectus prepared by us. We are offering to sell our common shares, and seeking offers to buy our common shares, only in jurisdictions where such offers and sales are permitted. This prospectus is not an offer to sell, or a solicitation of an offer to buy, our common shares in any jurisdictions where, or under any circumstances under which, the offer, sale, or solicitation is not permitted. The information in this prospectus and in any free writing prospectus prepared by us is accurate only as of the date on its respective cover, regardless of the time of delivery of this prospectus or any free writing prospectus or the time of any sale of our common shares. Our business, results of operations, financial condition, or prospects may have changed since those dates.**

**Before you invest in our common shares, you should read the registration statement (including the exhibits thereto and the documents incorporated by reference therein) of which this prospectus forms a part.**

**For investors outside of the United States**: Neither we nor the underwriters have done anything that would permit this offering, or the possession or distribution of this prospectus, in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourselves about, and observe any restrictions relating to, this offering and the distribution of this prospectus.

**Notice to prospective investors in Japan**: Our common shares have not been and will not be registered pursuant to Article 4, Paragraph 1 of the Financial Instruments and Exchange Act of Japan. Accordingly, none of our common shares nor any interest therein may be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any "resident" of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to or for the benefit of a resident of Japan, except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and any other applicable laws, regulations, and ministerial guidelines of Japan in effect at the relevant time.

i

**Cautionary Note Regarding Forward-Looking Statements**

This prospectus contains forward-looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this prospectus. These statements are likely to address our growth strategy, financial results, and product and development programs. You must carefully consider any such statements and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed, and actual future results may vary materially. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

● the size and growth potential of the markets for our products or services, and our ability to serve those markets;

● the rate and degree of market acceptance of our products or services;

● our ability to address effectively existing and new markets that we intend to target;

● the impact from future regulatory, judicial, and legislative changes or developments in the U.S. and foreign countries;

● our ability to compete effectively in a competitive industry;

● our ability to obtain funding for our operations;

● our ability to attract collaborators and strategic partnerships;

● our ability to adhere to applicable environmental laws and recycling standards;

● our ability to adjust to the rapid changes in technology may render some recycling methods ineffective or inefficient;

● our ability to maintain compliance with energy conversion and recycling standards;

● the inconsistent or insufficient supply of recyclable information technology or office automation system equipment;

● our ability to continue to meet the Nasdaq requirements;

● our ability to meet our other financial operating objectives;

● the availability of qualified employees for our business operations;

● general business and economic conditions;

● our ability to meet our financial obligations as they become due;

● positive cash flows and financial viability of our operations and new business opportunities;

● ability to secure intellectual property rights over our proprietary services;

● our ability to be successful in new markets; and

● our ability to avoid infringement of intellectual property rights.

We describe certain material risks, uncertainties, and assumptions that could affect our business, including our financial condition and results of operations, under the heading "*Risk Factors*." We base our forward-looking statements on our management's beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may, and are likely to, differ materially from what is expressed, implied, or forecast by our forward-looking statements. Accordingly, potential investors should be careful about relying on any forward-looking statements. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this prospectus, whether as a result of new information, future events, changes in assumptions, or otherwise.

**ABOUT THIS PROSPECTUS**

As used in this prospectus, unless the context otherwise requires or otherwise states, references to the "Company," "we," "us," "our," and similar references refer to Koei Group Co., Ltd. (formerly DARINGATE CO., LTD.), a Japanese corporation, and its direct and indirect subsidiaries, including, KOEI JAPAN CO., LTD., a Japanese corporation, KOEISING PTE. LTD., a Singaporean corporation, Hidaka Koei (Thailand) Co., Ltd., a Thai corporation, EPJ CO., LTD., a Japanese corporation and Koei US, Inc., a Texas corporation.

Our functional currency is the Japanese yen (which we refer to as "¥"). Our reporting currency is the U.S. dollar. The terms "$" or "US$" refer to U.S. dollars, the legal currency of the United States. Consistent with ASC 830, the reporting currency is converted at the following rates:

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| | | | |
|:---|:---|:---|:---|
| (US$1 = ¥) | February 28, 2026 | February 28, 2025 | February 29, 2024 |
| Spot rate | ¥155.83 | ¥149.58 | ¥150.73 |
| Average rate | ¥149.86 | ¥152.65 | ¥143.22 |

---

We make no representation that the Japanese yen or U.S. dollar amounts referred to in this prospectus could have been or could be converted into U.S. dollars or Japanese yen, as the case may be, at any particular rate or at all.

Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (which we refer to as "US GAAP"). Our fiscal year ends on February 28 of each year, except in leap years when it ends on February 29, as does our reporting year. Therefore, any references to 2026 and 2025 are references to the fiscal and reporting years ended February 28, 2026 and February 28, 2025, respectively. Our most recent fiscal year ended on February 28, 2026. See Note 2 in our audited consolidated financial statements as of and for the years ended February 28, 2026 and February 28, 2025, included elsewhere in this prospectus for a discussion of the basis of presentation of financial statements.

We have made rounding adjustments to some of the figures included in this prospectus. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them.

**NON-GAAP FINANCIAL MEASURES**

In addition to U.S. GAAP measures, we also use Adjusted EBITDA and Adjusted EBITDA Margin as described under "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures*" in various places in this prospectus. These financial measures are presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with U.S. GAAP, and should be read in conjunction with our consolidated financial statements and the notes thereto included elsewhere in this prospectus. Adjusted EBITDA and Adjusted EBITDA Margin may differ from similarly titled measures presented by other companies.

Please see "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" for a reconciliation of non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with U.S. GAAP.

**MARKET AND INDUSTRY DATA**

This prospectus contains references to market data and industry forecasts and projections, which were obtained or derived from publicly available information, reports of governmental agencies, market research reports, and industry publications and surveys. These sources generally state that the information contained therein has been obtained from sources believed to be reliable. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and additional uncertainties and risks regarding the other forward-looking statements in this prospectus due to a variety of factors, including those described in the sections entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the forecasts and estimates.

**TRADEMARKS AND COPYRIGHTS**

We hold registered trademarks in Japan for "DARINGATE" and "KOEI" which were issued in 2025. This prospectus may also contain trademarks, service marks, and trade names of other companies that are the property of their respective owners. The use or display of trademarks, service marks, trade names or services of third parties in this prospectus does not imply, and should not be construed to imply, any affiliation, endorsement or sponsorship by the Company. For the convenience of readers only, some copyrights, trade names, and trademarks mentioned in this prospectus may appear without their©,® and™ symbols.

**PROSPECTUS SUMMARY**

*This summary highlights certain information about us, this offering, and selected information contained in this prospectus. This summary is not complete and does not contain all of the information that potential investors should consider before deciding whether to invest in our common shares. For a more complete understanding of us and this offering, we encourage you to read and consider the more detailed information in this prospectus, including "Risk Factors" and the financial statements and related notes. As used in this prospectus, unless the context otherwise requires or otherwise states, references to "Koei," the "Company," "we," "us," "our," and similar references refer to Koei Group Co., Ltd., a Japanese corporation, and its direct and indirect subsidiaries, including, KOEI JAPAN CO., LTD., a Japanese corporation, KOEISING PTE. LTD., a Singaporean corporation, Hidaka Koei (Thailand) Co., Ltd., a Thai corporation, EPJ CO., LTD., a Japanese corporation and Koei US, Inc., a Texas corporation.*

**Business Overview**

Koei delivers secure, compliant, and sustainable solutions that protect data, recover resources, and enable customers to lead responsibly across the value chain. By transforming end-of-life technology and industrial waste into new value, we help fuel the global circular economy. We are a Japan-based holding company with consolidated subsidiaries in Japan, Singapore, Thailand, and the United States. Our business spans three primary areas—material recycling, information technology asset disposition ("ITAD"), and industrial waste management—with professional services in the United States representing a developing fourth business line.

Our operating subsidiaries include:

● KOEI JAPAN CO., LTD., which oversees our recycling, industrial waste management, and ITAD operations in Japan;

● KOEISING PTE. LTD., which operates an ITAD facility supporting secure recycling and data destruction services in Singapore;

● Hidaka Koei (Thailand) Co., Ltd., which is in the process of establishing ITAD services and recycling operations to support the infrastructure and technology sectors in Thailand;

● Koei US, Inc., which provides professional services and ITAD in the United States; and

● EPJ CO., LTD., which supports the expansion of our industrial waste management operations in Japan and to isolate legal and compliance risks associated with that business in a dedicated entity.

The following diagram reflects our current organizational structure as of the date of this prospectus:

![](formdrsa_005.jpg)

(1) On August 8, 2024, Koei
 acquired 100% equity interest in KOEI JAPAN CO., LTD. ("KOEI JAPAN"), which was formed on April 20, 1995, by exchanging
 all of its 286 common shares. As a result, KOEI JAPAN became a wholly owned subsidiary of Koei.

(2) KOEISING PTE. LTD is a
 wholly owned subsidiary of KOEI JAPAN, formed on February 17, 2022.

(3) Prior
 to February 2026, KOEI JAPAN held 99.99%
 ownership interest in KOEI (THAILAND) CO., LTD., which was formed on January 15, 2024, with the remaining 0.01% (equivalent
 to one share) held by the CEO of the Company. Given the immaterial impact of the non-controlling interest, no separate presentation
 was made in the consolidated financial statements. In February 2026, the Company sold a 49% ownership interest in KOEI (THAILAND) CO.,
 LTD. to HIDAKA HOLDINGS (2008) CO., LTD., an entity incorporated in Thailand, and renamed KOEI (THAILAND) CO., LTD. to "Hidaka
 Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei
 (Thailand) Co., Ltd. to Siam Client Service Co., Ltd., an entity incorporated in Thailand, for no consideration. Through contractual
 arrangements, specifically pursuant to (i) Article 5 of the Shareholders Agreement, dated February 5, 2026, between
KOEI (JAPAN) and Siam Client Service Co., Ltd., KOEI (JAPAN) ("KOEI-Siam Shareholders Agreement") is solely responsible for
the management and business activities of Hidaka Koei (Thailand) Co., Ltd. without any input of Siam Client Service Co., Ltd. and (ii)
Article 8-3 of the KOEI-Siam Shareholders Agreement giving KOEI (JAPAN) an exclusive call option to purchase or designate a party to purchase
the shares held by Siam Client Service Co., Ltd., the 2% Thai owner, giving KOEI (JAPAN) effective control over Siam Client Service Co.,
Ltd.'s 2% interest in Hidaka Koei (Thailand) Co., Ltd., enabling KOEI (JAPAN) with its 49% interest, to control Hidaka Koei (Thailand)
Co., Ltd. and consolidate the financial results of Hidaka Koei (Thailand) Co., Ltd. in its consolidated financial statements. As of February
28, 2026, Hidaka Koei (Thailand) Co., Ltd. had no operations and incurred only immaterial expenses since its incorporation in January
2024. (4) EPJ CO., LTD. was formed
 by Koei on March 10, 2025, to strengthen and expand our waste management operations in Japan.

(5) On March 10, 2025, Koei
 entered into an agreement to purchase 51% shares of Nufika LLC ("Nufika") from Robert Wagner, the Company's Chief
 Business Officer and a director, Maki Wagner, the Company's Chief Communications Officer and a director, and Hannah Wagner,
 who is Robert Wagner's daughter. Nufika was formed on January 3, 2023, and is headquartered in Texas and has historically provided
 professional services to the energy sector, with limited ITAD activities to date. Koei acquired Nufika for the purpose of business
 expansion in the US. The deal was closed on March 10, 2025, with a total cash consideration of US$1,000,000. On February 26, 2025,
 Nufika was converted from an LLC to C-Corporation in Texas and has been renamed to "Koei US, Inc."

We process a wide range of products, including information technology ("IT") equipment, office automation ("OA") equipment, consumer electronics, circuit boards, non-ferrous metals, and large industrial machinery. Our vertically integrated operation combines manual dismantling, two large industrial crushers with different crushing methods, and advanced sorting equipment capable of particle size separation, aluminum separation, and electromagnetic metal separation to recover a variety of materials, including gold, silver, palladium, copper, aluminum, and iron. These materials are sold to metal smelters and refiners, contributing to the global supply chain of critical raw materials.

Our ITAD services provide secure, compliant, and ESG-aligned solutions to corporations, government agencies, and institutional clients. We deliver a range of services, including certified data erasure, physical destruction, and asset resale. Data sanitization is performed through a combination of physical destruction, magnetic degaussing, and software-based erasure within secure, licensed facilities.

We operate dedicated ITAD facilities in Japan and Singapore, both of which maintain security protocols aligned with industry standards. In Japan, we also deploy mobile shredding units—specially equipped vehicles that perform on-site destruction directly at customer locations, eliminating transport risk and reinforcing data protection.

Refurbishable assets are resold under strict quality control standards, generating revenue while supporting clients' ESG objectives. Our ITAD operations contribute to sustainability goals by enabling reuse, reducing landfill waste, and recovering critical components. We also participate in leading regulatory frameworks such as the Carbon Disclosure Project ("CDP") and Taskforce on Nature-related Financial Disclosures ("TNFD"), and are certified under the Science Based Targets initiative (SBTi) to reduce Scope 1 and Scope 2 greenhouse gas emissions.

In Japan, we operate a licensed industrial waste management business through KOEI JAPAN Co., Ltd. ("KOEI JAPAN"), offering a one-stop solution that includes collection, transport, intermediate treatment, and resource recovery. We maintain licenses and favorable certifications in 46 of Japan's 47 prefectures (excluding Okinawa), and operate certified treatment facilities in Yokohama City and Kitakyushu City. These operations comply with Japan's Waste Management and Public Cleansing Act, the Secondhand Goods Business Act, and other applicable environmental regulations. We also own EPJ CO., LTD., established in 2025 to further strengthen and expand our waste management operations in Japan.

Japan's demanding regulatory environment—among the most rigorous globally—requires deep operational discipline, transparency, and technical expertise. Our ability to operate at scale within this framework is the result of decades of infrastructure investment, regulatory engagement, and strict internal controls. This platform supports our broader international expansion and underpins our reputation as a trusted, high-compliance partner.

Over 95% of our revenue for the fiscal years ended February 28, 2026 and 2025 was derived from the sale of recycled materials and reused IT assets, with the remaining 5% from industrial waste management and other services fees. For the years ended February 28, 2026 and 2025, the Company reported revenues of US$47,665,800 and US$43,837,761, respectively, net income of US$1,885,665 and US$1,185,085, respectively, and had net cash provided by operating activities of US$4,288,651 and US$1,092,623, respectively.

Our integrated model, breadth of licensed services, internationally recognized certifications (ISO9001, ISO14001, ISO27001, ISO45001, R2v3), and reputation for reliability position us to serve both public- and private-sector customers globally. In Japan, our competitive strength is further reinforced by our three major recycling centers, which anchor our operations and support deep, long-standing relationships with municipalities and enterprise clients. Our environmental commitment has been recognized with a "B" score from the CDP—a leading international nonprofit that evaluates climate-related performance on an eight-tier scale (A, A-, B, B-, C, C-, D, D-, F). This rating reflects our adherence to emissions, safety, and resource recovery standards, and supports our positioning as a trusted partner for ESG-aligned operations.

Our international expansion reflects a focused strategy targeting markets with rising demand for secure, compliant, and ESG-aligned services. In January 2024, we established KOEI (THAILAND) CO., LTD., and on December 19, 2025, the Company entered into an agreement to sell a 49% ownership interest in KOEI THAILAND to HIDAKA HOLDINGS (2008) CO., LTD., for the purpose of business expansion in Southeast Asia by partnering with the established ferrous scrap recycling company in Thailand. The transaction was completed in February 2026, for a total cash consideration of THB980,000 (approximately US$32,000) and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. In March 2025, we acquired a 51% interest in Koei US, Inc. ("Koei US"), a Texas-based professional services firm formerly operating as Nufika LLC. Hidaka Koei (Thailand) Co., Ltd. is evaluating facility development for ITAD services. Koei US, which historically served the energy sector, is a licensed engineering firm in Texas and staffed by employees and contractors. Neither currently operates a dedicated ITAD facility, though both are integral to our long-term growth plans.

We see significant opportunity in the U.S. and Southeast Asia, where industrialization, digital infrastructure investment, and regulatory tightening are accelerating demand for secure asset disposition and material recovery. In Texas, we believe that Koei US is positioned to offer professional services and asset disposition services, particularly for energy, operational technology ("OT"), and digital infrastructure clients—offering a multimode service model for the U.S. market.

As we scale internationally, we are committed to disciplined investment, operational efficiency, and selective customer and contract targeting. We seek to preserve margin stability while pursuing expansion into higher-value service areas, including engineering, consulting, and technology-enabled offerings. We operate under standardized Basic Sales Agreements (BSAs) and Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreements (IWCTD Agreements), each containing customary protections and termination provisions.

As part of our belief in continuous improvement, we have made and will continue to make strategic investments to enhance our operations and service offerings.

We have invested in advanced process automation technologies, including Japan's largest 4-axis shredders, vertical crushers, industrial-scale crushers, and sorting systems. These upgrades are designed to improve operational efficiency, increase data and environmental security, and support the responsible recovery of critical resources. In parallel, we are also exploring the possibility of developing proprietary technologies that build on our decades of operational and process expertise; however, no formal initiatives have been launched, and there is currently no established timeline or definitive development plan in place.

Koei is driven by a bold ambition: to transform end-of-life assets into engines of renewal, supporting the next generation of infrastructure resilience and advancing the circular economy. We believe the future demands more than sustainability—it calls for regeneration. Through strategic investments in technology, talent, and stewardship, we are building a secure, compliant, and globally scalable platform that delivers data-driven sustainable solutions. Our goal is to help businesses reduce risk, unlock value, and lead responsibly across the entire value chain.

**Our Recycling and ITAD Facilities**

Our recycling and ITAD operations are anchored by three strategically located facilities in Japan and one ITAD-focused facility in Singapore. Across all locations, we aim to maintain uniform standards of operational excellence, with a blend of precise manual disassembly and industrial-scale mechanical processing designed to maximize recycling rates, material purity, and regulatory compliance.

***Yokohama Kanazawa Recycling Center (Kanagawa Prefecture, Japan)***

● Serves as our flagship facility for both material recycling and ITAD.

● Owned by KOEI JAPAN; spans approximately 9,900 square meters.

● Houses Japan's largest 4-axis shredders, vertical crushers, industrial-scale crushers, and optical sorting systems.

● Supports high-efficiency recovery of materials containing precious metals, rare earth elements, and both ferrous and non-ferrous.

● Includes a high-security ITAD-designated area with ISO27001- and R2v3-certified data erasure and destruction controls.

● Security infrastructure includes surveillance cameras, infrared sensors, secure rooms, metal detection, pocketless uniforms, and card-based access control.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018, R2v3, licensed for intermediate industrial waste treatment by Yokohama City

***Kitakyushu Recycling Center (Fukuoka Prefecture, Japan)***

● Supports material recycling and ITAD.

● Leased facility (approx. 4,400 square meters)

● Equipped with crushers and sorting systems.

● Supports high-efficiency recovery of materials containing precious metals, rare earth elements, and both ferrous and non-ferrous.

● Contains ISO27001-compliant secure data destruction room and refurbishment lines.

● Security infrastructure includes surveillance cameras, secure rooms, metal detection, pocketless uniforms, and card-based access control.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018, licensed for intermediate industrial waste treatment by Kitakyushu City

***Chubu Recycling Center (Aichi Prefecture, Japan)***

● Specializes in ITAD and material recycling.

● Leased facility of approx. 449 square meters.

● Focused on manual dismantling, high-purity material separation, and secure destruction.

● Security infrastructure includes surveillance cameras, metal detection, pocketless uniforms, and card-based access control, log tracking, and locked cargo.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018

● Specializes in ITAD and material recycling.

● Leased facility of approx. 449 square meters.

***Singapore ITAD Facility***

● Purpose-built for Southeast Asian enterprise clients; smaller in scale but aligned with group quality standards.

● Offers certified data sanitization, physical destruction, and compliant recycling services.

● Certifications: ISO9001:2015, bizSAFE3

**Japanese Environmental Performance and Compliance** 

● Certified CFC recovery ensures the safe treatment of refrigerants in accordance with Japan's fluorocarbon regulations.

● Received a "B" environmental performance rating from the Carbon Disclosure Project (CDP) in 2024. A "B" rating is considered a strong result, signifying that the company is managing its climate-related risks and taking concrete action.

● Certified under the Science Based Targets initiative (SBTi) for greenhouse gas reduction and endorsed the Taskforce on Nature-related Financial Disclosures (TNFD), reinforcing our long-term commitment to sustainability and transparency.

**Industry Overview and Market Opportunity**

Koei operates at the intersection of two dynamic global sectors: resource recycling and asset disposition. Macroeconomic trends, regulatory pressures, rapid digital infrastructure expansion, and technological shifts accelerating critical mineral demand are driving heightened demand for secure, compliant, and sustainable solutions to manage the lifecycle of digital infrastructure, OT systems, and industrial materials. We believe that Koei is positioned to capitalize on accelerating global demand for secure, compliant, and sustainable lifecycle solutions across ITAD, recycling, and professional services.

***Global Resource Recovery and Circular Economy Trends***

As governments and enterprises transition toward sustainable, circular models, there is a growing imperative to minimize waste and reintroduce materials into productive use. According to Grand View Research, rising metal prices and shorter product life cycles of consumer and electronic gadgets are intensifying pressure on ecosystems and supply chains.<sup>1</sup>

In response, regulatory and corporate initiatives are increasingly prioritizing the recovery of high-value secondary raw materials—particularly gold, copper, palladium, and rare earth elements—essential to electronics, renewable energy systems, and advanced manufacturing. We believe that companies like Koei, with expertise in disassembly, sorting, and metal recovery, are critical to this supply chain.

***Rising E-Waste Volumes and End-of-Life Asset Turnover***

The Global E-waste Monitor 2024 reports that 62 million metric tons of e-waste were generated worldwide in 2023, with annual growth exceeding 2 million tons. Less than 20% of this volume is formally collected and recycled. Organizations face mounting challenges managing large inventories of end-of-life assets—ranging from smartphones to industrial control systems—amid increasing scrutiny over data privacy, traceability, and environmental performance. The accelerated deployment of AI, cloud computing, and hyperscale infrastructure is further shortening asset lifecycles, amplifying the need for secure, sustainable ITAD and recycling services.

***Japan's Regulatory Leadership in Waste Management***

Japan is among the most tightly regulated waste management environments globally. Operators must comply with the Waste Management and Public Cleansing Act, Secondhand Goods Business Act, Air and Water Pollution Control Acts, Fire Service Act, and other stringent frameworks that govern licensing, documentation, and environmental safety.

KOEI JAPAN holds waste collection and treatment licenses in 46 of Japan's 47 prefectures (excluding Okinawa) and operates intermediate treatment centers in Yokohama and Kitakyushu. Our streamlined industrial waste disposal service maximizes the recovery of high-value materials, significantly reduces landfill waste, and minimizes environmental impacts—achieving a 100% recycling rate for our primary product: discarded office equipment. Our operations are certified under ISO9001, ISO14001, ISO27001, ISO45001, and R2v3—demonstrating rigorous adherence to global standards. Long-term experience navigating these conditions serves as a strategic asset as we expand internationally.

<sup>1</sup> Grand View Research, 2025, *Metal Recycling: Market Analysis, 2025*

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***Digital Infrastructure Modernization and OTAD***

Digital transformation in sectors such as energy, manufacturing, logistics, and infrastructure is expanding the footprint of OT systems—including supervisory control and data acquisition ("SCADA") components, industrial sensors, programmable logic controllers ("PLCs"), and ruggedized computing hardware.

As legacy systems are replaced with next-generation technologies, there is demand for OT asset disposition ("OTAD") services that combine secure disposition with technical expertise. Conventional ITAD vendors may lack the technical expertise required to support clients with these systems and the environments where they are located. We are developing capabilities and intend to support these markets.

***Tightening Global Regulation and ESG Pressures***

Regulators worldwide are imposing stricter mandates on data protection, environmental performance, and responsible material handling. Enterprises and public institutions face mounting pressure to demonstrate compliance with global frameworks. Koei's licenses, certifications, and operational transparency position us to serve as both a qualified vendor and trusted partner in helping clients meet these evolving obligations.

***Rising Demand for Critical Material Recovery***

Supply chain vulnerabilities and geopolitical instability have made the recovery of critical raw materials—such as gold, copper, palladium, and rare earth elements—a strategic priority. The growth of renewable energy, electric vehicles, and AI-driven systems is amplifying global competition for these inputs.

Koei's material recovery operations help reduce dependence on virgin extraction and directly support customer sustainability, resiliency, and resource security goals aligned with circular economy principles.

***Market Opportunity***  ***in Japan, Southeast Asia and the U.S.***

Japan's ITAD and metals recycling markets are expanding, fueled by industrial modernization, smart infrastructure, and rising sustainability mandates. Together, they represent a significant long-term opportunity to capture value from secure decommissioning of technology assets and the growing demand for recycled metals across key industries.

Southeast Asia is undergoing rapid industrialization, digital infrastructure investment, and regulatory maturation—creating fertile ground for Koei's Japanese operating model. We are expanding in Singapore and Thailand to meet rising institutional demand for secure, auditable, and ESG-aligned recycling and ITAD services.

In the United States, we are shifting towards integrated lifecycle solutions that meet sustainability mandates, data security needs, and regulatory compliance. Koei US provides an established foothold for us to deliver services into a mature but evolving market.

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**Our Solution**

Koei aims to deliver a secure, and sustainable solution for the responsible disposition of end-of-life technology, industrial waste materials, and OT infrastructure. Our integrated platform combines certified recycling, ITAD, OTAD, and professional services to address the evolving needs of enterprise, industrial, and government clients.

***End-to-End Recycling and Material Recovery***

We operate a vertically integrated recycling infrastructure encompassing the collection, dismantling, processing, and resale of recovered raw materials. Our facilities in Japan feature manual disassembly lines, industrial-scale shredders and crushers, and sorters. These capabilities support efficient extraction of materials including precious metals, rare earth elements, and both ferrous and non-ferrous from a wide range of inputs—including IT devices, OA equipment, home appliances, and industrial machinery. By maximizing recovery yield and purity, we help reduce global dependence on virgin materials while advancing corporate and national circular economy objectives.

***Secure ITAD and OTAD Services***

Our ITAD platform provides full-spectrum, audit-ready services for end-of-life IT assets, including:

● Certified data erasure;

● On-site and off-site physical destruction;

● Resale of qualified assets; and

● R2v3-compliant downstream recycling.

All operations align with ISO27001 for information security. In Japan, we operate mobile shredding units that offer secure, customer-facing destruction at the point of origin—delivered via a specially equipped Isuzu ELF 4-ton truck. This service aims to enhance trust, eliminate transport risks, and is designed for urban mobility. We plan to scale this ITAD business model across the Southeast Asia region by expanding existing ITAD business in Singapore and setting up new ITAD center in Thailand within a few years.

In the United States, we are building OTAD capabilities intended to securely decommission OT environments such as SCADA systems, PLCs, and ruggedized computing devices. Our OTAD processes will be aligned with industry standards and best practices.

We believe that this positions us to be a leading provider able to meet stringent data protection and infrastructure risk standards in critical industries.

 

***Licensed Industrial Waste Management***

In Japan, we offer fully certified collection, transport, and intermediate treatment of regulated industrial waste through KOEI JAPAN. Our services are licensed in 46 prefectures and supported by certifications including ISO9001, ISO14001, ISO45001, and R2v3. We process diverse waste streams—including IT, industrial machinery, and dismantled appliances—under a compliance-driven framework optimized for auditability and environmental stewardship. Our certified CFC recovery operations ensure safe handling of refrigerants and hazardous materials, aligned with national fluorocarbon control regulations.

***Professional Services***

Koei US currently provides professional services to clients in the energy, manufacturing, and industrial sectors. Our offerings currently include:

● Project and discipline engineering;

● Technology enabled digital services;

● Systems integration;

● Operations and business consulting; and

● Strategic advisory for modernization.

As we grow internationally, the intent is to add these professional service capabilities in other markets, where there is demand for infrastructure development and ESG-aligned modernization.

Our professional services use industry best practices and are intended to support digital infrastructure, OT systems, and production and manufacturing environments. By integrating these services with physical asset disposition and recycling, we are delivering a full-lifecycle offering—from strategic planning to execution and compliance assurance.

We believe that these knowledge-based services complement our asset disposition services by providing strategic guidance to customers navigating digital transformation, infrastructure modernization, and sustainability initiatives.

***Technology Enabled Digital Services***

We are exploring proprietary technologies that build on decades of field experience across recycling, ITAD, and operations. Our innovation strategy focuses on:

● Operational and process automation tools and systems utilizing AI;

● Enhanced environmental and data security; and

● New commercial applications in resource recovery and infrastructure lifecycle management.

These initiatives are designed to strengthen scalability, improve customer value, and support long-term competitive differentiation in global circular economy and digital infrastructure markets.

**Key Benefits to Customers**

Koei provides enterprise, government, and industrial clients with an integrated, end-to-end platform for secure, compliant, and sustainable management of technology assets, OT systems, and industrial waste. Bundled solutions help customers reduce risk, meet regulatory and ESG requirements, and enhance operational efficiency throughout the asset lifecycle.

***Comprehensive Lifecycle Solutions***

By delivering a broad range of capabilities—from decommissioning and data erasure to material recovery, industrial waste treatment, and professional services we seek to simplify vendor management, reduce total cost of ownership, and improve service for our customers.

***Secure Data Destruction and Regulatory Assurance***

Our services comply with globally recognized standards, including:

● ISO27001 – Information Security;

● ISO9001 – Quality Management;

● ISO14001 – Environmental Management;

● ISO45001 – Occupational Health and Safety; and

● R2v3 – Responsible Recycling.

We offer certified data erasure, auditable chain-of-custody protocols, and secure physical destruction, helping clients safeguard sensitive data and meet jurisdiction-specific privacy, ESG, and environmental disclosure obligations.

These frameworks aim to provide additional assurance to infrastructure operators and regulated industries managing complex digital and physical transitions.

 ***OT Asset Management***

Through Koei US, we offer OT asset management services tailored to operational infrastructure—such as SCADA systems, PLC networks, and ruggedized computing hardware—across sectors like energy, manufacturing, and utilities. We believe that our combined technical and regulatory expertise allows us to manage assets that may be beyond the scope of conventional ITAD providers, reducing customer risk in highly regulated or mission-critical environments.

***Professional***  ***Services***

Koei US's professional services team provides strategic and technical advisory support for operating environments, infrastructure modernization, and digital transformation projects. We believe that these knowledge-based services complement our physical asset recovery offerings, enabling us to support clients through planning, execution, and compliance.

***Sustainability and Circular Economy Enablement***

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Our recycling and ITAD operations help clients meet their sustainability and net-zero goals by:

● Diverting materials from landfill;

● Reducing scope 3 emissions;

● Recovering critical raw materials;

● Enabling reuse through refurbishment; and

● Providing auditable ESG documentation through internationally recognized reporting frameworks.

We also support closed-loop recovery programs and resource efficiency mandates for multinational clients, public-sector agencies, and infrastructure operators.

**Competition and Competitive Strengths**

There are many competitors, from large companies to new entrants in our industry. Price competition with other companies in the same industry is considered to exist in every country, and price competition is essential for ITAD and materials. In Japan, our main competitors are the following three companies, but we seek to differentiate ourselves through our permits, certification standards, and environmental measures and have built a strong customer base.

● Japan System Care Co., Ltd. is engaged in the ITAD business and reuse business.

● Broadlink Co., Ltd is engaged in the ITAD business and reuse business.

● Matsuda Sangyo Co., Ltd. is engaged in the precious metals and foods businesses.

We believe that Koei is uniquely positioned at the nexus of sustainability, digital transformation, and infrastructure modernization. We believe that our integrated platform, regulatory credibility, and technical capabilities distinguish us from both regional recyclers and global ITAD or professional services incumbents.

 

***Leadership in One of the World's Most Stringent Regulatory Markets***

Our operations in Japan—a country with some of the strictest environmental and industrial waste regulations globally—demonstrate deep compliance expertise and institutional discipline. We maintain licenses in 46 of 47 prefectures, operate certified intermediate treatment facilities, and consistently pass rigorous inspections. We believe that this track record validates our ability to operate under high scrutiny and positions us to scale responsibly in other complex jurisdictions.

 

***Integrated Full-Lifecycle Platform***

Koei is a provider that can globally offer end-to-end services across:

● ITAD and OTAD;

● Material recovery and resale;

● Industrial waste collection and treatment; and

● Professional services.

We believe that this breadth enables us to serve as a single-source partner for clients requiring secure asset disposition, ESG compliance, and infrastructure modernization. Our bundled model delivers operational efficiency and customer value not available through fragmented or single-service vendors.

 ***OT Asset Lifecycle Management***

Through Koei US, we provide asset management services for OT systems such as SCADA systems, PLC networks, and industrial automation equipment. Managing these assets often requires specialized expertise, protocols, and on-site capabilities that are may be outside the scope of traditional IT asset services. Our experience in these areas allows us to support the full lifecycle of OT infrastructure, positioning us as a reliable partner for energy, manufacturing, and industrial operators.

***Scalable, Discipline-Based International Growth Strategy***

We are exporting our proven Japanese operating model—characterized by its rigor, thorough documentation, and strong compliance standards—into Southeast Asia and North America. This model adapts to local frameworks while maintaining global service quality and audit standards. Our strategic and methodical expansion is designed to preserve margins, mitigate risk, and unlock sustainable growth opportunities across maturing asset disposition and industrial recycling markets.

 

**Growth Strategies**

Koei is focused on disciplined international expansion, margin-enhancing service integration, and innovation to capture long-term demand for secure, compliant, and sustainable asset disposition, material recycling, and professional services. Our strategy is built around proven operational foundations, scalable infrastructure, and targeted investment in growth markets.

***Expand Our International Footprint with a Focus on Southeast Asia and North America***

We are aiming to scale our Japanese operating model— characterized by strict regulatory compliance, operational transparency, and a commitment to ESG principles—into geographies undergoing rapid industrial and digital transformation.

● *Japan*: We established EPJ CO., LTD. in 2025 to expand our industrial waste treatment capacity and plan to launch a new ITAD center in the Kansai region to support domestic growth.

● *Singapore*: We are evaluating mergers or acquisitions of local recyclers to accelerate market penetration and infrastructure scale.

● *Thailand*: Through Hidaka Koei (Thailand) Co., Ltd., we plan to construct a dedicated ITAD center in the Sirachah region and are exploring strategic alliances with major domestic recycling firms.

● *United States*: Koei US enables entry into North America. We offer professional services and will look to establish operations supporting asset disposition market as well as technology enabled digital services.

***Scale OTAD Capabilities***

Through Koei US, we are pursuing OT service offerings that serve sectors with complex industrial systems, including:

● Energy;

● Utilities; and

● Manufacturing.

Our goal is to be a leader in these segments of our business by integrating secure decommissioning, professional services, and compliance with industry standard cybersecurity and infrastructure risk frameworks. We believe that OTAD has the potential to be an under-addressed category that complements our core recycling and ITAD operations.

***Deepen Customer Engagement Through Cross-Selling and Bundled Solutions***

We are seeking to enhance customer value and wallet share by offering bundled, lifecycle-oriented service packages that combine:

● Material recycling;

● ITAD and OTAD;

● Industrial waste management; and

● Professional services.

We believe that this approach allows us to serve as a single-source provider for customers navigating infrastructure modernization, ESG targets, and end-of-life compliance challenges.

***Expand Industrial Waste Management Capacity and Efficiency***

Through EPJ CO., LTD., we are enhancing our industrial waste operations in Japan by:

● Expanding intermediate treatment capacity;

● Optimizing transportation and logistics; and

● Deploying mobile processing units, including secure on-site shredding vehicles.

We believe that these improvements will increase throughput, improve client coverage, and support margin stability through greater operational leverage.

***Pursue Strategic Acquisitions and Partnerships***

We are actively evaluating selective acquisitions and alliances to strengthen our platform. Focus areas include:

● ITAD and recycling providers in target markets;

● Professional and operational service firms; and

● Adjacent verticals such as industrial or medical waste management.

Our M&A strategy is guided by operational and financial discipline, with a focus on cultural fit, regulatory readiness, and synergies that support our platform's long-term scalability.

***Expand***  ***Margin Profile Through Professional Services***

We aim to continue scaling our professional services—currently supported by Koei US—in the U.S. and may phase into Japan and Southeast Asia in time. These services may include:

● Project and discipline engineering;

● Technology enabled digital services;

● Systems integration; and

● IT/OT modernization consulting.

We believe that these engagements can provide revenue, increase retention, and position Koei as a lifecycle partner rather than a commodity vendor.

***Develop Technology Enabled Digital Services to Support Scalability and Competitive Advantage***

We are exploring the development of proprietary tools and platforms to improve:

● Asset handling, classification, and tracking;

● Automation of recycling and data destruction workflows; and

● Operational and process data and workflow management.

These efforts will be designed to support scalability, protect margins, and create defensible advantages in an increasingly digital and compliance-driven asset lifecycle market.

**Our Customers**

Koei serves a diverse and expanding customer base that includes multinational corporations, public-sector entities, infrastructure operators, and industrial enterprises. Our integrated platform—spanning recycling, ITAD, industrial waste management, and professional services—allows us to address complex, evolving customer needs across geographies and industries.

We operate primarily under a Business-to-Business (B2B) model, serving organizations that prioritize regulatory compliance, data security, and environmental stewardship. While our current focus is institutional, we are evaluating future service models to reach individual consumers through mobile or digital offerings.

***Large Enterprises and Multinational Corporations***

We provide end-to-end lifecycle solutions to large enterprises and multinational corporations across:

● Finance and insurance;

● Energy and utilities;

● Manufacturing and industrial automation;

● Technology and telecommunications; and

● Logistics and supply chain.

***Public Sector and Government Agencies***

We serve municipal and national entities managing sensitive IT assets and regulated waste. We believe that our track record of compliance, chain-of-custody integrity, and ISO/R2v3 credentials make us a trusted partner for mission-critical projects—particularly in Japan, where we hold licenses in 46 prefectures.

 

***Infrastructure Operators and Industrial Enterprises***

Through our professional services capabilities, we can serve utilities, industrials, manufacturing, and logistics operators undergoing infrastructure modernization with secure decommissioning and upgrades of SCADA systems, PLCs, ruggedized computing, and legacy control equipment—delivered with technical assurance and regulatory alignment.

***Data Centers and Cloud Infrastructure Providers***

We can support hyperscale and enterprise data centers with:

● ITAD;

● On-site or off-site data destruction;

● Certified downstream recycling; and

● Critical material recovery.

This is expected to be a growing segment for Koei, especially in regions like Texas and Southeast Asia where AI and cloud infrastructure are scaling.

 

 

***Small and Medium-Sized Enterprises (SMEs)***

In Japan, we support SMEs through mobile shredding units and modular service offerings. These solutions enable on-site secure data destruction and flexible recycling for clients with lower volume but high compliance needs. We plan to expand similar service formats into Singapore and Thailand.

***Customer Acquisition and Digital Marketing***

We leverage performance-driven digital marketing strategies across key regions. Between August 2023 and July 2024:

● Japan: Generated 46,199 website clicks and 120 customer orders.

● Singapore: Generated 5,995 clicks and 111 customer orders.

Our campaigns focus on high-conversion landing pages and targeted search advertising. We continue to refine our digital strategy to cost-effectively grow demand and conversion in high-priority regions.

***Material Sourcing***

Our material inputs are sourced from a wide range of upstream channels:

● 45% from home appliance recycling facilities;

● 26% from manufacturers;

● 20% from IT and telecommunications companies;

● 7% from leasing companies; and

● 2% from government agencies and institutional sources.

This diversified sourcing ensures consistent volumes, pricing resilience, and alignment with customer ESG and compliance priorities.

**Reliance on Copper in Our Recycling Operations**

A substantial portion of our material throughput and recycling revenue remains concentrated in copper and copper-based materials. For the fiscal year ended February 28, 2026, copper and copper-containing inputs accounted for approximately 79.4% of the total materials processed. The remaining material mix comprised circuit boards (13.0%), aluminum (4.7%), iron (1.8%), and other materials (1.1%), with such other materials including stainless steel, batteries, special metals, recycled paper, plastics, and waste oil. Within our copper processing operations in the fiscal year ended February 28, 2026, primary copper-related input categories included motors (26.9%), radiators (19.1%), raw copper (21.9%), miscellaneous copper-containing items (5.4%), and electric wires (6.1%). A notable element of our processing is the "black motor" separation technique: approximately 26.9% of our copper recovery is derived from dismantling metal casings to extract internal copper windings, a process that also yields residual aluminum, iron, and other metals. We have continued and expect to continue this reliance on copper for the fiscal year ended February 28, 2027.

Our recycled metals, including copper and other recovered metals, are sold directly to smelters and refiners, feeding back into the global metals supply chain. As such, our business is directly connected to and influenced by the global supply, demand, and pricing dynamics for copper and other base and precious metals. Given the significant role of copper in our business, global market trends in copper demand, supply constraints, production, and pricing are of central importance to our operations and results.

For a detailed description of our reliance on copper in our recycling operations, see "*Description of Business— Reliance on Copper in Our Recycling Operations" on page 74 of this prospectus.*

**Implications of Being an Emerging Growth Company and a Foreign Private Issuer**

We are an "emerging growth company", as defined in Section 2(a) of the Securities Act of 1933, as amended (which we refer to as the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (which we refer to as the "JOBS Act"). As such, we are eligible to take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to reporting companies that make filings with the U.S. Securities and Exchange Commission (which we refer to as the "SEC"). For so long as we remain an emerging growth company, we will not be required to, among other things:

● present more than two years of audited financial statements and two years of related selected financial data and management's discussion and analysis of financial condition and results of operations disclosure in our registration statement of which this prospectus forms a part;

● have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 (which we refer to as the "Sarbanes-Oxley Act");

● disclose certain executive compensation related items; and

● seek shareholder non-binding advisory votes on certain executive compensation matters and golden parachute arrangements, to the extent applicable to our Company as a foreign private issuer.

The JOBS Act also permits emerging growth companies to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBS Act. This election allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result, our financial statements may not be comparable to companies that comply with public company effective dates.

We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year following the fifth anniversary of the completion of this offering, (ii) the last day of the fiscal year during which we have total annual gross revenue of at least US$1.235 billion, (iii) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended (which we refer to as the "Exchange Act"), which means the market value of our common shares that are held by non-affiliates exceeds US$700.0 million as of the last business day of our most recently completed second fiscal quarter, and (iv) the date on which we have issued more than US$1.0 billion in non-convertible debt during the prior three- year period.

In addition, we report in accordance with SEC rules and regulations applicable to a "foreign private issuer." As a foreign private issuer, we will take advantage of certain provisions under the rules that allow us to follow the laws of Japan for certain corporate governance matters. Even when we no longer qualify as an emerging growth company, as long as we continue to qualify as a foreign private issuer under the Exchange Act, we will be exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including:

● the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations with respect to a security registered under the Exchange Act;

● the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, and current reports on Form 8-K upon the occurrence of specified significant events; and

● Regulation Fair Disclosure (which we refer to as "Regulation FD"), which regulates selective disclosures of material information by issuers.

As a foreign private issuer, we have four months after the end of each fiscal year to file our annual report on Form 20-F with the SEC. In addition, our executive officers, directors, and principal shareholders are exempt from the requirements to report transactions in our equity securities and from the short-swing profit liability provisions contained in Section 16 of the Exchange Act.

Foreign private issuers, like emerging growth companies, are exempt from certain more stringent executive compensation disclosure rules. As such, even when we no longer qualify as an emerging growth company, as long as we continue to qualify as a foreign private issuer under the Exchange Act, we will continue to be exempt from the more stringent compensation disclosures required of public companies that are not a foreign private issuer.

We may take advantage of these exemptions until such time as we are no longer a foreign private issuer. We are required to determine our status as a foreign private issuer on an annual basis at the end of our second fiscal quarter. We would cease to be a foreign private issuer at such time as more than 50% of our outstanding voting securities are held by U.S. residents and any of the following three circumstances applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 majority of our executive officers or directors are U.S. citizens or residents;

(ii) more
 than 50% of our assets are located in the United States; or

(iii) our
 business is administered principally in the United States.

In this prospectus, we have taken advantage of certain of the reduced reporting requirements as a result of being an emerging growth company and a foreign private issuer. Accordingly, the information that we provide in this prospectus may be different than the information you may receive from other public companies in which you hold equity interests. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

**Corporate Information**

Koei Group Co., Ltd. ("Koei") was incorporated under the laws of Japan on August 8, 2024, under the name DARINGATE CO., LTD., and changed its name to the current name on May 8, 2025. Our agent for service of process in the United States is Robert Wagner, our Chief Business Officer, at Koei US, Inc. located at 7001 I-10, Unit 110, San Antonio, Texas 78213. Our principal executive office is located at 2-16-3 Konan, Minato-ku, Tokyo 108-0075, Japan. Our telephone number is +81-3-3450-0581. Our website address is https://koeigrp.com/. Information contained on, or accessible through, our website is not incorporated by reference into this prospectus, and you should not consider it part of this prospectus. The address of our website is included in this prospectus for informational purposes only.

**THE OFFERING**

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| | |
|:---|:---|
| Issuer: | Koei Group Co., Ltd. |
| Securities offered by us: | [______] common shares (up to [______] shares if the underwriters exercise their over-allotment option in full) based on an assumed initial public offering price per share is US$[____], the low-end of the anticipated price range. |
| Public offering price: | For purposes of this prospectus, the assumed initial public offering price per common share is US$[____] (which is the low-end of the price range set forth on the cover page of this prospectus). The actual offering price per common share will be as determined between the underwriters and us based on market conditions at the time of pricing. Therefore, the assumed public offering price used throughout this prospectus may not be indicative of the final offering price. |
| Over-allotment option: | We have granted to the underwriters an option to purchase up to an additional [______] common shares (15% of the number of common shares sold in this offering) exercisable solely to cover over-allotments, if any, at the applicable public offering price less the underwriting discounts and commissions shown on the cover page of this prospectus. The underwriters may exercise this option in full or in part at any time and from time to time until 45 days after the date of this prospectus. |
| Common shares outstanding before this offering: | 8,580,000 common shares<sup>(1)</sup> |
| Common shares expected to be outstanding immediately after this offering: | [___________] common shares (or [_________] common shares if the underwriters exercise in full their option to purchase additional common shares). |
| Representative's Warrants | The registration statement of which this prospectus is a part also registers for sale warrants to purchase [________] common shares (5.0% of the common shares sold in this offering) to be issued to Roth Capital Partners, LLC as Representative of the underwriters (referred to in this prospectus as the Representative) and/or its affiliates (or warrants to purchase [________] common shares if the underwriters exercise the over-allotment option in full) and the common shares issuable upon exercise of such warrants, as a portion of the underwriting compensation payable in connection with this offering. The Representative's Warrants will be exercisable at any time, and from time to time, in whole or in part, commencing from the closing of the offering and expiring five (5) years from the effectiveness of the registration statement, at an exercise price of US$[____] (110% of the assumed public offering price of the common shares). Please see "*Underwriting— Representative's Warrants*" for a description of these warrants. |
| Use of proceeds: | We expect to receive net proceeds from this offering of approximately US$[__________] (or approximately US$[__________] if the underwriters exercise the over-allotment option in full) after deducting estimated underwriting discounts and commissions of US$[______] (7.0% of the gross proceeds of the offering) (or approximately US$[______] if the Representative exercises in full its over-allotment option) and after our offering expenses, estimated at US$[___]. We intend to use the net proceeds from this offering to fund (i) strategic expansion initiatives, including potential acquisitions of complementary businesses in Japan and international markets, in order to strengthen our operational footprint, customer base, and technological capabilities, (ii) capital expenditures, including the purchase of recycling and processing equipment, automation upgrades, and the lease or purchase of facilities to support our growth in Japan and international markets and (iii) general corporate purposes, including personnel expansion, administrative infrastructure, and working capital. See "*Use of Proceeds*." |

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| | |
|:---|:---|
| Risk factors: | See "*Risk Factors*" beginning on page 20 of this prospectus for a discussion of some of the factors you should carefully consider before deciding to invest in our common shares. |
| Listing: | We have applied to list our common shares on the Nasdaq under the symbol "KOEI" upon our satisfaction of Nasdaq's initial listing criteria, including the completion of this offering. If we do not meet all of Nasdaq's initial listing criteria, we will not complete this offering. |
| Lock-Ups: | We, all of our directors and officers, and holders of our outstanding securities (or securities convertible into our common shares) have agreed not to offer for sale, issue, sell, contract to sell, pledge or otherwise dispose of any of our common shares or securities convertible into common shares without the prior written consent of the Representative for a period of six (6) months from the date on which the trading of the common shares on the Nasdaq commences, subject to certain limited exceptions. See "*Underwriting—Lock-Up Agreements*." |
| Dividend policy: | Although we have paid annual dividends to shareholders in the past, following our public offering, the payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on many factors on which the common shareholders or directors may determine not to do so. |

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(1) Unless we indicate otherwise, all information in this prospectus:

● is based on 8,580,000 common shares issued and outstanding as of June 29, 2026;

● assumes no exercise by the Representative of its option to purchase up to an additional [_______] common shares to cover over-allotments, if any;

● excludes the number of common shares underlying 171,600 stock acquisition rights (with an exercise price of ¥1 (US$0.01) per common share) equal to 2% of the issued and outstanding common shares on a fully diluted basis as of the day prior to the successful listing on the Nasdaq, subject to adjustment as provided in the stock acquisition rights agreement; and

● excludes [______] common shares underlying the warrants to be issued to the Representative and/or its affiliates in connection with this offering (assuming the underwriters exercise the over-allotment option in full).

**SUMMARY OF RISK FACTORS**

Below is a summary of material risks, uncertainties and other factors that could have a material effect on the Company and its operations:

● We are a holding company and depend upon our operating subsidiaries for our cash flows.

● Our ability to raise capital in the future may be limited, and our failure to raise capital when needed could prevent us from growing.

● There is a risk that we will be a passive foreign investment company (which we refer to as "PFIC") for the current or any future taxable year, which could result in material adverse U.S. federal income tax consequences if you are a U.S. holder.

● It may not be possible for investors to effect service of process within the United States upon most our directors, corporate auditors and executive officers, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal securities laws of the United States.

● Emerging technologies or materials could render certain recycling methods ineffective or obsolete.

● Variations in the quality or composition of collected materials can impact the efficiency of recycling and resource recovery.

● Handling and dismantling complex equipment may lead to inefficiencies or delays.

● Fluctuations in the market value of recovered metals and other materials can impact profitability.

● Failure to meet customer expectations in consultations, appraisals, or recycling processes may lead to loss of business.

● The presence of other recycling companies with lower costs or more advanced technologies can erode market share.

● The Company's operations involve the secure erasure, destruction, and disposal of sensitive customer data, making data security a critical component of its business.

● Managing the dismantling, recycling, and disposal of diverse IT assets poses operational challenges that could disrupt the Company's services.

● The ITAD industry is highly competitive, with other service providers offering cost-effective or technologically superior solutions.

● The Company's activities, including the handling of hazardous materials such as mercury, batteries, and plastics, pose significant environmental risks.

● The Company's reliance on a combination of manual and mechanized processes, including large crushers and shredders, introduces operational vulnerabilities.

● The collection and transportation of industrial waste across 46 prefectures (excluding Okinawa) introduce logistical challenges and risks.

● Even if the common shares are listed on the Nasdaq, there can be no assurance that we will be able to comply with the Nasdaq's continued listing standards.

● The price of our common shares could be subject to rapid and substantial volatility.

● The price of the common shares may fluctuate substantially.

● Management will have broad discretion as to the use of the proceeds from this offering, and we may not use the proceeds effectively.

● If the voting power of our capital stock continues to be highly concentrated, it may prevent you and other minority shareholders from influencing significant corporate decisions and may result in conflicts of interest.

● We may incur significant taxation from an investigation by the tax authority in Japan.

● We may face restrictions on foreign investment related to Foreign Exchange and Foreign Trade Act in Japan.

**RISK FACTORS**

***An investment in the common shares is highly speculative and involves a high degree of risk. We operate in a dynamic and rapidly changing industry that involves numerous risks and uncertainties. You should carefully consider the factors described below, together with all of the other information contained in this prospectus, including the audited financial statements and the related notes included in this prospectus, before deciding whether to invest in the common shares. These risk factors are not presented in the order of importance or probability of occurrence. If any of the following risks actually occur, our business, financial condition and results of operations could be materially and adversely affected. In that event, the market price of the common shares could decline, and you could lose part or all of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section entitled "Cautionary Note Regarding Forward-Looking Statements."***

**General Risks Related to our Business**

***We are a holding company and depend upon our operating subsidiaries for our cash flows.***

We are a Japanese holding company engaged in the resource recycling business through our direct and indirect operating subsidiaries KOEI JAPAN CO., LTD. (formerly Koei Shoji Co., Ltd.), a Japanese corporation, KOEISING PTE. LTD. (formerly DARINGATE PTE. LTD.), a Singaporean corporation, Hidaka Koei (Thailand) Co., Ltd. (formerly KOEI (THAILAND) CO., LTD.), a Thai corporation, Koei US, Inc. (formerly Nufika LLC), a Texas corporation and EPJ CO., LTD., a Japanese corporation. As a holding company incorporated under Japanese law with no material operations of its own, the Company's operations have been conducted by its subsidiaries. Consequently, our cash flows and our ability to meet our obligations depend upon the cash flows of our operating subsidiaries and the payment of funds by these operating subsidiaries to us in the form of dividends, distributions or otherwise. The ability of our operating subsidiaries to make any payments to us depends on their earnings, the terms of their indebtedness, including the terms of any credit facilities and legal restrictions. Any failure to receive dividends or distributions from our operating subsidiaries when needed could have a material adverse effect on our business, results of operations or financial condition.

 ****

***Our ability to raise capital in the future may be limited, and our failure to raise capital when needed could prevent us from growing.***

Our business and operations may consume resources faster than we anticipate. In the future, we may need to raise additional funds to invest in future growth opportunities. Additional financing may not be available on favorable terms, if at all. If adequate funds are not available on acceptable terms, we may be unable to invest in future growth opportunities, which could seriously harm our business and operating results. If we incur debt, the debt holders would have rights senior to common shareholders to make claims on our assets, and the terms of any debt could restrict our operations, including our ability to pay dividends on our common shares. Furthermore, if we issue equity securities, shareholders will experience dilution, and the new equity securities could have rights senior to those of our common shares. Any additional equity or equity-linked financings would be dilutive to our shareholders. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. As a result, our shareholders bear the risk of our future securities offerings reducing the market price of our common shares and diluting their interest.

***There is a risk that we will be a passive foreign investment company (which we refer to as "PFIC") for the current or any future taxable year, which could result in material adverse U.S. federal income tax consequences if you are a U.S. holder.***

A non-U.S. corporation, such as our Company, is classified as a PFIC for any taxable year in which, after applying relevant look-through rules with respect to the income and assets of its subsidiaries, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 50% or more of the value of the corporation's assets either produce passive income or are held for the production of passive income, based on the quarterly average of the fair market value of such assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at least 75% of the corporation's gross income is passive income. "Passive income" generally includes, for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions. In determining the value and composition of our assets, the cash we raise in this offering will generally be considered to be held for the production of passive income and thus will be considered a passive asset.

The determination of whether a corporation is a PFIC for a taxable year depends, in part, on the application of complex U.S. federal income tax rules that are subject to differing interpretations. In addition, the determination of whether a corporation will be a PFIC for any taxable year can only be made after the close of such taxable year. Our PFIC status will depend, in part, on the amount of cash that we raise in this offering and how quickly we utilize the cash in our business. Furthermore, because we may value our goodwill based on the market price of the common shares in this offering, a decrease in the market price of the common shares may also cause us to be classified as a PFIC for the current or any future taxable year. Based upon the foregoing, it is uncertain whether we will be a PFIC for our current taxable year or any future taxable year. We believe we were not a PFIC in prior taxable year 2024 because less than 75% of our gross income was passive income and less than 50% of the average value of our assets consisted of assets that would produce passive income in 2024.

If we are a PFIC for any taxable year during which a U.S. holder (as defined below) owns common shares, certain adverse U.S. federal income tax consequences could apply to such U.S. holder. See "*Certain Tax Considerations — Certain U.S. Federal Income Tax Considerations for U.S. Holders*" for further information. We have not determined, if we were to be classified as a PFIC for a taxable year, whether we will provide information necessary for a U.S. holder to make a "qualified electing fund" election which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs. Accordingly, U.S. holders should assume that they will not be able to make a qualified electing fund election with respect to the common shares. The PFIC rules are complex, and each U.S. holder should consult its own tax advisor regarding the PFIC rules, the elections which may be available to it, and how the PFIC rules may affect the U.S. federal income tax consequences relating to the ownership and disposition of our common shares.

***It may not be possible for investors to effect service of process within the United States upon all of our directors (except for Robert Wagner, Maki Wagner, and Ferdinand Groenewald), corporate auditors, and executive officers, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal securities laws of the United States.***

We are a joint stock corporation organized under Japanese law. All of our directors, corporate auditors and executive officers reside in Japan, except for (i) Robert Wagner, (ii) Maki Wagner and (iii) Ferdinand Groenewald, who we intend to appoint as an independent director effective upon the successful listing of our common shares on the Nasdaq and who resides in the United States, and significantly all of our assets and the assets of such persons are located outside of the United States. As a result, it may not be possible for investors to effect service of process within the United States upon these persons or us, or to enforce against them or us judgments obtained in U.S. courts, whether or not predicated upon the civil liability provisions of the federal securities laws of the United States or of the securities laws of any state of the United States. There is doubt as to the enforceability in Japan, either in original actions or in actions for enforcement of judgments of U.S. courts, of civil liabilities predicated solely on the federal securities laws of the United States or the securities laws of any state of the United States. A Japanese court may refuse to apply provisions of U.S. securities laws in original actions, or to enforce judgments of U.S. courts that are based on such provisions, if it considers such provisions to be contrary to the public policy of Japan. The United States and Japan do not currently have a treaty providing for reciprocal recognition and enforcement of judgments, other than arbitration awards, in civil and commercial matters, and a Japanese court may deem that there is not sufficient basis for the reciprocity on the enforcement of judgments. Therefore, if you obtain a civil judgment by a U.S. court, you may not be able to enforce it in Japan.

***Rights of shareholders under Japanese law may be different from rights of shareholders in other jurisdictions.***

Our articles of incorporation and the Companies Act of Japan (which we refer to as the "Companies Act") govern our corporate affairs. Legal principles relating to matters such as the validity of corporate procedures, directors' fiduciary duties and obligations, and shareholders' rights under Japanese law may be different from, or less clearly defined than, those that would apply to a company incorporated in any other jurisdiction. Shareholders' rights under Japanese law may not be as extensive as shareholders' rights under the laws of other countries. For example, under the Companies Act, only holders of 3% or more of our total voting rights or our outstanding shares are entitled to examine our accounting books and records. Furthermore, there is a degree of uncertainty as to what duties the directors of a Japanese joint stock corporation may have in response to an unsolicited takeover bid, and such uncertainty may be more pronounced than that in other jurisdictions.

As a foreign private issuer, we will follow Japanese law and corporate practice in lieu of the corporate governance provisions set out under Nasdaq Rule 5600, the requirement in Nasdaq Rule 5250(b)(3) to disclose third party director and nominee compensation, and the requirement in Nasdaq Rule 5250(d) to distribute annual and interim reports. Of particular note, the following rules under Nasdaq Rule 5600 are exempt from Japanese law requirements:

● Nasdaq Rule 5605(b)(1) requires that at least a majority of a listed company's board of directors be independent directors. Under our current corporate structure, the Companies Act does not require independent directors.

● Nasdaq Rule 5605(c)(2)(A) requires a listed company to have an audit committee composed entirely of not less than three directors, each of whom must be independent. Under Japanese law, a company may have a statutory auditor or a board of auditors. We have a three-member Board of Corporate Auditors, each member of which will meet the requirements of Rule 10A-3 under the Exchange Act. See "*Management* — *Board of Corporate Auditors*" below for additional information.

● Nasdaq Rule 5605(d) requires, among other things, that a listed company's compensation committee be comprised of at least two members, each of whom is an independent director as defined under such rule. Our board of directors will collectively participate in the discussions and determination of compensation for our executive and directors (subject to the maximum aggregate compensation amount resolved by our shareholders meetings), and other compensation related matters. Likewise, our corporate auditors discuss and determine compensation of each corporate auditor (subject to the maximum aggregate compensation amount resolved by our shareholders meetings) without involvement of our board of directors.

● Nasdaq Rule 5605(e) requires that a listed company's nomination and corporate governance committee be comprised solely of independent directors. Our board of directors will not have a standalone nomination and corporate governance committee. Our board of directors will collectively participate in the nomination process of potential directors and corporate auditors (in the cases of corporate auditors, consent of board of corporate auditors is required) and oversee our corporate governance practices.

● Nasdaq Rule 5620(c) provides a one-third quorum requirement applicable to shareholder meetings. In accordance with Japanese law and generally accepted business practices, our articles of incorporation provide that there is no quorum requirement for a general resolution of our shareholders. However, under the Companies Act and our articles of incorporation a quorum of not less than one-third or more of the total number of voting rights is required in connection with the election of directors, corporate auditors and certain other matters.

The Company intends to avail itself of these exemptions. More specifically, the Company will not have a compensation committee or a nominating and corporate governance committee. Therefore, for as long as the Company remains a "foreign private issuer," the Company will not have the same protections afforded to shareholders of companies that are subject to all of these corporate governance requirements.

In the event that we cease to be a "foreign private issuer" under the rules of the Nasdaq and our common shares continue to be listed on the Nasdaq, the Company's board of directors will take all action necessary to comply with the corporate governance rules of the Nasdaq, including, but not limited to, establishing certain committees composed entirely of independent directors, subject to a permitted "phase-in" period.

***Substantially all of our revenues are generated in Japan, but an increase of our international presence could expose us to fluctuations in foreign currency exchange rates, or a change in monetary policy may harm our financial results.***

Our functional currency is Japanese yen and reporting currency is the US dollar. Substantially all of our revenues are generated in Japan, but we adopted the US dollar as our reporting currency. We are exposed to fluctuations in the foreign currency exchange rate. We are subject to the effects of exchange rate fluctuations with respect to any of these currencies which, among other factors, may be influenced by governmental policies and domestic and international economic and political developments. Any significant change in the value of the currencies of the countries in which we do business against the Japanese yen could adversely affect our financial condition and results of operations due to translational and transactional differences in exchange rates.

We cannot predict the effects of exchange rate fluctuations upon our future operating results because of the number of currencies involved, the amount of our revenues that will be generated in other countries, the variability of currency exposures, and the potential volatility of currency exchange rates. We do not take any actions to manage our foreign currency exposure, such as entering into hedging transactions.

***As a "foreign private issuer" we are permitted, and intend, to follow certain home country corporate governance and other practices instead of otherwise applicable SEC and the Nasdaq requirements, which may result in less protection than is accorded to investors under rules applicable to domestic U.S. issuers.***

Our status as a foreign private issuer exempts us from compliance with certain SEC laws and regulations and certain regulations of the Nasdaq, including certain governance requirements such as independent director oversight of the nomination of directors and executive compensation. Further, consistent with corporate governance practices in Japan, we do not have a standalone compensation committee or nomination and corporate governance committee under our board. In addition, we are not required under the Exchange Act to file current reports and financial statements with the U.S. Securities and Exchange Commission (which we refer to as the "SEC") as frequently or as promptly as U.S. domestic companies whose securities are registered under the Exchange Act and we are generally exempt from filing quarterly reports with the SEC. Also, we are not required to provide the same executive compensation disclosures regarding the annual compensation of our five most highly compensated senior executives on an individual basis as are required of U.S. domestic issuers. As a foreign private issuer, we are permitted to disclose executive compensation on an aggregate basis and need not supply a Compensation Discussion & Analysis, as is required for domestic companies. Furthermore, as a foreign private issuer, we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. These exemptions and accommodations will reduce the frequency and scope of information and protections to which you are entitled as an investor. For a detailed description of our home country corporate governance practices see "*Management - Foreign Private Issuer Status"* on page 87 *of this prospectus.*

***As an "emerging growth company" under the JOBS Act, we are permitted to rely on exemptions from certain disclosure requirements.***

We qualify as an "emerging growth company" under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

● have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

● comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the consolidated financial statements (i.e., an auditor discussion and analysis);

● submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency"; and

● disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer's compensation to median employee compensation.

In addition, Section 102 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our consolidated financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an "emerging growth company" for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.235 billion, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our membership interests that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

Until such time, however, we cannot predict if investors will find our securities less attractive because we may rely on these exemptions. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the price of our securities may be more volatile.

***If we fail to maintain effective internal control over financial reporting, the price of our securities may be adversely affected.***

We are committed to improving our financial reporting processes. We plan on contracting with an outside certified public accountant to assist us in maintaining our disclosure controls and procedures and the preparation of our financial statements for the foreseeable future. We also plan on increasing the size of our accounting staff at the appropriate time for our business and our size to ameliorate our concern that we do not effectively segregate certain accounting duties or have adequate staffing. We believe the foregoing actions would resolve these material weaknesses in disclosure controls and procedures. However, there can be no assurances as to the timing of any such actions or that we will be able to do so. Any failure by us to implement the changes necessary to maintain an effective system of internal controls could harm our operating results materially and cause investors and financial analysts to lose confidence in our reported financial information. Any such loss of confidence in the investment community would have a negative effect on the trading and price of our common stock.

***If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and have an adverse effect on the value of our securities.***

As a public company, we would be required to maintain internal control over financial reporting and to report any material weaknesses in such internal control. Further, we will be required to report any changes in internal controls on an annual basis. In addition, we would be required to furnish a report by management on the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. We will design, implement, and test the internal controls over financial reporting required to comply with these obligations. If we identify material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner, or assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of its internal control over financial reporting when required, investors may lose confidence in the accuracy and completeness of our financial reports and the value of our securities could be negatively affected. We also could become subject to investigations by the Commission or other regulatory authorities, which could require additional financial and management resources.

***As an emerging growth company, our auditor will not be required to attest to the effectiveness of our internal controls.***

Our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting while we are an emerging growth company. This means that the effectiveness of our financial operations may differ from our peer companies in that they may be required to obtain independent registered public accounting firm attestations as to the effectiveness of their internal controls over financial reporting and we are not. While our management will be required to attest to internal control over financial reporting and we will be required to detail changes to our internal controls in our annual reports on Form 20-F (commencing with the filing of the second annual report on Form 20-F after the effectiveness of this registration statement), we cannot provide assurance that the independent registered public accounting firm's review process in assessing the effectiveness of our internal controls over financial reporting, if obtained, would not find one or more material weaknesses or significant deficiencies. Further, once we cease to be an emerging growth company (as described below), we will be subject to independent registered public accounting firm attestation regarding the effectiveness of our internal controls over financial reporting. Even if management finds such controls to be effective, our independent registered public accounting firm may decline to attest to the effectiveness of such internal controls and issue a qualified report.

***Upon becoming a public company, we will incur significantly increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.***

Upon becoming a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company. In addition, the Sarbanes-Oxley Act has imposed various requirements on public companies including requiring establishment and maintenance of effective disclosure and financial controls. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and regulations have increased and will continue to increase our legal and financial compliance costs and will make some activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more difficult and more expensive for us to obtain directors' and officers' liability insurance, which could make it more difficult for us to attract and retain qualified members of our board of directors. We cannot predict or estimate the amount of additional costs we will incur as a public company or the timing of such costs.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. In addition, we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting the later of our second annual report on Form 20-F or the first annual report on Form 20-F following the date on which we are no longer an emerging growth company. Our compliance with Section 404 of the Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant management efforts. While we currently have an internal audit group, we will need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge. If we are not able to comply with the requirements of Section 404 in a timely manner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the value of our securities could decline and we could be subject to sanctions or investigations by the SEC or other regulatory authorities, which would require additional financial and management resources.

Our ability to successfully implement our business plan and comply with Section 404 requires us to be able to prepare timely and accurate financial statements. We expect that we will need to continue to improve our existing, and implement new, operational and financial systems, procedures and controls to manage our business effectively. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial reporting is effective and to obtain an unqualified report on internal controls from our auditors as required under Section 404 of the Sarbanes-Oxley Act. This, in turn, could have an adverse impact on the value of our securities, and could adversely affect our ability to access the capital markets.

***We depend on certain officers of the Company, the loss of whom could materially harm our business.***

We rely upon the accumulated knowledge, skills and experience of the officers and personnel of our Company and its affiliates. If Mamoru Iwamoto, our Chief Executive Officer, or any of the other officers or personnel were to leave the Company or become incapacitated, we might suffer in our planning and execution of business strategy and operations, impacting our brand and financial results.

***Our operations are highly regulated.***

Japan has strict Waste Disposal and Public Cleansing Law, which requires detailed compliance with laws and regulations and applies punitive measures for certain failures of compliance. For example, in Japan where the Company primarily operates, waste management, recycling, and hazardous material disposal are governed by strict local and national regulations, such as the Waste Management and Public Cleansing Act and the Act on the Promotion of Effective Utilization of Resources. Under these laws and regulations, KOEI JAPAN CO., LTD. has obtained approval for industrial waste collection and transport businesses from 46 prefectures in Japan (excluding Okinawa Prefecture), and has obtained approval for industrial waste treatment businesses from two cities, Yokohama and Kitakyushu. In addition, we have acquired ISO9001, ISO14001, ISO27001, and ISO45001 certification, which are international standards, as well as R2ver3 certification. However, if such licenses, permits, or approvals are revoked or not renewed for some reason in the future, the Company's business activities may be hindered and its business performance may be affected.

The Company is also subject to the Secondhand Goods Business Act, a Japanese regulation that governs businesses involved in the purchase, sale, or exchange of "secondhand goods" to ensure the proper management of such transactions and prevent the distribution of stolen or illegal items. Failure to comply with the requirements of the Secondhand Goods Business Act, such as operating without a license, improper record-keeping, or dealing in stolen goods, can result in penalties, suspension of business operations, or revocation of the license. The Company is also subject to the Fire Service Act, which is a fundamental law in Japan designed to prevent, guard against, and suppress fires, as well as to protect the lives, health, and property of citizens in the event of a fire. Businesses are required to comply with fire safety regulations based on the size, type, and purpose of their facilities. This includes conducting regular inspections, maintaining fire equipment, and ensuring that evacuation routes and emergency exits are unobstructed and clearly marked. For facilities handling flammable or hazardous materials, such as those involved in recycling and industrial waste management, the Act imposes stricter safety measures to prevent fire outbreaks and mitigate potential hazards.

The Company is also subject to the Noise Regulation Law and Vibration Regulation Law, which are Japanese environmental laws designed to mitigate pollution from noise and vibration, thereby protecting the health and well-being of people as well as preserving the surrounding environment. These laws establish standards for acceptable levels of noise and vibration based on the type of area (e.g., residential, industrial, or commercial zones) and the time of day, with stricter limits typically applied to residential and night-time areas. The Company is also subject to the Air Pollution Control Law and Water Pollution Control Law, which are key environmental regulations in Japan aimed at preventing and mitigating air and water pollution, thereby protecting public health and preserving ecosystems. The Company, which operates recycling centers and handles industrial waste, must adhere to these laws by implementing robust air and water pollution control measures, including the voluntary measurement of dust and water quality. Non-compliance with these laws can result in penalties, operational restrictions, or reputational damage.

Failure to comply with the foregoing, as well as the revision or abolition of these laws and regulations, or the emergence of new legal restrictions in the future may also have an impact on our Company's business performance. Non-compliance with these regulations, or with international standards applicable to certain operations, could result in severe consequences, including fines, legal disputes, reputational damage, or even suspension of operations. Furthermore, any changes or tightening of these regulations may require the Company to incur significant costs to adapt its processes and ensure compliance.

***Certain weather and environmental events, such as fire, lightning, bursts and explosions, wind, hail, snow, and water damage, can cause damage to our ITAD center, recycling center, plants and factory used in its business operations.***

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Fire insurance policies can be acquired to prepare for such events. However, they may be insufficient. In addition, earthquake insurance can be purchased along with fire insurance. However, this could also prove to be insufficient. We currently carry business liability insurance and fire insurance. We have not incurred claims that were unable to be covered by insurance in the past. Not all perils are covered by insurance, as some are subject to insurance exclusions. For example, earthquake insurance does not pay out if there is no damage to the building itself, but only to gates, fences, or hedges, nor does it pay out for damage caused by war, civil war, or other similar events or riots. Damage caused by land subsidence, uplift, movement, or vibration. will also not be paid. In the event of a significant loss, insurance coverage may be insufficient to restore the property. Factors such as inflation, changes in building codes and ordinances, and environmental considerations may make it impossible to restore the property with insurance proceeds if the underlying property is damaged or destroyed.

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***We may not be able to attract and retain a sufficient number of personnel needed to maintain and grow our business.***

The business we conduct is greatly dependent on the number of personnel that we can attract and retain. In addition, it is imperative to train and secure personnel who have expertise in material recycling, and accordingly we plan to retain and train personnel who we believe can support the medium-to long-term growth of the Company and strengthen young and mid-career personnel. However, if we are unable to attract and retain a sufficient number of purchase/sales personnel needed to maintain and grow our business, it would have an adverse effect on our business operations as well as our ability to grow our business.

***If we fail to protect personal information of business partners, customers and others, it would have an adverse effect on our reputation and may impact the value of your investment.***

In the course of our business activities, the Company acquires and holds personal information of business partners, customers, and others, and is subject to regulations under the Act on the Protection of Personal Information and other laws in Japan. In the event of a leak of personal information held by the Company, the Company's reputation and business performance may be affected by claims for damages or loss of credibility and this could result in a loss of investors, and the value of your investment in us could be adversely affected.

***A material amount of our revenues may be concentrated in one or more large customers. If we lose or experience a significant reduction in such customers, our revenues may decrease substantially and our results of operations and financial condition may be harmed.***

For the years ended February 28, 2026 and February 28, 2025, with respect to our sales of recycled materials business, we reported total revenues of US$45,398,854 and US$42,048,099, respectively.

It is the nature of our business that a high concentration of our revenue is in the sale of recycled materials and therefore when we sell our recycled materials there is a tendency to have large customers who purchase our materials. It is important to build trust in our business relationship by continuing to provide high quality and pure materials which include metals such as gold, silver, palladium, copper, aluminum, and iron. With such effort, these customers have been repeat customers, from which we generate a large percentage of our revenues. We rely on these purchasers and there is a risk that these purchasers may be unable to make payment under their obligations to us thereby affecting our revenues.

During the year ended February 28, 2026, we generated 18% and 15% of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively. During the year ended February 28, 2025, we generated 17% and 17% of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively.

***Our business may rely on one or more large suppliers. If we lose or experience significant difficulty in purchasing from, such suppliers, our revenue may decrease substantially and our results of operations and financial condition may be harmed.***

Suppliers for our material recycling business include home appliance recycling plants, manufacturers and IT and telecommunications/ICT companies for the purchase mainly of Information Technology ("IT") equipment, Office Automation System ("OA") equipment, disassembled home appliances, circuit boards, and nonferrous metals. If we should encounter delays or difficulties in obtaining these supplies, our business related to these supplies and our financial condition, results of operations and reputation could be adversely affected.

During the year ended February 28, 2026, we made 11% of total purchases from one supplier, LY Corporation. During the year ended February 28, 2025, we made 10% of total purchases from one supplier, Nishinihon Kaden Recycle Corporation.

***Our reliance on copper in our recycling operations exposes us to significant market volatility, fluctuations in global copper supply, demand, and price could materially and adversely affect our business, financial condition, and results of operations.***

A substantial portion of our material throughput and recycling revenue remains concentrated in copper and copper-based materials. For the fiscal year ended February 28, 2026, copper and copper-containing inputs accounted for approximately 79.4% of the total materials processed. The remaining material mix comprised circuit boards (13.0%), aluminum (4.7%), iron (1.8%), and other materials (1.1%), with such other materials including stainless steel, batteries, special metals, recycled paper, plastics, and waste oil. Within our copper processing operations in the fiscal year ended February 28, 2026, primary copper-related input categories included motors (26.9%), radiators (19.1%), raw copper (21.9%), miscellaneous copper-containing items (5.4%), and electric wires (6.1%). A notable element of our processing is the "black motor" separation technique: approximately 26.9% of our copper recovery is derived from dismantling metal casings to extract internal copper windings, a process that also yields residual aluminum, iron, and other metals. We have continued and expect to continue this reliance on copper for the fiscal year ended February 28, 2027.

Our recycled metals, including copper and other recovered metals, are sold directly to smelters and refiners, feeding back into the global metals supply chain. As such, our business is directly connected to and influenced by the global supply, demand, and pricing dynamics for copper and other base and precious metals. Given the significant role of copper in our business, global market trends in copper demand, supply constraints, production, and pricing are of central importance to our operations and results.

The copper market can be extremely volatile and unpredictable. For example, in 2025, copper prices surged sharply due to global supply-tightness, mine output disruptions, and increased demand from renewable energy, electrification, electric vehicles, data centers, and infrastructure build-outs (see article titled "Copper Smashes Records as Supply Fears Intensify Amidst LME Withdrawal Surge" dated December 3, 2025 at financial conent.com https://www.financialcontent.com/article/marketminute-2025-12-3-copper-smashes-records-as-supply-fears-intensify-amidst-lme-withdrawal-surge). Several supply-side constraints are contributing to the tight market, for example many existing copper mines face declining ore grades, long lead times for new mine development, environmental and regulatory constraints, labor and energy-cost pressures, and capital-intensity of greenfield mining projects, all contributing to structural scarcity risk (see article titled "Can copper supply keep up with surging demand?" dated November 20, 2025, by Wood Mackenzie https://www.woodmac.com/blogs/the-edge/can-copper-supply-keep-up-with-surging-demand/). Analysts anticipate continued growth in global copper demand, for example one recent forecast projects demand to rise by approximately 24% by 2035, driven by growth in infrastructure, electrification, data centers, renewable energy, and emerging economies' industrialization (see article titled "Copper demand set to surge 24% by 2035 as four key disruptors reshape global markets" dated October 15, 2025, by Wood Mackenzie https://www.woodmac.com/press-releases/soaring-copper-demand-an-obstacle-to-future-growth/).

These market dynamics create both potential upside and significant downside risk for us. A drop in copper prices, whether from a softening in global demand, increased mine supply, macroeconomic slowdown, or substitution of alternative materials, would likely reduce the revenue we obtain from copper recycling, compress profit margins, and reduce cash flow from our recycling operations. A sustained price increase or supply scarcity may impair our ability to source sufficient scrap copper at economically attractive prices, tightening our input supply pipeline, increasing competition for scrap, and driving up procurement costs, which could squeeze margins even if output remains constant. Given the high share of copper relative to our total processed materials, any adverse shift in the copper market could have a disproportionately large negative impact on our overall financial performance and working capital requirements.

Additionally, because a portion of our recovered metals includes other base and precious metals (aluminum, iron, gold, silver, palladium), volatility in commodity markets more broadly, including shifting demand patterns and recycling and refining capacity constraints, could further magnify financial uncertainty. Our business depends not only on market demand for recycled metals but also on our ability to operate our processing facilities effectively. Disruptions including mechanical failure of crushers or sorting equipment, maintenance outages, changes in scrap-material availability, regulatory changes affecting waste and recycling, or logistical disruption in our supply chain, could impair our ability to deliver recovered metals to smelters and refiners when needed. If any of the foregoing risks materialize, they could materially and adversely affect our business, financial condition, and results of operations.

***If we are unable to effectively manage inflationary pressures on our operating costs, profitability, and financial performance, our business, financial condition, and results of operations could be materially and adversely affected.***

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Our results of operations and financial condition have been and may continue to be materially impacted by significant inflationary pressures in the economy. This includes volatility and increases in costs for raw materials, supplies, labor, transportation, and other critical inputs. We may not be able to fully offset these increased costs, which would adversely affect our financial results and operating margins. Specific inflationary pressures we are facing include:

● **Labor costs:** The competitive labor market and rising cost of living have required us to increase wages, benefits, and incentives to attract and retain qualified employees. If these costs continue to increase, they could negatively affect our operating expenses and profit margins.

● **Raw materials and supplies:** We have experienced increased prices for key raw materials and components necessary for our products. Prolonged inflation could make these costs unpredictable and lead to higher manufacturing expenses.

● **Transportation and logistics:** Fuel costs and other transportation-related expenses have risen, increasing the costs associated with moving our goods and raw materials. Supply chain disruptions have also driven up logistics expenses.

● **Third-party service costs:** Inflation may impact the costs of third-party services that are essential to our operations, such as maintenance, technology, and insurance. We may see an increase in these contract-based expenses.

● **Capital expenditures:** Higher costs for materials and labor could increase the expense of capital projects and equipment procurement. This may require us to delay or scale back investments in our business.

To mitigate these effects, we have implemented or plan to undertake the following actions:

● **Price adjustments:** We may increase the prices of our products and services to customers to help offset rising costs. However, our ability to do so is dependent on market conditions and competitive factors.

● **Cost-reduction initiatives:** We are actively pursuing opportunities to reduce operating costs through improved efficiency, resource optimization, and supplier negotiations.

● **Supply chain diversification:** To reduce our reliance on single sources of supply, we are working to diversify our supply chain relationships to mitigate the impact of specific raw material or logistics cost increases.

There can be no assurance that these efforts will be successful in fully mitigating the adverse impacts of inflation. If we are unable to effectively manage these pressures, our business, financial condition, and results of operations could be materially and adversely affected.

***Material risks for a foreign shareholder due to Japanese share handling regulations include potential delays in receiving information, the risk of a lapsed standing proxy relationship, and the reliance on third-party service providers.***

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Based on Japanese share handling regulations, a non-resident shareholder must either appoint a standing proxy in Japan or designate a temporary Japanese mailing address to receive notices. Material risks for a foreign shareholder related to this requirement include potential delays in receiving information, the risk of a lapsed standing proxy relationship, and the reliance on third-party service providers.

Important corporate communications, such as notices for shareholders' meetings, are often dispatched close to the meeting date. If sent to the standing proxy or temporary address, the documents still need to be forwarded to the shareholder's actual foreign residence. This extra transit time increases the risk that the shareholder will receive the information too late to evaluate it properly or respond effectively. The condensed timeline for receiving and reviewing meeting materials, especially when there is a delay in forwarding, may impede a shareholder's ability to participate in proxy voting. This can effectively disenfranchise the shareholder on key corporate decisions.

Failure to maintain the standing proxy arrangement could result in the shareholder not receiving important notifications and potentially facing non-compliance issues with Japanese regulations. The shareholder is responsible for ensuring the arrangement remains valid. Using a standing proxy or temporary address creates an additional administrative layer. Non-resident shareholders must rely on these third parties to promptly and accurately process and forward all shareholder-related communications, from meeting notices to special dividend announcements.

**Risks Related to Our Material Recycling Business**

***Emerging technologies or materials could render certain recycling methods ineffective or obsolete.***

The recycling industry is subject to rapid advancements in technologies and the emergence of new materials. In Japan, where innovation is at the forefront, emerging technologies or the introduction of novel materials could render the Company's current recycling methods or processes ineffective or obsolete. Failure to adapt to these technological changes or invest in updated recycling techniques may reduce operational efficiency, increase costs, and impact the Company's competitive position in the market.

***Variations in the quality or composition of collected materials can impact the efficiency of recycling and resource recovery.***

The efficiency of the Company's recycling and resource recovery operations depends significantly on the quality and composition of the materials collected, such as home appliances, IT equipment, office automation systems, and circuit boards. Variations in these materials, including the presence of contaminants, inconsistencies in metal content, or degradation of components, can impact the effectiveness of recycling processes. These challenges may lead to increased operational costs, reduced recovery rates, and potential difficulties in meeting customer expectations or environmental standards.

***Handling and dismantling complex equipment may lead to inefficiencies or delays.***

The Company's operations involve handling and dismantling complex equipment, such as circuit boards, which require specialized processes and expertise. Challenges in efficiently processing such materials, such as difficulty in separating valuable components from non-recyclable parts, may lead to operational inefficiencies, delays, or increased costs. Additionally, technical difficulties or unforeseen issues during dismantling could disrupt workflows, impact resource recovery rates, and affect the Company's ability to meet customer or regulatory requirements.

***Dismantling IT and OA equipment involves risks of workplace accidents, which can result in liabilities and downtime.***

The dismantling of IT and office automation (OA) equipment involves inherent risks of workplace accidents, such as injuries from handling sharp components, exposure to hazardous substances, or equipment malfunctions. Such incidents could lead to significant liabilities, operational downtime, and increased costs related to medical expenses, legal claims, or compliance with occupational health and safety regulations. Furthermore, repeated accidents or safety concerns could damage the Company's reputation and affect employee morale.

***The Company's handling of IT equipment and other items containing confidential information poses significant risks of data breaches during collection and transportation.***

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Despite the use of security carts and compliance with ISO27001 standards, there is always a potential risk of information leakage or unauthorized access to sensitive data. If security protocols fail, it could result in significant reputational damage, loss of customer trust, and legal liabilities. As the Company expands its operations to handle a wide variety of information assets, the need for stringent and constantly monitored security measures becomes increasingly critical.

***The recovery of chlorofluorocarbons (CFCs) is subject to strict environmental regulations.***

As a registered Class I fluorocarbon recovery operator, the Company is required to ensure proper handling, recovery, and disposal of CFCs to prevent environmental harm. Any mishandling or accidental release of CFCs could lead to severe penalties, regulatory scrutiny, and reputational damage. Additionally, evolving regulations on fluorocarbon management could impose additional compliance costs and operational adjustments, impacting the Company's profitability.

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***Fluctuations in the market value of recovered metals and other materials can impact profitability.***

The Company's profitability is significantly influenced by the market value of recovered metals and other recyclable materials. These market values can be highly volatile, driven by factors such as global demand and supply dynamics, changes in economic conditions, fluctuations in commodity prices, and geopolitical developments. For example, a sudden decline in the demand for certain metals or a drop in global prices could reduce the revenue generated from recycling operations, even if volumes remain consistent. Conversely, unexpected price increases in raw materials could encourage manufacturers to shift to alternative resources, potentially reducing the demand for recycled materials. This inherent unpredictability in market conditions poses a significant challenge to financial stability and long-term planning. Failure to effectively manage or hedge against such fluctuations could adversely impact the company's operational margins, investment capabilities, and overall competitiveness in the recycling industry.

***In periods of economic stress, demand for recycled materials may decline, affecting revenues.***

The demand for recycled materials is closely tied to the overall economic environment. During periods of economic stress or recession, industries that rely on recycled materials, such as manufacturing and construction, often experience reduced production activities due to lower consumer and business spending. As a result, the demand for recycled resources, including metals, plastics, and other materials, may decline significantly. This reduction in demand can lead to decreased sales volumes, downward pressure on prices, and unsold inventory, adversely affecting the Company's revenues and profitability. Additionally, prolonged economic downturns may lead to budget constraints within the Company, limiting its ability to invest in new technologies, infrastructure, or operational improvements. Failure to adapt to such economic challenges could result in a weakened competitive position and long-term financial instability.

***Maintaining advanced analytical equipment and adhering to compliance requirements can strain financial resources.***

The Company's operations rely heavily on advanced analytical equipment to measure metal content and other parameters accurately, as well as to ensure compliance with stringent environmental and regulatory standards. Maintaining, upgrading, and calibrating such specialized equipment can incur significant costs, especially as technologies evolve or become obsolete. Additionally, adherence to compliance requirements in Japan, which is known for its rigorous regulatory framework for waste management and recycling, may necessitate regular audits, certifications, and investments in updated processes. These ongoing financial commitments can strain the Company's resources, particularly during periods of market downturns or fluctuating revenues. A failure to effectively manage these expenses could impact the Company's profitability, hinder its ability to invest in growth opportunities, and jeopardize its ability to meet regulatory standards, potentially resulting in penalties or operational disruptions.

***Any deterioration in our relationships with our major business partners may adversely affect our business prospects and business operations.***

If we are unable to maintain our cooperative relationships with any of these business partners, it may be very difficult for us to identify qualified alternative business partners and may divert significant management attention from existing business operations and adversely impact our daily operation.

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***Failure to meet customer expectations in consultations, appraisals, or recycling processes may lead to loss of business.***

The Company's success is heavily reliant on its ability to meet and exceed customer expectations in areas such as consultation, appraisals, and the recycling of IT equipment, office automation systems, and other materials. Failure to deliver accurate appraisals, provide effective consultation services, or efficiently recycle materials as promised could result in customer dissatisfaction. This may lead to a loss of trust and credibility, causing existing customers to seek alternative service providers and diminishing the company's ability to attract new clients. In competitive markets like Japan, where customer expectations for quality, timeliness, and reliability are particularly high, such failures could significantly impact the Company's reputation and market share. Additionally, dissatisfaction could result in negative reviews or feedback, further undermining business growth and stakeholder confidence. Prolonged challenges in maintaining customer satisfaction could have a compounding effect, adversely affecting the Company's financial performance and long-term sustainability.

***The presence of other recycling companies with lower costs or more advanced technologies can erode market share.***

The recycling industry is highly competitive, with numerous companies vying for market share by offering cost-effective and technologically advanced solutions. The presence of competitors with lower operational costs, more efficient recycling processes, or cutting-edge technologies poses a significant challenge to the Company's ability to maintain and grow its market position. In Japan, where technological innovation is a key driver in many industries, competitors adopting newer, more efficient methods or equipment may attract customers seeking higher recovery rates, better environmental outcomes, or lower costs. Additionally, price competition from lower-cost providers could pressure the company to reduce its own prices, potentially affecting profitability. If the Company fails to invest in innovation or streamline operations to remain competitive, it risks losing both existing and prospective customers, which could lead to a decline in revenues and reduced market share. This competitive pressure could also limit the Company's ability to expand into new markets or develop strategic partnerships, further impacting its long-term growth and sustainability.

***Falling behind competitors in adopting newer, more efficient recycling methods or technologies may reduce competitiveness.***

The recycling industry is rapidly evolving, driven by advancements in technology and increasing demand for more efficient and environmentally sustainable processes. If the Company fails to invest in or adopt newer, more efficient recycling methods and technologies, it risks falling behind competitors who can offer superior solutions. In Japan, where innovation is a critical factor in maintaining competitiveness, lagging in technological adoption may result in reduced operational efficiency, lower recovery rates, and higher costs compared to market leaders. This technological gap could diminish the company's ability to meet customer expectations for cutting-edge services and environmentally responsible practices, leading to a loss of market share. Furthermore, as governments and industries prioritize sustainability, companies with outdated methods may struggle to comply with stricter regulatory standards or secure partnerships with eco-conscious clients. The inability to keep pace with technological advancements could significantly impact the Company's reputation, customer retention, and long-term viability in the competitive recycling market.

***Restrictions or bans on exporting recyclable materials to certain countries could limit market access.***

The Company's operations may be significantly impacted by restrictions or bans on exporting recyclable materials to certain countries. Governments worldwide, including Japan, are increasingly implementing stringent regulations to manage the transboundary movement of waste and recyclable materials to ensure environmental protection and compliance with international agreements such as the Basel Convention. These restrictions could limit the Company's ability to access key international markets for selling recovered materials, particularly in regions where demand for recyclable resources is high.

Additionally, abrupt changes in trade policies, heightened scrutiny of material quality standards, or increased tariffs on recyclable exports could further constrain the Company's market access. Such limitations may result in excess inventory, reduced revenues, and increased storage or disposal costs. Moreover, the inability to find alternative markets for exportable materials may compel the company to shift its focus to domestic markets, where competition and pricing pressures could erode profitability.

Failure to adapt to these regulatory and market changes could adversely affect the Company's operational flexibility, financial performance, and overall growth prospects in the global recycling industry.

***Challenges in the transportation of recyclable goods, including delays, damages, or accidents, may disrupt operations.***

The Company's operations rely heavily on the efficient transportation of recyclable goods, including IT equipment, office automation systems, and other materials, from collection points to processing facilities. Challenges in the logistics chain, such as delays caused by traffic congestion, weather conditions, or supply chain disruptions, can hinder the timely delivery of materials. Additionally, the risk of damage to recyclable goods during transit, whether due to mishandling, inadequate packaging, or accidents, could result in the loss of valuable resources, reducing the efficiency of recovery processes.

In Japan, where precision and timeliness are critical business expectations, such disruptions could affect customer satisfaction and the Company's reputation for reliability. Accidents involving hazardous or sensitive materials during transportation may also result in regulatory penalties, environmental liabilities, and increased insurance costs. Prolonged or frequent logistical challenges may lead to higher operational expenses, delays in fulfilling customer commitments, and overall inefficiencies in the recycling workflow, adversely impacting the Company's financial and operational performance. Addressing these risks requires robust logistics management and contingency planning to ensure the seamless transportation of materials.

***Negative publicity would have an adverse effect on the Company's material recycling business.***

The Company's reputation and client relationships are critical to its success in the material recycling business industry. Any negative publicity, allegations of misconduct, or breaches of client trust could damage the Company's reputation, erode client confidence, and result in client attrition or loss of business opportunities. Maintaining high ethical standards, transparent communication, and effective client relationship management are essential to mitigate reputational risks and foster long-term client loyalty and trust.

***The manual dismantling and sorting process, which is critical to maintaining high recycling rates, relies heavily on skilled labor.***

While automation and large-scale crushers enhance efficiency, the Company's focus on manual disassembly for items like OA and IT equipment places significant reliance on human expertise. Any shortage of skilled workers, high turnover, or inadequate training could impact the efficiency and quality of the recycling process. Additionally, as the Company handles hazardous materials such as CFCs and IT equipment with confidential data, proper training and adherence to safety and security protocols are essential to prevent accidents, compliance breaches, and data leaks.

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**Risks Related to Our Information Technology Asset Disposition ("ITAD") Business**

***The Company's operations involve the secure erasure, destruction, and disposal of sensitive customer data, making data security a critical component of its business.***

The Company's operations involve handling and securely erasing sensitive customer data from IT equipment and storage media. Any failure to effectively delete data, prevent unauthorized access, or issue valid certifications of data deletion could result in severe legal liabilities, financial penalties, and reputational damage. Furthermore, cyberattacks or breaches of information security systems, despite ISO27001 certification, may compromise customer trust and impact long-term business relationships. The risk is amplified when handling data from high-security clients, such as government offices and large corporations, where compliance failures could lead to heightened scrutiny or termination of contracts. Mishandling or accidental exposure of data from high-profile clients, such as government agencies or multinational corporations, could result in heightened scrutiny, termination of contracts, or litigation, significantly impacting the Company's business operations and market reputation. This could result in a loss of investors, and the value of your investment in us could be adversely affected.

***Strict regulatory frameworks for data protection in Japan and internationally create compliance challenges for the Company.***

Operating as an ITAD provider, the Company must comply with multiple regulations, including data protection laws, industrial waste management requirements, and certifications such as ISO and R2. Failure to adhere to these regulations could result in penalties, revocation of operating permits, or damage to the Company's ability to secure future contracts. Moreover, evolving regulatory landscapes, such as tighter restrictions on electronic waste exports or stricter industrial waste handling requirements, may necessitate substantial investments to upgrade processes, increasing operational costs and straining financial resources.

***Managing the dismantling, recycling, and disposal of diverse IT assets poses operational challenges that could disrupt the Company's services.***

The Company handles a wide array of IT equipment, including smartphones, tablets, servers, and office fixtures, which require specialized processes and trained personnel. Large-scale disposal or office relocation projects add further complexity, increasing the risk of delays, inefficiencies, or errors. Operational disruptions, whether due to equipment malfunctions, workforce shortages, or unexpected project complexities, could lead to higher costs, missed deadlines, and dissatisfaction among clients, particularly in high-demand industries.

***The ITAD industry is highly competitive, with other service providers offering cost-effective or technologically superior solutions.***

Competitors with advanced technologies, streamlined processes, or lower operational costs may erode the Company's market share. Additionally, the emergence of new entrants offering innovative solutions, such as blockchain-based asset tracking or AI-driven recycling techniques, could further intensify competition. To remain competitive, the Company must continuously innovate and optimize its services, requiring ongoing investments that could strain financial resources or reduce profit margins. The Company may not be able to compete effectively which would harm its operating results and financial condition.

***Demand for ITAD services is closely linked to economic conditions and customer spending on IT infrastructure.***

During economic downturns, businesses may delay or reduce their IT equipment upgrades and replacements, leading to decreased demand for the Company's asset disposition services. Prolonged periods of economic stress may result in reduced revenues, underutilized resources, and increased pressure on the Company to cut costs. Additionally, corporate budget constraints among key clients could impact large-scale projects, compounding the Company's vulnerability to macroeconomic conditions. This could harm its operating results and financial condition.

***The transportation of IT assets across Japan poses significant logistical challenges that could disrupt the company's operations.***

The Company operates a collection and transportation service, requiring careful planning and execution to ensure the timely and secure movement of materials. Delays caused by factors such as traffic congestion, inclement weather, or supply chain bottlenecks can disrupt schedules, leading to customer dissatisfaction and operational inefficiencies. Additionally, accidents during transit, mishandling of materials, or improper packaging could result in damage to valuable IT assets or the loss of sensitive data, potentially exposing the Company to legal liabilities and reputational harm. The risk is particularly pronounced when transporting hazardous materials or high-security data-bearing devices, which require stringent safety protocols. We store the items entrusted to us by our customers in lockable boxes and manage them, and we have also taken security measures such as tracking them using GPS-equipped devices during transportation. As transportation demands increase with the scale of operations, we must invest in robust logistics management and contingency planning to mitigate these risks effectively.

***The rapid pace of technological advancements in data storage and recycling poses a constant challenge for the Company to remain competitive.***

As new technologies emerge, traditional methods of data deletion, destruction, and recycling may become outdated, reducing the efficiency and relevance of the Company's services. For example, evolving storage technologies, such as advanced SSDs or cloud-based systems, may require the development of specialized tools and expertise to handle securely. Furthermore, clients increasingly expect innovative solutions that meet both environmental and security standards, such as blockchain-based asset tracking or AI-driven recycling technologies. Failure to adapt to these changes could lead to reduced customer confidence, declining market share, and increased pressure from competitors offering cutting-edge solutions. Additionally, meeting updated certification standards, such as for R2 or ISO27001, may necessitate significant financial investments in infrastructure and training, further straining the Company's resources. Long-term competitiveness will depend on the Company's ability to anticipate and respond to technological advancements.

***The Company faces significant risks associated with environmental compliance and its commitment to sustainable practices.***

As a certified R2 operator and holder of ISO27001 and other environmental certifications, the Company is subject to strict standards governing the disposal and recycling of IT assets and industrial waste. Any failure to properly manage hazardous materials, meet recycling quotas, or adhere to environmental regulations could result in financial penalties, loss of certifications, and reputational damage. For example, improper disposal of toxic substances found in electronic waste, such as lead or mercury, could lead to contamination incidents and legal action. Clients, particularly those with strong corporate social responsibility goals, may sever relationships if the Company fails to demonstrate its commitment to sustainability. Additionally, increasing regulatory scrutiny and evolving environmental standards could require significant investments to maintain compliance, adding to operational costs. The Company will have to integrate sustainable practices into its business model while maintaining operational efficiency.

***The Company's reliance on skilled personnel for specialized tasks presents challenges in maintaining a well-trained and stable workforce.***

Handling IT assets, performing secure data deletion, and managing hazardous materials require highly trained staff with expertise in both technical and safety protocols. Inadequate training or high employee turnover could lead to operational inefficiencies, increased safety risks, and potential compliance violations. For example, errors in data deletion processes could compromise security, while mishandling hazardous materials might result in environmental incidents or workplace accidents. The Company must invest in continuous training programs to ensure employees remain updated on evolving technologies, certifications, and regulatory requirements. Retention of experienced staff is equally important, as high turnover could disrupt operations and increase recruitment and training costs. Additionally, fostering a strong workplace culture and offering competitive benefits will be critical to attracting and retaining talent in a competitive labor market.

***The Company may not be able to manage costs and optimize resource utilization amidst rising operational demands.***

 ****

Operating across multiple prefectures in Japan, the Company incurs significant expenses related to logistics, labor, compliance, and facility maintenance. Any inefficiencies in resource allocation, such as underutilized processing facilities or excess transportation costs, could strain financial performance and erode profit margins. Additionally, increasing costs related to regulatory compliance, such as adhering to evolving waste management standards or maintaining certifications, may place further pressure on operational budgets. The Company must strike a balance between investing in quality and innovation while controlling costs to remain competitive. Failure to achieve this balance could impact the company's ability to compete with cost-efficient rivals or reinvest in growth initiatives.

 ****

**Risks Related to Our Intermediate Treatment and Collection and Transportation of Industrial Waste Business**

***The Company operates in a highly regulated industry that requires compliance with strict waste management and environmental protection laws.***

 ****

As an industrial waste treatment and transportation operator, the Company must adhere to national and local regulations in Japan, such as those governing waste sorting, recycling, and disposal. Non-compliance with these laws, or errors in the issuance of manifests and certificates, could result in severe penalties, suspension of permits, or loss of the Company's certifications in industrial waste management. Additionally, evolving regulations on waste disposal and greenhouse gas emissions may require costly operational adjustments to maintain compliance, which could strain financial and operational resources.

***The Company's activities, including the handling of hazardous materials such as mercury, batteries, and plastics, pose significant environmental risks.***

Improper sorting, dismantling, or disposal of industrial waste could lead to environmental contamination, such as mercury leaks, improper neutralization of battery waste liquids, or improper disposal of plastics. Such incidents may result in regulatory penalties, cleanup costs, and reputational damage. Furthermore, as the Company promotes thermal recycling, including the use of fluff fuel and incineration for energy generation, it must mitigate risks related to greenhouse gas emissions and air pollution.

***The Company's reliance on a combination of manual and mechanized processes, including large crushers and shredders, introduces operational vulnerabilities.***

Breakdowns, inefficiencies, or delays in equipment operations could disrupt the intermediate treatment process, reducing the Company's ability to meet recycling and disposal targets. Additionally, managing a wide range of waste types—such as plastics, batteries, and fluorescent lamps—requires specialized equipment and expertise. Any failure to maintain or upgrade equipment to handle evolving waste streams efficiently may result in higher costs, reduced recycling rates, and customer dissatisfaction.

***The Company's operations depend heavily on skilled staff for tasks such as dismantling, sorting, and managing hazardous materials.***

Inadequate training or high turnover rates among employees could lead to operational inefficiencies, errors, or safety incidents. For example, improper handling of hazardous materials like mercury or waste batteries could result in accidents, regulatory violations, or environmental damage. Maintaining a skilled workforce is critical for ensuring compliance with regulations, achieving high recycling rates, and meeting customer expectations. Additionally, as the Company handles legal compliance questions and provides certifications, the need for well-trained legal specialists is essential to minimize risks associated with incorrect advice or documentation.

***The collection and transportation of industrial waste across 46 prefectures (excluding Okinawa) introduce logistical challenges and risks.***

Delays caused by weather, traffic congestion, or inefficiencies in scheduling could disrupt the Company's ability to provide timely service to customers. Additionally, the transport of hazardous or sensitive materials, such as mercury-containing fluorescent lamps or batteries, requires strict adherence to safety protocols to prevent leaks, spills, or accidents. Any failure in transportation security, such as improper containment or tracking, could result in environmental incidents, reputational damage, and legal liabilities.

***The Company's reputation depends on its ability to deliver efficient, secure, and compliant waste management services while maintaining high recycling rates.***

 ****

Failure to meet customer expectations in areas such as timely service delivery, proper disposal, or issuance of accurate certificates could lead to dissatisfaction, loss of business, and reputational harm to the Company. This risk is heightened in large-scale projects or office relocations, where the complexity of operations increases the likelihood of errors or delays. Additionally, as the Company emphasizes environmental responsibility, any perceived shortfalls in sustainability efforts could deter eco-conscious clients and stakeholders.

 ****

***The industrial waste management sector is highly competitive, with numerous operators offering similar services.***

Competitors with more efficient processes, advanced technologies, or lower operational costs may attract clients seeking cost-effective solutions. The Company's ability to maintain its market position relies on continuously optimizing its services, such as achieving high recycling rates and promoting thermal recycling. Failure to differentiate itself or stay ahead of competitors could erode market share and reduce profitability.

***The Company faces financial risks associated with maintaining certifications, upgrading equipment, and meeting compliance standards***.

Operating facilities in Yokohama and Kitakyushu, combined with collection and transportation services, incur significant costs. Rising expenses related to labor, fuel, equipment maintenance, and regulatory compliance could strain the Company's financial resources. Additionally, fluctuations in demand for recyclable materials, such as fluff fuel or raw materials recovered from batteries, may impact revenue stability and profitability.

***The handling of hazardous waste, including mercury, batteries, and toxic plastics, poses safety and environmental risks.***

Improper handling or disposal of these materials could result in serious environmental contamination, health hazards for employees, and legal liabilities. For example, errors in the recovery or recycling of mercury-containing fluorescent lamps could lead to toxic exposure or regulatory penalties. As hazardous materials are a key component of the Company's operations, strict adherence to safety protocols and continuous employee training are critical to mitigating these risks.

***The Company's legal and operational compliance depends on accurate documentation and issuance of various certificates, such as disposal and recycling certificates.***

Errors or delays in issuing required documentation could lead to disputes with customers, regulatory penalties, or reputational damage. As the Company handles legal compliance queries and operates a third-party check system, any oversight or inaccuracies in contracts or manifests could expose the Company to liabilities. Maintaining the integrity of compliance documentation is essential for sustaining customer trust and meeting regulatory requirements.

***The Company may not be able to continuously adapt to new technologies and processes to remain competitive and compliant with evolving industry standards.***

Advancements in waste processing and recycling technologies may require significant investments in new equipment and training. For example, improving the efficiency of thermal recycling or handling emerging waste types (such as new battery chemistries) may necessitate upgrading current systems. Failure to invest in or adopt new technologies promptly could result in reduced efficiency, higher costs, and loss of clients to more innovative competitors.

**Risks Related to Our Planned Proprietary Technology** 

***We may not successfully develop or commercialize proprietary technologies, which could adversely affect our growth strategy and competitive position.***

We are exploring opportunities to develop proprietary technologies that build on the deep knowledge, technical expertise, and operational best practices gained through decades of experience in material recycling, ITAD, industrial waste management, and the energy industry. By leveraging our institutional understanding of regulatory compliance, secure asset handling, material recovery processes, and environmental stewardship, we aim to create technology-driven solutions and digital services that enhance operational efficiency, strengthen data and environmental security, and potentially open new commercial opportunities in the global resource recovery and digital infrastructure markets. The process of developing new technologies is inherently uncertain, costly, and time-consuming. There can be no assurance that we will be able to successfully develop, commercialize, or integrate such technologies into our operations. Any failure to achieve anticipated results from these efforts may adversely affect our future growth prospects, our ability to compete effectively in our markets, and our overall business and financial condition.

***Our investments in research and development and new technology initiatives may not result in successful outcomes and could negatively impact our financial results.***

We expect to invest resources into the research and development of proprietary technologies. These initiatives may involve substantial upfront costs and may divert management's attention and other resources from our core business operations. There is no guarantee that these investments will lead to operational improvements or increased revenue. If our development efforts fail to yield successful results, our business, financial condition, and results of operations could be materially and adversely affected.

***We may not be able to adequately protect our proprietary technologies, which could harm our business.****<br>* 

<br> Our success in this planned business area may depend, in part, on our ability to protect our proprietary technologies and intellectual property rights. We may rely on a combination of patent, copyright, trade secret, and trademark laws as well as contractual provisions to establish and protect our proprietary rights. However, there can be no assurance that these measures will be effective. If we are unable to secure or enforce our intellectual property rights, or if third parties assert claims against us, our competitive position could be adversely affected. Moreover, defending our rights may result in significant costs and diversion of management time and attention.

***Technological advancements by others may render our proprietary technologies obsolete or less competitive.****<br>* 

<br> The industries in which we operate are subject to rapid technological change. Our competitors, including those with greater financial and technical resources, may develop or acquire technologies that are more effective, more cost-efficient, or otherwise superior to our planned offerings. If we are unable to respond to changing market conditions or technological developments in a timely and cost-effective manner, our business, results of operations, and prospects may be materially and adversely affected.

***The implementation of new technologies may expose us to additional regulatory and compliance risks.****<br>* 

<br> The introduction of new proprietary technologies, particularly those that involve data handling, waste management, or environmental impact, may subject us to new or evolving regulatory requirements. We may incur increased costs to ensure compliance with applicable environmental, safety, data protection, or industry-specific regulations. Failure to comply with such requirements could result in fines, penalties, or restrictions on our operations, any of which could have a material adverse effect on our business and reputation.

 **Risks Relating to Doing Business in Thailand**

 ***Koei is subject to restrictions on foreign ownership in Thailand.***

The laws and regulations in Thailand, where Koei conducts one of its businesses, namely Hidaka Koei (Thailand) Co., Ltd., place restrictions on foreign investment in, control over, management of, ownership of and ability to obtain licenses for entities engaged in a number of business activities.

Pursuant to the Thai Foreign Business Act B.E. 2542 (1999) (the "FBA") a person or entity that is "Non-Thai" (as defined in the FBA and described in "Regulatory Environment – Thailand") cannot conduct certain restricted businesses in Thailand, including the businesses that Koei's entity in Thailand operates, unless an appropriate license is obtained. In addition, the Civil and Commercial Code of Thailand (as amended) requires a private company to have a minimum number of three shareholders. Koei's business in Thailand is conducted through a Thai operating entity established using a tiered shareholding structure, so that the Thai entity is more than 50% owned by Thai persons or entities. As Koei's entity in Thailand, namely Hidaka Koei (Thailand) Co., Ltd., is more than 50% owned by Thai persons or entities and Thai laws only consider the immediate level of shareholding (and no cumulative or look-through calculation is applied to determine the foreign ownership status of a company when it has several levels of foreign shareholding), this Thai operating entity is considered a Thai entity under the FBA and is not required under the FBA to obtain a license prescribed thereunder. Under the FBA, it is also unlawful for a Thai national or entity to hold shares in a Thai company as a nominee for or on behalf of a foreigner in order to circumvent the foreign ownership restrictions. While there are no prescribed requirements or criteria under the FBA or promulgated by the Ministry of Commerce of Thailand for determining whether a Thai national or entity is holding shares in a Thai company with his or her own genuine investment intent or as a nominee for or on behalf of a foreigner, the relevant authorities may follow certain guidelines, but generally may exercise discretion in making such a determination.

Under this tiered shareholding structure, Hidaka Koei (Thailand) Co., Ltd. is owned by HIDAKA HOLDINGS (2008) CO., LTD., an entity incorporated in Thailand, and Siam Client Service Co., Ltd., an entity incorporated in Thailand, which own 49% and 2%, respectively, of the shares of Hidaka Koei (Thailand) Co., Ltd. with the 49% balance owned by KOEI (JAPAN), an entity incorporated in Japan and the subsidiary of Koei. HIDAKA HOLDINGS (2008) CO., LTD. and Siam Client Service Co., Ltd. are both owned and operated by Thai nationals. Through contractual arrangements, specifically pursuant to (i) Article 5 of the Shareholders Agreement, dated February 5, 2026, between KOEI (JAPAN) and Siam Client Service Co., Ltd., KOEI (JAPAN) ("KOEI-Siam Shareholders Agreement") is solely responsible for the management and business activities of Hidaka Koei (Thailand) Co., Ltd. without any input of Siam Client Service Co., Ltd. and (ii) Article 8-3 of the KOEI-Siam Shareholders Agreement giving KOEI (JAPAN) an exclusive call option to purchase or designate a party to purchase the shares held by Siam Client Service Co., Ltd., the 2% Thai owner, giving KOEI (JAPAN) effective control over Siam Client Service Co., Ltd.'s 2% interest in Hidaka Koei (Thailand) Co., Ltd., enabling KOEI (JAPAN) with its 49% interest, to control Hidaka Koei (Thailand) Co., Ltd. and consolidate the financial results of Hidaka Koei (Thailand) Co., Ltd. in its consolidated financial statements. The non-controlling interests of relevant Thai shareholders are accounted for in Koei's financial statements.

**Risks Related to Financing**

***We might obtain lines of credit and other borrowings, which increases our risk of loss due to potential foreclosure.***

We may obtain lines of credit and long-term financing that may be secured by our assets. As of February 28, 2026, our outstanding indebtedness was approximately US$12 million. As with any liability, there is a risk that we may be unable to repay our obligations from the cash flow of our assets. Therefore, when borrowing and securing such borrowings with our assets, we risk losing such assets in the event we are unable to repay such obligations or meet such demands.

***We have broad authority to incur debt.***

Our policies do not limit us or our subsidiary entities from incurring debt. We intend to borrow as much as possible. High debt levels would cause us to incur higher interest charges and higher debt service payments and may also be accompanied by restrictive covenants.

 ***One of our existing loan agreements is subject to material restrictive covenants.***

The Company entered into a secured long-term loan pursuant to that certain loan agreement, dated September 22, 2021, with Resona Bank, Limited and The Bank of Yokohama, Ltd., as the lenders. The Company's secured long-term loan, which amounted to $5,165,886 and $6,317,690 for the years ended February 28, 2026 and 2025, respectively, is subject to certain covenants requiring maintenance of specified ratio of net assets and avoiding consecutive operating losses. These covenants limit our operational and financial flexibility, and failure to comply with any of these requirements could result in an event of default. If a default were to occur, our lenders could accelerate the outstanding indebtedness, impose additional fees or penalties, or require us to obtain waivers or enter into amendments on unfavorable terms. In certain cases, a default could also permit lenders to foreclose on the collateral securing the indebtedness, which include the land and building of KOEI JAPAN's head office, Yokohama Kanazawa Recycle Center and Yokohama Kanazawa Intermediate Processing Center. Moreover, the restrictive nature of these covenants may discourage us from pursuing strategic transactions, expanding into new business lines, making capital expenditures, or responding to adverse market or operational developments. Even if we remain in compliance, the financial ratios and other restrictions included in these agreements may become increasingly difficult to satisfy if our revenues decline, operating costs increase, or macroeconomic or industry conditions deteriorate. The need to dedicate cash flow to debt service may further limit our ability to invest in growth initiatives. There is no assurance that we will continue to satisfy these covenants in future periods, particularly if our operating performance fluctuates or if we are required to incur additional indebtedness. If we are unable to obtain necessary waivers or modifications from our lenders when needed, or if our lenders adopt a stricter interpretation of the covenant requirements, our financial condition and results of operations could be materially and adversely affected. Additionally, the existence of these covenants may make it more difficult or costly for us to secure additional financing.

***We may require additional capital in the future and may not be able to secure adequate funds on terms acceptable to us.***

The expansion and development of our business may require significant capital, which we may be unable to obtain, to fund our capital expenditures and operating expenses, including working capital needs. We may fail to generate sufficient cash flow from the sales of our commercial and residential properties and land or from other financing sources in order to meet our cash requirements. Further, our capital requirements may vary materially from those currently planned if, for example, our revenues do not reach, or our costs exceed, expected levels or we have to incur unforeseen capital expenditures to maintain our competitive position. If this is the case, we may require additional financing sooner than anticipated or we may have to delay or abandon some or all of our development and expansion plans or otherwise forego market opportunities.

To a large extent, our cash flow generation ability is subject to general economic, financial, competitive, legislative and regulatory factors and other factors that are beyond our control. We cannot assure you that our business will generate cash flow from operations in an amount sufficient to enable us to fund our liquidity needs. As a result, we may need to refinance all or a portion of our indebtedness, on or before its maturity, or obtain additional equity or debt financing. We cannot assure you that we will be able to do so on commercially reasonable terms, if at all. Any inability to generate sufficient cash flow, refinance our indebtedness or incur additional indebtedness on commercially reasonable terms could adversely affect our financial condition and could cause us to be unable to service our debt and may delay or prevent the expansion of our business.

**Risks Related to this Offering and Ownership of the Common Shares** 

***Even if the common shares are listed on Nasdaq, there can be no assurance that we will be able to comply with Nasdaq's continued listing standards.***

Prior to this offering, there has been no public market for our common shares. As a condition to consummating this offering, our common shares offered in this prospectus must be listed on Nasdaq. Accordingly, in connection with the filing of the registration statement of which this prospectus forms a part, we have applied to list our common shares on Nasdaq under the symbol "KOEI." Assuming that our common shares are listed, after the consummation of this offering there can be no assurance any broker will be interested in trading our common shares. Therefore, it may be difficult to sell your common shares if you desire or need to sell them. Our underwriters are not obligated to make a market in our common shares, and even if it makes a market, it can discontinue market making at any time without notice. Neither we nor the underwriters can provide any assurance that an active and liquid trading market in our common shares will develop or, if developed, that such market will continue.

Even if our common shares are approved for listing on Nasdaq, there is no guarantee that we will be able to maintain such listing for any period of time by perpetually satisfying Nasdaq's continued listing requirements. Our failure to continue to meet these requirements may result in our common shares being delisted from Nasdaq.

***The price of our common shares could be subject to rapid and substantial volatility.***

There have been instances of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with recent initial public offerings, especially among those with relatively smaller public floats. As a relatively small-capitalization company with relatively small public float, we may experience greater stock price volatility, extreme price run-ups, lower trading volume and less liquidity than large-capitalization companies. In particular, our common shares may be subject to rapid and substantial price volatility, low volumes of trades and large spreads in bid and ask prices. Such volatility, including any stock-run up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of the common shares.

In addition, if the trading volumes of the common shares are low, persons buying or selling in relatively small quantities may easily influence prices of the common shares. This low volume of trades could also cause the price of the common shares to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of the common shares may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of the common shares. As a result of this volatility, investors may experience losses on their investment in the common shares. A decline in the market price of the common shares also could adversely affect our ability to sell additional common shares or other securities and our ability to obtain additional financing in the future. No assurance can be given that an active market in the common shares will develop or be sustained. If an active market does not develop, holders of the common shares may be unable to readily sell the common shares they hold or may not be able to sell their common shares at all.

***The price of the common shares may fluctuate substantially.***

The price for the common shares in this offering will be determined by us and representatives of the underwriters, and it may not be indicative of prices that will prevail in the open market following this offering. You may not be able to sell your common shares at or above the offering price or at any other price or at the time that you would like to sell. You should consider an investment in the common shares to be risky, and you should invest in the common shares only if you can withstand a total loss and wide fluctuations in the market value of your investment. Some factors that may cause the market price of the common shares to fluctuate, in addition to the other risks mentioned in this section of the prospectus, are:

● any failure to meet or exceed revenue and financial projections we provide to the public;

● actual or anticipated variations in our quarterly financial condition and operating results or those of other companies in our industry;

● our failure to meet or exceed the estimates and projections of the investment community;

● announcements of significant acquisitions, strategic partnerships, joint ventures or capital commitments by us or our competitors;

● additions or departures of our key management personnel;

● issuances by us of debt or equity securities;

● litigation involving our Company, including shareholder litigation; investigations or audits by regulators into the operations of our Company; or proceedings initiated by our competitors, franchisees, or customers;

● changes in the market valuations of similar companies;

● common shares price and volume fluctuations attributable to inconsistent trading volume levels of the common shares;

● significant sales of the common shares by our insiders or our shareholders in the future;

● the trading volume of the common shares in the United States; and

● general economic and market conditions.

These and other market and industry factors may cause the market price and demand for the common shares to fluctuate substantially, regardless of our actual operating performance, which may limit or prevent investors from readily selling their common shares and may otherwise negatively affect the liquidity of the common shares. Future market fluctuations may also materially adversely affect the market price of the common shares.

In the past, following periods of volatility in the market price of a company's securities, shareholders have often instituted securities class action litigation against that company. Any such class action suit or other securities litigation would divert the attention of our senior management, require us to incur significant expense and, whether or not adversely determined, could materially adversely affect our business, financial condition, results of operations and prospects.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the price of the common shares and trading volume could decline.***

The trading market for the common shares depends in part on the research and reports that securities or industry analysts publish about us or our business. If few or no securities or industry analysts cover us, the trading price for the common shares would be negatively impacted. If one or more of the analysts who covers us downgrades the common shares, publishes incorrect or unfavorable research about our business, ceases coverage of our Company, or fails to publish reports on us regularly, demand for the common shares could decrease, which could cause the price of the common shares or trading volume to decline.

***Management will have broad discretion as to the use of the proceeds from this offering, and we may not use the proceeds effectively.***

Our management will have broad discretion in the application of the net proceeds from this offering and could spend the proceeds in ways that do not improve our results of operations or enhance the value of the common shares. Our failure to apply these funds effectively could have a material adverse effect on our business, delay the development of our businesses and cause the price of the common shares to decline.

***If the voting power of our capital stock continues to be highly concentrated, it may prevent you and other minority shareholders from influencing significant corporate decisions and may result in conflicts of interest.***

Following the completion of this Offering, management will control approximately [____]% of the voting power of our outstanding common shares if all the common shares being offered are sold. As a result, management will have significant voting power over matters requiring shareholder votes, including: the election of directors; mergers, consolidations and acquisitions; the sale of all or substantially all of our assets and other decisions affecting our capital structure; amendments to our certificate of incorporation or our bylaws; and our winding up and dissolution.

This concentration of voting power may delay, deter or prevent acts that would be favored by our other shareholders. The interests of management may not always coincide with our interests or the interests of our other shareholders. This concentration of voting power may also have the effect of delaying, preventing or deterring a change in control of us. Also, management may seek to cause us to take courses of action that, in their judgment, could enhance their investment in us, but which might involve risks to our other shareholders or adversely affect us or our other shareholders, including investors in this offering. As a result, the market price of our common shares could decline or shareholders might not receive a premium over then-current market price of our common shares upon a change in control. In addition, this concentration of voting power may adversely affect the trading price of our common shares because investors may perceive disadvantages in owning shares in a company with significant shareholders. See "*Description of Share Capital*."

***Our common shares may be subject to the "penny stock" rules in the future. It may be more difficult to resell securities classified as "penny stock."***

Our common shares may be subject to "penny stock" rules (generally defined as non-exchange traded stock with a per-share price below $5.00) in the future. While our common shares will not be considered "penny stock" following this offering since they will be listed on the Nasdaq, if we are unable to maintain that listing and our common shares is no longer listed on the Nasdaq, unless we maintain a per-share price above $5.00, our common shares will become "penny stock." These rules impose additional sales practice requirements on broker-dealers that recommend the purchase or sale of penny stocks to persons other than those who qualify as "established customers" or "accredited investors." For example, broker-dealers must determine the appropriateness for non-qualifying persons of investments in penny stocks. Broker-dealers must also provide, prior to a transaction in a penny stock not otherwise exempt from the rules, a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, disclose the compensation of the broker-dealer and its salesperson in the transaction, furnish monthly account statements showing the market value of each penny stock held in the customer's account, provide a special written determination that the penny stock is a suitable investment for the purchaser, and receive the purchaser's written agreement to the transaction.

Legal remedies available to an investor in "penny stocks" may include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If a "penny stock" is sold to the investor in violation of the requirements listed above, or other federal or states securities laws, the investor may be able to cancel the purchase and receive a refund of the investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● If a "penny stock" is sold to the investor in a fraudulent manner, the investor may be able to sue the persons and firms that committed the fraud for damages.

These requirements may have the effect of reducing the level of trading activity, if any, in the secondary market for a security that becomes subject to the penny stock rules. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in our securities, which could severely limit the market price and liquidity of our securities. These requirements may restrict the ability of broker-dealers to sell our common shares and may affect your ability to resell our common shares.

Many brokerage firms will discourage or refrain from recommending investments in penny stocks. Most institutional investors will not invest in penny stocks. In addition, many individual investors will not invest in penny stocks due, among other reasons, to the increased financial risk generally associated with these investments.

For these reasons, penny stocks may have a limited market and, consequently, limited liquidity. We can give no assurance at what time, if ever, our common shares will not be classified as a "penny stock" in the future.

***If you purchase common shares in this offering, you will experience immediate dilution.***

If you purchase common shares in this offering, you will experience immediate dilution of $[___] per common share in the net tangible book value of your common shares after giving effect to this offering at an assumed public offering price of $[____] per common share because the price that you pay will be substantially greater than the net tangible book value per common share that you acquire. For a further description of the dilution that you will experience immediately after this offering, see the section of this prospectus titled "*Dilution*."

***If the benefits of any proposed acquisition do not meet the expectations of investors, shareholders or financial analysts, the market price of our common shares may decline.***

If the benefits of any proposed acquisition do not meet the expectations of investors or securities analysts, the market price of our common shares prior to the closing of the proposed acquisition may decline. The market values of our common shares at the time of the proposed acquisition may vary significantly from their prices on the date the acquisition target was identified.

In addition, broad market and industry factors may materially harm the market price of our common shares irrespective of our operating performance. The stock market in general has experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the particular companies affected. The trading prices and valuations of these stocks, and of our securities, may not be predictable. A loss of investor confidence in the market for retail stocks or the stocks of other companies which investors perceive to be similar to us could depress our stock price regardless of our business, prospects, financial conditions or results of operations. A decline in the market price of our securities also could adversely affect our ability to issue additional securities and our ability to obtain additional financing in the future.

***The payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on many factors on which the common shareholders or directors may determine not to do so.***

The payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on, among other things, our results of operations, cash requirements and surplus, financial condition, contractual restrictions and other factors that our common shareholders or directors may deem relevant, including retaining future earnings, if any, for reinvestment in the development and expansion of our business. Therefore, you may not receive any dividends on your common shares for the foreseeable future, and the success of an investment in the common shares will depend upon any future appreciation in its value. Moreover, any ability to pay may be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us or our subsidiaries. Consequently, investors may need to sell all or part of their holdings of our common shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment. There is no guarantee that the common shares will appreciate in value or even maintain the price at which our shareholders have purchased the common shares.

***Sales of a substantial number of our common shares in the public markets by our existing shareholders in the future could cause the price of the common shares to fall.***

Sales of a substantial number of our common shares in the public market in the future or the perception that these sales might occur, could depress the market price of the common shares and could impair our ability to raise capital through the sale of additional equity securities from time to time. We are unable to predict the effect that any such sales may have on the prevailing market price of the common shares.

***The future issuance of additional common shares in connection with our stock acquisition rights or other incentives, convertible bonds, acquisitions or otherwise may adversely affect the market of the common shares.***

At the time of this filing, we had 171,600 common shares issuable upon exercise of outstanding stock acquisition rights at a weighted average exercise price of ¥1 ($0.01) per share. If and when these stock acquisition rights are exercised for our common shares, the number of common shares outstanding will increase. Such an increase in our outstanding securities, and any sales of such shares, could have a material adverse effect on the market for the common shares, and the market price of the common shares.

We currently plan to continue granting stock acquisition rights and other incentives so that we can continue to secure talented personnel in the future. Any common shares issued in connection with the exercise of outstanding stock acquisition rights would dilute your ownership interest.

 ***The future issuance of additional common shares in connection with our stock option plan, acquisitions or otherwise may adversely affect the market of the common shares.***

On May 21, 2026, our board of directors adopted the Koei Group Co., Ltd. 2026 Equity Incentive Compensation Plan (the "2026 Equity Incentive Plan"), which was approved at a special shareholders meeting held on May 26, 2026. Under the 2026 Equity Incentive Plan, we may grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance share awards to our Company's directors, internal corporate auditors, officers, employees and consultants. A total of 1,287,000 common shares are authorized for issuance under the 2026 Equity Incentive Plan. We currently plan to continue granting stock options and other incentives so that we can continue to secure talented personnel in the future. We may issue all of these common shares without any further action or approval by our shareholders, subject to certain exceptions. Any common shares issued in connection with the 2026 Equity Incentive Plan, the exercise of stock options issued under the 2026 Equity Incentive Plan, or otherwise, would dilute your ownership interest.

We may also issue stock to provide consideration in connection with future acquisitions or other corporate transactions. The issuance of our capital stock in connection with corporate transactions, would dilute your ownership interest.

***The right of holders of common shares to participate in any future rights offerings may be limited, which may cause dilution to their holdings.***

We may, from time to time, distribute rights to our shareholders, including rights to acquire our securities. However, we cannot make any such rights available to the holders of common shares in the United States unless we register such rights and the securities to which such rights relate under the Securities Act or an exemption from the registration requirements is available. We are under no obligation to file a registration statement with respect to any such rights or securities or to endeavor to cause such a registration statement to be declared effective. Moreover, we may not be able to establish an exemption from registration under the Securities Act.

**Risks Related to Tax**

***We may incur significant taxation from an investigation by the tax authority in Japan.***

In Japan, every two to five years, the Japanese tax authority investigates Japanese companies to check the tax filing and determine whether their tax treatment is appropriate. If the tax authority investigates our tax treatment and determines our tax treatment is not appropriate, or if we and the tax authority have different views on tax treatments, we may have to pay a burden taxation. The Company underwent a tax investigation by the Japanese tax authorities for its income tax returns for the years ended February 28, 2021 through February 28, 2023. As a result of the investigation, the Company made additional payments of approximately US$24,000 in total of the three fiscal years, and the Company concluded that the tax investigation did not have a material impact on the Company.

**Risks Related to Restrictions on Foreign Investment**

***We may face restrictions on foreign investment related to Foreign Exchange and Foreign Trade Act in Japan.***

If we develop a new business or plan a merger or acquisition, we have to consider the impact from restrictions of foreign investment under the Foreign Exchange and Foreign Trade Act, as amended (the "FEFTA"), in Japan. We have applied to list our common shares on the Nasdaq. In this case, an investment in our Company may be deemed as an inward direct investment as set forth in the FEFTA. When it is applicable, certain acquisitions of shares in Japan from foreign investors may be subject to prior notification or a post-investment report. Under the FEFTA, when foreign investors acquire our common shares in a transaction that is considered as an inward direct investment or a specified acquisition, they are required to file a notification or report with the Japanese government via the Bank of Japan, subject to limited exemptions. Therefore, if we develop a new business or plan a merger or acquisition in the future, we have to consider the impact from restriction of foreign investment in Japan, and if there is any impact due to the application of this regulation, we may have to forego such new business or plans, which may materially and adversely impact our financial condition and results of operations in future periods.

**Risks Related to the Prospective Expansion to the U.S. Markets**

***In expanding our business to the U.S. and other foreign countries, our operations are regulated by the laws and regulations of those countries or regions.***

Our planned business expansion into the U.S. and other foreign countries will require us to operate in compliance with the civil, commercial, corporate laws, environmental and recycling laws, tax laws, and other laws and regulations of the relevant country or region. In developing our business, we intend to investigate such laws and regulations, establish the necessary systems, and operate our business in compliance with such laws and regulations. However, in the event that a violation of such laws or regulations is discovered, we may be subject to penalties such as suspension of business, fines, or revocation of licenses and qualifications by the regulatory authorities in the relevant country or region, which may ultimately have an adverse effect on our business performance and financial position.

***As we expand our business into the United States and other foreign countries, our operating results and financial condition may be affected by economic and political conditions in those countries or regions.***

When we plan to expand our business into the U.S. and other foreign countries, we intend to do so after conducting sufficient research and analysis of the economic and political conditions in those countries or regions. However, if unforeseen circumstances arise that cannot be predicted by our research and analysis, they may adversely affect our business performance and financial position.

***In expanding our business to the U.S. and other foreign countries, we may not be able to secure the human resources and business alliances necessary to operate our business.***

In the course of our planned business expansion into the U.S. and other foreign countries, we may recruit and hire personnel necessary for our business operations. In addition, we plan to seek business alliances and other arrangements necessary for our business operations. However, we may not be able to secure such personnel or business alliances, which may lead to a total or partial suspension or stagnation of our business operations.

***In expanding our business to the U.S. and other foreign countries, we must adapt to the business customs or culture of the country or region.***

Our planned expansion into the U.S. and other foreign countries will require us to adapt to the business customs or culture of the country or region. We intend to address these barriers through collaboration and cooperation with companies and personnel with local business experience. However, failure to adapt to such business practices and cultures could result in reputational and reputational damage, which could adversely affect our business results and financial condition.

***In conducting business in the U.S. and other foreign countries, we may encounter natural disasters due to the geography of those countries or regions.***

In the course of our planned business expansion into the U.S. and other foreign countries, there is a possibility that our products and other assets may be damaged by natural disasters in those countries or regions. We plan to take disaster risk into consideration when selecting products and purchasing insurance to protect against natural disaster damage. However, if a disaster occurs unexpectedly or we are unable to obtain insurance under sufficient conditions, the value of our assets may be damaged, and our business performance and financial position may be adversely affected as a result.

**USE OF PROCEEDS**

We estimate that we will receive approximately US$[___] million in net proceeds from the assumed sale of [___] common shares offered by us in this offering (or approximately US$[___] million if the underwriters exercise in full their option to purchase up to [___] additional common shares from us), based on an assumed public offering price of US$[___] per common share (which is the low-end of the price range set forth on the cover page of this prospectus), after deducting estimated underwriting discounts and commissions and offering expenses of approximately US$[___] million payable by us.

We intend to use the net proceeds from this offering as follows:

● Approximately [__]% to fund strategic expansion initiatives, including potential acquisitions of complementary businesses in Japan and international markets, in order to strengthen our operational footprint, customer base, and technological capabilities;

● approximately [__]% for capital expenditures, including the purchase of recycling and processing equipment, automation upgrades, and the lease or purchase of facilities to support our growth in Japan and international markets; and

● approximately [__]% for general corporate purposes, including personnel expansion, administrative infrastructure, and working capital.

The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management, however, has no agreements or commitments for particular uses of the net proceeds from this offering, and our management will have discretion in allocating the net proceeds. The amounts and timing of our actual expenditures will depend upon numerous factors, including the progress of our expansion and development efforts, whether or not we enter into strategic transactions, our general operating costs and expenditures, and the changing needs of our businesses.

Each US$1.00 increase (decrease) in the assumed initial public offering price of US$[____] per share (which is the low-end of the price range set forth on the cover page of this prospectus) would increase (decrease) the net proceeds to us from this offering by approximately US$[____] million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the underwriting discounts and commissions payable by us. We may also increase or decrease the number of shares we are selling in this offering. An increase (decrease) of 100,000 in the number of shares offered by us in this offering, as set forth on the cover page of this prospectus, would increase (decrease) the net proceeds to us from this offering by approximately US$[____] million, assuming the assumed initial public offering price of US$[____] per share (which is the low-end of the price range set forth on the cover page of this prospectus) remains the same, and after deducting the underwriting discounts and commissions payable by us. Any increase or decrease in the estimated proceeds from the offering is not expected to have a material effect on our operations given the discretion we will have in the application and use thereof.

We believe that our funds and the net proceeds from this offering will be sufficient to continue our businesses and operations as currently conducted through December 31, 2026; however, changing circumstances may cause us to consume capital significantly faster than we currently anticipate.

To the extent that the net proceeds we receive from this offering are not immediately used for the above purposes, we intend to invest our net proceeds in short-term, interest-bearing bank deposits or debt instruments.

**DIVIDEND POLICY**

Although we have paid annual dividends to shareholders since our formation in August 2024 as reflected in the table below, the payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on, among other things, our results of operations, cash requirements and surplus, financial condition, contractual restrictions and other factors that our common shareholders or directors may deem relevant, including retaining future earnings, if any, for reinvestment in the development and expansion of our business. The agreements into which we may enter in the future, including indebtedness, may impose limitations on our ability to pay dividends or make other distributions on our capital stock. See "*Risk Factors—Risks Related to this Offering and Ownership of the Common Shares—The payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on many factors on which the common shareholders or directors may determine not to do so*."

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| | | |
|:---|:---|:---|
| **(in thousands of US ($))** <br> **Year ended February 28,** | **Dividend Amount Paid** | **% of Net Income** <br> **Attributable to** <br> **Koei Group Co., Ltd.**  |
| 2025 | $124240 | 10.48% |
| 2026 | $145988 | 7.78% |

---

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents, debt and capitalization as of February 28, 2026:

● on an actual basis; and

● on a pro forma basis to give effect to the above and the assumed issuance of [_________] common shares in this offering at an assumed initial public offering price of [____] per share, after deducting underwriting discounts and commissions of US$[__________] and estimated offering expenses of US$[_________] payable by us, as set forth in this prospectus.

You should read the following table in conjunction with the sections entitled "*Use of Proceeds*", "*Selected Consolidated Financial Information and Operating Data*", "*Management's Discussion and Analysis of Financial Condition and Results of Operations*", and our financial statements and the related notes thereto included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of February 28, 2026** | **As of February 28, 2026** |
|  | **Actual** | **Pro Forma (1)** |
| Cash and cash equivalents | $7459111 | $|
| &nbsp;&nbsp;&nbsp;Short-term loans | 6417250 |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term loans | 974086  |  |
| &nbsp;&nbsp;&nbsp;Long-term loans | 4496340 |  |
| Total debts | 11887676  |  |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common shares, 34,320,000 shares authorized, 8,580,000 shares issued and outstanding, with no stated value, on an actual basis; and 34,320,000 shares authorized, [___________] shares issued and outstanding, with no stated value, on a pro forma basis | 173025 |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 704664  |  |
| &nbsp;&nbsp;&nbsp;Retained earnings | 7001065 |  |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1158512) |  |
| Total Koei Group Co., Ltd. shareholders' equity | 6720242 |  |
| &nbsp;&nbsp;&nbsp; Non-controlling interests | 872307  |  |
| Total shareholders' equity | 7592549  |  |
| Total capitalization | $19480225 | $|

---

(1) The
 pro forma information above is illustrative only and will be further adjusted based on the actual public offering price and other
 terms of this offering determined at pricing. The number of common shares to be outstanding immediately after this offering is based
 on the assumed issuance of [_______] common shares in this offering and does not include (i) up to [______] common
 shares issuable upon the exercise in full by the underwriters of their option to purchase additional common shares from us
 based upon an assumed offer and sale of [_________] common shares at an assumed public offering price of US$[____]
 per share (which is the low-end of the price range set forth on the cover page of this prospectus), (ii) the number
 of common shares underlying 171,600 stock acquisition rights (with an exercise price of ¥1 (US$0.01) per common share) equal
 to 2% of the issued and outstanding common shares on a fully diluted basis as of the day prior to the successful listing on the Nasdaq,
 subject to adjustment as provided in the stock acquisition rights agreement, and (iii) up to an aggregate of [_______]
 common shares underlying the Representative's Warrants to be issued to the Representative in
 connection with this offering (assuming the underwriters exercise the over-allotment option in full).

**DILUTION**

Purchasers of common shares in this offering will experience immediate and substantial dilution to the extent of the difference between the initial public offering price per common share paid by the purchasers of the common shares in this offering and the pro forma, as adjusted net tangible book value per common share immediately after, and giving effect to, this offering. Dilution results from the fact that the initial public offering price per common share in this offering is substantially in excess of the net tangible book value per common share attributable to the issued and outstanding common shares held by our existing shareholders.

Our historical net tangible book value per common share is determined by dividing our net tangible book value, which is the book value of our total assets less the book value of our goodwill, intangible assets, deferred initial public offering costs and total liabilities, by the number of outstanding common shares. As of February 28, 2026, the historical net tangible book value of our common shares was US$5,660,464, or US$0.66 per common share.

After giving effect to the (i) assumed sale by us of [___________] common shares in this offering at an assumed initial public offering price of US$[__] per common share (which is the low-end of the price range set forth on the cover page of this prospectus), and (ii) receipt by us of the net proceeds of this offering, after deduction of the underwriting discounts and commissions and the estimated offering expenses payable by us, our pro forma net tangible book value as of February 28, 2026 have been US$[__________], or US$[__] per common share. The pro forma net tangible book value per common share immediately after the offering is calculated by dividing the pro forma net tangible book value of US$[__________] by [________] common shares (which is the pro forma common shares outstanding as of February 28, 2026). The difference between the initial public offering price per common share and the pro forma net tangible book value per common share represents an immediate increase in net tangible book value of US$[__] per common share to our existing shareholders, and an immediate dilution in net tangible book value of US$[__] per common share to purchasers of common shares in this offering.

The following table illustrates this dilution to purchasers in this offering on a per common share basis:

---

| | | |
|:---|:---|:---|
| Assumed initial public offering price per common share |  | $|
| Net tangible book value per common share before this offering (as of February 28, 2026) | $0.66  |  |
| Increase in net tangible book value per common share attributable to purchasers in this offering | $— |  |
| Pro forma net tangible book value per common share immediately after this offering |  | $|
| Dilution in pro forma net tangible book value per common share to purchasers in this offering |  | $|

---

The following table summarizes, as of February 28, 2026, on the pro forma basis described above, the differences between the number of common shares purchased from us, the total consideration paid to us in cash, and the weighted average price per common share that our existing shareholders and the new purchasers in this offering paid. The total consideration below is based on an assumed initial public offering price of US$[_____] per common share (which is the low-end of the price range set forth on the cover page of this prospectus), before deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common shares** | **Common shares** | **Total Consideration** | **Total Consideration** | **Total Consideration** |
| **In US$** | **Number** | **Percentage** | **Amount(in thousands)** | **Percentage** | **Price per Share** |
| Existing shareholders | 8580000 | % | $877689 | % | $0.10 |
| New investors |  | % | $— | % | $— |
| Total |  | 100% | $— | 100% | $— |

---

Each US$1.00 increase (decrease) in the assumed initial public offering price of US$[____] per common share (which is the low-end of the price range set forth on the cover page of this prospectus) would increase (decrease) the total consideration paid by purchasers in this offering and the weighted average price per share paid by all shareholders by US$[_______] and US$[_____] per share,(which is the low-end of the price range set forth on the cover page of this prospectus), respectively, and in the case of an increase, would increase the percentage of total consideration paid by purchasers in this offering by [____]%, and in the case of a decrease, would decrease the percentage of total consideration paid by purchasers in this offering by [___]%, assuming the number of common shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the underwriting discounts and commissions payable by us.

Similarly, an increase (decrease) of 100,000 in the number of common shares offered by us in this offering, as set forth on the cover page of this prospectus, would increase (decrease) the total consideration paid by purchasers in this offering and the weighted average price per share paid by all shareholders by US$[______] million and US$[____] per share, (which is the low-end of the price range set forth on the cover page of this prospectus), respectively, and in the case of an increase, would increase the percentage of total consideration paid by purchasers in this offering by [___]%, and in the case of a decrease, would decrease the percentage of total consideration paid by purchasers in this offering by [___]%, assuming the assumed initial public offering price of US$[_____] per common share (which is the low-end of the price range set forth on the cover page of this prospectus) remains the same, and after deducting the underwriting discounts and commissions payable by us.

The table and information above assume no exercise by the underwriters of their option to purchase additional common shares in this offering. If the underwriters exercise in full their option to purchase up to [______] additional shares from us based upon an assumed offer and sale of [____] common shares at an offering price of US$[___] per shares, the pro forma net tangible book value per share immediately after this offering would be US$[_____] per share, and the dilution in pro forma net tangible book value per share to purchasers in this offering would be US$[___] per share, in each case assuming an assumed initial public offering price of US$[____] per share (which is the low-end of the price range set forth on the cover page of this prospectus), and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

Based upon an assumed offer and sale of [________] common shares at an offering price of US$[_____] per common share (which is the low-end of the price range set forth on the cover page of this prospectus), if the underwriters exercise in full their option to purchase up to [________] additional common shares from us, the number of common shares held by purchasers in this offering would be increased to [______] common shares, or [___]% of the total number of common shares outstanding immediately after this offering, and the percentage of common shares held by our existing shareholders would be reduced to [___]% of the total number of common shares outstanding immediately after this offering.

The foregoing tables and calculations are based on the number of common shares that will be outstanding immediately following the offering, and exclude (i) up to [______] common shares issuable upon the exercise in full by the underwriters of their option to purchase additional common shares from us based upon an assumed public offering price of US$[____] per share (which is the low-end of the price range set forth on the cover page of this prospectus), (ii) the number of common shares underlying 171,600 stock acquisition rights (with an exercise price of ¥1 (US$0.01) per common share) equal to 2% of the issued and outstanding common shares on a fully diluted basis as of the day prior to the successful listing on the Nasdaq, subject to adjustment as provided in the stock acquisition rights agreement, and (iii) up to an aggregate of [_____] common shares underlying the Representative's Warrants to be issued to the Representative in connection with this offering (assuming the underwriters exercise the over-allotment option in full).

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis summarize the significant factors affecting our operating results, financial condition, liquidity, and cash flows for the periods presented below. The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this prospectus. The forward-looking statements contained herein are based on management's judgment, assumptions made by management and information currently available to it. Actual results could differ materially from those discussed or implied in the forward-looking statements as a result of various factors, including those described below and elsewhere in this prospectus, particularly in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements."*

**Business Overview**

Koei delivers secure, compliant, and sustainable solutions that protect data, recover resources, and enable customers to lead responsibly across the value chain. By transforming end-of-life technology and industrial waste into new value, we help fuel the global circular economy. We are a Japan-based holding company with consolidated subsidiaries in Japan, Singapore, Thailand, and the United States. Our business spans three primary areas—material recycling, information technology asset disposition ("ITAD"), and industrial waste management—with professional services in the United States representing a developing fourth business line.

Our operating subsidiaries include:

● KOEI JAPAN CO., LTD., which oversees our recycling, industrial waste management, and ITAD operations in Japan;

● KOEISING PTE. LTD., which operates an ITAD facility supporting secure recycling and data destruction services in Singapore;

● Hidaka Koei (Thailand) Co., Ltd., which is in the process of establishing ITAD services and recycling operations to support the infrastructure and technology sectors in Thailand;

● Koei US, Inc., which provides professional services and ITAD in the United States; and

● EPJ CO., LTD., which supports the expansion of our industrial waste management operations in Japan and to isolate legal and compliance risks associated with that business in a dedicated entity.

The following diagram reflects our current organizational structure as of the date of this prospectus:

![](formdrsa_007.jpg)

(1) On
 August 8, 2024, Koei acquired 100% equity interest in KOEI JAPAN CO., LTD. ("KOEI JAPAN"), which was formed on April
 20, 1995, by exchanging all of its 286 common shares. As a result, KOEI JAPAN became a wholly owned subsidiary of Koei.

(2) KOEISING
 PTE. LTD is a wholly owned subsidiary of KOEI JAPAN, formed on February 17, 2022.

(3) Prior
 to February 2026, KOEI JAPAN held 99.99%
 ownership interest in KOEI (THAILAND) CO., LTD., which was formed on January 15, 2024, with the remaining 0.01% (equivalent
 to one share) held by the CEO of the Company. Given the immaterial impact of the non-controlling interest, no separate presentation
 was made in the consolidated financial statements. In February 2026, the Company sold a 49% ownership interest in KOEI
 (THAILAND) CO., LTD. to HIDAKA HOLDINGS (2008) CO., LTD., an entity incorporated in Thailand, and renamed KOEI (THAILAND) CO., LTD.
 to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest
 in Hidaka Koei (Thailand) Co., Ltd. to Siam Client Service Co., Ltd., an entity incorporated in Thailand, for no consideration. Through
 contractual arrangements, specifically pursuant to (i) Article 5 of the Shareholders Agreement, dated February 5, 2026, between KOEI
 (JAPAN) and Siam Client Service Co., Ltd., KOEI (JAPAN) ("KOEI-Siam Shareholders Agreement") is solely responsible for
 the management and business activities of Hidaka Koei (Thailand) Co., Ltd. without any input of Siam Client Service Co., Ltd. and
 (ii) Article 8-3 of the KOEI-Siam Shareholders Agreement giving KOEI (JAPAN) an exclusive call option to purchase or designate a party to purchase the shares held by Siam Client Service Co., Ltd.,
 the 2% Thai owner, giving KOEI (JAPAN) effective control over Siam Client Service Co., Ltd.'s 2% interest in Hidaka Koei (Thailand)
 Co., Ltd., enabling KOEI (JAPAN) with its 49% interest, to control Hidaka Koei (Thailand) Co., Ltd. and consolidate the financial
 results of Hidaka Koei (Thailand) Co., Ltd. in its consolidated financial statements. As of February 28, 2026, Hidaka Koei (Thailand)
 Co., Ltd. had no operations and incurred only immaterial expenses since its incorporation in January 2024.

(4) EPJ
 CO., LTD. was formed by Koei on March 10, 2025, to strengthen and expand our waste management operations in Japan.

(5) On
 March 10, 2025, Koei entered into an agreement to purchase 51% shares of Nufika LLC ("Nufika") from Robert Wagner, the
 Company's Chief Business Officer and a director, Maki Wagner, the Company's Chief Communications Officer and a
 director, and Hannah Wagner, who is Robert Wagner's daughter. Nufika was formed on January 3, 2023, and is headquartered
 in Texas and has historically provided professional services to the energy sector, with limited ITAD activities to date. Koei
 acquired Nufika for the purpose of business expansion in the US. The deal was closed on March 10, 2025, with a total cash
 consideration of US$1,000,000. On February 26, 2025, Nufika was converted from an LLC to C-Corporation in Texas and has been renamed
 to "Koei US, Inc."

We process a wide range of products, including information technology ("IT") equipment, office automation ("OA") equipment, consumer electronics, circuit boards, non-ferrous metals, and large industrial machinery. Our vertically integrated operation combines manual dismantling, two large industrial crushers with different crushing methods, and advanced sorting equipment capable of particle size separation, aluminum separation, and electromagnetic metal separation to recover a variety of materials, including gold, silver, palladium, copper, aluminum, and iron. These materials are sold to metal smelters and refiners, contributing to the global supply chain of critical raw materials.

Our ITAD services provide secure, compliant, and ESG-aligned solutions to corporations, government agencies, and institutional clients. We deliver a range of services, including certified data erasure, physical destruction, and asset resale. Data sanitization is performed through a combination of physical destruction, magnetic degaussing, and software-based erasure within secure, licensed facilities.

We operate dedicated ITAD facilities in Japan and Singapore, both of which maintain security protocols aligned with industry standards. In Japan, we also deploy mobile shredding units—specially equipped vehicles that perform on-site destruction directly at customer locations, eliminating transport risk and reinforcing data protection.

Refurbishable assets are resold under strict quality control standards, generating revenue while supporting clients' ESG objectives. Our ITAD operations contribute to sustainability goals by enabling reuse, reducing landfill waste, and recovering critical components. We also participate in leading regulatory frameworks such as the Carbon Disclosure Project ("CDP") and Taskforce on Nature-related Financial Disclosures ("TNFD"), and are certified under the Science Based Targets initiative (SBTi) to reduce Scope 1 and Scope 2 greenhouse gas emissions.

In Japan, we operate a licensed industrial waste management business through KOEI JAPAN Co., Ltd. ("KOEI JAPAN"), offering a one-stop solution that includes collection, transport, intermediate treatment, and resource recovery. We maintain licenses and favorable certifications in 46 of Japan's 47 prefectures (excluding Okinawa), and operate certified treatment facilities in Yokohama City and Kitakyushu City. These operations comply with Japan's Waste Management and Public Cleansing Act, the Secondhand Goods Business Act, and other applicable environmental regulations. We also own EPJ CO., LTD., established in 2025 to further strengthen and expand our waste management operations in Japan.

Japan's demanding regulatory environment—among the most rigorous globally—requires deep operational discipline, transparency, and technical expertise. Our ability to operate at scale within this framework is the result of decades of infrastructure investment, regulatory engagement, and strict internal controls. This platform supports our broader international expansion and underpins our reputation as a trusted, high-compliance partner.

Over 95% of our revenue for the fiscal years ended February 28, 2026 and 2025 was derived from the sale of recycled materials and reused IT assets, with the remaining 5% from industrial waste management and other services fees. For the years ended February 28, 2026 and 2025, the Company reported revenues of US$47,665,800 and US$43,837,761, respectively, net income of US$1,885,665 and US$1,185,085, respectively, and had net cash provided by operating activities of US$4,288,651 and US$1,092,623, respectively.

Our integrated model, breadth of licensed services, internationally recognized certifications (ISO9001, ISO14001, ISO27001, ISO45001, R2v3), and reputation for reliability position us to serve both public- and private-sector customers globally. In Japan, our competitive strength is further reinforced by our three major recycling centers, which anchor our operations and support deep, long-standing relationships with municipalities and enterprise clients. Our environmental commitment has been recognized with a "B" score from the CDP—a leading international nonprofit that evaluates climate-related performance on an eight-tier scale (A, A-, B, B-, C, C-, D, D-, F). This rating reflects our adherence to emissions, safety, and resource recovery standards, and supports our positioning as a trusted partner for ESG-aligned operations.

Our international expansion reflects a focused strategy targeting markets with rising demand for secure, compliant, and ESG-aligned services. In January 2024, we established KOEI (THAILAND) CO., LTD., and on December 19, 2025, the Company entered into an agreement to sell a 49% ownership interest in KOEI THAILAND to HIDAKA HOLDINGS (2008) CO., LTD., for the purpose of business expansion in Southeast Asia by partnering with the established ferrous scrap recycling company in Thailand. The transaction was completed in February 2026, for a total cash consideration of THB980,000 (approximately US$32,000) and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. In March 2025, we acquired a 51% interest in Koei US, Inc. ("Koei US"), a Texas-based professional services firm formerly operating as Nufika LLC. Hidaka Koei (Thailand) Co., Ltd. is evaluating facility development for ITAD services. Koei US, which historically served the energy sector, is a licensed engineering firm in Texas and staffed by employees and contractors. Neither currently operates a dedicated ITAD facility, though both are integral to our long-term growth plans.

We see significant opportunity in the U.S. and Southeast Asia, where industrialization, digital infrastructure investment, and regulatory tightening are accelerating demand for secure asset disposition and material recovery. In Texas, we believe that Koei US is positioned to offer professional services and asset disposition services, particularly for energy, operational technology ("OT"), and digital infrastructure clients—offering a multimode service model for the U.S. market.

As we scale internationally, we are committed to disciplined investment, operational efficiency, and selective customer and contract targeting. We seek to preserve margin stability while pursuing expansion into higher-value service areas, including engineering, consulting, and technology-enabled offerings. We operate under standardized Basic Sales Agreements (BSAs) and Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreements (IWCTD Agreements), each containing customary protections and termination provisions.

As part of our belief in continuous improvement, we have made and will continue to make strategic investments to enhance our operations and service offerings.

We have invested in advanced process automation technologies, including Japan's largest 4-axis shredders, vertical crushers, industrial-scale crushers, and sorting systems. These upgrades are designed to improve operational efficiency, increase data and environmental security, and support the responsible recovery of critical resources. In parallel, we are also exploring the possibility of developing proprietary technologies that build on our decades of operational and process expertise; however, no formal initiatives have been launched, and there is currently no established timeline or definitive development plan in place.

Koei is driven by a bold ambition: to transform end-of-life assets into engines of renewal, supporting the next generation of infrastructure resilience and advancing the circular economy. We believe the future demands more than sustainability—it calls for regeneration. Through strategic investments in technology, talent, and stewardship, we are building a secure, compliant, and globally scalable platform that delivers data-driven sustainable solutions. Our goal is to help businesses reduce risk, unlock value, and lead responsibly across the entire value chain.

**Corporate History**

***Forward Stock Split***

Effective September 8, 2025, Koei approved a stock split of the Koei's issued and outstanding common shares, at a ratio of 30,000-for-1 (the "Stock Split"). As of September 8, 2025 and immediately prior to the Stock Split, there were 286 common shares issued and outstanding. As a result of the Stock Split, Koei has 8,580,000 common shares issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

***Amendment No. 1 to Service Agreement***

 ****

On September 17, 2025, the Company entered into Amendment No. 1 to Service Agreement with HeartCore Enterprises, Inc. ("HeartCore") to amend the Service Agreement to permit the issuance of stock acquisition rights rather than the Warrant based on the terms set forth in Amendment No. 1 to Service Agreement.

The foregoing description of Amendment No. 1 to Service Agreement is qualified in its entirety by reference to Amendment No. 1 to Service Agreement, a copy of which is filed as Exhibit 10.3 to the registration statement of which this prospectus forms a part.

***Stock Acquisition Rights***

On September 22, 2025, the Company allotted 171,600 stock acquisition rights to HeartCore in exchange for services rendered as a consultant in connection with the proposed initial public offering of the Company under grants authorized by our shareholders and directors on September 17, 2025 in connection with the Service Agreement, dated as of April 11, 2024, between KOEI JAPAN (formerly Koei Shoji Co., Ltd.) and HeartCore, as amended. The stock acquisition right is exercisable upon a successful listing on the NYSE American or the Nasdaq and has an exercise price of US$0.01 per share and is fully vested. The number of shares underlying each stock acquisition right is calculated as the number of issued and outstanding common shares on a fully diluted basis as of the previous day of the listing date on a stock exchange multiplied by 2%, subject to adjustment as provided in the 1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei and HeartCore.

The foregoing description of the 1st Stock Acquisition Rights Allotment Agreement is qualified in its entirety by reference to the 1st Stock Acquisition Rights Allotment Agreement, a copy of which is filed as Exhibit 10.4 to the registration statement of which this prospectus forms a part.

***Number of Authorized Shares***

Effective October 15, 2025, the Company approved to decrease its number of authorized shares from 40,040,000 to 34,320,000.

***Dividend Distribution***

In November 2025, the Company declared and distributed cash dividends of JPY21,450,000 (approximately US$146,000).

***Change in Ownership Interest without Change of Control***

In February 2026, the Company sold a 49% ownership interest in KOEI (THAILAND) CO., LTD. to HIDAKA HOLDINGS (2008) CO., LTD. for cash consideration of THB980,000 ($31,570), and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control KOEI Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. As of February 28, 2026, Hidaka Koei (Thailand) Co., Ltd. had no operations and incurred only immaterial expenses since its incorporation in January 2024.

**<u>Key Financial Performance Indicators</u>**

Our key financial performance indicators are revenues, cost of revenues, gross margins, income from operations, net income and adjusted EBITDA.

***<u>Revenues</u>***

We currently generate our revenues from the following main sources:

*<u>Sales of Recycled Materials</u>*

A substantial portion of our revenue is derived from the sale of recycled materials and from the sale of reusable equipment recovered during the recycling and ITAD processes. Recycled materials primarily consist of electronic scrap, circuit boards, dismantled home appliances, and other industrial inputs containing precious metals, rare earth elements, and both ferrous and non-ferrous metals. Components or equipment with remaining utility are resold for reuse, which enhances overall margin contribution and supports resource efficiency objectives.

Revenue from these sales is recognized at a point in time when control of the goods transfers to the customer, which generally occurs upon completion of inspection and acceptance procedures. We do not offer warranties on recycled or reused materials. Our recycled materials mainly contain copper, gold and silver slags.

*<u>Industrial Waste Management and Other Services Revenue</u>*

We generate waste management revenue by collecting, transporting and disposing of industrial waste. It also provides other miscellaneous services, primarily IT asset disposal, involving the secured destruction or data erasure from used IT equipment, such as computers and smartphones, and professional services. Besides professional services, the service period normally ranges from one day to one week. Revenue is recognized at a point in time when the promised service is completed. The service period of professional services normally lasts for one month, and the revenue is recognized over the service period.

Payments to customers that are not in exchange for a distinct good or service are recorded as reductions of revenue. We make rebates to certain customers associated with payments for the recyclables obtained from the process of providing industrial waste management services, which will be subsequently processed by the Company and sold to other customers as recycled materials. The rebates amount is determined by mutual agreement between the Company and customers upon the completion of industrial waste management services. Rebates are generally recorded as reductions of revenue upon the receipt of the recyclable materials, in the same period when the corresponding service revenue is recognized.

***<u>Cost of Revenues and Gross Margins</u>***

Cost of revenues primarily consists of costs of goods sold associated with sales of recycled materials, salaries and outsourcing expenses for personnel directly involved in delivering services to customers, depreciation of property, plant and equipment used to produce our goods, along with related utilities and maintenance costs, and allocation of indirect costs such as corporate overhead.

We analyze the profitability of each transaction with customers and purchase from suppliers and closely observe the market price of metal markets for the purpose of balancing the satisfaction of customer and supplier business and our profit and achieving increasing revenues and profitability at the same time. Setting a reasonable gross margin is key to our success, especially for sales of recycled materials.

***<u>Income from operations</u>***

Income from operations is the difference between our revenues and cost of revenues, and operating expenses.

***<u>Net income</u>***

Net income is calculated by adding other income (expenses) and subtracting income tax expense to income from operations.

 ****

***<u>Adjusted EBITDA</u>***

Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net income before provision for income taxes, loss from equity method investments, interest expense, depreciation and amortization expense, and provision for credit losses. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Adjusted EBITDA was $4,230,694 and $2,975,912 for the years ended February 28, 2026 and 2025, respectively.

**<u>Results of Operations</u>**

**Results of operations for the years ended February 28, 2026 and 2025** 

The following table sets forth our consolidated results of operations for each of the periods presented.

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| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28, 2026** | **February 28, 2025** |
| Revenues | $47665800 | $43837761 |
| Cost of revenues | (37118717) | (36013660) |
| **Gross profit** | **10547083** | **7824101** |
| **Operating expenses** |  |  |
| Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $97,619 and $28,553 for the years ended February 28, 2026 and 2025, respectively) | (7044702) | (5736347) |
| **Total operating expenses** | **(7044702)** | **(5736347)** |
| **Income from operations** | **3502381** | **2087754** |
| **Other income (expenses)** |  |  |
| Other income | 59602 | 159361 |
| Other expenses | (81886) | (64814) |
| Interest expenses | (184821) | (145805) |
| Loss from equity method investments | (203830) | (360182) |
| **Total other expenses** | **(410935)** | **(411440)** |
| **Income before income taxes** | **3091446** | **1676314** |
| Income tax expense | (1205781) | (491229) |
| **Net income** | **1885665** | **1185085** |
| Less: net income attributable to non-controlling interests | 9129 | - |
| **Net Income attributable to Koei Group Co., Ltd.** | $**1876536** | $**1185085** |

---

The following table presents our reconciliation of GAAP net income to adjusted EBITDA for the periods indicated. For additional information regarding adjusted EBITDA, see "Key Financial Performance Indicators."

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| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28, 2026** | **February 28, 2025** |
| Net income | $1885665 | $1185085 |
| Provision for income taxes | 1205781 | 491229 |
| Loss from equity method investments | 203830 | 360182 |
| Interest expense | 184821 | 145805 |
| Depreciation and amortization expense | 743668 | 795753 |
| Provision for (reversal of) credit losses | 6929 | (2142) |
| **Adjusted EBITDA** | $**4230694** | $**2975912** |

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**Revenues**

Our revenues generated from different revenue streams consist of the following:

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| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | |
|  | **February 28, 2026** | **February 28, 2025** | **Variance**<br> **Amount** |
| Sales of recycled materials | $45398854 | $42048099 | $3350755 |
| Industrial waste management and other services | 2266946 | 1789662 | 477284 |
| **Total** | $**47665800** | $**43837761** | $**3828039** |

---

Our total revenues increased by 9% from $43,837,761 for the year ended February 28, 2025 to $47,665,800 for the year ended February 28, 2026, or an increase of $3,828,039, mainly due to the increase in sales of recycled materials, particularly driven by the rise in market price of precious metals for recycle materials processed as well as the growth in the resale of refurbished tech devices. For the year ended February 28, 2026, copper, gold and refurbished tech devices accounted for approximately 50%, 12%, and 37% of the total sales of recycled materials, respectively. The growth was mainly driven by the increase of revenue from resale of refurbished tech devices by approximately $7 million as a result the Company successfully sourced large amount of disposals from datacenters including servers and PCs. The increase in revenue was offset by a $2 million decrease in both copper and gold. This decrease was primarily driven by a decline in sales volume, reflecting the Company's strategic shift toward the resale of refurbished tech devices, which generate higher profitability compared to the sale of recycled materials. The remainder was due to a $1 million foreign exchange impact, driven by a slightly stronger Japanese yen in the fiscal year ended February 28, 2026, compared to the previous year.

**Cost of Revenues and Gross Margin**

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| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | |
|  | **February 28, 2026** | **February 28, 2025** | **Variance**<br> **Amount** |
| Cost of Revenues | $37118717 | $36013660 | $1105057 |
| Percentage of revenues | 77.9% | 82.2% | (4.3)% |

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Our total cost of revenues increased by 3% from $36,013,660 for the year ended February 28, 2025 to $37,118,717 for the year ended February 28, 2026, or an increase of $1,105,057. Aligned with the increase in resale of refurbished tech devices including servers and PC related items, cost of revenues increased by $434,577. The remaining $670,480 was mainly due to foreign exchange impact as a result was slightly stronger for the year ended February 28, 2026, compared to the year ended February 28, 2025.

The Company generated a gross margin of 22.1% for the year ended February 28, 2026, compared to a gross margin of 17.8% for the year ended February 28, 2025. The increase in gross margin was driven by revenue growth from the resale of refurbished tech devices, such as servers and PC-related items, which yield a higher gross margin than sales of recycled metal materials.

**Selling, General and Administrative Expenses**

Our selling, general and administrative expenses increased by 22.8% from $5,736,347 for the year ended February 28, 2025 to $7,044,702 for the year ended February 28, 2026, mainly due to the increase in payrolls and traveling expenses as a result of acquisition of Koei US. The remaining increases were driven by IPO related expenses and loss on disposal of fixed assets during the year ended February 28, 2026.

**Other Income (Expenses)**

Other income (expenses), net decreased from $94,547 for the year ended February 28, 2025 to $(22,284) for the year ended February 28, 2026.

Loss from equity method investments decreased by 43.4% from $360,182 for the year ended February 28, 2025 to $203,830 in the year ended February 28, 2026. The decrease in net loss generated by the investees contributed to the decrease in loss from the investments.

**Income Tax Expense**

Income tax expense for the year ended February 28, 2026 was $1,205,781, compared to $491,229 for the year ended February 28, 2025. The increase of $714,552 was mainly attributable to the increase in income before income taxes.

**Net Income**

As a result of the above, net income for the year ended February 28, 2026 was $1,885,665, compared to net income of $1,185,085 for the year ended February 28, 2025, representing an increase of $700,580.

**Net Income Attributable to Non-controlling Interests**

The Company recognized non-controlling interests in connection with the acquisition of Koei US in March 2025 and the change in ownership interest in KOEI THAILAND in February 2026. Net income attributable to non-controlling interests was $9,129 and nil for the years ended February 28, 2026 and 2025, respectively.

**Liquidity and Capital Resources** 

In the year ended February 28, 2026, the Company renewed its borrowings under the revolving lines of credit in order to fund the principal repayment of $7.4 million due in fiscal year 2027.

As of February 28, 2026, the Company had $7,459,111 in cash and cash equivalents compared to $6,824,377 as of February 28, 2025. In addition, the Company had $3,256,504 in accounts receivable as of February 28, 2026 compared to $1,808,475 as of February 28, 2025. The Company's accounts receivable includes balances due from customers for the services and goods completed or provided by the Company and accepted by customers.

As of February 28, 2026, the Company's working capital deficit was $1,613,148. In assessing liquidity, management monitors and analyses the Company's balance of cash and cash equivalents, ability to generate sufficient future earnings, and operating and capital investment commitments. The Company believes that its current cash and cash equivalents from operations and borrowings from banks will be sufficient to meet its working capital needs for the next 12 months from the date of issuance of the financial statements.

Over the next few years, the Company intends to consider other sources of financing to meet its cash needs, including raising additional capital through equity issuances. While we face uncertainties regarding the size and timing of our fundraising, we are confident that we will be able to continue to meet our business needs through the use of cash flows generated from operations, bank and other borrowings, and shareholder working capital, as needed.

The Company entered into a secured long-term loan pursuant to that certain loan agreement, dated September 22, 2021, with Resona Bank, Limited and The Bank of Yokohama, Ltd., as the lenders, filed as Exhibit 10.12 to the registration statement of which this prospectus forms a part. The Company's secured long-term loan, which amounted to $5,165,886 and $6,317,690 for the years ended February 28, 2026 and 2025, respectively, is subject to certain covenants requiring maintenance of specified ratio of net assets and avoiding consecutive operating losses. These covenants limit our operational and financial flexibility. We were in compliance with all of the covenants under the secured loans as of February 28, 2026 and do not anticipate our existing debt covenants to restrict our ability to undertake additional financing.

**Cash Flows for the Years Ended February 28, 2026 and 2025** 

The following table provides a summary of our cash flows for the periods indicated.

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| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28, 2026** | **February 28, 2025** |
| Net cash provided by operating activities | $4288651 | $1092623 |
| Net cash provided by (used in) investing activities | (1788900) | 154755 |
| Net cash used in financing activities | (1571856) | (1592603) |
| Effect of exchange rate changes | (293161) | 22155 |
| Net change in cash and cash equivalents | 634734 | (323070) |
| Cash and cash equivalents as of the beginning of the year | 6824377 | 7147447 |
| Cash and cash equivalents as of the end of the year | $**7459111** | $**6824377** |

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**Cash Provided by Operating Activities**

During the year ended February 28, 2026, net cash provided by operating activities of $4,288,651 was mainly due to net income of $1,885,665, adjusted for the increase in working capital including the accounts payable of $1,032,664 and income tax payable of $1,278,564, depreciation and amortization expense of $743,668, non-cash lease expense of $602,071. Negative changes in working capital mainly consisted of an increase of $1,567,767 in accounts receivable.

During the year ended February 28, 2025, net cash provided by operating activities of $1,092,623 was mainly due to net income of $1,185,085, adjusted for depreciation and amortization expense of $795,753, non-cash lease expense of $528,712, loss from equity method investments of $360,182, and changes in working capital. Negative changes in working capital mainly consisted of a decrease of $790,006 in income tax payable and decrease of $549,363 in operating lease liabilities.

**Cash Provided by (Used in) Investing Activities**

During the year ended February 28, 2026, net cash used in investing activities of $1,788,900 was mainly attributable to cash paid for the acquisition of Koei US, net of cash acquired, of $956,554 and purchases of property, plant and equipment of $735,417.

During the year ended February 28, 2025, net cash provided by investing activities of $154,755 was mainly attributable to proceeds from the surrender of life insurance policies of $681,429, partially offset by purchases of property, plant and equipment of $416,618 and purchases of term deposits of $110,056.

**Cash Used in Financing Activities**

During the year ended February 28, 2026, net cash used in financing activities of $1,571,856 was mainly the result of repayments of bank and other borrowings of $1,271,694 and distribution of dividends of $145,988.

During the year ended February 28, 2025, net cash used in financing activities of $1,592,603 was mainly the result of repayments of bank and other borrowings of $1,454,884 and distribution of dividends of $124,240.

**Contractual Obligations**

**Lease Agreements**

The Company has entered into operating leases mainly for offices, parking lots, facilities and warehouses purposes, with terms ranging from one to three years. Additionally, the Company has finance leases for certain office equipment, production equipment and vehicles, with terms ranging from three to seven years.

The Company had no material finance lease. For more details of material operating leases, see "*Description of Business—Facilities" on page 82 of this prospectus.*

As of February 28, 2026, the future maturity of lease liabilities is as follows:

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| | | |
|:---|:---|:---|
| **Years ending February 28 (29),** | **Finance Lease** | **Operating Lease** |
| 2027 | $70249 | $363059 |
| 2028 | 57763 | 121475 |
| 2029 | 39628 | 6765 |
| 2030 | 30444 |  |
| 2031 | 18013 |  |
| Thereafter | 1078 | - |
| Total undiscounted lease payments | 217175 | 491299 |
| Less: imputed interest | (4589) | (5542) |
| **Total lease liabilities** | $**212586** | $**485757** |

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**Long-Term Debt**

The Company borrowed loans from various financial institutions for the purpose of purchasing property, plant and equipment, and for working capital purpose.

As of February 28, 2026, future minimum payments for loans are as follows:

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| | |
|:---|:---|
| **Years ending February 28 (29),** | **Principal <br> Repayment** |
| 2027 | $7425630 |
| 2028 | 1008381 |
| 2029 | 1008381 |
| 2030 | 981146 |
| 2031 | 898415 |
| Thereafter | 673812 |
| **Total** | $**11995765** |

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**Off-Balance Sheet Arrangements (Off-Balance Sheet Transactions)**

There are no off-balance sheet arrangements as of February 28, 2026 and 2025.

**Trend Information**

The war in Ukraine and the imposition of broad economic sanctions against Russia could lead to higher energy prices and global inflation surge which caused the disruptions in global markets. Israel-Palestinian conflict may have adverse impact in the oil prices and other markets. It is unclear how the continued development and complexity of this situation will affect the Japanese economy and our business in the future. Fluctuations in the market prices of precious metals such as gold, silver, and copper could adversely affect the Company's business. In addition, there is a risk that changes related to the acquisition of new customers and additional purchases by existing customers could adversely affect the Company's results of operations; that deteriorating global economic conditions could have an adverse effect on the Company's industry, business and results of operations; and that many of the other risks listed under "Risk Factors" could have an incremental effect.

Other than as disclosed in the consolidated financial statements, we are not aware of any other trends, uncertainties, demands, commitments or events for the years ended February 28, 2026 and 2025 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial condition.

**Quantitative and Qualitative Disclosures about Market Risk**

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.

***Inflation risk***

Inflationary pressures have recently increased, and may continue to increase, the costs of labor, raw materials and other inputs for our products. We have experienced, and may continue to experience, higher than expected inflation, including escalating transportation, commodity and other supply chain costs and disruptions. If our costs are subject to significant inflationary pressures, we may not be able to offset such higher costs through price increases, which could adversely affect our business, results of operations or financial condition.

***Liquidity risk***

Liquidity risk is the risk that we will be unable to execute payments on the payment date when performing obligations to repay financial liabilities that come due. We monitor and maintain a level of cash and cash equivalents deemed adequate to finance our operation and to mitigate the effects of fluctuations in cash flow based on cashflow plans we prepare and maintain.

***Market risk***

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in the market prices of precious metals like gold, silver, and copper as well as interest rates. Lower market prices of precious metals could adversely affect our revenues, gross margin, and net income.

***Interest Rate Risk***

Our operations are interest rate sensitive. As the borrowing capability is adversely affected by increases in interest rates, a significant increase in interest rates may negatively affect the ability of borrowings to secure adequate financing. Higher interest rates could adversely affect our revenues, gross margin, and net income.

***Credit risk***

We hold cash in bank deposits financial institutions in Japan which are insured by the Deposit Insurance Corporation of Japan subject to certain limitations. We have not experienced any losses on such accounts and believe they are not exposed to any significant credit risk on cash and cash equivalents. Credit risk is also the risk of our incurring financial losses due to the default of contractual obligations by customers. We conduct credit management of customers in Japan and outside of Japan based on their financial condition.

**<br> Critical Accounting Policies and Estimates**

We prepare our consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experiences, and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates.

The following description of critical accounting policies and estimates should be read in conjunction with our consolidated financial statements and other disclosures included in this prospectus. When reviewing our consolidated financial statements, you should consider our selection of critical accounting policies, the judgments and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions.

**Business Combinations and Asset Acquisitions** 

Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Transaction costs directly attributable to the acquisition are expensed as incurred.

If investment involves the acquisition of an asset or group of assets that does not meet the definition of a business, the transaction is accounted for as an asset acquisition. An asset acquisition is recorded at cost, which includes capitalized transaction costs, and does not result in the recognition of goodwill. The cost of the acquisition is allocated to the assets acquired on the basis of relative fair values.

Fair value is determined based upon the guidance of ASC Topic 820, Fair Value Measurements and Disclosures, and generally are determined using Level 2 inputs and Level 3 inputs. The determination of fair value involves the use of significant judgment and estimates. The Company utilizes the assistance of a third-party appraiser to determine the fair value as of the date of an acquisition.

In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion.

<u>Valuation of Non-controlling Interests</u>

The Company, with the assistance of an independent valuation specialist, determined the fair value of the non-controlling interests recognized in connection with the acquisition of Koei US using the income approach with the discounted cash flow valuation method, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rates. We believe the accounting estimate for valuation of non-controlling interests is a critical accounting estimate because our estimates are based on assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates.

**DESCRIPTION OF BUSINESS**

*Unless the context otherwise requires, "Koei," the "Company," "we," "us," "our," and similar references refer to Koei Group Co., Ltd., a Japanese corporation, and its direct and indirect subsidiaries, including, KOEI JAPAN CO., LTD., a Japanese corporation, KOEISING PTE. LTD., a Singaporean corporation, Hidaka Koei (Thailand) Co., Ltd., a Thai corporation, EPJ CO., LTD., a Japanese corporation and Koei US, Inc., a Texas corporation.*

**Business Overview**

Koei delivers secure, compliant, and sustainable solutions that protect data, recover resources, and enable customers to lead responsibly across the value chain. By transforming end-of-life technology and industrial waste into new value, we help fuel the global circular economy. We are a Japan-based holding company with consolidated subsidiaries in Japan, Singapore, Thailand, and the United States. Our business spans three primary areas—material recycling, information technology asset disposition ("ITAD"), and industrial waste management—with professional services in the United States representing a developing fourth business line.

Our operating subsidiaries include:

● KOEI JAPAN CO., LTD., which oversees our recycling, industrial waste management, and ITAD operations in Japan;

● KOEISING PTE. LTD., which operates an ITAD facility supporting secure recycling and data destruction services in Singapore;

● Hidaka Koei (Thailand) Co., Ltd., which is in the process of establishing ITAD services and recycling operations to support the infrastructure and technology sectors in Thailand;

● Koei US, Inc., which provides professional services and ITAD in the United States; and

● EPJ CO., LTD., which supports the expansion of our industrial waste management operations in Japan and to isolate legal and compliance risks associated with that business in a dedicated entity.

The following diagram reflects our current organizational structure as of the date of this prospectus:

![](formdrsa_006.jpg)

(1) On
 August 8, 2024, Koei acquired 100% equity interest in KOEI JAPAN CO., LTD. ("KOEI JAPAN"), which was formed on April
 20, 1995, by exchanging all of its 286 common shares. As a result, KOEI JAPAN became a wholly owned subsidiary of Koei.

(2) KOEISING
 PTE. LTD is a wholly owned subsidiary of KOEI JAPAN, formed on February 17, 2022.

(3) Prior
 to February 2026, KOEI JAPAN held 99.99%
 ownership interest in KOEI THAILAND, which was formed on January 15, 2024, with the remaining 0.01% (equivalent to one share) held
 by the CEO of the Company. Given the immaterial impact of the non-controlling interest, no separate presentation was made in the
 consolidated financial statements. In February 2026, the Company sold a 49% ownership interest in KOEI (THAILAND)
 CO., LTD. to HIDAKA HOLDINGS (2008) CO., LTD., an entity incorporated in Thailand, and renamed KOEI (THAILAND) CO., LTD. to
 "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in
 Hidaka Koei (Thailand) Co., Ltd. to Siam Client Service Co., Ltd., an entity incorporated in Thailand, for no consideration. Through
 contractual arrangements, specifically pursuant to (i) Article 5 of the Shareholders Agreement, dated February 5, 2026, between
KOEI (JAPAN) and Siam Client Service Co., Ltd., KOEI (JAPAN) ("KOEI-Siam Shareholders Agreement") is solely responsible for
the management and business activities of Hidaka Koei (Thailand) Co., Ltd. without any input of Siam Client Service Co., Ltd. and (ii)
Article 8-3 of the KOEI-Siam Shareholders Agreement giving KOEI (JAPAN) an exclusive call option to purchase or designate a party to purchase
the shares held by Siam Client Service Co., Ltd., the 2% Thai owner, giving KOEI (JAPAN) effective control over Siam Client Service Co.,
Ltd.'s 2% interest in Hidaka Koei (Thailand) Co., Ltd., enabling KOEI (JAPAN) with its 49% interest, to control Hidaka Koei (Thailand)
Co., Ltd. and consolidate the financial results of Hidaka Koei (Thailand) Co., Ltd. in its consolidated financial statements. As of February
28, 2026, Hidaka Koei (Thailand) Co., Ltd. had no operations and incurred only immaterial expenses since its incorporation in January
2024. (4) EPJ
 CO., LTD. was formed by Koei on March 10, 2025, to strengthen and expand our waste management operations in Japan.

(5) On
 March 10, 2025, Koei entered into an agreement to purchase 51% shares of Nufika LLC ("Nufika") from Robert Wagner, the
 Company's Chief Business Officer and a director, Maki Wagner, the Company's Chief Communications Officer and a director,
 and Hannah Wagner, who is Robert Wagner's daughter. Nufika was formed on January 3, 2023, and is headquartered in Texas and
 has historically provided professional services to the energy sector, with limited ITAD activities to date. Koei acquired Nufika for the
 purpose of business expansion in the US. The deal was closed on March 10, 2025, with a total cash consideration of US$1,000,000. On
 February 26, 2025, Nufika was converted from an LLC to C-Corporation in Texas and has been renamed to "Koei US, Inc."

Our international expansion reflects a focused strategy targeting markets with rising demand for secure, compliant, and ESG-aligned services. In January 2024, we established KOEI (THAILAND) CO., LTD., and on December 19, 2025, the Company entered into an agreement to sell a 49% ownership interest in KOEI THAILAND to HIDAKA HOLDINGS (2008) CO., LTD., for the purpose of business expansion in Southeast Asia by partnering with the established ferrous scrap recycling company in Thailand. The transaction was completed in February 2026, for a total cash consideration of THB980,000 (approximately US$32,000) and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. In March 2025, we acquired a 51% interest in Koei US, Inc. ("Koei US"), a Texas-based professional services firm formerly operating as Nufika LLC. Hidaka Koei (Thailand) Co., Ltd. is evaluating facility development for ITAD services. Koei US, which historically served the energy sector, is a licensed engineering firm in Texas and staffed by employees and contractors. Neither currently operates a dedicated ITAD facility, though both are integral to our long-term growth plans.

We process a wide range of products, including information technology ("IT") equipment, office automation ("OA") equipment, consumer electronics, circuit boards, non-ferrous metals, and large industrial machinery. Our vertically integrated operation combines manual dismantling, two large industrial crushers with different crushing methods, and advanced sorting equipment capable of particle size separation, aluminum separation, and electromagnetic metal separation to recover a variety of materials, including gold, silver, palladium, copper, aluminum, and iron. These materials are sold to metal smelters and refiners, contributing to the global supply chain of critical raw materials.

Our ITAD services provide secure, compliant, and ESG-aligned solutions to corporations, government agencies, and institutional clients. We deliver a range of services, including certified data erasure, physical destruction, and asset resale. Data sanitization is performed through a combination of physical destruction, magnetic degaussing, and software-based erasure within secure, licensed facilities.

We operate dedicated ITAD facilities in Japan and Singapore, both of which maintain security protocols aligned with industry standards. In Japan, we also deploy mobile shredding units—specially equipped vehicles that perform on-site destruction directly at customer locations, eliminating transport risk and reinforcing data protection.

Refurbishable assets are resold under strict quality control standards, generating revenue while supporting clients' ESG objectives. Our ITAD operations contribute to sustainability goals by enabling reuse, reducing landfill waste, and recovering critical components. We also participate in leading regulatory frameworks such as the Carbon Disclosure Project ("CDP") and Taskforce on Nature-related Financial Disclosures ("TNFD"), and are certified under the Science Based Targets initiative (SBTi) to reduce Scope 1 and Scope 2 greenhouse gas emissions.

In Japan, we operate a licensed industrial waste management business through KOEI JAPAN Co., Ltd. ("KOEI JAPAN"), offering a one-stop solution that includes collection, transport, intermediate treatment, and resource recovery. We maintain licenses and favorable certifications in 46 of Japan's 47 prefectures (excluding Okinawa), and operate certified treatment facilities in Yokohama City and Kitakyushu City. These operations comply with Japan's Waste Management and Public Cleansing Act, the Secondhand Goods Business Act, and other applicable environmental regulations. We also own EPJ CO., LTD., established in 2025 to further strengthen and expand our waste management operations in Japan.

Japan's demanding regulatory environment—among the most rigorous globally—requires deep operational discipline, transparency, and technical expertise. Our ability to operate at scale within this framework is the result of decades of infrastructure investment, regulatory engagement, and strict internal controls. This platform supports our broader international expansion and underpins our reputation as a trusted, high-compliance partner.

Over 95% of our revenue for the fiscal years ended February 28, 2026 and 2025 was derived from the sale of recycled materials and reused IT assets, with the remaining 5% from industrial waste management and other services fees. For the years ended February 28, 2026 and 2025, the Company reported revenues of US$47,665,800 and US$43,837,761, respectively, net income of US$1,885,665 and US$1,185,085, respectively, and had net cash provided by operating activities of US$4,288,651 and US$1,092,623, respectively.

Our integrated model, breadth of licensed services, internationally recognized certifications (ISO9001, ISO14001, ISO27001, ISO45001, R2v3), and reputation for reliability position us to serve both public- and private-sector customers globally. In Japan, our competitive strength is further reinforced by our three major recycling centers, which anchor our operations and support deep, long-standing relationships with municipalities and enterprise clients. Our environmental commitment has been recognized with a "B" score from the CDP—a leading international nonprofit that evaluates climate-related performance on an eight-tier scale (A, A-, B, B-, C, C-, D, D-, F). This rating reflects our adherence to emissions, safety, and resource recovery standards, and supports our positioning as a trusted partner for ESG-aligned operations.

Our international expansion reflects a focused strategy targeting markets with rising demand for secure, compliant, and ESG-aligned services. In January 2024, we established KOEI (THAILAND) CO., LTD., and on December 19, 2025, the Company entered into an agreement to sell a 49% ownership interest in KOEI THAILAND to HIDAKA HOLDINGS (2008) CO., LTD., for the purpose of business expansion in Southeast Asia by partnering with the established ferrous scrap recycling company in Thailand. The transaction was completed in February 2026, for a total cash consideration of THB980,000 (approximately US$32,000) and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. In March 2025, we acquired a 51% interest in Koei US, Inc. ("Koei US"), a Texas-based professional services firm formerly operating as Nufika LLC. Hidaka Koei (Thailand) Co., Ltd. is evaluating facility development for ITAD services. Koei US, which historically served the energy sector, is a licensed engineering firm in Texas and staffed by employees and contractors. Neither currently operates a dedicated ITAD facility, though both are integral to our long-term growth plans.

We see significant opportunity in the U.S. and Southeast Asia, where industrialization, digital infrastructure investment, and regulatory tightening are accelerating demand for secure asset disposition and material recovery.

In Texas, we believe that Koei US is positioned to offer professional services and asset disposition services, particularly for energy, operational technology ("OT"), and digital infrastructure clients—offering a multimode service model for the U.S. market.

As we scale internationally, we are committed to disciplined investment, operational efficiency, and selective customer and contract targeting. We seek to preserve margin stability while pursuing expansion into higher-value service areas, including engineering, consulting, and technology-enabled offerings. We operate under standardized Basic Sales Agreements (BSAs) and Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreements (IWCTD Agreements), each containing customary protections and termination provisions.

As part of our belief in continuous improvement, we have made and will continue to make strategic investments to enhance our operations and service offerings.

We have invested in advanced process automation technologies, including Japan's largest 4-axis shredders, vertical crushers, industrial-scale crushers, and sorting systems. These upgrades are designed to improve operational efficiency, increase data and environmental security, and support the responsible recovery of critical resources. In parallel, we are also exploring the possibility of developing proprietary technologies that build on our decades of operational and process expertise; however, no formal initiatives have been launched, and there is currently no established timeline or definitive development plan in place.

Koei is driven by a bold ambition: to transform end-of-life assets into engines of renewal, supporting the next generation of infrastructure resilience and advancing the circular economy. We believe the future demands more than sustainability—it calls for regeneration. Through strategic investments in technology, talent, and stewardship, we are building a secure, compliant, and globally scalable platform that delivers data-driven sustainable solutions. Our goal is to help businesses reduce risk, unlock value, and lead responsibly across the entire value chain.

**Our Recycling and ITAD Facilities**

Our recycling and ITAD operations are anchored by three strategically located facilities in Japan and one ITAD-focused facility in Singapore. Across all locations, we aim to maintain uniform standards of operational excellence, with a blend of precise manual disassembly and industrial-scale mechanical processing designed to maximize recycling rates, material purity, and regulatory compliance.

***Yokohama Kanazawa Recycling Center (Kanagawa Prefecture, Japan)***

● Serves as our flagship facility for both material recycling and ITAD.

● Owned by KOEI JAPAN; spans approximately 9,900 square meters.

● Houses Japan's largest 4-axis shredders, vertical crushers, industrial-scale crushers, and optical sorting systems.

● Supports high-efficiency recovery of materials containing precious metals, rare earth elements, and both ferrous and non-ferrous.

● Includes a high-security ITAD-designated area with ISO27001- and R2v3-certified data erasure and destruction controls.

● Security infrastructure includes surveillance cameras, infrared sensors, secure rooms, metal detection, pocketless uniforms, and card-based access control.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018, R2v3, licensed for intermediate industrial waste treatment by Yokohama City

***Kitakyushu Recycling Center (Fukuoka Prefecture, Japan)***

● Supports material recycling and ITAD.

● Leased facility (approx. 4,400 square meters)

● Equipped with crushers and sorting systems.

● Supports high-efficiency recovery of materials containing precious metals, rare earth elements, and both ferrous and non-ferrous.

● Contains ISO27001-compliant secure data destruction room and refurbishment lines.

● Security infrastructure includes surveillance cameras, secure rooms, metal detection, pocketless uniforms, and card-based access control.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018, licensed for intermediate industrial waste treatment by Kitakyushu City

***Chubu Recycling Center (Aichi Prefecture, Japan)***

● Specializes in ITAD and material recycling.

● Leased facility of approx. 449 square meters.

● Focused on manual dismantling, high-purity material separation, and secure destruction.

● Security infrastructure includes surveillance cameras, metal detection, pocketless uniforms, and card-based access control, log tracking, and locked cargo.

● Certifications and Licenses: ISO9001:2015, ISO14001:2015, ISO27001:2013, ISO45001:2018

● Specializes in ITAD and material recycling.

● Leased facility of approx. 449 square meters.

***Singapore ITAD Facility***

● Purpose-built for Southeast Asian enterprise clients; smaller in scale but aligned with group quality standards.

● Offers certified data sanitization, physical destruction, and compliant recycling services.

● Certifications: ISO9001:2015, bizSAFE3

**Japanese Environmental Performance and Compliance** 

● Certified CFC recovery ensures the safe treatment of refrigerants in accordance with Japan's fluorocarbon regulations.

● Received a "B" environmental performance rating from the Carbon Disclosure Project (CDP) in 2024. A "B" rating is considered a strong result, signifying that the company is managing its climate-related risks and taking concrete action .

● Certified under the Science Based Targets initiative (SBTi) for greenhouse gas reduction and endorsed the Taskforce on Nature-related Financial Disclosures (TNFD), reinforcing our long-term commitment to sustainability and transparency.

***Material Recycling Business***

We operate a vertically integrated recycling business in Japan focused on the collection, dismantling, processing, and resale of recovered materials. Our facilities utilize both manual and machine-based sorting technologies—including industrial-scale shredders, crushers, and sorters—to efficiently extract and purify a wide range of valuable materials, including precious metals, rare earth elements, and both ferrous and non-ferrous metals. These materials are recovered from sources such as IT and OA devices, household appliances, and industrial machinery.

Our operations contribute to reducing reliance on virgin materials and promote national and corporate circular economy goals. Recycled materials are primarily sold to metal recyclers, refineries, and smelters.

![](formdrsa_002.jpg)

*Assessment and appraisal*

Our sales representatives, located throughout Japan, provide suppliers with assessments and appraisals of recyclable materials. Following a thorough assessment, we offer an integrated service that includes purchase, collection, transportation, and environmentally compliant disposal. This service is designed to ensure convenience, regulatory compliance, and speed of execution for our material recycling business.

*Collection and removal of recyclables and industrial waste*

We provide nationwide (excluding Okinawa Prefecture) collection and removal services for recyclables and industrial waste. For items containing sensitive information, such as data storage devices, we use security carts to prevent information leakage during transport. Our operations are certified under ISO27001, ISO14001, ISO9001, and ISO45001, underscoring our commitment to data security, environmental responsibility, quality management, and workplace safety.

*Dismantling, crushing and sorting (manual dismantling/dismantling and sorting using large-scale equipment)*

We employ a hybrid approach combining manual dismantling with industrial crushing and sorting equipment to optimize material recovery. Hand dismantling ensures high precision in separating materials from complex devices like OA and IT equipment. Our Yokohama Kanazawa and Kitakyushu Recycling Centers are equipped with some of Japan's largest 4-axis and vertical crushers, supporting high-throughput processing and material-specific separation.

Specialized machines are used to process complex components such as black motors from air conditioning compressors and coated wires. For example, enamel copper is extracted using dedicated disassembly equipment, while coated copper wire is ground into high-purity copper powder using precision grinders.

*CFC Recovery*

We are registered as a Class I fluorocarbon recovery operator in Japan. Certified technicians recover CFCs from vending machines, commercial air conditioners, and refrigerated showcases. We issue official CFC recovery certificates in accordance with regulatory standards.

*Analysis for Recycling*

In collaboration with Aqua Pulse Co., Ltd., we may conduct material analysis on metal and other content prior to resale. This process allows us to estimate recycling value and optimize pricing for high-value materials.

*Sales of Recycled Materials*

We identify potential buyers—primarily metal refiners, recyclers, and smelters—through our business network and supplier referrals. Our sales team actively contacts prospects to negotiate deal terms and pricing. Once a sales agreement is reached, we coordinate purchases from suppliers, process the materials, and arrange delivery to the buyer's specified location. Buyers inspect the materials upon receipt, and we recognize revenue upon fulfillment of our performance obligations.

Approximately 95% of our revenues are generated from selling recycled materials. For the years ended February 28, 2026 and February 28, 2025, with respect to our sales of recycled materials business, we reported total revenues of US$45,398,854 and US$42,048,099, respectively.

During the year ended February 28, 2026, we generated 18% and 15% of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively. During the year ended February 28, 2025, we generated 17% and 17% of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively.

***Information Technology Asset Disposition ("ITAD") Business***

We provide secure and compliant IT asset disposition (ITAD) services to corporations, government agencies, and other organizations managing end-of-life IT equipment. Our ITAD operations are designed to ensure data security, environmental compliance, and value recovery through reuse and recycling. We operate dedicated ITAD facilities in Japan and Singapore, with Japan serving as our primary base of operations. Our Singapore facility is smaller in scale but provides secure asset disposition services to local customers in the Southeast Asia region.

In Japan, we also offer on-site data destruction services through mobile shredding units. Our ITAD business is certified under ISO27001, ISO14001, ISO9001, and ISO45001, and complies with stringent information security and environmental management standards. Where feasible, we resell IT equipment that meets internal and customer-approved quality assurance criteria, enabling additional revenue streams while promoting sustainability.

![](formdrsa_003.jpg)

*Assessment and appraisal*

Our sales offices throughout Japan provide assessments and appraisals for the purchase and disposal of IT equipment. We offer a consistent end-to-end service from initial assessment and pricing proposals to collection, transport, and secure processing. We handle a broad range of devices, including PCs, servers, smartphones, tablets, peripheral equipment, and office fixtures. We tailor disposal methods, including material recycling and reuse, to meet each customer's specific needs and support efficient IT asset transitions, including large-scale replacements.

*Data deletion and media destruction*

We offer multiple data destruction methods that comply with international standards and best practices:

● **Physical destruction**: We use mechanical drill, punch, or shred equipment to visibly destroy storage media such as HDDs, SSDs, USB drives, and magnetic tapes.

● **Magnetic deletion**: High-strength magnetic fields are applied to erase data from applicable media.

● **Overwriting deletion**: Certified data erasure software (recognized by the Data Proper Deletion Execution Certification Committee, ADEC) is used to overwrite existing data in accordance with international data security standards.

Upon request, we issue data deletion and destruction certificates, including detailed reports with photos and serial number lists.

*Onsite Service*

Our mobile on-site shredding service in Japan allows customers to securely destroy storage media at their own facilities, without transferring sensitive data offsite. We currently operate one mobile shredding vehicle—a 4-ton Isuzu ELF truck equipped with an on-site HDD crusher and diesel generator. The truck is configured to enter standard underground parking facilities (below 2.8 meters in height) and is optimized for efficient operation in urban settings.

We are evaluating future expansion of the on-site shredding fleet in response to customer demand, particularly in Southeast Asia.

*Collection, removal, and disposal*

We offer secure collection and removal services for IT equipment nationwide in Japan (excluding Okinawa Prefecture) and Singapore. We are certified in Japan as an excellent industrial waste collector and transporter, and we use lockable security containers and, when requested, GPS-equipped vehicles to prevent information leakage during transit. Equipment received at our facilities in Japan and Singapore is monitored by a comprehensive array of surveillance cameras, and our trained staff follow strict protocols to ensure secure handling and disposal.

We also support unracking services for the removal of IT hardware from server environments, enhancing convenience for data center and enterprise customers.

*Office relocation*

We assist with removal and collection of IT equipment, racks, and office furniture during office relocations. Our security zones—located in our Yokohama Kanazawa, Chubu, and Kitakyushu facilities—feature stringent access controls including card authentication, metal detectors, log management systems, and pocketless workwear to maintain high standards of physical and information security. A comprehensive array of surveillance cameras and infrared sensors are installed company-wide to enhance internal and external monitoring.

*Certifications and compliance*

We maintain ISO27001 certification for information security management, along with R2 (Responsible Recycling) certification, an internationally recognized standard specific to the electronics recycling industry. R2 certification ensures responsible reuse, recycling, and final disposition of electronic equipment.

In addition to ISO and R2 certifications, we hold industrial waste management licenses and Certificates of Excellence from 48 local governments across Japan. These certifications enable us to serve data centers, large corporations, multinational clients, and government agencies with strict regulatory and operational requirements.

***Intermediate Treatment and Collection and Transportation of Industrial Waste***

In Japan, we operate a licensed industrial waste management business through our wholly owned subsidiary, KOEI JAPAN Co., Ltd. ("KOEI JAPAN"), providing comprehensive services that include the collection, transportation, and intermediate treatment of industrial waste. These operations are conducted in compliance with Japan's Waste Management and Public Cleansing Act, the Secondhand Goods Business Act, and other applicable environmental regulations. This business is being transitioned to the recently formed EPJ CO., LTD.

We currently hold industrial waste management certifications and permits in 46 of Japan's 47 prefectures (excluding Okinawa) and operate licensed treatment facilities in Yokohama and Kitakyushu. Both facilities are certified by their respective local authorities, and our company has been recognized with "Certificate of Excellence" designations for nearly all our industrial waste handling permits, reflecting our strong compliance history and operational integrity.

![](formdrsa_004.jpg)

 

*Assessment and appraisal*

Our nationwide network of sales offices enables us to provide prompt assessments and appraisals for industrial waste services. We offer end-to-end support for waste disposal projects, including site assessment, contract preparation, logistics planning, and execution. Our experienced staff assist customers with the execution of both industrial waste consignment contracts and collection and transportation agreements, delivering tailored solutions that meet regulatory requirements and operational needs.

*Collection, recovery, and removal services*

We provide full-scale industrial waste collection and removal services across Japan (excluding Okinawa Prefecture), offering solutions for office decommissioning, facility closures, and large-scale equipment disposal. Secure transportation methods are used to prevent environmental contamination and information leakage. Where appropriate, we also support thermal recycling and material recycling processes to reduce landfill volumes and support sustainable waste treatment.

 

Intermediate treatment and recycling

 

Our intermediate treatment facilities perform sorting, dismantling, crushing, and other pre-processing functions to prepare waste for reuse or safe disposal. We combine manual disassembly with large-scale mechanical processing equipment to maximize recycling efficiency and recovery rates. We promote material recycling whenever feasible, in accordance with the waste type and customer goals.

Our recycling programs include:

● **Plastics and CO₂ Reduction**: By diverting excess plastics from landfill and incineration, we reduce greenhouse gas emissions through proper sorting and shredding processes.

***Thermal Recycling***:

● Crushed and separated waste plastics are repurposed as alternative fuels (e.g., fluff fuel) or used as input for power generation, promoting energy recovery.

● **Fluorescent Lamp Recycling**: Fluorescent lamps —including straight, ring, and compact types—are safely dismantled into components (mercury, glass, electrodes, phosphor) and recycled in partnership with specialized vendors. Mercury, a hazardous substance, is recovered and reused.

● **Battery *Recycling*** : We recycle both primary (e.g., manganese, alkaline, lithium) and secondary (e.g., nickel-cadmium, lithium-ion) batteries in cooperation with licensed partners. Waste fluids are neutralized, and lead and plastic casings are recovered for reuse. Consultation on insulation and safety countermeasures is also available.

*Compliance support and certifications*

 

We maintain a strong compliance framework with dedicated legal specialists who assist customers with regulatory questions, contract structures, and the issuance of proper industrial waste manifests—both in paper and digital formats. Our operations adhere to multiple international standards, including:

● **ISO 14001** – Environmental Management

● **ISO 27001** – Information Security Management

● **ISO 9001** – Quality Management

● **ISO 45001** – Occupational Health and Safety

These certifications reflect our commitment to safety, quality, transparency, and regulatory compliance in all aspects of our industrial waste operations. We also maintain internal compliance protocols, including third-party legal reviews, to ensure adherence to national and local laws and continuous improvement of our systems and controls.

***Professional***  ***Services***

Koei US currently provides professional services to clients in the energy, manufacturing, and industrial sectors. Our offerings currently include:

● Project and discipline engineering;

● Technology enabled digital services;

● Systems integration;

● Operations and business consulting; and

● Strategic advisory for modernization.

As we grow internationally, the intent is to add these professional service capabilities in other markets, where there is demand for infrastructure development and ESG-aligned modernization.

Our professional services use industry best practices and are intended to support digital infrastructure, OT systems, and production and manufacturing environments. By integrating these services with physical asset disposition and recycling, we are delivering a full-lifecycle offering—from strategic planning to execution and compliance assurance.

We believe that these knowledge-based services complement our asset disposition services by providing strategic guidance to customers navigating digital transformation, infrastructure modernization, and sustainability initiatives.

***Technology Enabled Digital Services***

We are exploring proprietary technologies that build on decades of field experience across recycling, ITAD, and operations. Our innovation strategy focuses on:

● Operational and process automation tools and systems utilizing AI;

● Enhanced environmental and data security; and

● New commercial applications in resource recovery and infrastructure lifecycle management.

These initiatives are designed to strengthen scalability, improve customer value, and support long-term competitive differentiation in global circular economy and digital infrastructure markets.

**Growth Strategies**

Koei is focused on disciplined international expansion, margin-enhancing service integration, and innovation to capture long-term demand for secure, compliant, and sustainable asset disposition, material recycling, and professional services. Our strategy is built around proven operational foundations, scalable infrastructure, and targeted investment in growth markets.

***Expand Our International Footprint with a Focus on Southeast Asia and North America***

We are aiming to scale our Japanese operating model—characterized by strict regulatory compliance, operational transparency, and a commitment to ESG principles—into geographies undergoing rapid industrial and digital transformation.

● *Japan*: We established EPJ CO., LTD. in 2025 to expand our industrial waste treatment capacity and plan to launch a new ITAD center in the Kansai region to support domestic growth.

● *Singapore*: We are evaluating mergers or acquisitions of local recyclers to accelerate market penetration and infrastructure scale.

● T *hailand*: Through Hidaka Koei (Thailand) Co., Ltd., we plan to construct a dedicated ITAD center in the Sirachah region and are exploring strategic alliances with major domestic recycling firms.

● *United States*: Koei US enables entry into North America. We offer professional services and will look to establish operations supporting asset disposition market as well as technology enabled digital services.

***Scale OTAD Capabilities***

Through Koei US, we are pursuing OT service offerings that serve sectors with complex industrial systems, including:

● Energy;

● Utilities; and

● Manufacturing.

Our goal is to be a leader in these segments of our business by integrating secure decommissioning, professional services, and compliance with industry standard cybersecurity and infrastructure risk frameworks. We believe that OTAD has the potential to be an under-addressed category that complements our core recycling and ITAD operations.

***Deepen Customer Engagement Through Cross-Selling and Bundled Solutions***

We are seeking to enhance customer value and wallet share by offering bundled, lifecycle-oriented service packages that combine:

● Material recycling;

● ITAD and OTAD;

● Industrial waste management; and

● Professional services.

We believe that this approach allows us to serve as a single-source provider for customers navigating infrastructure modernization, ESG targets, and end-of-life compliance challenges.

***Expand Industrial Waste Management Capacity and Efficiency***

Through EPJ CO., LTD., we are enhancing our industrial waste operations in Japan by:

● Expanding intermediate treatment capacity;

● Optimizing transportation and logistics; and

● Deploying mobile processing units, including secure on-site shredding vehicles.

We believe that these improvements will increase throughput, improve client coverage, and support margin stability through greater operational leverage.

***Pursue Strategic Acquisitions and Partnerships***

We are actively evaluating selective acquisitions and alliances to strengthen our platform. Focus areas include:

● ITAD and recycling providers in target markets;

● Professional and operational service firms; and

● Adjacent verticals such as industrial or medical waste management.

Our M&A strategy is guided by operational and financial discipline, with a focus on cultural fit, regulatory readiness, and synergies that support our platform's long-term scalability.

***Expand***  ***Margin Profile Through Professional Services***

We aim to continue scaling our professional services—currently supported by Koei US—in the U.S. and may phase into Japan and Southeast Asia in time. These services may include:

● Project and discipline engineering;

● Technology enabled digital services;

● Systems integration; and

● IT/OT modernization consulting.

We believe that these engagements can provide revenue, increase retention, and position Koei as a lifecycle partner rather than a commodity vendor.

***Develop Technology Enabled Digital Services to Support Scalability and Competitive Advantage***

We are exploring the development of proprietary tools and platforms to improve:

● Asset handling, classification, and tracking;

● Automation of recycling and data destruction workflows; and

● Operational and process data and workflow management.

These efforts will be designed to support scalability, protect margins, and create defensible advantages in an increasingly digital and compliance-driven asset lifecycle market.

***Membership in Yokohama Urban Solution Alliance***

On October 21, 2022, KOEI JAPAN became a member of the Yokohama Urban Solution Alliance ("YUSA"). YUSA was established on July 6, 2017, by small and medium-sized companies in Yokohama in response to Yokohama City's move to strengthen the functions of the Yokohama Partnership of Resources and Technologies (Y-PORT) Center, in order to expand opportunities for overseas infrastructure business and contribute to solving urban issues in emerging countries. Y-PORT is an initiative by the City of Yokohama aimed at sharing the city's urban development expertise with emerging countries especially in the Asia Pacific area. By leveraging Yokohama's experience in overcoming urban challenges, Y-PORT seeks to co-create innovative smart urban solutions tailored to the specific needs of partner cities. Our Chief Executive Officer, President and Representative Director, Mamoru Iwamoto serves as a director of YUSA.

YUSA is an organization that aims to promote international cooperation through public-private partnerships and create business opportunities for local companies by solving urban issues in emerging countries. To this end, we are developing activities in cooperation with YUSA based on the following three pillars.

● *Research*: Commissioned research on overseas infrastructure business from overseas private companies, the Japanese government, and international aid organizations (including re-commissioning from domestic private companies). We invite participating companies and conduct a survey with member companies.

● *Project formation support*: Based on the seeds generated from research projects, we provide information for the formation of individual projects and coordinate operations (promoting partnerships between member companies, identification of investment partners, introduction of support systems, various application support, introduction of partner organizations, etc.).

● *Promotion*: Provide information on the technologies and services of member companies via the internet, international conferences, and networks of partner offices. In addition to matchmaking and business meetings with target cities and companies, we will promote the exchange of information among member companies and promote the packaging of solutions for urban issues.

**Customers and Suppliers**

***Customers***

Koei serves a diverse and expanding customer base that includes multinational corporations, public-sector entities, infrastructure operators, and industrial enterprises. Our integrated platform—spanning recycling, ITAD, industrial waste management, and professional services—allows us to address complex, evolving customer needs across geographies and industries.

We operate primarily under a Business-to-Business (B2B) model, serving organizations that prioritize regulatory compliance, data security, and environmental stewardship. While our current focus is institutional, we are evaluating future service models to reach individual consumers through mobile or digital offerings.

***Large Enterprises and Multinational Corporations***

We provide end-to-end lifecycle solutions to large enterprises and multinational corporations across:

● Finance and insurance;

● Energy and utilities;

● Manufacturing and industrial automation;

● Technology and telecommunications; and

● Logistics and supply chain.

***Public Sector and Government Agencies***

We serve municipal and national entities managing sensitive IT assets and regulated waste. We believe that our track record of compliance, chain-of-custody integrity, and ISO/R2v3 credentials make us a trusted partner for mission-critical projects—particularly in Japan, where we hold licenses in 46 prefectures.

 

***Infrastructure Operators and Industrial Enterprises***

Through our professional services capabilities, we can serve utilities, industrials, manufacturing, and logistics operators undergoing infrastructure modernization with secure decommissioning and upgrades of SCADA systems, PLCs, ruggedized computing, and legacy control equipment—delivered with technical assurance and regulatory alignment.

***Data Centers and Cloud Infrastructure Providers***

We can support hyperscale and enterprise data centers with:

● ITAD;

● On-site or off-site data destruction;

● Certified downstream recycling; and

● Critical material recovery.

This is expected to be a growing segment for Koei, especially in regions like Texas and Southeast Asia where AI and cloud infrastructure are scaling.

 

***Small and Medium-Sized Enterprises (SMEs)***

In Japan, we support SMEs through mobile shredding units and modular service offerings. These solutions enable on-site secure data destruction and flexible recycling for clients with lower volume but high compliance needs. We plan to expand similar service formats into Singapore and Thailand.

***Customer Acquisition and Digital Marketing***

We leverage performance-driven digital marketing strategies across key regions. Between August 2023 and July 2024:

● Japan: Generated 46,199 website clicks and 120 customer orders.

● Singapore: Generated 5,995 clicks and 111 customer orders.

Our campaigns focus on high-conversion landing pages and targeted search advertising. We continue to refine our digital strategy to cost-effectively grow demand and conversion in high-priority regions.

***Material Sourcing***

Our material inputs are sourced from a wide range of upstream channels:

● 45% from home appliance recycling facilities;

● 26% from manufacturers;

● 20% from IT and telecommunications companies;

● 7% from leasing companies; and

● 2% from government agencies and institutional sources.

This diversified sourcing ensures consistent volumes, pricing resilience, and alignment with customer ESG and compliance priorities.

***Suppliers***

 

A large percentage of the supplier attributes are home appliance recycling plants and manufactures, followed by IT and telecommunications companies.

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| | |
|:---|:---|
| Supplier Attributes | Purchase Ratio |
| Home appliance recycling plant | 45% |
| Manufacturers (companies that generate unnecessary non-ferrous metals and industrial waste in the manufacturing process) | 26% |
| IT and telecommunications / ICT companies | 20% |
| Leasing companies (asset disposal) | 7% |
| Central government offices, municipalities, the Metropolitan Police Department, airlines, banks, etc. | 2% |

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**Concentration of Customers and Suppliers**

***Customers***

For the years ended February 28, 2026 and February 28, 2025, with respect to our sales of recycled materials business, we reported total revenues of US$45,398,854 and US$42,048,099, respectively.

It is the nature of our business that a high concentration of our revenue is derived from the sales of recycled materials business and therefore when we sell our recycled materials there is a tendency to have large customers who purchase our materials. It is important to build trust in our business relationship by continuing providing high quality and purity materials which include metals such as gold, silver, copper, palladium, aluminum, and iron. With such effort, these customers are repeat customers, generating a large percentage of our revenues. We rely on these purchasers and there is a risk that these purchasers may be unable to make payment under their obligations to us thereby affecting our revenues.

During the year ended February 28, 2026, we generated 18% and 15 % of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively. During the year ended February 28, 2025, we generated 17% and 17% of total revenues from two customers, Customers PI CollaboTech, Inc. and TOWA Co., Ltd., respectively.

***Suppliers***

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Suppliers for our material recycling business includes home appliance recycling plants, manufacturers and IT and telecommunications/ ICT companies for the purchase mainly of Information Technology ("IT") equipment, Office Automation System ("OA") equipment, disassembled home appliances, circuit boards, and nonferrous metals.

During the year ended February 28, 2026, we made 11% of total purchases from one supplier, LY Corporation. During the year ended February 28, 2025, we made 10% of total purchases from one supplier, Nishinihon Kaden Recycle Corporation.

**Key Benefits to Customers**

Koei provides enterprise, government, and industrial clients with an integrated, end-to-end platform for secure, compliant, and sustainable management of technology assets, OT systems, and industrial waste. Our bundled solutions help customers reduce risk, meet regulatory and ESG requirements, and enhance operational efficiency throughout the asset lifecycle.

***Comprehensive Lifecycle Solutions***

By delivering a broad range of capabilities—from decommissioning and data erasure to material recovery, industrial waste treatment, and professional services we seek to simplify vendor management, reduce total cost of ownership, and improve service for our customers.

***Secure Data Destruction and Regulatory Assurance***

Our services comply with globally recognized standards, including:

● ISO27001 – Information Security;

● ISO9001 – Quality Management;

● ISO14001 – Environmental Management;

● ISO45001 – Occupational Health and Safety; and

● R2v3 – Responsible Recycling.

We offer certified data erasure, auditable chain-of-custody protocols, and secure physical destruction, helping clients safeguard sensitive data and meet jurisdiction-specific privacy, ESG, and environmental disclosure obligations.

These frameworks aim to provide additional assurance to infrastructure operators and regulated industries managing complex digital and physical transitions.

 ***OT Asset Management***

Through Koei US, we offer OT asset management services tailored to operational infrastructure—such as SCADA systems, PLC networks, and ruggedized computing hardware—across sectors like energy, logistics, manufacturing, and utilities. We believe that our combined technical and regulatory expertise allows us to manage assets that may be beyond the scope of conventional ITAD providers, reducing customer risk in highly regulated or mission-critical environments.

***Professional***  ***Services***

Koei US's professional services team provides strategic and technical advisory support for operating environments, infrastructure modernization and digital transformation projects. We believe that these knowledge-based services complement our physical asset recovery offerings, enabling us to support clients through planning, execution, and compliance.

***Sustainability and Circular Economy Enablement***

 ****

Our recycling and ITAD operations help clients meet their sustainability and net-zero goals by:

● Diverting materials from landfill;

● Reducing scope 3 emissions;

● Recovering critical raw materials;

● Enabling reuse through refurbishment; and

● Providing auditable ESG documentation through internationally recognized reporting frameworks.

We also support closed-loop recovery programs and resource efficiency mandates for multinational clients, public-sector agencies, and infrastructure operators.

**Industry Overview and Market Opportunity**

Koei operates at the intersection of two dynamic global sectors: resource recycling and asset disposition. Macroeconomic trends, regulatory pressures, rapid digital infrastructure expansion and technological shifts accelerating critical mineral demand are driving heightened demand for secure, compliant, and sustainable solutions to manage the lifecycle of digital infrastructure, operational technology systems, and industrial materials. We believe that Koei is positioned to capitalize on accelerating global demand for secure, compliant, and sustainable lifecycle solutions across ITAD, recycling, and professional services.

***Global Resource Recovery and Circular Economy Trends***

As governments and enterprises transition toward sustainable, circular models, there is a growing imperative to minimize waste and reintroduce materials into productive use. According to the Grand View Research, rising metal prices and shorter product life cycles of consumer and electronic gadgets are intensifying pressure on ecosystems and supply chains.<sup>2</sup>

In response, regulatory and corporate initiatives are increasingly prioritizing the recovery of high-value secondary raw materials—particularly gold, copper, palladium, and rare earth elements—essential to electronics, renewable energy systems, and advanced manufacturing. We believe that companies like Koei, with expertise in disassembly, sorting, and metal recovery, are critical to this supply chain.

***Rising E-Waste Volumes and End-of-Life Asset Turnover***

The Global E-waste Monitor 2024 reports that 62 million metric tons of e-waste were generated worldwide in 2023, with annual growth exceeding 2 million tons. Less than 20% of this volume is formally collected and recycled. Organizations face mounting challenges managing large inventories of end-of-life assets—ranging from smartphones to industrial control systems—amid increasing scrutiny over data privacy, traceability, and environmental performance. The accelerated deployment of AI, cloud computing, and hyperscale infrastructure is further shortening asset lifecycles, amplifying the need for secure, sustainable ITAD and recycling services.

<sup>2</sup> Grand View Research, 2025, *Metals Recycling: Market Analyses 2025*

***Japan's Regulatory Leadership in Waste Management***

Japan is among the most tightly regulated waste management environments globally. Operators must comply with the Waste Management and Public Cleansing Act, Secondhand Goods Business Act, Air and Water Pollution Control Acts, Fire Service Act, and other stringent frameworks that govern licensing, documentation, and environmental safety.

KOEI JAPAN holds waste collection and treatment licenses in 46 of Japan's 47 prefectures (excluding Okinawa) and operates intermediate treatment centers in Yokohama and Kitakyushu. Our streamlined industrial waste disposal service maximizes the recovery of high-value materials, significantly reduces landfill waste, and minimizes environmental impacts—achieving a 100% recycling rate for our primary product: discarded office equipment. Our operations are certified under ISO9001, ISO14001, ISO27001, ISO45001, and R2v3—demonstrating rigorous adherence to global standards. Long-term experience navigating these conditions serves as a strategic asset as we expand internationally.

 ****

***Digital Infrastructure Modernization and OTAD***

Digital transformation in sectors such as energy, manufacturing, logistics, and infrastructure is expanding the footprint of operational technology ("OT") systems—including supervisor control and data acquisition ("SCADA") components, industrial sensors, programmable logic controllers (PLCs), and ruggedized computing hardware.

As legacy systems are replaced with next-generation technologies, there is demand for OT asset disposition ("OTAD") services that combine secure disposition with technical expertise. Conventional ITAD vendors may lack the technical expertise required to support clients with these systems and the environments where they are located. We are developing capabilities and intend to support these markets.

***Tightening Global Regulation and ESG Pressures***

Regulators worldwide are imposing stricter mandates on data protection, environmental performance, and responsible material handling. Enterprises and public institutions face mounting pressure to demonstrate compliance with global frameworks. Koei's licenses, certifications, and operational transparency position us to serve as both a qualified vendor and trusted partner in helping clients meet these evolving obligations.

***Rising Demand for Critical Material Recovery***

Supply chain vulnerabilities and geopolitical instability have made the recovery of critical raw materials—such as gold, copper, palladium, and rare earth elements—a strategic priority. The growth of renewable energy, electric vehicles, and AI-driven systems is amplifying global competition for these inputs.

Koei's material recovery operations help reduce dependence on virgin extraction and directly support customer sustainability, resiliency, and resource security goals aligned with circular economy principles.

***Market Opportunity in Japan, Southeast Asia and the U.S.***

Japan's ITAD and metals recycling markets are expanding rapidly, fueled by industrial modernization, smart infrastructure, and rising sustainability mandates. Together, they represent a significant long-term opportunity to capture value from secure decommissioning of technology assets and the growing demand for recycled metals across key industries.

Southeast Asia is undergoing rapid industrialization, digital infrastructure investment, and regulatory maturation—creating fertile ground for the growth of Koei's Japanese operating model. We are expanding in Singapore and Thailand to meet rising institutional demand for secure, auditable, and ESG-aligned material recycling and ITAD services.

In the United States, we are shifting toward integrated lifecycle solutions that meet sustainability mandates, data security needs, and regulatory compliance. Koei US provides an established foothold for us to deliver services into a mature but evolving market.

*Regional Material Recycling Markets<sup>3</sup>*

The global metal recycling market was valued at approximately $983.8 billion in 2024 and is projected to reach $1,247.0 billion by 2030, representing a 4.3% CAGR. Aluminum accounted for nearly half of global revenues in 2024, reflecting its widespread use in construction, automotive, and consumer goods industries, while steel and copper also remain critical segments. This global growth is supported by rising demand for sustainable materials, government incentives, and the expansion of industries such as electric vehicles, renewable energy, and consumer electronics.

![A graph of metal recycling market AI-generated content may be incorrect.](vi_001.jpg)

Japan continues to be one of the most advanced recycling markets globally, supported by a robust regulatory framework and its technologically advanced industrial base. In 2024, Japan's metal recycling market generated $112.4 billion in revenue and is projected to reach $147.6 billion by 2030, a 4.7% CAGR. Although domestic steel demand has softened, government-backed EV adoption and strict recycling laws are driving strong demand for recycled aluminum and e-waste processing. Japan's globally competitive automotive and electronics industries ensure that the country remains a leader in sustainable material recovery.

Southeast Asia presents one of the fastest-growing opportunities for material recycling. The region's market was valued at $75.7 billion in 2024 and is forecast to reach $105.2 billion by 2030, reflecting a 5.6% CAGR. Growth is driven by rapid industrialization, urbanization, and tightening environmental regulations. For example, new steelmaking capacity in Indonesia, coupled with manufacturing expansion in Vietnam and Thailand, has boosted demand for recycled ferrous and non-ferrous metals. Vietnam has also emerged as a major processing hub, with non-ferrous scrap imports climbing to 4.9 million metric tons in 2024, up 14% from the prior year. Regulatory frameworks, such as Thailand's restrictions on hazardous waste and Singapore's Zero Waste Masterplan, further accelerate investment into compliant and capacity-building recycling operations.

North America remains a mature market, underpinned by well-established recycling infrastructure and consistent demand for recovered metals. In 2024, the North American metal recycling market was valued at $128.7 billion and is projected to reach $151.5 billion by 2030, reflecting a 2.8% CAGR. Aluminum recycling plays a central role, with the United States recovering 3.6 million metric tons of aluminum from purchased scrap in 2024. Energy savings are a key driver: recycling aluminum requires only about 5% of the energy used in primary production. Other drivers include demand from automotive, construction, packaging, and electronics sectors, as well as regulatory and ESG pressures for sustainable practices. While North America is attractive for its scale and stability, Koei's strategic focus remains on Japan and Southeast Asia, where our processing footprint is largest and market growth prospects are stronger.

Together, these dynamics underscore a global shift toward sustainable resource management, with Japan and Southeast Asia offering the strongest near-term growth opportunities in material recycling. By concentrating on these high-growth markets, we are well positioned to capture rising demand, expand processing capacity, and strengthen leadership in next-generation recycling solutions.

*ITAD (IT Asset Disposition) Regional Markets**<sup>4</sup>***

The global ITAD market, which includes computers, laptops, smartphones, tablets, servers, and related equipment, was valued at approximately $25.3 billion in 2024 and is projected to reach $54.5 billion by 2030, representing a 13.7% CAGR for 2024–2030. Growth is driven by enterprise refresh cycles, data security requirements, and sustainability mandates, with structured ITAD programs ensuring secure data sanitization, environmental compliance, and remarketing at scale.

![A graph of a market AI-generated content may be incorrect.](vi_002.jpg)

Japan's ITAD market was valued at $1.4 billion in 2024 and is expected to nearly double to $2.7 billion by 2030, reflecting a 11.6% CAGR. Growth is fueled by adoption of internet of things ("IoT") and Industry 4.0 technologies, which accelerate turnover of industrial servers and edge computing systems. With stringent requirements for data protection and e-waste reduction, Japan remains a leader in secure decommissioning and sustainable asset disposition for corporate and industrial sectors.

The ITAD market in Southeast Asia was approximately $1.5 billion in 2024 and is projected to reach $3.7 billion by 2030, representing a 16.2% CAGR. Growth is driven by rapid industrialization, expanding data center capacity, and stronger e-waste regulations. Singapore, Thailand, and the Philippines are leading adoption, supported by rising consumer electronics demand and the formalization of previously informal recycling channels. As data protection rules mature, enterprises are increasingly seeking partners that provide secure, compliant, and environmentally responsible ITAD solutions, creating favorable conditions to scale Koei's proven Japanese operating model across the region.

The U.S. ITAD market was valued at $3.3 billion in 2024 and is projected to reach $6.2 billion by 2030, reflecting an 11.1% CAGR. Growth is driven by cloud migration, shorter refresh cycles, and regulatory requirements for certified data destruction and asset recovery. Enterprises are also adopting integrated lifecycle solutions that combine sustainability with security and compliance. The market remains highly fragmented, creating opportunities for consolidation through M&A. With an established U.S. presence, Koei is well positioned to leverage its ITAD expertise, deliver services, expand its geographic footprint, and pursue accretive acquisitions in this attractive market.

Taken together, Japan, Southeast Asia, and the United States represent substantial near- and medium-term opportunities. By applying our proven Japanese operating model to high-growth markets such as Southeast Asia, and leveraging our established U.S. footprint, Koei is positioned to deliver secure, sustainable, and scalable ITAD solutions globally.

<sup>3</sup> Grand View Research, 2025, *Metals Recycling: Market Analyses 2025* 

<sup>4</sup> Grand View Research, 2025, *IT Asset Disposition: Market Analysis and Segment Forecasts to 2030*

*Industrial Waste Division<sup>5</sup>*

Japan's industrial waste market continues to present a substantial and highly regulated addressable opportunity, underpinned by the country's advanced manufacturing base, stringent environmental standards, and strong governmental oversight of waste management practices. As of 2024, Japan's market for industrial waste treatment and disposal services are valued at approximately $70.0 billion and projected to grow steadily at a CAGR of 6.2% (2025-2033) due to ongoing infrastructure modernization, ESG mandates, and a national push toward circular economy models. Operating in this market requires a complex set of permits and licenses issued at the prefectural level, reflecting the localized nature of Japan's waste management regulatory framework. Being licensed to handle industrial waste in 46 of Japan's 47 prefectures offers a significant competitive advantage, enabling broad geographic coverage, operational agility, and access to national and multinational customers with footprints across multiple regions. This licensing footprint positions us as a rare provider capable of delivering fully compliant, scalable solutions across nearly the entire country.

**Competition and Competitive Strengths**

There are many competitors, from large companies to new entrants in our industry. Price competition with other companies in the same industry is considered to exist in every country, and price competition is essential for ITAD and materials. In Japan, our main competitors are the following three companies, but we seek to differentiate ourselves through our permits, certification standards, and environmental measures and have built a strong customer base.

● Japan System Care Co., Ltd. is engaged in the ITAD business and reuse business.

● Broadlink Co., Ltd is engaged in the ITAD business and reuse business.

● Matsuda Sangyo Co., Ltd. is engaged in the precious metals and foods businesses.

We believe that Koei is uniquely positioned at the nexus of sustainability, digital transformation, and infrastructure modernization. We believe that our integrated platform, regulatory credibility, and technical capabilities distinguish us from both regional recyclers and global ITAD or professional services incumbents.

***Leadership in One of the World's Most Stringent Regulatory Markets***

Our operations in Japan—a country with some of the strictest environmental and industrial waste regulations globally—demonstrate deep compliance expertise and institutional discipline. We maintain licenses in 46 of 47 prefectures, operate certified intermediate treatment facilities, and consistently pass rigorous inspections. We believe that this track record validates our ability to operate under high scrutiny and positions us to scale responsibly in other complex jurisdictions.

 

***Integrated Full-Lifecycle Platform***

Koei is a provider that can globally offer end-to-end services across:

● ITAD and OTAD;

● Material recovery and resale;

● Industrial waste collection and treatment; and

● Professional services.

We believe that this breadth enables us to serve as a single-source partner for clients requiring secure asset disposition, ESG compliance, and infrastructure modernization. Our bundled model delivers operational efficiency and customer value not available through fragmented or single-service vendors.

***OT Asset Lifecycle Management***

Through Koei US, we provide asset management services for OT systems such as SCADA systems, PLC networks, and industrial automation equipment. Managing these assets often requires specialized expertise, protocols, and on-site capabilities that may be outside the scope of traditional IT asset services. Our experience in these areas allows us to support the full lifecycle of OT infrastructure, positioning us as a reliable partner for energy, manufacturing, and industrial operators.

***Scalable, Discipline-Based International Growth Strategy***

We are exporting our proven Japanese operating model—characterized by its rigor, through documentation, and strong compliance standards—into Southeast Asia and North America. This model adapts to local frameworks while maintaining global service quality and audit standards. Our strategic and methodical expansion is designed to preserve margins, mitigate risk, and unlock sustainable growth opportunities across maturing asset disposition and industrial recycling markets.

<sup>5</sup> Grand View Research, 2025, *Japan Waste Management Market Size & Outlook, 2024-2033* (Last accessed September 16, 2025)

 

**Reliance on Copper in Our Recycling Operations** 

A substantial portion of our material throughput and recycling revenue remains concentrated in copper and copper-based materials. For the fiscal year ended February 28, 2026, copper and copper-containing inputs accounted for approximately 79.4% of the total materials processed. The remaining material mix comprised circuit boards (13.0%), aluminum (4.7%), iron (1.8%), and other materials (1.1%), with such other materials including stainless steel, batteries, special metals, recycled paper, plastics, and waste oil. Within our copper processing operations in the fiscal year ended February 28, 2026, primary copper-related input categories included motors (26.9%), radiators (19.1%), raw copper (21.9%), miscellaneous copper-containing items (5.4%), and electric wires (6.1%). A notable element of our processing is the "black motor" separation technique: approximately 26.9% of our copper recovery is derived from dismantling metal casings to extract internal copper windings, a process that also yields residual aluminum, iron, and other metals. We have continued and expect to continue this reliance on copper for the fiscal year ended February 28, 2027.

Our recycled metals, including copper and other recovered metals, are sold directly to smelters and refiners, feeding back into the global metals supply chain. As such, our business is directly connected to and influenced by the global supply, demand, and pricing dynamics for copper and other base and precious metals. Given the significant role of copper in our business, global market trends in copper demand, supply constraints, production, and pricing are of central importance to our operations and results.

The copper market can be extremely volatile and unpredictable. For example, in 2025, copper prices surged sharply due to global supply-tightness, mine output disruptions, and increased demand from renewable energy, electrification, electric vehicles, data centers, and infrastructure build-outs (see article titled "Copper Smashes Records as Supply Fears Intensify Amidst LME Withdrawal Surge" dated December 3, 2025 at financial conent.com https://www.financialcontent.com/article/marketminute-2025-12-3-copper-smashes-records-as-supply-fears-intensify-amidst-lme-withdrawal-surge). Several supply-side constraints are contributing to the tight market, for example many existing copper mines face declining ore grades, long lead times for new mine development, environmental and regulatory constraints, labor and energy-cost pressures, and capital-intensity of greenfield mining projects, all contributing to structural scarcity risk (see article titled "Can copper supply keep up with surging demand?" dated November 20, 2025, by Wood Mackenzie https://www.woodmac.com/blogs/the-edge/can-copper-supply-keep-up-with-surging-demand/). Analysts anticipate continued growth in global copper demand, for example one recent forecast projects demand to rise by approximately 24% by 2035, driven by growth in infrastructure, electrification, data centers, renewable energy, and emerging economies' industrialization (see article titled "Copper demand set to surge 24% by 2035 as four key disruptors reshape global markets" dated October 15, 2025, by Wood Mackenzie https://www.woodmac.com/press-releases/soaring-copper-demand-an-obstacle-to-future-growth/).

These market dynamics create both potential upside and significant downside risk for us. A drop in copper prices, whether from a softening in global demand, increased mine supply, macroeconomic slowdown, or substitution of alternative materials, would likely reduce the revenue we obtain from copper recycling, compress profit margins, and reduce cash flow from our recycling operations. A sustained price increase or supply scarcity may impair our ability to source sufficient scrap copper at economically attractive prices, tightening our input supply pipeline, increasing competition for scrap, and driving up procurement costs, which could squeeze margins even if output remains constant. Given the high share of copper relative to our total processed materials, any adverse shift in the copper market could have a disproportionately large negative impact on our overall financial performance and working capital requirements.

Additionally, because a portion of our recovered metals includes other base and precious metals (aluminum, iron, gold, silver, palladium), volatility in commodity markets more broadly, including shifting demand patterns and recycling and refining capacity constraints, could further magnify financial uncertainty. Our business depends not only on market demand for recycled metals but also on our ability to operate our processing facilities effectively. Disruptions including mechanical failure of crushers or sorting equipment, maintenance outages, changes in scrap-material availability, regulatory changes affecting waste and recycling, or logistical disruption in our supply chain, could impair our ability to deliver recovered metals to smelters and refiners when needed. If any of the foregoing risks materialize, they could materially and adversely affect our business, financial condition, and results of operations.

**Corporate History**

***Forward Stock Split***

Effective September 8, 2025, Koei approved a stock split of the Koei's issued and outstanding common shares, at a ratio of 30,000-for-1 (the "Stock Split"). As of September 8, 2025 and immediately prior to the Stock Split, there were 286 common shares issued and outstanding. As a result of the Stock Split, Koei has 8,580,000 common shares issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

***Amendment No. 1 to Service Agreement***

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On September 17, 2025, the Company entered into Amendment No. 1 to Service Agreement with HeartCore to amend the Service Agreement to permit the issuance of stock acquisition rights rather than the Warrant based on the terms set forth in Amendment No. 1 to Service Agreement.

The foregoing description of Amendment No. 1 to Service Agreement is qualified in its entirety by reference to Amendment No. 1 to Service Agreement, a copy of which is filed as Exhibit 10.3 to the registration statement of which this prospectus forms a part.

***Stock Acquisition Rights***

On September 22, 2025, the Company allotted 171,600 stock acquisition rights to HeartCore in exchange for services rendered as a consultant in connection with the proposed initial public offering of the Company under grants authorized by our shareholders and directors on September 17, 2025 in connection with the Service Agreement, dated as of April 11, 2024, between KOEI JAPAN (formerly Koei Shoji Co., Ltd.) and HeartCore, as amended. The stock acquisition right is exercisable upon a successful listing on the NYSE American or the Nasdaq and has an exercise price of US$0.01 per share and is fully vested. The number of shares underlying each stock acquisition right is calculated as the number of issued and outstanding common shares on a fully diluted basis as of the previous day of the listing date on a stock exchange multiplied by 2%, subject to adjustment as provided in the 1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei and HeartCore.

The foregoing description of the 1st Stock Acquisition Rights Allotment Agreement is qualified in its entirety by reference to the 1st Stock Acquisition Rights Allotment Agreement, a copy of which is filed as Exhibit 10.4 to the registration statement of which this prospectus forms a part.

***Number of Authorized Shares***

Effective October 15, 2025, the Company approved to decrease its number of authorized shares from 40,040,000 to 34,320,000.

***Dividend Distribution***

In November 2025, the Company declared and distributed cash dividends of JPY21,450,000 (approximately US$146,000).

***Change in Ownership Interest without Change of Control***

In February 2026, the Company sold a 49% ownership interest in KOEI (THAILAND) CO., LTD. to HIDAKA HOLDINGS (2008) CO., LTD. for cash consideration of THB980,000 ($31,570), and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control KOEI Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. As of February 28, 2026, Hidaka Koei (Thailand) Co., Ltd. had no operations and incurred only immaterial expenses since its incorporation in January 2024.

**Intellectual Property**

***Trademarks***

The following tables summarize our registered trademarks, which were obtained from the Japan Patent Office, together with their issuance date and duration.

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| | | | |
|:---|:---|:---|:---|
| **Trademarks** | **Registration Number** | **Date of Issuance** | **Duration** |
| ![](formdrs_009.jpg) | 6884017 | January 9, 2025 | January 9, 2035 |
| ![](formdrs_09.jpg) | 6894281 | February 7, 2025 | February 7, 2035 |

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Solely for convenience, trademarks, trade names and service marks referred to in this prospectus may appear without the®,™ or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks. We do not intend any use or display by us of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply a relationship with, or endorsement or sponsorship of us by, these other parties.

***Patents***

The Company does not currently have any held or applied for patents.

**Material Agreements**

The Company has not entered into any material agreements not made in the ordinary course of business. The Company's business operations are conducted through standard agreements with customers, suppliers, and service providers in the ordinary course of business, none of which are considered material.

The standard agreements with customers include the following:

●  ***Basic Sales Agreement*:** Pursuant to Basic Sales Agreements (each a "BSA") entered into with customers by an operating subsidiary of the Company, the Company agrees to sell either recycled materials or processed IT hardware, as set forth in the BSA, to the customer in exchange for an agreed upon fee. If either party experiences serious financial or legal trouble—such as bounced checks, bankruptcy filings, asset seizures, regulatory actions that may prevent or delay performance under the BSA, or enters into a resolution to dissolve, merge into a non-surviving entity, or transfer all or a significant part of its business—then any extended payment terms under the BSA are immediately forfeited and all outstanding obligations become due in full. If there is a clear inability or unwillingness to fulfill the obligations under the BSA or a breach of the BSA, the non-breaching party has the right to immediately terminate the BSA. Additionally, if BSA is terminated under these conditions or if either party breaches the BSA, the non-breaching party may seek compensation for any resulting damages. The BSA contains customary confidentiality, notice and compliance provisions typically included in such agreements.

●  ***Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreement*** : Pursuant to Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreements (each a "IWCTD Agreement") entered into by an operating subsidiary of the Company with customers, the Company agrees to collect, transport and dispose of the customer's industrial waste on their business site as set forth in the IWCTD Agreement in exchange for an agreed upon fee. The IWCTD Agreement can be terminated immediately by either party if the other party experiences serious financial or legal issues, such as bankruptcy, asset seizure, or if a material breach of the IWCTD Agreement occurs that is not corrected after notice. If termination occurs while unprocessed industrial waste remains, the breaching party remains responsible for ensuring proper collection, transport, and disposal of such waste. The IWCTD Agreement contains customary confidentiality, notice and compliance provisions typically included in such agreements.

The standard agreements with suppliers and service providers include the following:

***Basic Sales and Purchase Agreement***: Pursuant to Basic Sales Agreements (each a "BSA") entered into with customers by an operating subsidiary of the Company, the Company agrees to purchase Information Technology ("IT") equipment, Office Automation System ("OA") equipment, disassembled home appliances, circuit boards, and nonferrous metals, as set forth in the BSA, from the customer in exchange for an agreed upon fee. If either party experiences serious financial or legal trouble—such as bounced checks, bankruptcy filings, asset seizures, regulatory actions that may prevent or delay performance under the BSA, or enters into a resolution to dissolve, merge into a non-surviving entity, or transfer all or a significant part of its business—then any extended payment terms under the BSA are immediately forfeited and all outstanding obligations become due in full. If there is a clear inability or unwillingness to fulfill the obligations under the BSA or a breach of the BSA, the non-breaching party has the right to immediately terminate the BSA. Additionally, if BSA is terminated under these conditions or if either party breaches the BSA, the non-breaching party may seek compensation for any resulting damages. The BSA contains customary confidentiality, notice and compliance provisions typically included in such agreements.

●  ***Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreement*** : Pursuant to Industrial Waste Collection, Transportation, and Disposal Outsourcing Basic Agreements (each a "IWCTD Agreement") entered into by an operating subsidiary of the Company with a service provider, the Company agrees for the service provider to collect, transport and dispose of certain industrial waste as set forth in the IWCTD Agreement in exchange for an agreed upon fee. The IWCTD Agreement can be terminated immediately by either party if the other party experiences serious financial or legal issues, such as bankruptcy, asset seizure, or if a material breach of the IWCTD Agreement occurs that is not corrected after notice. If termination occurs while unprocessed industrial waste remains, the breaching party remains responsible for ensuring proper collection, transport, and disposal of such waste. The IWCTD Agreement contains customary confidentiality, notice and compliance provisions typically included in such agreements.

**Government Regulation**

The Company's business operations are subject to various rules and regulations as follows.

***Waste Management and Public Cleansing Law***

The Waste Management and Public Cleansing Law (also referred to as the Waste Disposal and Public Cleansing Law) is Japan's primary legislation for the disposal, management, and recycling of waste. Enacted to ensure the proper treatment of waste, this law aims to promote environmental protection by preventing pollution and fostering the sustainable use of resources through recycling. It establishes guidelines for the collection, transportation, intermediate treatment, and final disposal of waste, mandating strict compliance to minimize environmental harm.

The 1991 revision introduced a registration system for waste recycling business operators, requiring companies engaged in the recycling of industrial and general waste to obtain certification and adhere to standards for waste handling and disposal. Under this system, operators must meet specific requirements related to facility standards, operational methods, and environmental safeguards. Businesses are also required to submit periodic reports and undergo inspections to ensure compliance with applicable laws and regulations. Accordingly, the Company has obtained a Waste Recycling Business Operator Registration Certificate and Industrial Waste Disposal License.

Violations of the Waste Management and Public Cleansing Law can result in administrative penalties, fines, suspension of operations, or criminal prosecution. Additionally, companies may face reputational harm and the loss of operational permits if found in violation. The law places a strong emphasis on transparency and accountability, requiring waste management operators to maintain accurate manifests that document the type, quantity, and treatment of waste handled.

This law is foundational to the Company's business activities, as it governs the collection, transportation, and recycling of waste materials, including hazardous and non-hazardous waste, ensuring operations align with Japan's environmental protection goals.

***Secondhand Goods Business Act (SING Secondhand goods dealer)***

The Secondhand Goods Business Act is a Japanese regulation that governs businesses involved in the purchase, sale, or exchange of "secondhand goods" to ensure the proper management of such transactions and prevent the distribution of stolen or illegal items. Under this law, companies engaging in secondhand goods transactions, including the recycling and resale of items such as IT equipment, office automation systems, and home appliances, are required to obtain a Secondhand Goods Dealer License from the relevant police department.

The licensing process involves submitting an application with detailed information about the business, its premises, and key personnel. Once issued, the license must be prominently displayed at the place of business. Licensed dealers are also required to maintain detailed transaction records, including the identification of sellers and buyers, the type and condition of goods, and transaction dates, to ensure traceability and deter illegal activities.

Failure to comply with the requirements of the Secondhand Goods Business Act, such as operating without a license, improper record-keeping, or dealing in stolen goods, can result in penalties, suspension of business operations, or revocation of the license. This law plays a vital role in ensuring transparency and security in the secondhand goods market, and adherence is critical for the company's operations, particularly in the recycling and resale of IT and office automation equipment.

Accordingly, the Company has obtained a Secondhand Goods Dealer License from Kanagawa Prefectural Public Safety Commission.

 ****

***Fire Service Act***

The Fire Service Act is a fundamental law in Japan designed to prevent, guard against, and suppress fires, as well as to protect the lives, health, and property of citizens in the event of a fire. This law establishes comprehensive regulations for fire safety, including the proper design, construction, and maintenance of buildings, facilities, and equipment to minimize fire risks. It also sets requirements for fire prevention measures, such as the installation of fire alarms, sprinklers, extinguishers, and fire-resistant materials.

Businesses are required to comply with fire safety regulations based on the size, type, and purpose of their facilities. This includes conducting regular inspections, maintaining fire equipment, and ensuring that evacuation routes and emergency exits are unobstructed and clearly marked. For facilities handling flammable or hazardous materials, such as those involved in recycling and industrial waste management, the Act imposes stricter safety measures to prevent fire outbreaks and mitigate potential hazards.

The law also mandates periodic fire drills and safety training for employees to prepare for emergencies and minimize risks. Non-compliance with the Fire Service Act, such as inadequate safety equipment or failure to conduct required inspections, can result in administrative penalties, fines, or suspension of business operations. Ensuring full compliance with this Act is critical for the Company, especially given its handling of combustible materials during recycling and waste treatment processes. Our Company complies with these regulations.

***Noise Regulation Law and Vibration Regulation Law***

The Noise Regulation Law and Vibration Regulation Law are Japanese environmental laws designed to mitigate pollution from noise and vibration, thereby protecting the health and well-being of people as well as preserving the surrounding environment. These laws establish standards for acceptable levels of noise and vibration based on the type of area (e.g., residential, industrial, or commercial zones) and the time of day, with stricter limits typically applied to residential and night-time areas.

Under the Noise Regulation Law, businesses and facilities that generate significant noise, such as those involving heavy machinery, transportation, or industrial processes like recycling and waste treatment, must ensure that their operations stay within prescribed noise limits. Similarly, the Vibration Regulation Law applies to equipment or activities that produce vibrations, requiring businesses to implement measures to reduce their impact, such as installing vibration-dampening devices or conducting operations during permitted hours.

Both laws mandate periodic monitoring of noise and vibration levels and may require businesses to submit reports or undergo inspections by local authorities. Failure to comply with these regulations can result in administrative penalties, fines, or restrictions on business operations. For the Company, which operates recycling centers and handles industrial waste using large crushers and other heavy equipment, adherence to these laws is critical to maintaining community relations, avoiding regulatory action, and ensuring sustainable operations. Our Company complies with these regulations.

***Air Pollution Control Law and Water Pollution Control Law***

The Air Pollution Control Law and Water Pollution Control Law are key environmental regulations in Japan aimed at preventing and mitigating air and water pollution, thereby protecting public health and preserving ecosystems.

The Air Pollution Control Law establishes standards to limit emissions of harmful substances, such as sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter, and hazardous chemicals, from industrial facilities and machinery. Businesses are required to install and maintain appropriate air pollution control devices, such as filters and scrubbers, to reduce emissions. Additionally, the law mandates monitoring and reporting of air quality metrics to ensure compliance with established standards. Facilities that generate significant dust, such as recycling plants using large crushers, must take preventive measures to minimize airborne particles that can lead to pneumoconiosis or other respiratory health risks.

The Water Pollution Control Law focuses on the prevention of water contamination by regulating the discharge of wastewater and hazardous substances into public water systems, rivers, and oceans. It sets effluent standards for industries to control pollutants such as heavy metals, organic compounds, and other toxic substances. Businesses are required to treat wastewater before discharge and conduct regular water quality testing to ensure compliance with permissible levels.

The Company, which operates recycling centers and handles industrial waste, must adhere to these laws by implementing robust air and water pollution control measures, including the voluntary measurement of dust and water quality. Non-compliance with these laws can result in penalties, operational restrictions, or reputational damage. Maintaining compliance is critical to safeguarding the environment, supporting sustainable operations, and fostering positive relations with regulatory authorities and local communities. Our Company complies with these regulations.

***Labor Standards Act, Industrial Safety and Health Act, and Working Environment Measurement Act***

The Labor Standards Act, Industrial Safety and Health Act, and Working Environment Measurement Act are cornerstone regulations in Japan designed to protect the rights, safety, and health of workers by establishing minimum labor standards and workplace safety requirements.

The Labor Standards Act ensures that employees are safeguarded from harsh or unfair labor practices by setting minimum standards for wages, working hours, overtime pay, rest periods, and holidays. It also regulates employment contracts and prohibits forced labor, child labor, and gender discrimination. Employers are required to provide fair and humane working conditions and to maintain clear and transparent labor policies.

The Industrial Safety and Health Act focuses on ensuring the physical and mental well-being of workers by mandating safety measures in the workplace. This includes the prevention of occupational accidents through risk assessments, the use of protective equipment, regular health check-ups for employees, and the establishment of safety and health committees in workplaces with a certain number of employees. Employers must also provide safety training to employees, especially when handling hazardous materials or operating heavy machinery, as is common in recycling and industrial waste management facilities.

The Working Environment Measurement Act complements the Industrial Safety and Health Act by requiring employers to monitor and control harmful environmental factors in the workplace, such as dust, noise, vibration, toxic substances, and extreme temperatures. Employers must conduct regular workplace measurements and assessments to ensure compliance with acceptable thresholds for these factors, and they must implement corrective actions if standards are not met.

Non-compliance with these laws can result in legal penalties, operational shutdowns, and reputational damage. For the company, which operates recycling centers and handles hazardous and heavy materials, strict adherence to these laws is essential to protect employees, maintain regulatory compliance, and ensure a safe and productive working environment. Our Company complies with these regulations.

***ISO Standards (International Organization for Standardization)***

The International Organization for Standardization (ISO) develops and publishes international standards to ensure consistency, quality, and safety in products, services, processes, materials, and systems. These standards facilitate global trade by establishing universally recognized benchmarks, enabling organizations to meet customer expectations, comply with regulations, and improve operational efficiency. ISO standards also promote environmental sustainability, information security, and occupational health and safety, ensuring that businesses provide products and services at a globally consistent level of quality and safety.

The Company has achieved certification in the following standards:

● *ISO14001:2015*: This standard outlines the requirements for an effective Environmental Management System (EMS), helping organizations minimize their environmental impact by systematically managing resources, reducing waste, and adhering to environmental laws and regulations.

● *ISO/IEC27001:2013*: This is the internationally recognized standard for Information Security Management Systems (ISMS), designed to protect sensitive company and customer information from breaches and cyber threats. Certification demonstrates the company's commitment to securing data and managing information risks effectively.

● *ISO9001:2015*: This standard specifies requirements for a Quality Management System (QMS), ensuring that the company consistently provides products and services that meet customer and regulatory requirements while fostering continuous improvement.

● *ISO45001:2018*: This standard focuses on Occupational Health and Safety (OHS), providing a framework to improve workplace safety, reduce risks, and create healthier working environments for employees. Certification demonstrates the company's dedication to protecting its workforce.

● *R2 Certification*: The Responsible Recycling (R2) certification is a globally recognized standard specifically for the electronics recycling industry. It ensures that organizations adhere to best practices for the responsible reuse, repair, recycling, and disposition of electronic equipment while prioritizing worker health, safety, and environmental protection.

These certifications reflect the Company's commitment to maintaining high standards in environmental stewardship, information security, quality management, occupational safety, and responsible recycling practices.

***Registration of Fluorocarbons Recovery Operators***

Our Company is registered with the Japanese government as a Class I Fluorocarbon Recovery Operator, demonstrating our commitment to the proper recovery, management, and disposal of chlorofluorocarbons (CFCs) and other fluorinated gases. These substances, commonly found in refrigeration, air conditioning equipment, and vending machines, are known to contribute significantly to ozone depletion and global warming if improperly handled.

As a certified operator, we adhere to strict guidelines for the safe recovery, transport, and disposal of CFCs, ensuring compliance with the Act on Rational Use and Proper Management of Fluorocarbons. This includes deploying trained personnel to conduct recovery operations using specialized equipment and issuing CFC Recovery Certificates to confirm proper handling.

Failure to comply with these regulatory requirements can result in penalties and reputational harm. Our registration and commitment to environmentally responsible practices reflect our dedication to reducing greenhouse gas emissions, protecting the ozone layer, and supporting Japan's broader environmental protection goals.

 ****

***Act on the Protection of Personal Information***

The "Act on the Protection of Personal Information" and related guidelines impose various requirements on businesses that use databases containing personal information, such as appropriate storage of personal information and restrictions on sharing information with third parties. If the Personal Information Protection Commission or other relevant authorities order measures necessary to comply with the law and we fail to comply, the Company may face criminal or administrative penalties. Recent amendments have expanded the scope of the Act on the Protection of Personal Information to include anonymized data, pseudonymized data, and personal identification information.

**Corporate History**

***Founder Shares***

On August 8, 2024, DARINGATE CO., LTD. (now known as Koei Group Co., Ltd. ("Koei")) issued (i) 146 common shares to Mamoru Iwamoto for ¥10,200,000, (ii) 120 common shares to Ryuma Iwamoto for ¥8,400,000, and (iii) 20 common shares to Eiko Iwamoto for ¥1,400,000.

***Service*** ***Agreement***

On April 11, 2024 ("Effective Date"), KOEI JAPAN (formerly Koei Shoji Co., Ltd.) entered into a Service Agreement (the "Service Agreement") with HeartCore Enterprises, Inc. ("HeartCore"). Pursuant to the terms of the Service Agreement, HeartCore agreed to provide KOEI JAPAN and its affiliates, including Koei (the registrant), certain services, including the following (collectively, the "Services"):

&nbsp;&nbsp;&nbsp;&nbsp;(i) Assistance
 with introductions to law firms, underwriters and auditing firms to support Koei's selection process, at its sole discretion;

(ii) Assisting
 in the preparation of documentation for internal controls required for an initial public offering by Koei;

(iii) Providing
 support services to remove problematic accounting accounts upon listing;

(iv) Translation
 of requested documents into English;

(v) Attend
 and, if requested by Koei, lead meetings with Koei's management and employees;

(vi) Provide
 Koei with support services related to the Koei's NYSE American or the Nasdaq listing;

(vii) Conversion
 of accounting data from Japanese standards to U.S. GAAP;

(viii) Services
 to remove problematic accounting accounts upon listing;

(ix) Support
 for Koei's negotiations with the audit firm;

(x) Assist
 in the preparation of S-1 or F-1 filings;

(xi) Creation
 of English web page; and

(xii) Preparing
 an investor presentation/deck and executive summary of Koei's business and operations.

In providing the Services, HeartCore will not render legal advice or perform accounting services and will not act as an investment advisor or broker/dealer. Pursuant to the terms of the Service Agreement, the parties agreed that HeartCore will not provide the following services, among others: negotiation of the sale of Koei's securities; participation in discussions between Koei and potential investors; assisting in structuring any transactions involving the sale of Koei's securities; pre-screening of potential investors; due diligence activities; nor providing advice relating to valuation of or financial advisability of any investments in Koei.

Pursuant to the terms of the Service Agreement, Koei agreed to compensate HeartCore as follows in return for the provision of Services during the eighth-month term:

&nbsp;&nbsp;&nbsp;&nbsp;(a) $500,000,
 to be paid as follows: (i) $200,000 on the Effective Date; (ii) $150,000 on the three-month anniversary of the Effective Date; and
 (iii) $150,000 on the date that Koei first files a Form S-1, Form F-1, Form S-4, Form
 F-4 or any similar or replacement form with the SEC with respect to any transaction which is reasonably expected to result in the
 Trigger Date (as defined below) ; and

(b) Issuance
 by Koei to HeartCore of a common share purchase warrant (the "Warrant"), deemed fully earned and vested as of the
 Effective Date, to acquire a number of shares of capital stock of Koei, to initially be equal to 3% of the fully diluted share
 capital of Koei as of the Effective Date, subject to adjustment as set forth in the Warrant.

For any services performed by HeartCore beyond the Term, Koei will compensate HeartCore for Services at the rate of $150 per hour, based on the hours spent by personnel of Koei.

The term of the Service Agreement's will continue until eight months after the Effective Date, unless sooner terminated in accordance with the terms of the Service Agreement (the "Term"). The Service Agreement may be terminated at any time by either party upon notice to the other party.

The foregoing description of the Service Agreement is qualified in its entirety by reference to the Service Agreement, a copy of which is filed as Exhibit 10.2 to the registration statement of which this prospectus forms a part.

***Amendment No. 1 to Service Agreement***

On September 17, 2025, the Company entered into Amendment No. 1 to Service Agreement with HeartCore to amend the Service Agreement to permit the issuance of stock acquisition rights rather than the Warrant based on the terms set forth in Amendment No. 1 to Service Agreement.

The foregoing description of Amendment No. 1 to Service Agreement is qualified in its entirety by reference to Amendment No. 1 to Service Agreement, a copy of which is filed as Exhibit 10.3 to the registration statement of which this prospectus forms a part.

***Stock Acquisition Rights***

On September 22, 2025, the Company allotted 171,600 stock acquisition rights to HeartCore in exchange for services rendered as a consultant in connection with the proposed initial public offering of the Company under grants authorized by our shareholders and directors on September 17, 2025 in connection with the Service Agreement, dated as of April 11, 2024, between KOEI JAPAN (formerly Koei Shoji Co., Ltd.), as amended, and HeartCore. The stock acquisition right is exercisable upon a successful listing on the NYSE American or the Nasdaq and has an exercise price of US$0.01 per share and is fully vested. The number of shares underlying each stock acquisition right is calculated as the number of issued and outstanding common shares on a fully diluted basis as of the previous day of the listing date on a stock exchange multiplied by 2%, subject to adjustment as provided in the 1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei and HeartCore.

The foregoing description of the 1st Stock Acquisition Rights Allotment Agreement is qualified in its entirety by reference to the 1st Stock Acquisition Rights Allotment Agreement, a copy of which is filed as Exhibit 10.4 to the registration statement of which this prospectus forms a part.

***Forward Stock Split***

Effective September 8, 2025, Koei approved a stock split of the Koei's issued and outstanding common shares, at a ratio of 30,000-for-1 (the "Stock Split"). As of September 8, 2025 and immediately prior to the Stock Split, there were 286 common shares issued and outstanding. As a result of the Stock Split, Koei has 8,580,000 common shares issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

***Number of Authorized Shares***

Effective October 15, 2025, the Company approved to decrease its number of authorized shares from 40,040,000 to 34,320,000.

***Dividend Distribution***

In November 2025, the Company declared and distributed cash dividends of JPY21,450,000 (approximately US$146,000).

***Change in Ownership Interest without Change of Control***

In February 2026, the Company sold a 49% ownership interest in KOEI (THAILAND) CO., LTD. to HIDAKA HOLDINGS (2008) CO., LTD. for cash consideration of THB980,000 ($31,570), and renamed KOEI (THAILAND) CO., LTD. to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in Hidaka Koei (Thailand) Co., Ltd. to another entity incorporated in Thailand with no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control KOEI Hidaka Koei (Thailand) Co., Ltd. and consolidate its financial results in its consolidated financial statements. As of February 28, 2026, Hidaka Koei (Thailand) Co., Ltd. did not have any operations, except for certain immaterial expenses.

**Facilities**

The Company's head office is located at Shinagawa Grand Central Tower 2-16-3 Konan, Minato-ku, Tokyo, Japan.

The Company leases this office space which is approximately 34.81 square meters from Sumitomo Mitsui Trust Bank, Limited. The term is 2 years, and the rental fee is ¥1,541,740 per month.

KOEI JAPAN CO., LTD. owns and leases the following facilities as noted:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Use / Name | Address | Area（㎡） | Leased/Owned | Relationship with lessor | Date of termination of current lease | Lease term (in year) | Monthly rent (excluding tax) |
| Head Office/<br> Yokohama Kanazawa Recycle Center, Yokohama Kanazawa Intermediate Processing Center | 1-13-3, Fukuura, Kanazawa-ku, Yokohama-City, Kanagawa | 9,900㎡ | Owned | The person himself |  |  |  |
| &nbsp;&nbsp;&nbsp;Kitakyusyu Recycle Center, Kitakyusyu Intermediate Processing Center | 1-7-11, Shinmoji, Moji-ku, Kitakyusyu-City, Fukuoka | 4,402.63㎡ | Leased | Lessee | July 30, 2026 | 1 | ¥1,750,000 |
| &nbsp;&nbsp;&nbsp;Chubu Recycle Center | 4-4, Wakuiri-Cho Ichinomiya-City, Aichi | 448.8㎡ | Leased | Lessee | March 17, 2028 | 2 | ¥400,000 |
| &nbsp;&nbsp;&nbsp;Tokyo Office | Room 249B 24<sup>th</sup> floor, Shinagawa Grand Central Tower, 2-16-3, Konan, Minato-ku, Tokyo | Room 249A: 34.81㎡<br> Room 249B: 34.81㎡<br> Room 249E: 63.90㎡<br> Total: 133.52㎡ | Leased | Lessee | November 30, 2026 | 2 | ¥1,541,740 |
| &nbsp;&nbsp;&nbsp;Nagoya Office | Room 2502 25th floor, Dainagoya Building, 3-28-12, Meieki, Nakamura-ku, Nagoya-City, Aichi | Room 2502: 11.7㎡ | Leased | Lessee | December 31, 2026 | 1 | ¥1,033,400 |
| &nbsp;&nbsp;&nbsp;Osaka Office | 3<sup>rd</sup> floor, Shin-Osaka Hankyu Building, 1-1-1, Miyahara, Yodogawa-ku, Osaka-City, Osaka | No fixed rooms as it is a virtual office. | Leased | Lessee | March 31, 2026 | 1 | ¥24,900 |
| &nbsp;&nbsp;&nbsp;Hakata Office | Room 311 3<sup>rd</sup> floor, JRJP Hakata Building, 8-1, Hakata Station Chuo-gai, Hakata-ku, Fukuoka-City, Fukuoka | Room 311: 6.4㎡<br> Move to Room 353 from September 1, 2024 9.0㎡ | Leased | Lessee | August 31, 2026 | 2 | ¥269,600 |

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KOEISING PTE. LTD. leases the following facilities as noted:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Use / Name | Address | Area（㎡） | Leased/Owned | Relationship with lessor | Date of termination of current lease | Lease term (in year) | Monthly rent in SGD (excluding tax) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KOEISING | Room 42052, 8 Marina View, Singapore 018960 | 10sqm | Leased | Lessee | September 30, 2027 | 2 | $3178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KOEISING<br> ITAD CENTER | 1 Corporation Drive #05-02, REVV, Singapore 619775 | 163 sqm | Leased | Lessee | January 31, 2028 | 2 | $4000 |

---

Koei US, Inc. leases the following facilities as noted:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Use / Name | Address | Area（sq. ft.) | Leased/Owned | Relationship with lessor | Date of termination of current lease | Lease term (in year) | Monthly rent in USD |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balcones Heights Office/Facility | 7001 Interstate 10, Suites 109 / 110 / 124, San Antonio, Texas, 78213, USA | 1467.5 | Leased | Lessee | Month-to-Month | Month-to-Month | $3004 |

---

We believe that our facilities are suitable to meet our current needs.

**Employees**

As of June 29, 2026, the Company and its subsidiaries had in aggregate 73 full-time employees and 31 part-time employees as follows:

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| | | |
|:---|:---|:---|
| **Function** | **Full-Time**<br> **Employees** | **Part-Time**<br> **Employees** |
| Office of the President\* | 1 | 0 |
| Management (General Affairs, Legal, Accounting)\* | 3 | 1 |
| Sales Business Department\* | 16 | 2 |
| Production Control Division\* | 42 | 21 |
| Industrial Waste Department\* | 5 | 3 |
| Sales Business Department\*\* | 1 | 0 |
| Sales Business Department\*\*\* | 1 | 0 |
| Management\*\*\* | 2 | 1 |
| Technical\*\*\* | 2 | 1 |
| Administration\*\*\* | 0 | 2 |

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\*Employed by KOEI JAPAN CO., LTD.

\*\*Employed by KOEISING PTE. LTD.

\*\*\*Employed by Koei US, Inc.

None of our employees are represented by a union. We consider our relations with our employees to be good.

**Legal Proceedings**

From time to time, we are involved in various legal proceedings arising from the normal course of business activities. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition. Defending such proceedings is costly and can impose a significant burden on management and employees. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

**MANAGEMENT**

**Our Executive Officers, Directors, and Corporate Auditors**

The following table sets forth the names, ages and positions of our executive officers and members of our board of directors and of our board of corporate auditors as of the date of this prospectus. The business address of all of persons identified below is Shinagawa Grand Central Tower 2-16-3 Konan, Minato-ku, Tokyo, Japan.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Positions Held** |
| **Officers and Directors** |  |  |
| Mamoru Iwamoto | 60 | Chief Executive Officer, President and Director |
| Tomonari Takayama | 53 | Chief Financial Officer, Chief Strategy Officer, and Director |
| Katsumi Kato | 49 | Chief Marketing Officer, Chief Revenue Officer, and Director |
| Ryuma Iwamoto | 31 | Chief Operating Officer and Director |
| Robert Wagner | 47 | Chief Business Officer and Director |
| Maki Wagner | 51 | Chief Communications Officer and Director |
| Sachiko Tozawa | 56 | Chief Branding Officer and Director |
| Ferdinand Groenewald | 41 | Independent Director Nominee\* |
| Kazuaki Iwatake | 70 | Corporate Auditor\*\* |
| Akira Kaneko | 36 | Corporate Auditor\*\* |
| Tatsuya Yoshii | 36 | Corporate Auditor\*\* |

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\* We intend to appoint Ferdinand Groenewald as an independent director effective upon the successful listing of our common shares on the Nasdaq.

\*\* Members of our statutory Board of Corporate Auditors are not members of our Board of Directors.

**Biographical Information**

The following is a summary of certain biographical information concerning our executive officers, directors, and corporate auditors.

**Executive Officers and Directors** 

***Mamoru Iwamoto***

 ****

Mamoru Iwamoto has served as the Chief Executive Officer, President and a director of Koei Group Co., Ltd. since February 2025. Mamoru Iwamoto founded the Company's wholly owned subsidiary, KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd., where he has served as its Chief Executive Officer since its establishment in April 1995, and where he has also served as a representative director from its formation to the present. From January 2023 to the present, Mamoru Iwamoto served as a director of Yokohama Urban Solution Alliance. From September 2009 to January 2016, Mamoru Iwamoto served as a representative director at A.G.S. Corporation. Mamoru Iwamoto does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Mamoru Iwamoto is qualified to serve as a director based upon his extensive leadership, executive, managerial, business and recycle industry and market experience.

 ****

 ****

***Tomonari Takayama***

Tomonari Takayama has served as the Chief Financial Officer, Chief Strategy Officer, and a director of Koei Group Co., Ltd. since August 8, 2024. From August 2024 to February 2025, he served as the Chief Operating Officer of Koei Group Co., Ltd. From March 2017 to February 2020, Tomonari Takayama served as a Director of the Company's wholly owned subsidiary, KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd., where he has served as a managing director and as the General Manager of administration and the industrial waste department since March 2020. Tomonari Takayama received his B.A. in English Literature from Hosei University in 1995. Tomonari Takayama does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Tomonari Takayama is qualified to serve as a director based on his managerial and business experience.

***Katsumi Kato***

Katsumi Kato has served as the Chief Marketing Officer, Chief Revenue Officer, and a director of Koei Group Co., Ltd. since August 8, 2024. From August 2017 to the present, Katsumi Kato served as the General Manager of the Sales Department of the Company's wholly owned subsidiary, KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd., where from September 2018 to February 2021 he also served as the Executive Officer and General Manager of the ITAD Division and where, since March 2021, he has also served as the Director and General Manager of Sales Division and ITAD Division. Katsumi Kato graduated from Nagoya Fashion College with a major in fashion business in 1997. Katsumi Kato does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Katsumi Kato is qualified to serve as a director based on his managerial and professional experience.

***Ryuma Iwamoto***

Ryuma Iwamoto has served as the Chief Operating Officer and a director of Koei Group Co., Ltd. since February 2025. From August 2024 to the present, he has served as a director of the Company's wholly owned subsidiary, KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd. From February 2022 to the present, he has served as the Chief Executive Officer of the wholly owned subsidiary, KOEISING PTE. LTD. From June 2018 to July 2023, he worked in a sales position at KOEI JAPAN CO., LTD. From April 2016 to April 2017, Ryuma Iwamoto served as an employee at Diamond Dining Co., Ltd. Ryuma Iwamoto received a B.A. in Child Development Science from Next Generation Education, International Pacific University in 2016. Ryuma Iwamoto does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Ryuma Iwamoto is qualified to serve as a director based on his executive and professional experience.

***Robert Wagner***

Robert Wagner has served as the Chief Business Officer and a director of Koei Group Co., Ltd. since February 2, 2025. From July 2023 to May 2024, Mr. Wagner served as an engineer at Streamline Innovations, Inc. where he performed instrumentation and electrical engineering and design. From January 2023 to the present, Mr. Wagner has served as the Chief Executive Officer and Principal Engineer at the Company's subsidiary, Koei US, Inc., (formerly Nufika LLC), where he manages all aspects of the business and performs consulting and engineering services for clients. From March 2014 to December 2022, Mr. Wagner served as an engineer at Marathon Petroleum Corporation where he performed engineering services. Mr. Wagner has worked as an engineer for over 20 years, most of which was spent in the oil & gas industry. Mr. Wagner received his Bachelor of Science degree in electrical engineering from the University of Washington in 2003 and his Master of Science Degree in electrical engineering from the University of Washington in 2013. Mr. Wagner does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Mr. Wagner is qualified to serve as a director based on his extensive executive and professional experience as well as his engineering experience.

***Maki Wagner***

Maki Wagner has served as the Chief Communications Officer and a director of Koei Group Co., Ltd. since February 2, 2025. From August 2024 to the present, Mrs. Wagner has served as the head of investor relations of our wholly owned subsidiary KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd. From August 2024 to the present, Mrs. Wagner has also served as the Chief Communications Officer at the Company's subsidiary, Koei US, Inc., (formerly Nufika LLC). From April 2023 to the present, Mrs. Wagner has served as the Executive Director at Naoko Mitsui Shirane Foundation. From August 2022 to March 2023, Mrs. Wagner served as an interpreter at Shiratsuki North America, Inc. From August 2021 to June 2022, Mrs. Wagner served as a teacher at Churchill High School. From 2005 to 2020, Mrs. Wagner focused on volunteer teaching. Mrs. Wagner received a bachelor's degree in education from Aoyama Gakuin University in 2003. Mrs. Wagner does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Mrs. Wagner is qualified to serve as a director based on her executive and professional experience.

***Sachiko Tozawa***

Sachiko Tozawa has served as the Chief Branding Officer and a director of Koei Group Co., Ltd. since February 2, 2025. From October 2017 to the present Sachiko Tozawa has served as the head of the president's office at the Company's wholly owned subsidiary, KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd., where she engages in executive scheduling and coordinating with business strategy. Sachiko Tozawa does not currently, and has not previously, served as a director of any reporting company. The board of directors believes that Sachiko Tozawa is qualified to serve as a director based on her professional experience.

 **Independent Director**

 ***Ferdinand Groenewald***

We intend to appoint Ferdinand Groenewald as an independent director effective upon the successful listing of our common shares on the Nasdaq. From June 10, 2024 to March 20, 2026, Mr. Groenewald served as Interim Chief Financial Officer and Principal Accounting Officer of Streamex Corp. (formerly known as BioSig Technologies Inc.). Since February 22, 2024, he has served as Vice President, Finance at Alaunos Therapeutics, Inc. Since December 2022, Mr. Groenewald has served in several capacities at the CFO Squad which provides outsourced accounting and consulting services. From January 2, 2022 to July 31, 2022, Mr. Groenewald had served as the Chief Accounting Officer of Muscle Maker, Inc., a Nasdaq listed company. From September 2018 to January 2, 2022, Mr. Groenewald served as the Chief Financial Officer of Muscle Maker, Inc. From January 25, 2018 through May 29, 2018, Mr. Groenewald served as the Vice President of Finance, Principal Financial Officer and Principal Accounting Officer of Muscle Maker, Inc., Muscle Maker Development, LLC and Muscle Maker Corp., LLC. In addition, from October 2017 through May 29, 2018, he served as the controller of Muscle Maker, Inc. Mr. Groenewald is a certified public accountant with significant experience in finance and accounting. From July 2018 through August 2018, he served as senior financial reporting accountant of Wrinkle Gardner & Company, a full-service tax, accounting and business consulting firm. From February 2017 to October 2017, Mr. Groenewald served as Senior Financial Accounting Consultant at Pharos Advisors, Inc. serving a broad range of industries. From November 2013 to February 2017, he served as a Senior Staff Accountant at Financial Consulting Strategies, LLC where he provided a broad range of accounting, financial reporting, and pre-auditing services to various industries. From August 2015 to December 2015, Mr. Groenewald served as a Financial Reporting Analyst at Valley National Bank. Mr. Groenewald serves as a member of the rYojbaba Co., Ltd., a publicly reporting company that is listed on the Nasdaq Capital Market, since August 15, 2025. Mr. Groenewald also serves as a member of the Board of Directors of HeartCore Enterprises, Inc., a publicly reporting company that is listed on the Nasdaq Capital Market, since January 24, 2022. Mr. Groenewald served as a member of the Board of Directors of SYLA Technologies Co., Ltd., a publicly reporting company that was listed on the Nasdaq Capital Market, from December 1, 2022 to May 25, 2025. Mr. Groenewald holds a Bachelor of Science in accounting from the University of South Africa. Mr. Groenewald is a Certified Public Account. The board of directors believes that Mr. Groenewald is qualified to serve as a director based upon his extensive experience serving on Nasdaq listed companies and his expertise with accounting and financial matters.

**Corporate Auditors**

***Kazuaki Iwatake***

Kazuaki Iwatake has served as a Corporate Auditor of the Company since February 2026. Kazuaki Iwatake joined Kyocera Corporation in April 1981, where he was assigned to the Applied Products Division Sales Department and engaged in new business development as a sales representative. In April 1985, transferred to DDI (Daini-Denden) Corporation, where he was assigned to the Corporate Sales Division and continued to engage in new business development as a sales representative. In October 2000, following the merger of DDI, KDD, and IDO, Kazuaki Iwatake became an employee of KDDI Corporation. From April 2004, Kazuaki Iwatake served at KDDI Corporation in the Consumer Business Headquarters Sales Promotion Division, responsible for sales promotion operations. From April 2014, Kazuaki Iwatake served at KDDI Corporation in the Logistics Division of the Procurement & Logistics Headquarters, responsible for logistics reform operations. From April 2020, Kazuaki Iwatake served at KDDI Corporation in the Logistics Division of the Procurement & Logistics Headquarters, responsible for distribution business operations. From April 2022, Kazuaki Iwatake resigned KDDI Corporation. In April 2022, Kazuaki Iwatake joined Koei Shoji Co., Ltd. (now known as KOEI JAPAN CO., LTD.), where he continues to serve to the present day. Kazuaki Iwatake received his B.A. in Economics at Aoyama Gakuin University, Japan in 1981. Kazuaki Iwatake does not currently, and has not previously, served as a director of any reporting company.

***Akira Kaneko***

Akira Kaneko has served as Corporate Auditor of the Company since March 2025. From February 2017 to December 2020, Akira Kaneko was an associate lawyer at King & Wood Mallesons Law Firm. From February 2021 to October 2021, he served as an in-house lawyer at Ernst & Young ShinNihon LLC. Since November 2021, Akira Kaneko has served as Partner in the Nakamura Law Firm. Akira Kaneko received his B.A. in Law, at Keio University, Japan in 2011. Akira Kaneko received his Juris Doctor from Keio Graduate School of Law in 2013. Akira Kaneko is certified as a Japanese lawyer since 2015. Akira Kaneko does not currently, and has not previously, served as a director of any reporting company.

***Tatsuya Yoshii***

Tatsuya Yoshii has served as Corporate Auditor of the Company since March 2025. From April 2011 to November 2023, Tatsuya Yoshii has served as an auditor at KPMG AZSA LLC. From August 2021 to March 2023, Tatsuya Yoshii served as a certified public accountant at KPMG in the New York Office. From January 2024 to the present, he opened and serves as a representative at Yoshii Certified Public Accounting. From October 2024 to the present, he has served as Certified Public Accountant at Axis Accounting Co., Ltd. Tatsuya Yoshii received his B.A. in Law, at Keio University, Japan in 2011. Tatsuya Yoshii is a Registered Certified Public Accountant (Registration No. 31228) in Japan. Tatsuya Yoshii does not currently, and has not previously, served as a director of any reporting company.

**Family Relationships**

There are no family relationships among any of our directors, executive officers or corporate auditors, except that (i) Mamoru Iwamoto, our Chief Executive Officer, President and Director, is the father of Ryuma Iwamoto, our Chief Operating Officer and Director, (ii) Ryuma Iwamoto, our Chief Operating Officer and Director, is the son of Mamoru Iwamoto, our Chief Executive Officer, President and Director, (iii) Robert Wagner, our Chief Business Officer and Director is the spouse of Maki Wagner, our Chief Communications Officer and Director and (iv) Maki Wagner is the cousin of Mamoru Iwamoto, our Chief Executive Officer, President and Director.

 **Foreign Private Issuer Status**

We are a "foreign private issuer" as defined under the federal securities laws of the United States and the Nasdaq listing standards. Under the federal securities laws of the United States, foreign private issuers are subject to different disclosure requirements than U.S.-domiciled public companies. We intend to take all actions necessary for us to maintain our status as a foreign private issuer under the applicable corporate governance requirements of the Sarbanes-Oxley Act, the Exchange Act and other applicable rules adopted by the SEC and the Nasdaq listing standards. Under the SEC rules and the Nasdaq listing standards, a foreign private issuer is subject to less stringent corporate governance requirements. Subject to certain exceptions, the SEC and the Nasdaq permit a foreign private issuer to follow its home country practice in lieu of their respective rules and listing standards. In general, our articles of incorporation and the Companies Act govern our corporate affairs.

As a foreign private issuer, we will follow Japanese law and corporate practice in lieu of the corporate governance provisions set out under Nasdaq Rule 5600, the requirement in Nasdaq Rule 5250(b)(3) to disclose third party director and nominee compensation, and Nasdaq Rule 5250(d) to distribute annual and interim reports. Of particular note, the following rules under Nasdaq Rule 5600 are exempt from Japanese law requirements:

● Nasdaq Rule 5605(b)(1) requires that at least a majority of a listed company's board of directors be independent directors. Under our current corporate structure, the Companies Act does not require independent directors.

● Nasdaq Rule 5605(c)(2)(A) requires a listed company to have an audit committee composed entirely of not less than three directors, each of whom must be independent. Under Japanese law, a company may have a statutory auditor or a board of auditors. We have a three-member Board of Corporate Auditors, each member of which will meet the requirements of Rule 10A-3 under the Exchange Act. See "*Management* — *Board of Corporate Auditors*" below for additional information.

● Nasdaq Rule 5605(d) requires, among other things, that a listed company's compensation committee be comprised of at least two members, each of whom is an independent director as defined under such rule. Our board of directors will collectively participate in the discussions and determination of compensation for our executive and directors (subject to the maximum aggregate compensation amount resolved by our shareholders meetings), and other compensation related matters. Likewise, our corporate auditors discuss and determine compensation of each corporate auditor (subject to the maximum aggregate compensation amount resolved by our shareholders meetings) without involvement of our board of directors.

● Nasdaq Rule 5605(e) requires that a listed company's nomination and corporate governance committee be comprised solely of independent directors. Our board of directors will not have a standalone nomination and corporate governance committee. Our board of directors will collectively participate in the nomination process of potential directors and corporate auditors (in the cases of corporate auditors, consent of board of corporate auditors is required) and oversee our corporate governance practices.

● Nasdaq Rule 5620(c) provides a one-third quorum requirement applicable to shareholder meetings. Our articles of incorporation provide that more than half of the total number of voting rights is required in connection with the quorum requirement for a general resolution of our shareholders.

The Company intends to avail itself of these exemptions. More specifically, the Company will not have a compensation committee or a nominating and corporate governance committee. Therefore, for as long as the Company remains a "foreign private issuer," the Company will not have the same protections afforded to shareholders of companies that are subject to all of these corporate governance requirements.

In the event that we cease to be a "foreign private issuer" under the rules of the Nasdaq and our common shares continue to be listed on the Nasdaq, the Company's Board of Directors will take all action necessary to comply with the corporate governance rules of the Nasdaq, including, but not limited to, establishing certain committees composed entirely of independent directors, subject to a permitted "phase-in" period.

**Board of Directors**

Our board of directors has the ultimate responsibility for the administration of our affairs. Our board of directors meets no less than once every three months. Under the Companies Act and our articles of incorporation, our Company shall have three or more directors on our board of directors. Our board of directors is currently comprised of seven directors. Directors are typically nominated at the board level and are elected at general meetings of the shareholders. The term of office of any director expires at the close of the ordinary general meeting of shareholders held with respect to the last fiscal year ended within two years after such director's election to office. Our directors may, however, serve any number of consecutive terms.

Our board of directors appoints from among its members one or more representative directors, who serve as head administrator(s) over our Company's affairs and represent our Company in accordance with the resolutions of our board of directors. Our board of directors may appoint from among its members, a president or one or more deputy presidents, senior managing directors, or managing directors.

Under our Company's current corporate structure, the Companies Act does not require our board of directors to have any independent directors. Our board of directors is currently comprised of seven directors, all of whom are considered non-independent. However, we intend to appoint Ferdinand Groenewald as an independent director effective upon the successful listing of our common shares on the Nasdaq.

**Board of Corporate Auditors**

As permitted under the Companies Act, we have elected to structure our corporate governance system as a company with a separate board of corporate auditors instead of an audit committee of our board of directors. Our articles of incorporation provide for no less than three corporate auditors. Corporate auditors are typically nominated at the board level and are elected at general meetings of shareholders by a majority of shareholders entitled to vote, where a quorum is established by shareholders holding more than half of the voting rights of those who are entitled to vote are present at the shareholders' meeting. The normal term of office of any corporate auditor expires at the close of the annual general meeting of shareholders held with respect to the last fiscal year ended within four years after such corporate auditor's election to office. Our corporate auditors may, however, serve any number of consecutive terms. Corporate auditors may be removed by a special resolution of a general meeting of shareholders.

Our corporate auditors are not required to be certified public accountants. Our corporate auditors may not concurrently serve as directors, employees or accounting advisors (*kaikei sanyo*) of our Company or any of our subsidiaries or serve as corporate officers of our subsidiaries. Under the Companies Act, at least one-half of the corporate auditors of a company must be persons who satisfy the requirements for an outside corporate auditor under the Companies Act, and at least one of the corporate auditors must be a full-time corporate auditor.

The function of our board of corporate auditors and each corporate auditor is similar to that of independent directors, including those who are members of the audit committee of a U.S. public company. Each corporate auditor has a statutory duty to supervise the administration by the directors of our affairs, to examine our financial statements and business reports to be submitted by a representative director at the general meetings of shareholders, and to prepare an audit report. Our corporate auditors are obligated to participate in meetings of our board of directors and, if necessary, to express their opinion at such meetings, but are not entitled to vote. Our corporate auditors must inspect the proposals, documents, and any other materials to be submitted by our board of directors to the shareholders at the shareholders' meeting. If a corporate auditor finds a violation of statutory regulations or our articles of incorporation, or another significant improper matter, such auditor must report those findings to the shareholders at the shareholders' meeting.

Furthermore, if a corporate auditor believes that a director has engaged in, or is likely to engage in, misconduct or acts that are significantly improper, or that there has been a violation of statutory regulations or our articles of incorporation, the corporate auditor: (i) must report that fact to our board of directors; (ii) can demand that a director convene a meeting of our board of directors; and (iii) if no such meeting is convened in response to the demand, can convene the meeting under the corporate auditor's own authority. If a director engages in, or is likely to engage in, an activity outside the scope of the objectives of our Company or otherwise in violation of laws or regulations or our articles of incorporation, and such an act is likely to cause significant damage to our Company, then a corporate auditor can demand that the director cease such activity.

Our board of corporate auditors has a statutory duty to prepare an audit report based on the audit reports issued by the individual corporate auditors and, in the case of audit reports related to financial statements, the independent auditors of our Company each year, and submit such audit reports to a relevant director. A corporate auditor may note an opinion in an audit report issued by our board of corporate auditors, if the opinion expressed in such corporate auditor's individual audit report is different from the opinion expressed in the audit report issued by our board of corporate auditors. Our board of corporate auditors is empowered to establish the audit principles, the method of examination by our corporate auditors of our affairs and financial position, and any other matters relating to the performance of our corporate auditors' duties.

Additionally, our corporate auditors must represent our Company in: (i) any litigation between our Company and a director; (ii) dealing with shareholders' demands seeking a director's liability to our Company; and (iii) dealing with notices of litigation and settlement in a derivative suit seeking a director's liability to our Company. A corporate auditor can file court actions relating to our Company within the authority of our corporate auditors, such as an action to nullify the incorporation of our Company, the issuance of shares, or a merger, or to cancel a resolution at a shareholders' meeting.

**Differences in Corporate Governance from the Nasdaq Listing Rules**

Companies listed on the Nasdaq must comply with certain standards regarding corporate governance under Rule 5605 of the Nasdaq Listing Rules, as applicable. However, listed companies that are foreign private issuers, such as we will be, are permitted to follow home country practice in lieu of certain provisions of Rule 5605 of the Nasdaq Listing Rules, as applicable.

The following table shows the significant differences between the corporate governance practices followed by U.S. listed companies under Rule 5605 of the Nasdaq Listing Rules and those followed by the Company.

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| **Corporate Governance Practices**<br> **Followed by Nasdaq-listed U.S. Companies** | **Corporate Governance Practices**<br> **Followed by the Company** |
| 1. A Nasdaq-listed U.S. company must have a majority of directors meeting the independence requirements under Rule 5605(a)(2) of the Nasdaq Listing Rules. | For Japanese companies, including the Company, which employ a corporate governance system based on a board of corporate auditors (the board of corporate auditor system), the Companies Act of Japan (the Companies Act) has no independence requirement with respect to directors. The task of overseeing management and independent auditors is assigned to the members of the board of corporate auditors, who are separate from the Company's management.<br>All members of the board of corporate auditors must meet certain independence requirements under the Companies Act.<br>For Japanese companies with a board of corporate auditors, including the Company, at least half of the members of such board must be "outside" corporate auditors. Such "outside" corporate auditors of the board of corporate auditors must meet additional independence requirements under the Companies Act. An "outside" corporate auditor of the board of corporate auditors means a member of the board of corporate auditors who, among other things, (i) has not been a director or employee, including a manager, of the Company or any of its subsidiaries within 10 years prior to assuming the position of a member of the board of corporate auditors, (ii) (in case of a person who has formerly served as a member of the board of corporate auditors of the Company or any of its subsidiaries within 10 years prior to assuming the position of a member of the board of corporate auditors) has not been a director or employee, including a manager, of the Company or any of its subsidiaries within 10 years prior to assuming such former position of a member of the board of corporate auditors and (iii) is not currently spouse or relative within two degrees of a director or important employee, including a manager, of the Company.<br>As of June 29, 2026, the Company had three members of the board of corporate auditors, two of them were "outside" members of the board of corporate auditors. |

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|:---|:---|
| **Corporate Governance Practices**<br> **Followed by Nasdaq-listed** <br> **U.S. Companies** | **Corporate Governance Practices**<br> **Followed by the Company** |
| 2. A Nasdaq-listed U.S. company must have an audit committee composed entirely of independent directors, and the audit committee must have at least three members. | The Company employs the board of corporate auditor system as described above. Under this system, the board of corporate auditors is a legally separate and independent body from the board of directors. The main function of the board of corporate auditors is similar to that of independent directors, including those who are members of the audit committee of a U.S. company: to monitor the performance of the directors, and review and express opinions on the method of auditing by the Company's independent auditors and on such independent auditors' audit reports, for the protection of the Company's shareholders.<br>As of June 29, 2026, the Company had three members of the board of corporate auditors. Each member of the board of corporate auditors serves a four-year term of office. In contrast, the term of office of each director of the Company is two years.<br>With respect to the requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934 relating to listed company audit committees, the Company relies on an exemption under that rule which is available to foreign private issuers with board of corporate auditors meeting certain requirements. |
| 3. A Nasdaq-listed U.S. company must have a nominating/corporate governance committee composed of entirely independent directors and the compensation committee must have at least two members. | The Company's directors are elected at a general meeting of shareholders. Its board of directors does not have the power to fill vacancies thereon. The members of the board of corporate auditors are also elected at a general meeting of shareholders of the Company. A proposal by the Company's board of directors to elect a member to the board of corporate auditors must be approved by a resolution of its board of corporate auditors. The board of corporate auditors is empowered to adopt a resolution requesting that the Company's directors submit a proposal for election of a member of the board of corporate auditors to a general meeting of shareholders. The members of the board of corporate auditors have the right to state their opinions concerning election of a member of the board of corporate auditors at the general meeting of shareholders. |

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|:---|:---|
| **Corporate Governance Practices**<br> **Followed by Nasdaq-listed** <br> **U.S. Companies** | **Corporate Governance Practices**<br> **Followed by the Company** |
| 4. A Nasdaq-listed U.S. company must have a compensation committee composed entirely of independent directors and the compensation committee must have at least three members. Compensation committee members must satisfy the additional independence requirements under Section 5605(d)(2)(A) of the Nasdaq Listing Rules. | The total amount of compensation for the Company's directors and the total amount of compensation for the members of the Company's board of corporate auditors are proposed to, and voted upon by, a general meeting of shareholders. Once the proposal for each of such total amount of compensation is approved at the general meeting of shareholders, each of the board of directors and board of corporate auditors allocates the respective total amount among its respective members. |
| A compensation committee must also have authority to retain or obtain the advice compensation and other advisers, subject to prescribed independence criteria that the committee must consider prior to engaging any such adviser. | There are no procedural or disclosure requirements with respect to the use of compensation to consultants, independent legal counsel or other advisors. |

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**Risk Management**

One of the key functions of our board of directors is informed oversight of our risk management process. Our board of directors is responsible for monitoring and assessing strategic risk exposure, including risks associated with cybersecurity, data protection, legal and regulatory matters, and our board of corporate auditors, cooperating with our internal audit group, is responsible for overseeing and evaluating our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. Our board of corporate auditors also reviews legal, regulatory and compliance matters that could have a significant impact on our financial statements. While each standing committee of our board of directors will be responsible for evaluating certain risks and overseeing the management of such risks, our entire board of directors will be regularly informed through committee reports about such risks.

**Code of Business Conduct**

Following the consummation of this offering, our board of directors will adopt a written code of business conduct that applies to our directors, corporate auditors, officers, and employees (including our principal executive officer, principal financial officer, principal accounting officer or controller, and other persons performing similar functions), and our agents.

**Limitation of Liability of Directors and Corporate Auditors**

In accordance with our articles of incorporation, and pursuant to the provisions of Article 427 of the Companies Act, we are authorized to enter into agreements with non-executive directors and corporate auditors, to limit his or her liability to our Company for any losses or damages arising from the conduct specified under Article 423 of the Companies Act; provided, that, the amount of such limited liability is the amount stipulated in applicable laws and regulations, whichever is higher. We have not, however, executed any such limitation of liability agreements with our non-executive directors and corporate auditors.

Our articles of incorporation include limitation of liability provisions for directors and corporate auditors, pursuant to which our board of directors can authorize our Company to exempt the directors and corporate auditors from liabilities arising in connection with any failure to execute their respective duties in good faith or due to simple negligence (excluding gross negligence and willful misconduct), within the limits stipulated by applicable laws and regulations, including Article 426, Paragraph 1 of the Companies Act.

**Compensation of our Executive Officers, Directors and Corporate Auditors**

Remuneration to our executive officers, directors and corporate auditors is comprised of base compensation.

In the fiscal year ended February 28, 2026, we paid an aggregate of approximately ¥96,100,200 (US$641,267), and there was no discretionary bonus, to our executive officers, namely Mamoru Iwamoto, Tomonari Takayama, Katsumi Kato, Ryuma Iwamoto, Robert Wagner, Maki Wagner, and Sachiko Tozawa and ¥9,200,000 (US$61,391) to our corporate auditors, namely Kazuaki Iwatake, Hitoshi Nishizaka, Akira Kaneko, and Tatsuya Yoshii. In the fiscal year ended February 28, 2025, we paid an aggregate of approximately ¥85,026,200 (US$557,001), including discretionary bonus of ¥765,000 (US$5,011), to our executive officers, namely Mamoru Iwamoto, Tomonari Takayama, Katsumi Kato, and Ryuma Iwamoto, and ¥6,400,000 (US$41,926) to our former corporate auditor, namely Eiko Iwamoto, and ¥700,000 (US$4,586) to our corporate auditor, namely Hitoshi Nishizaka.

The Company did not grant any stock options or warrants to employees and during the fiscal years ended February 28, 2026 and February 28, 2025. We have not set aside pension, retirement, or other benefits for our executive officers other than KOEI JAPAN's defined benefit plans. Eiko Iwamoto resigned from her position as a corporate auditor on October 17, 2024 and the Company paid out a one-time retirement benefit of ¥78,120,000 (US$511,759) up on the retirement in accordance with the defined benefit plan to which she was entitled.

In accordance with the Companies Act and our articles of incorporation, the amount of compensation for our directors and corporate auditors is decided by first setting the maximum amount of total compensation for all of our directors and corporate auditors through a resolution adopted by our shareholders at a shareholders meeting. The representative director authorized by our board of directors and our board of directors then decide on the amount of compensation for each director based on certain criteria established by our Company, and the amount of compensation for each corporate auditor is decided through discussions among the corporate auditors.

The amount of compensation for executive officers, excluding directors, is determined by the Board of Directors.

The following table summarizes the total amount of remuneration paid to our directors and corporate auditors in fiscal year ended February 28, 2026, including by the type of remuneration and the number of persons in each category.

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|:---|:---|:---|:---|
| **(except stock options and number of persons in<br> category) Category of directors and corporate auditors** | **Total amount of**<br> **remuneration** | **Base<br> compensation** | **Number of persons**<br> **in category** |
| Directors (1) | $641267 | $641267 | 7 |
| Corporate auditor (2) | $6006 | $6006 | 1 |
| Outside corporate auditors (3) | $55385 | $55385 | 3 |

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(1) Consist
 of Mamoru Iwamoto (CEO), Tomonari Takayama (CFO and CSO), Katsumi Kato (CMO and CRO), Ryuma Iwamoto (COO and KOEISING CEO),
 Robert Wagner (CBO and Koei US CEO), Maki Wagner (CCO) and Sachiko Tozawa (CBO).

(2) Consists
 of Kazuaki Iwatake

(3) Consists
 of Hitoshi Nishizaka, Akira Kaneko, and Tatsuya Yoshii. (Outside Corporate Auditors).

**Independent Director Agreement - Ferdinand Groenewald**

We intend to appoint Ferdinand Groenewald as an independent director and enter into an Independent Director Agreement with him effective upon the successful listing of our common shares on a U.S. Stock Exchange. Pursuant to the terms of such Independent Director Agreement, Mr. Groenewald will be paid the sum of $30,000 annually for director's service as a director of the Company, to be paid $2,500 per month as in twelve (12) equal installments by the end of each month.

In the event that Mr. Groenewald engages in any of the activities and such activities are reasonably determined to exceed the ordinary scope of duties of an outside director, the Company may pay additional remuneration upon consultation with the Director. The agreement will contain customary confidentiality provisions in connection with the performance of his duties under the agreement.

The agreement will provide that, during the term (which continues as long as he is serving as a director of the Company), he will be entitled to indemnification and insurance coverage for officers' liability, fiduciary liability and other liabilities arising out of Mr. Groenewald's position with the Company. The Company shall, upon or promptly following the completion of the IPO, obtain and maintain a Directors and Officers (D&O) liability insurance policy that includes the Director as an insured person. During the Director's term of office, the Company shall maintain D&O insurance coverage at a level substantially equivalent to that in effect at the commencement of the Director's term, including with respect to limits of liability, deductibles, and scope of coverage; provided, however, that if maintaining such level becomes materially impracticable due to significant changes in the insurance market or other reasonable circumstances, the Company may maintain coverage at a level reasonably comparable under prevailing market conditions and such coverage and protections, with respect to the various liabilities as to which Mr. Groenewald has been customarily indemnified prior to termination of employment, shall continue for at least six years following the end of the term. Any indemnification agreement entered into between the Company and Mr. Groenewald will continue in full force and effect in accordance with its terms following the termination of this agreement.

The agreement will contain customary representations and warranties by Mr. Groenewald, relating to the agreement, and will contain other customary miscellaneous provisions relating to waivers, assignments, third party rights, survival of provisions following termination, severability, notices and other provisions.

The agreement will be governed by and construed and enforced in accordance with the laws of Japan, and for all purposes will be construed in accordance with the laws of Japan.

**Equity Incentive Plan**

On May 21, 2026, our board of directors adopted the Koei Group Co., Ltd. 2026 Equity Incentive Compensation Plan (the "2026 Equity Incentive Plan"), which was approved at a special shareholders meeting held on May 26, 2026. Under the 2026 Equity Incentive Plan, we may grant stock options, stock appreciation rights, restricted stock, restricted stock units and performance share awards to our Company's directors, corporate auditors, officers, employees and consultants. A total of 1,287,000 shares of common stock are authorized for issuance under the 2026 Equity Incentive Plan. As of June 29, 2026, we had not issued any awards under the 2026 Equity Incentive Plan.

The purpose of these stock option grants and other equity-based awards is to enable our directors, corporate auditors, officers, employees and consultants to share in our success and to reinforce a corporate culture that aligns employee interests with those of our shareholders. The 2026 Equity Incentive Plan provides that awards generally terminate upon the termination of an award recipient's continuous service relationship with the Company and its affiliates, and following termination the award recipient will have a limited window in which to exercise awards that have vested, except that in the case of termination for cause the award recipient will forfeit their awards.

**Stock Acquisition Right**

From our formation on August 8, 2024 to the timing of this filing, the Company granted stock acquisition rights for the purchase of shares of the Company's common shares approved by its shareholders one time as shown in the table below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issue name** | **Issue Date** | **Expiration date** | **Exercise price**<br> **(Per share)** | **Common shares**<br> **(Grant Number)** |
| Batch 1 (1) | 09/22/2025 | 09/30/2035 | $0.01 | 171600 |

---

(1) On
 September 22, 2025, the Company allotted 171,600 stock acquisition rights to
 HeartCore Enterprises, Inc. in exchange for services rendered as a consultant in connection
 with the proposed initial public offering of the Company under grants authorized by our shareholders
 and directors in connection with the Service Agreement between the Company
 and HeartCore, as amended, the number of stock acquisition rights is subject to adjustment
 in the event of a stock split. The stock acquisition right is exercisable from October
 1, 2025 to September 30, 2035 upon the condition that the IPO has been completed. The
 stock acquisition right has an exercise price of ¥1(US$0.01) per common share. The
 stock acquisition right has an exercise price of ¥1(US$0.01) per common share.

**PRINCIPAL SHAREHOLDERS**

The following table and accompanying footnotes set forth certain information with respect to the beneficial ownership of our common shares, immediately prior to and immediately after the completion of this offering, by:

● each of our named executive officers, directors, and corporate auditors;

● all of our named executive officers, directors, and corporate auditors as a group; and

● each person or entity (or group of affiliated persons or entities) known by us to be the beneficial owner of 5% or more of our common shares.

To our knowledge, each shareholder named in the table has sole voting and investment power with respect to all of our common shares shown as "beneficially owned" (as determined by the rules of the SEC) by such shareholder, except as otherwise set forth in the footnotes to the table. The SEC has defined "beneficial" ownership of a security to mean the possession, directly or indirectly, of voting power and/or investment power. As of the date of the prospectus, we have three shareholders of record, none of whom are located in the United States.

The percentages reflect beneficial ownership (as determined in accordance with Rule 13d-3 under the Exchange Act) immediately prior to, and immediately after, the completion of this offering. Shares immediately prior to the completion of this offering are based on 8,580,000 common shares outstanding. Shares immediately following the completion of this offering are based on the shares immediately prior to the completion of this offering and an assumed offering of [_______] common shares at an assumed offering price of US$[___] per common share, assuming no exercise by the underwriters of their option to purchase additional common shares from us in this offering.

Except as noted in the footnotes to the table below, the address for all of the shareholders in the table below is c/o Koei Group Co., Ltd., Shinagawa Grand Central Tower 2-16-3 Konan, Minato-ku, Tokyo, 108-0075 Japan.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Common Shares**<br> **Beneficially Owned**<br> **Immediately Prior to this**<br> **Offering(1)** | **Common Shares**<br> **Beneficially Owned**<br> **Immediately Prior to this**<br> **Offering(1)** | **Common Shares**<br> **Beneficially Owned**<br> **Immediately After this**<br> **Offering(1)** | **Common Shares**<br> **Beneficially Owned**<br> **Immediately After this**<br> **Offering(1)** |
| <br>**Name of Beneficial Owner** | **Shares** | **Percentage** | **Shares** | **Percentage** |
| **Named Executive Officers, Directors, and Corporate Auditors:** |  |  |  |  |
| Mamoru Iwamoto <sup>(2)</sup> | 4980000 | 58.0% | 4980000% |  |
| Tomonari Takayama |  | -% |  | -% |
| Katsumi Kato | -% |  |  | -% |
| Ryuma Iwamoto | 3600000 | 42.0% | 3600000% |  |
| Robert Wagner |  | -% |  | -% |
| Maki Wagner |  | -% |  | - % |
| Sachiko Tozawa |  | -% |  | - % |
| Ferdinand Groenewald <sup>(3)</sup> |  | -% |  | -% |
| Kazuaki Iwatake |  | -% |  | -% |
| Akira Kaneko |  | -% |  | -% |
| Tatsuya Yoshii |  | -% |  | -% |
| All named executive officers, directors, and corporate auditors as a group 11 persons | 8580000 | 100.0% | 8580000% |  |
| **5% or more Shareholders:** |  |  |  |  |
| Eiko Iwamoto<sup>(4)</sup> | 4980000 | 58.0% | 4980000% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. A person is deemed to be the beneficial owner of any common shares if that person has or shares voting power or investment power with respect to those shares or has the right to acquire beneficial ownership at any time within 60 days.

(2) Includes 4,380,000 common shares directly
 beneficially owned by Mamoru Iwamoto and 600,000 common shares indirectly beneficially owned through his wife, Eiko Iwamoto.

(3) We intend to appoint Ferdinand Groenewald as an independent
 director effective upon the successful listing of our common shares on the Nasdaq.

(4) Includes 600,000 common shares directly
 beneficially owned by Eiko Iwamoto and 4,380,000 common shares indirectly beneficially owned through her husband, Mamoru Iwamoto,
 the Chief Executive Officer of the Company.

**CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS**

**Transactions with Related Parties**

The related parties had material transactions for the years ended February 28, 2026, February 28, 2025, and February 29, 2024 and to the present consist of the following:

---

| | |
|:---|:---|
| **Name of Related Party** | **Nature of Relationship as of February 28, 2026** |
| Koei US, Inc. (formerly Nufika LLC) | Previously a company controlled by relatives of the CEO of the Company; Acquired by the Company in March 2025 |
| Robert Wagner | Chief Business Officer of the Company |
| Maki Wagner | Chief Communications Officer of the Company |
| Robert Wagner LLC | An entity controlled by Chief Business Officer of the Company |

---

During the year ended February 29, 2024, the Company engaged Nufika LLC, a company controlled by relatives, namely Robert Wagner and Maki Wagner, of the CEO of the Company, for consulting services, mainly related to the Company's initial public listing (the "IPO") and U.S. business development of the Company, for which $58,906 in consulting fees were incurred and recorded in selling, general and administrative expenses. Commencing October 2025, the service provider has been changed from Nufika LLC, whereby the consulting agreement between Nufika LLC and the Company was terminated, to Robert Wagner LLC, an entity controlled by Robert Wagner. The Company incurred consulting fees of $97,619 and $28,553 in connection with these services during the years ended February 28, 2026 and 2025, respectively, which were recorded in selling, general and administrative expenses.

Additionally, in February 2025, Robert Wagner and Maki Wagner were appointed as the Chief Business Officer and Chief Communications Officer, respectively, as well as directors of Koei.

On March 10, 2025, Koei Group Co., Ltd. entered into an agreement to purchase (the "Purchase Agreement") 51% shares of Nufika LLC ("Nufika") from Robert Wagner, the Company's Chief Business Officer and a director, Maki Wagner, the Company's Chief Communications Officer and a director, and Hannah Wagner, who is Robert Wagner's daughter. Nufika was formed on January 3, 2023, and is headquartered in Texas and has historically provided professional services to the energy sector, with limited ITAD activities to date. Koei Group Co., Ltd. acquired Nufika for the purpose of business expansion in the US. The deal was closed on March 10, 2025, with a total cash consideration of US$1,000,000. On February 26, 2025, Nufika was converted from an LLC to C-Corporation in Texas and has been renamed to "Koei US, Inc."

Pursuant to the Purchase Agreement, the Company agreed to provide additional funding to Koei US, Inc. for business expansion and potential acquisitions. The amount, form, and timing of such funding will be separately negotiated and agreed upon by the parties and no specific minimum or maximum funding amount is set forth in the Purchase Agreement.

The Purchase Agreement further requires that Robert Wagner continue to serve as Chief Executive Officer of Koei US, Inc. for at least twenty four (24) months after the closing of the Purchase Agreement. For 2025, Robert Wagner is entitled to receive bi-weekly compensation of $5,000 and his 2026 compensation will be determined by mutual agreement between Mr. Wagner, the Company and Koei US, Inc. Additionally, pursuant to the Purchase Agreement, Koei US, Inc. entered into an employment agreement with Robert Wagner at closing of the Purchase Agreement, incorporating the terms described above and providing that he may not be terminated or demoted without cause during the initial twenty-four-month period following closing of the Purchase Agreement. The Purchase Agreement also provides that Maki Wagner will continue to serve as Vice President of Koei US, Inc. for 2025, with bi-weekly compensation of $1,400 and that her compensation for 2026 will be determined by mutual agreement. Further, the Purchase Agreement provides that Robert Wagner, Maki Wagner, Hannah Wagner will serve as directors on the board of directors of Koei US, Inc.

Additionally, pursuant to the Purchase Agreement, bylaws to be adopted by Koei US, Inc. must include provisions governing the potential repurchase by Koei US, Inc. of the shares held by Robert Wagner and Maki Wagner, at the option of Robert Wagner and Maki Wagner, upon certain triggering events, which include the following: (i) if Robert Wagner or Maki Wagner are terminated without cause, resign for good reason, become unable to fulfill their obligations as officers for any reason, or if Koei US, Inc. breaches their employment agreement or the bylaws, the Wagners may require Koei US, Inc. to repurchase their shares at a price equal to the fair market value of such shares plus a 20% premium; (ii) if a change in control occurs in which the Company ceases to be the majority shareholder of Koei US, Inc., Robert and Maki Wagner each have the right to (a) participate in the transaction on the same terms as the majority shareholders (a tag-along right), or (b) require Koei US, Inc. or the acquiring party to repurchase their shares at the higher of the negotiated buy-out price or the price paid in the change-in-control transaction; (iii) in the event of death, their estate may require Koei US, Inc. to repurchase the shares at fair market value plus a 20% premium; or (iv) if Robert Wagner or Maki Wagner voluntarily resigns, the buy-out price depends on length of service (if resignation occurs after 24 months of service, the buy-out price equals full fair market value or if resignation occurs before 24 months, the buy-out price is subject to a prorated discount of up to 50%). The valuation process for all such repurchases involves good-faith negotiation, followed by independent appraisals if the parties cannot agree, and the appointment of an umpire as a tie-breaker if necessary. In cases where the 20% premium applies, the resulting valuation is increased accordingly. The bylaws were adopted by Koei US, Inc. on March 1, 2025.

Robert Wagner, our Chief Business Officer and a director, from January 2023 to the present, serves as the Chief Executive Officer and Principal Engineer at Koei US, Inc. Maki Wagner, Mr. Wagner's wife and our Officer and a director, from August 2024 to the present, serves as the Chief Communications Officer at Koei US, Inc.

**Compensation to Directors, Corporate Auditors, and Officers**

Remuneration to our executive officers, directors and corporate auditors is comprised of base compensation.

In the fiscal year ended February 28, 2026, we paid an aggregate of approximately ¥96,100,200 (US$641,267), and there was no discretionary bonus, to our executive officers, namely Mamoru Iwamoto, Tomonari Takayama, Katsumi Kato, Ryuma Iwamoto, Robert Wagner, Maki Wagner, and Sachiko Tozawa and ¥9,200,000 (US$61,391) to our corporate auditors, namely Kazuaki Iwatake, Hitoshi Nishizaka, Akira Kaneko, and Tatsuya Yoshii. In the fiscal year ended February 28, 2025, we paid an aggregate of approximately ¥85,026,200 (US$557,001), including discretionary bonus of ¥765,000 (US$5,011), to our executive officers, namely Mamoru Iwamoto, Tomonari Takayama, Katsumi Kato, and Ryuma Iwamoto, and ¥6,400,000 (US$41,926) to our former corporate auditor, namely Eiko Iwamoto, and ¥700,000 (US$4,586) to our corporate auditor, namely Hitoshi Nishizaka.

The following table summarizes the total amount of remuneration paid to our directors and corporate auditors in fiscal year ended February 28, 2026, including by the type of remuneration and the number of persons in each category.

---

| | | | |
|:---|:---|:---|:---|
| **(except stock options and number of persons in<br> category) Category of directors and corporate auditors** | **Total amount of**<br> **remuneration** | **Base<br> compensation** | **Number of persons**<br> **in category** |
| Directors (1) | $641267 | $641267 | 7 |
| Corporate auditor (2) | $6006 | $6006 | 1 |
| Outside corporate auditors (3) | $55385 | $55385 | 3 |

---

(1) Consist
 of Mamoru Iwamoto (CEO), Tomonari Takayama (CFO and CSO), Katsumi Kato (CMO and CRO), Ryuma Iwamoto (COO and KOEISING CEO),
 Robert Wagner (CBO and Koei US CEO), Maki Wagner (CCO) and Sachiko Tozawa (CBO).

(2) Consists
 of Kazuaki Iwatake

(3) Consists
 of Hitoshi Nishizaka, Akira Kaneko, and Tatsuya Yoshii. (Outside Corporate Auditors).

**DESCRIPTION OF SHARE CAPITAL**

*The following is a summary of the material terms of our capital stock and our articles of incorporation, including a summary of the relevant provisions of applicable share handling regulations, of the Companies Act and the Act on Book-Entry Transfer of Company Bonds, Shares, etc. of Japan (Shasai Kabushiki tou no Furikae ni kansuru Houritsu) (Act No. 75 of 2001, as amended) (including regulations promulgated thereunder, the "Book-Entry Act") relating to joint-stock corporations (kabushiki kaisha), and of certain related laws and legislation, each as currently in effect. Because it is a summary, this discussion should be read together with our articles of incorporation and the applicable share handling regulations.*

We are a joint-stock corporation founded in Japan under the Companies Act. The rights of our shareholders are represented by our common shares as described below, and our shareholders' liability is limited to the amount of their respective holdings in such shares.

**Description of Our Share Capital**

As of June 29, 2026, our authorized capital stock consisted of 34,320,000 common shares, and there were 8,580,000 common shares outstanding. As of June 29, 2026, there were three record holders of our common shares.

Based upon the assumed offer and sale of [____________] common shares in this offering at an initial public offering price of US$[__] per share (which is the low-end of the range set forth on the cover page of this prospectus), following this offering, there will be [____________] common shares outstanding.

All currently outstanding common shares are fully-paid and non-assessable.

**Changes in Capital**

Under the Companies Act, changes in capital, such as a share issuance, consolidation of shares, or issuance of share options, among others, require not less than two-thirds of shareholders entitled to vote, where a quorum is established by shareholders holding more than half of the voting rights of those who are entitled to vote are present at the shareholders' meeting of our common shareholders, as described under "—*Voting Rights and Shareholder Meetings*" below.

**Voting Rights and Shareholder Meetings**

Our articles of incorporation provide that each annual meeting of our shareholders must be held by the end of May of each year. In addition, shareholders meetings to consider and vote on extraordinary matters may be held as necessary, provided that we satisfy all of the procedural requirements under both our articles of incorporation and the Companies Act.

Our common shares allocate one vote per share at shareholders' meetings. Our articles of incorporation provide for a simple majority approval on most matters submitted for shareholder vote, unless otherwise required by laws or regulations. As required by law, and as referenced in our articles of incorporation, a two-thirds majority approval is required for any votes on matters specified in Article 309, Paragraph (2) of the Companies Act, which cover, in relevant part, treasury stock purchases, purchases of an entire class of shares, and stock consolidations. Any amendment to our articles of incorporation must be approved by our shareholders at a shareholders' meeting.

**Pre-Emptive Rights**

Holders of common shares have no pre-emptive rights under our articles of incorporation.

**Dividend Rights**

We may issue dividends upon a resolution of our common shareholders or board of directors. We have not paid dividends to shareholders in the past. The payment of future dividends on our common shares, if any, must be approved by our common shareholders at the annual meeting of the shareholders, or our board of directors only once during a business year, and will depend on, among other things, our results of operations, cash requirements and surplus, financial condition, contractual restrictions and other factors that our common shareholders or directors may deem relevant, including retaining future earnings, if any, for reinvestment in the development and expansion of our business.

**Liquidation Rights**

In accordance with the Companies Act and the Articles of Incorporation, liquidations must be approved by common shareholders holding at least a two-thirds majority of the shares present at a meeting where a quorum of half of the issued and outstanding shares with voting rights is present.

**Transfer Agent**

Under our articles of incorporation, we are required to have a shareholder registry administrator. The shareholder registry administrator and the shareholder registry administrator's location for handling share-related affairs must be determined pursuant to a resolution of our board of directors. All affairs related to our shareholder and share option registries are delegated to the shareholder registry administrator and are not to be handled by our Company. The current shareholder registry administrator for our Company is Todoroki Law Office.

**Limitations on Liability**

Our Company, in accordance with the provisions of Article 426, Paragraph 1 of the Companies Act, may exempt the directors (including former directors) from liabilities as specified in Article 423, Paragraph 1 of the same law, within the limits prescribed by law, by a resolution of the Board of Directors. Our articles of incorporation permit us to exempt, by resolution of our board of directors, corporate auditors from liabilities arising in connection with their failure to execute their duties in good faith (but without gross negligence), to the fullest extent permitted by the Companies Act. Should our board of directors, exempt a corporate auditor or director from any such liabilities, our rights and those of our shareholders to file shareholders' derivative suits on behalf of our Company to recover monetary damages from such director or corporate auditor for breach of their duties under the Companies Act will be eliminated or reduced. However, exculpation does not apply to any director or corporate auditor if they have breached their duties under the Companies Act intentionally (*koi*) or by gross negligence (*ju-kashitsu*). Furthermore, we may enter into agreements for the limitation of liabilities with our non-executive directors and corporate auditors. If we do so, we expect that these agreements will eliminate or reduce our rights and those of our shareholders as described above.

**Articles of Incorporation**

***Objective of our Company under our Articles of Incorporation***

We have broad authority under Article 2 of our articles of incorporation to conduct our lines of business.

***Provisions Regarding Our Directors***

With respect to the election of directors of our Company, each director must be voted in by a majority of our common shareholders entitled to vote at a common shareholders' meeting where shareholders holding more than half of the voting rights entitled to vote are present. Additionally, any resolution regarding the election of a director cannot be adopted by cumulative voting.

***Rights of Shareholders of our Common Shares***

Under the Companies Act and our articles of incorporation, holders of our common shares have, among others, the following rights:

● the right to receive dividends when the payment of dividends has been approved at a shareholders' meeting, or our board of directors only once during a business year, with this right lapsing three years after the due date for payment according to a provision in our articles of incorporation;

● the right to vote at a shareholders' meeting (cumulative voting for the election of directors is not allowed under our articles of incorporation);

● the right to receive surplus in the event of a liquidation; and

● the right to require us to purchase shares subject to certain requirements under the Companies Act when a shareholder opposes certain resolutions, including (i) the transfer of all or material part of our business, (ii) an amendment to our articles of incorporation to establish a restriction on share transfer, (iii) a share exchange or share transfer to establish a holding company, (iv) a company split, or (v) a merger, all of which must, as a general rule, be approved by a special resolution adopted at a shareholders' meeting.

Under the Companies Act, a company is permitted to make a distribution of surplus to the extent that the aggregate book value of the assets to be distributed to shareholders does not exceed the distributable amount provided for under the Companies Act and the applicable ordinance of the Ministry of Justice as of the effective date of such distribution of surplus. The amount of surplus at any given time shall be the amount of the Company's assets and the book value of the Company's treasury stock after subtracting and adding the amounts of the items provided for under the Companies Act and the applicable ordinance of the Ministry of Justice.

A shareholder is generally entitled to one vote per share at a shareholders' meeting. In general, under the Companies Act and our articles of incorporation, a shareholders' meeting may adopt an ordinary resolution by a majority of the voting rights presented at the meeting. The Companies Act and our articles of incorporation require a quorum of more than half of the total number of voting rights in connection with the election of directors and statutory auditors. Under the Companies Act, to avoid exercising improper control in a form of mutual shareholding, an institutional shareholder, 25% or more voting rights of which are directly or indirectly held by us, does not have voting rights at our shareholders' meeting. We have no voting rights with respect to our own common shares that we hold. Shareholders may exercise their voting rights through proxies, provided that a shareholder may appoint only one other shareholder who has voting rights as its proxy.

With respect to a special resolution, the Companies Act and our articles of incorporation require a quorum of the majority of the total number of voting rights and approval of two-thirds of the voting rights presented at the meeting in connection with any material corporate actions, such as:

● a reduction of the stated capital (except when a company reduces the stated capital within a certain amount as provided for under the Companies Act);

● an amendment to our articles of incorporation;

● establishment of a 100% parent-subsidiary relationship through a share exchange or share transfer requiring shareholders' approval;

● a dissolution, merger, or consolidation requiring shareholders' approval;

● a company split requiring shareholders' approval;

● a transfer of all or an important part of our business;

● a takeover of the entire business of any other corporation requiring shareholders' approval;

● issuance of new shares at a substantially favorable price, or issuance of stock acquisition rights or bonds with stock acquisition rights with substantially favorable conditions, to persons other than our shareholders; and

● other material corporate actions provided in the Companies Act.

The Companies Act provides additional specific rights for shareholders owning a substantial number of voting rights.

A shareholder holding 90% or more of the total number of voting rights of all shareholders has the right to demand that all other shareholders sell their shares to such shareholder who holds 90% or more of the voting rights.

Shareholders holding 10% or more of the total number of voting rights of all shareholders, or 10% or more of the total number of our outstanding shares, have the right to apply to a court of competent jurisdiction for our dissolution.

Shareholders who have held 3% or more of the total number of voting rights of all shareholders for six months or more have the right to demand the convening of a shareholders' meeting.

Shareholders who have held 3% or more of the total number of voting rights of all shareholders, or 3% or more of the total number of our outstanding shares, for six months or more have certain rights under the Companies Act, which include the right to:

● apply to a competent court for removal of a director or a corporate auditor where a fraudulent act or a significant event violating laws and regulations or the Company's Articles of Incorporation exists with respect to performance of duties of such director or corporate auditor, and removal by shareholders at a meeting has been denied; and

● apply to a competent court for removal of a liquidator.

Shareholders holding 3% or more of the total number of voting rights of all shareholders have the right to object to the exculpation of a director or a corporate auditor from certain liabilities.

Shareholders holding 3% or more of the total number of voting rights of all shareholders, or 3% or more of the total number of our outstanding shares, have certain rights under the Companies Act, which include the right to:

● examine our accounting books and documents and make copies of them; and

● apply to a competent court for the appointment of an inspector to inspect our operation and/or financial condition where an event casting doubt on a fraudulent act or a significant fact violating laws and regulations or the Company's Articles Incorporation exists with respect to operation of the Company.

Shareholders who have held 1% or more of the total number of voting rights of all shareholders for six months or more have the right to apply to a competent court for the appointment of an inspector to review the correctness of the convocation and voting procedures of a shareholders' meeting.

Shareholders who have held 1% or more of the total number of voting rights of all shareholders, or 300 or more voting rights, for six months or more have the right to demand that certain matters be added to the agenda items at a shareholders' meeting.

Shareholders who have held any number of shares for six months or more have the right to demand that we take certain actions under the Companies Act, which include the rights to demand:

● the institution of an action to enforce the liabilities of our directors or corporate auditors;

● the institution of an action to disgorge from a recipient the benefit of a proprietary nature given in relation to the exercise of the right of a shareholder; and

● on our behalf, that a director ceases an illegal or ultra vires action.

There are no provisions under the Companies Act or our articles of incorporation which forces shareholders to make additional contributions when requested by us.

Under the Companies Act, in order to change the rights of shareholders which are stipulated and defined in our articles of incorporation, we must amend our articles of incorporation. Amendments must, as a general rule, be approved by a special resolution of our shareholders.

Annual meetings and special meetings of shareholders are convened by our President based on a resolution of our board of directors. Under our articles of incorporation, shareholders of record as of February 28 of each year have the right to attend our annual shareholders' meeting. We may, by prescribing a record date, determine the shareholders who are stated or recorded in the shareholder registry on the record date as the shareholders entitled to attend and take action at a special shareholders' meeting, and in this case, we are required to make a public notice of the record date at least two weeks prior to the record date. A convocation notice will be sent to these shareholders at least two weeks prior to the date of the shareholders' meeting.

***Our Acquisition of our Common Shares***

Under applicable laws of Japan, we may acquire our common shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) from
 a specific shareholder (other than any of our subsidiaries), pursuant to a special resolution of a shareholders' meeting; or

(ii) from
 any of our subsidiaries, pursuant to a resolution of our board of directors.

In the case of any acquisition made by way of (i) above, any other shareholder may request within a certain period of time provided under the applicable ordinance of the Ministry of Justice before a shareholders' meeting that we also purchase the shares held by the requesting shareholder, unless the purchase price or any other consideration to be delivered in exchange for the acquisition of common shares does not exceed the market price of our common shares calculated by the method prescribed in the applicable ordinance of the Ministry of Justice.

In general, an acquisition by us of our common shares must satisfy certain requirements, including that the total amount of the acquisition price may not exceed the distributable amount.

We may hold the common shares which we acquired pursuant to (i) and (ii) above, or we may cancel such shares by a resolution of our board of directors. We may also dispose of such shares pursuant to a resolution of our board of directors, subject to other requirements applicable to the issuance of shares under the Companies Act.

***Restrictions on Holders of our Common Shares***

There are no restrictions with respect to non-residents of Japan or foreign shareholders holding our common shares or on the exercise of voting rights. However, pursuant to a provision of our share handling regulations, a shareholder who does not have an address or residence in Japan is required to file with our transfer agent its temporary address to receive notices in Japan or that of a standing proxy having any address or residence in Japan. See "*Risk Factors – Material risks for a foreign shareholder due to Japanese share handling regulations include potential delays in receiving information, the risk of a lapsed standing proxy relationship, and the reliance on third-party service providers"* on page 27 of this prospectus*.*

There are no provisions in our articles of incorporation that would have the effect of delaying, deferring, or preventing a change in control that would operate only with respect to a merger, acquisition or corporate restructuring involving us.

There are no provisions in our articles of incorporation or other subordinated rules regarding an ownership threshold, above which shareholder ownership must be disclosed.

There are no provisions in our articles of incorporation governing changes in our Company's capital that are more stringent than is required by law.

**Historical Common Equity Transactions**

Since its inception on August 8, 2024, the Company engaged in the following unregistered stock issuances:

On August 8, 2024, DARINGATE CO., LTD. (now known as Koei Group Co., Ltd. ("Koei Group")) issued (i) 146 common shares to Mamoru Iwamoto for ¥10,200,000, (ii) 120 common shares to Ryuma Iwamoto for ¥8,400,000, and (iii) 20 common shares to Eiko Iwamoto for ¥1,400,000.

Effective September 8, 2025, Koei approved a stock split of the Koei's issued and outstanding common shares, at a ratio of 30,000-for-1 (the "Stock Split"). As of September 8, 2025 and immediately prior to the Stock Split, there were 286 common shares issued and outstanding. As a result of the Stock Split, Koei has 8,580,000 common shares issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

On September 22, 2025, the Company allotted 171,600 stock acquisition rights to HeartCore in exchange for services rendered as a consultant in connection with the proposed initial public offering of the Company under grants authorized by our shareholders and directors on September 17, 2025 in connection with the Service Agreement, dated as of April 11, 2024, between KOEI JAPAN (formerly Koei Shoji Co., Ltd.), as amended, and HeartCore. The stock acquisition right is exercisable upon a successful listing on the NYSE American or the Nasdaq and has an exercise price of US$0.01 per share and is fully vested. The number of shares underlying each stock acquisition right is calculated as the number of issued and outstanding common shares on a fully diluted basis as of the previous day of the listing date on a stock exchange multiplied by 2%, subject to adjustment as provided in the 1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei and HeartCore.

We believe that each of the foregoing issuances was exempt from registration under the Securities Act pursuant to Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

**SHARES ELIGIBLE FOR FUTURE SALE**

Before this offering, there has not been a public market for our common shares. Future sales of substantial amounts of our common shares, including shares issued upon the conversion of any convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the possibility of these sales occurring, could cause the prevailing market price for our common shares to fall or impair our ability to raise equity capital in the future.

Immediately following the closing of this offering, we will have _______ common shares issued and outstanding. In the event the Representative exercises in full the over-allotment option to purchase additional common shares, we will have ________ common shares issued and outstanding. The common shares sold in this offering will be freely tradable without restriction or further registration or qualification under the Securities Act.

Previously issued common shares that were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee stock options, are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.

**Rule 144**

In general, a person who has beneficially owned restricted common shares of our Company for at least twelve months, or at least six months in the event we have been a reporting company under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90) days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

● 1% of the number of our common shares then outstanding; which will equal approximately [______] common shares immediately after this offering (assuming no exercise by the underwriters of their option to purchase additional common shares from us); or

● 1% of the average weekly trading volume of our common shares on the Nasdaq, as applicable, during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

Affiliate resales under Rule 144 are also subject to the availability of current public information about us. In addition, if the number of shares being sold under Rule 144 by an affiliate during any three-month period exceeds 5,000 shares or has an aggregate sale price in excess of US$50,000, the seller must file a notice on Form 144 with the SEC and the Nasdaq, as applicable, concurrently with either the placing of a sale order with the broker or the execution directly with a market maker.

Under Rule 144, a person who is not an affiliate of ours at the time of sale, and has not been an affiliate at any time during the 90 days preceding a sale, and who has beneficially owned our common shares for at least six months but less than a year, is entitled to sell such shares subject only to the availability of current public information about us. If such person has held our shares for at least one year, such person can resell without regard to any Rule 144 restrictions, including the 90-day public company requirement and the current public information requirement. Non-affiliate resales are not subject to the manner of sale, volume limitation or notice filing provisions of Rule 144.

**Rule 701**

In general, Rule 701 allows a shareholder who purchased our common shares pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however, are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.

**Lock-Up Agreements**

We, all of our directors and officers and holders of 10% or more of our outstanding securities (or securities convertible into our common shares) have agreed with the Representative, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our common shares or securities convertible into or exercisable or exchangeable for our common shares for a period of six months from the date on which the trading of the common shares on the Nasdaq commences. See the "*Underwriting*" section below for more information.

**Form S-8 Registration Statements**

Following the completion of this offering, we may file one or more registration statements on Form S-8 under the Securities Act to register the common shares issued or reserved for issuance under our equity incentive plan and any future plan. The registration statement on Form S-8 will become effective automatically upon filing. Common shares issued upon exercise of a stock option and registered under the Form S-8 registration statement will, subject to vesting and lock-up provisions, and Rule 144 volume limitations applicable to our affiliates, be available for sale in the open market immediately unless they are subject to the lock-up restrictions described under "*Underwriting—No Sales of Similar Securities*", in which case, after the expiration of such lock-up.

**THE DISCUSSION ABOVE IS A GENERAL SUMMARY. IT DOES NOT COVER ALL MATTERS RELATING TO SHARE TRANSFER RESTRICTIONS THAT MAY BE OF IMPORTANCE TO A PROSPECTIVE INVESTOR. EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN LEGAL ADVISOR REGARDING THE PARTICULAR SECURITIES LAWS AND TRANSFER RESTRICTION CONSEQUENCES OF PURCHASING, HOLDING, AND DISPOSING OF OUR COMMON SHARES, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.**

**CERTAIN TAX CONSIDERATIONS**

*The following description is not intended to constitute a complete analysis of all tax consequences relating to the ownership or disposition of our common shares. You should consult your own tax advisor concerning the tax consequences of your particular situation, as well as any tax consequences that may arise under the laws of any local, state, foreign, including Japan, or other taxing jurisdiction.*

**Taxation in Japan**

Generally, a non-resident of Japan or non-Japanese entity (which we refer to as a "Non-Resident Holder") is subject to Japanese withholding tax on dividends paid by Japanese corporations. Stock splits are not subject to Japanese income tax. A conversion of retained earnings or legal reserve (but not additional paid-in capital, in general) into stated capital (whether made in connection with a stock split or otherwise) is not treated as a deemed dividend payment to shareholders for Japanese tax purposes. Thus, such a conversion does not trigger Japanese withholding taxation (Article 2(16) of the Japanese Corporation Tax Law and Article 8(1)(xiii) of the Japanese Corporation Tax Law Enforcement Order).

Pursuant to the Convention Between the Government of the United States of America and the Government of Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (which we refer to as the "Treaty"), dividend payments made by a Japanese corporation to a U.S. resident or entity, unless the recipient of the dividend has a "permanent establishment" in Japan, and the common shares with respect to which such dividends are paid are effectively connected with such "permanent establishment", are generally subject to a withholding tax at rate of: (i) 10% for portfolio investors who are qualified U.S. residents eligible for benefits of the Treaty; and (ii) 0% (*i.e.*, no withholding) for pension funds which are qualified U.S. residents eligible for benefits of the Treaty, provided that the dividends are not derived from the carrying on of a business, directly or indirectly, by such pension funds. Japan is a party to a number of income tax treaties, conventions and agreements, (which we refer to collectively as the "Tax Treaties"), whereby the maximum withholding tax rate for dividend payments is set at, in most cases, 15% for portfolio investors who are Non-Resident Holders. Specific countries with which such Tax Treaties have been entered into include Canada, Denmark, Finland, Germany, Ireland, Italy, Luxembourg, New Zealand, Norway, and Republic of Singapore. Japan's income tax treaties with Australia, Belgium, France, The Netherlands, Sweden, Switzerland and the United Kingdom have been amended to generally reduce the maximum withholding tax rate to 10%.

On the other hand, unless one of the applicable Tax Treaties reducing the maximum rate of withholding tax applies, the standard tax rate applicable to dividends paid with respect to listed shares, such as those paid by our Company on shares, to Non-Resident Holders is 15% under the Japanese Income Tax Law, except for dividends paid to any individual shareholder who holds 3% or more of the issued shares, in which case the applicable rate is 20% (Article 182(2) of the Japanese Income Tax Law and Article 9-3(1)(i) of the Japanese Special Tax Measures Law, including its relevant temporary provision for these withholding rates). On December 2, 2011, the "Special measures act to secure the financial resources required to implement policy on restoration of the East Japan Earthquake" (Act No. 117 of 2011) was promulgated and special surtax measures on income tax and withholding tax were introduced thereafter to fund the restoration effort for the earthquake. Income tax and withholding taxpayers need to pay a surtax, calculated by multiplying the standard tax rate by 2.1% for 25 years starting from January 1, 2013 (which we refer to as "Surtax"). As a result, the withholding tax rate applicable to dividends paid with respect to listed shares to Non-Resident Holders increased to 15.315% (which we refer to as "Withholding Tax Rate") which is applicable for the period from January 1, 2014 until December 31, 2037.

Taking this Withholding Tax Rate into account, the treaty rates such as the 15% rate (or 10% for eligible U.S. residents subject to the Treaty and/or eligible residents subject to other similarly renewed treaties mentioned above) apply, in general, except for dividends paid to any individual holder who holds 3% or more of the total issued shares, in which case the applicable rate is 20.42% (standard tax rate of 20% imposed by Surtax). The treaty rate normally overrides the domestic rate, but due to the so-called "preservation doctrine" under Article 1(2) of the Treaty, and/or due to Article 3-2 of the Special Measures Law for the Income Tax Law, Corporation Tax Law and Local Taxes Law with respect to the Implementation of Tax Treaties, if the tax rate under the domestic tax law is lower than that promulgated under the applicable income tax treaty, then the domestic tax rate is still applicable. Currently, the tax rate under the applicable tax treaty is lower than that under the domestic tax law and thus the treaty override treatment applies. As such, the tax rate under the Treaty applies for most holders of shares who are U.S. residents or entities. In the case where the treaty rate is applicable, no Surtax is imposed, but in order to enjoy the lower treaty rate, the taxpayer must file a treaty application in advance with the Japanese National Tax Agency through our Company. Gains derived from the sale outside Japan of a Japanese corporation's shares by Non-Resident Holders, or from the sale of a Japanese corporation's shares within Japan by a non-resident of Japan as an occasional transaction or by a non-Japanese entity not having a permanent establishment in Japan, are generally not subject to Japanese income or corporation taxes, provided that the seller is an investor who is a qualified U.S. resident eligible for benefit of the Treaty. Japanese inheritance and gift taxes at progressive rates may apply to an individual who has acquired a Japanese corporation's shares as a distributee, legatee or donee.

**Certain U.S. Federal Income Tax Considerations for U.S. Holders**

The following discussion is a summary of U.S. federal income tax considerations generally applicable to the ownership and disposition of our common shares by a U.S. holder (as defined below) that acquires our common shares in this offering. This summary is for general information purposes only and does not purport to be a complete discussion of all potential tax considerations that may be relevant to a particular person's decision to acquire common shares.

This summary is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), the regulations promulgated under the Code (the "U.S. Treasury Regulations"), the income tax treaty between Japan and the United States (the "Treaty"), published rulings of the U.S. Internal Revenue Service (the "IRS"), published administrative positions of the IRS, and U.S. court decisions that are applicable and, in each case, as in effect and available, as of the date hereof. Any of the authorities on which this summary is based could be changed in a material and adverse manner at any time, and any such change could be applied on a retroactive or prospective basis which could affect the U.S. federal income tax considerations described in this summary. We have not requested a ruling from the IRS with respect to any of the U.S. federal income tax considerations described below and, as a result, the IRS could disagree with portions of this discussion.

For purposes of this discussion, a "U.S. holder" is a beneficial owner of the common shares or that is, for U.S. federal income tax purposes:

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) that is created or organized in or under the laws of the United States, any state thereof, or the District of Columbia;

● an estate the income of which is includable in gross income for U.S. federal income tax purposes regardless of its source; or

● a trust (i) the administration of which is subject to the primary supervision of a court within the United States and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust, or (ii) that has validly elected to be treated as a U.S. person under the Code.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds the common shares, the U.S. federal income tax consequences to such partnership and its partners of the ownership and disposition of the common shares generally will depend in part on the activities of the partnership and the status of such partners. This summary does not address the tax consequences to any such partner or partnership. Partners of entities or arrangements that are classified as partnerships for U.S. federal income tax purposes should consult their own tax advisors regarding the U.S. federal income tax consequences of the ownership and disposition of the common shares.

This discussion applies only to a U.S. holder that holds common shares as "capital assets" under the Code (generally, property held for investment). Unless otherwise provided, this summary does not discuss reporting requirements. In addition, this discussion does not address any tax consequences other than U.S. federal income tax consequences, such as U.S. state and local tax consequences, U.S. estate and gift tax consequences, and non-U.S. tax consequences, and does not describe all of the U.S. federal income tax consequences that may be relevant in light of a U.S. holder's particular circumstances, including alternative minimum tax consequences, the Medicare tax on certain net investment income, and tax consequences to holders that are subject to special provisions under the Code, including, but not limited to, holders that:

● are tax exempt organizations, qualified retirement plans, individual retirement accounts, or other tax deferred accounts;

● are financial institutions, underwriters, insurance companies, real estate investment trusts, or regulated investment companies;

● are brokers or dealers in securities or currencies or holders that are traders in securities that elect to apply a mark-to-market accounting method;

● have a "functional currency" for U.S. federal income tax purposes that is not the U.S. dollar;

● own common shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position;

● acquire common shares in connection with the exercise of employee stock options or otherwise as compensation for services;

● are partnerships or other pass-through entities for U.S. federal income tax purposes (or investors in such partnerships and entities);

● are required to accelerate the recognition of any item of gross income with respect to the common shares as a result of such income being recognized on an applicable financial statement;

● own or will own (directly, indirectly, or constructively) 10% or more of our total combined voting power or value;

● hold the common shares in connection with trade or business conducted outside of the United States or in connection with a permanent establishment or other fixed place of business outside of the United States; or

● are former U.S. citizens or former long-term residents of the United States.

Each U.S. holder is urged to consult its tax advisor regarding the application of U.S. federal taxation to its particular circumstances, and the state, local, non-U.S. and other tax considerations of the ownership and disposition of our common shares.

***Passive Foreign Investment Company Considerations***

A non-U.S. corporation, such as our Company, is classified as a passive foreign investment company ("PFIC") for any taxable year in which, after applying relevant look-through rules with respect to the income and assets of its subsidiaries, either: (i) 50% or more of the value of the corporation's assets either produce passive income or are held for the production of passive income, based on the quarterly average of the fair market value of such assets; or (ii) at least 75% of the corporation's gross income is passive income. "Passive income" generally includes, for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions. In determining the value and composition of our assets, the cash we raise in this offering will generally be considered to be held for the production of passive income and thus will be considered a passive asset.

The determination of whether a corporation is a PFIC for a taxable year depends, in part, on the application of complex U.S. federal income tax rules that are subject to differing interpretations. In addition, the determination of whether a corporation will be a PFIC for any taxable year can only be made after the close of such taxable year. Our PFIC status will depend, in part, on the amount of cash that we raise in this offering and how quickly we utilize the cash in our business. Furthermore, because we may value our goodwill based on the expected market price of the common shares in this offering, a decrease in the market price of our common shares may also cause us to be classified as a PFIC for the current or any future taxable year. Based upon the foregoing, it is uncertain whether we will be a PFIC for our current taxable year or any future taxable year.

We must make a separate determination each year as to whether we are a PFIC. As a result, our PFIC status may change. If we are a PFIC for any year during which you hold the common shares, we will generally continue to be treated as a PFIC for all succeeding years during which you hold such common shares. However, if we cease to be a PFIC, provided that you have not made a mark-to-market election, as described below, you may avoid some of the adverse effects of the PFIC regime by making a deemed sale election with respect to the common shares. We believe we were not a PFIC in prior taxable year 2024 because less than 75% of our gross income was passive income and less than 50% of the average value of our assets consisted of assets that would produce passive income in 2024.

The discussion below under "—*Distributions on the Common Shares*" and "—*Sale or Other Disposition of the Common Shares" is written on the basis that we will not be classified as a PFIC for U.S. federal income tax purposes. The U.S. federal income tax rules that generally would apply if we are treated as a PFIC are discussed below under "—Passive Foreign Investment Company Rules."*

***Distributions on the Common Shares***

The gross amount of any distributions paid on our common shares will generally be included in the gross income of a U.S. holder as dividend income on the date actually or constructively received by the U.S. holder, in the case of common shares, but only to the extent that the distribution is paid out of our current or accumulated earnings and profits (computed on the basis of U.S. federal income tax principles). Because we do not intend to determine our earnings and profits on the basis of U.S. federal income tax principles, we expect that distributions will generally be reported to U.S. holders as dividends. Dividends received on our common shares generally will not be eligible for the dividends received deduction allowed to corporations in respect of dividends received from U.S. corporations.

Individuals and other non-corporate U.S. holders will be subject to tax on any such dividends at the lower capital gains tax rate applicable to "qualified dividend income," provided that certain conditions are satisfied, including that (i) the common shares on which the dividends are paid are readily tradable on an established securities market in the United States or we are eligible for the benefits of the Treaty, (ii) we are not a PFIC nor treated as such with respect to a U.S. holder (as discussed below) for either our taxable year in which the dividend was paid or for the preceding taxable year, and (iii) certain holding period requirements are met. For this purpose, common shares listed on the Nasdaq will generally be considered to be readily tradable on an established securities market in the United States. You should consult your tax advisor regarding the availability of the lower rate for dividends paid with respect to our common shares.

For U.S. foreign tax credit purposes, dividends paid on our common shares generally will be treated as foreign source income and generally will constitute passive category income. The amount of a dividend will include any amounts withheld by us in respect of Japanese income taxes. Subject to applicable limitations, some of which vary depending upon the U.S. holder's particular circumstances, Japanese income taxes withheld from dividends on the common shares, at a rate not exceeding any reduced rate pursuant to the Treaty, will be creditable against the U.S. holder's U.S. federal income tax liability. In lieu of claiming a foreign tax credit, U.S. holders may, at their election, deduct foreign taxes, including any Japanese income taxes, in computing their taxable income, subject to generally applicable limitations under U.S. law. An election to deduct foreign taxes instead of claiming foreign tax credits applies to all foreign taxes paid or accrued in the taxable year. The rules governing foreign tax credits are complex and U.S. holders should consult their tax advisers regarding the creditability or deductibility of foreign taxes in their particular circumstances.

The amount of any dividend paid in Japanese yen will equal the U.S. dollar value of the Japanese yen received, calculated by reference to the exchange rate in effect on the date the dividend is received by you, in the case of common shares, regardless of whether the Japanese yen are converted into U.S. dollars. If the Japanese yen received as a dividend are converted into U.S. dollars on the date of receipt, a U.S. holder generally will not be required to recognize foreign currency gain or loss in respect of the dividend income. If the Japanese yen received as a dividend are not converted into U.S. dollars on the date of receipt, a U.S. holder will have a basis in the Japanese yen equal to their U.S. dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the Japanese yen will be treated as U.S. source ordinary income or loss.

***Sale or Other Disposition of the Common Shares***

A U.S. holder will recognize gain or loss on the sale or other disposition of a common share equal to the difference between the amount realized for the common share and the holder's tax basis in the common share. Such gain or loss will generally be capital gain or loss and will be long-term capital gain or loss if the U.S. holder's holding period for such common share was more than one year as of the date of the sale or other disposition. Long-term capital gain recognized by a non-corporate U.S. holder is subject to U.S. federal income tax at rates lower than the rates applicable to ordinary income and short-term capital gains, while short-term capital gains are subject to U.S. federal income tax at the rates applicable to ordinary income. The deductibility of capital losses is subject to various limitations. Any gain or loss recognized will generally be U.S. source gain or loss for foreign tax credit purposes. Consequently, a U.S. holder may not be able to use the foreign tax credit arising from any Japanese tax imposed on the disposition of the common share unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from non-U.S. sources.

***Passive Foreign Investment Company Rules***

If we are a PFIC for any taxable year during which you hold our common shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive and any gain you realize from a sale or other disposition (including a pledge) of the common shares, unless you make a mark-to-market election as discussed below. Distributions you receive from us in a taxable year that are greater than 125% of the average annual distributions you received from us during the shorter of the three preceding taxable years or your holding period for the common shares will be treated as an excess distribution. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over your holding period for the common shares,

● the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we became a PFIC, will be treated as ordinary income, and

● the amount allocated to each of the other taxable years will be subject to tax at the highest rate of tax in effect for you for such year and will be increased by an additional tax calculated as an interest charge on the resulting tax deemed deferred with respect to each such other taxable year at the rates generally applicable to underpayments of tax payable in those years.

If we are a PFIC for any taxable year during which a U.S. holder holds our common shares and any of our subsidiaries or other corporate entities in which we own equity interests is also a PFIC, such U.S. holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application of these rules. U.S. holders are urged to consult their tax advisors regarding the application of the PFIC rules to any of our subsidiaries.

As an alternative to the foregoing rules, a U.S. holder may make a mark-to-market election with respect to our common shares, provided such common shares are treated as "marketable stock." The common shares generally will be treated as marketable stock if the common shares are regularly traded on a "qualified exchange or other market," as defined in applicable U.S. Treasury Regulations. Our common shares will be marketable stock as long as they remain listed on the Nasdaq, which is a qualified exchange for this purpose, and are regularly traded. We anticipate that our common shares should qualify as being regularly traded but no assurances can be given in this regard.

If a U.S. holder makes a valid mark-to-market election with respect to the common shares, the holder generally will (i) include as ordinary income for each taxable year that we are a PFIC the excess, if any, of the fair market value of common shares held at the end of the taxable year over the adjusted tax basis of such common shares and (ii) deduct as an ordinary loss in each such taxable year the excess, if any, of the adjusted tax basis of the common shares over the fair market value of such common shares held at the end of the taxable year, but such deduction will only be allowed to the extent of the net amount previously included in income as a result of the mark-to-market election. The U.S. holder's adjusted tax basis in the common shares would be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U.S. holder makes a mark-to-market election in respect of our common shares and we cease to be classified as a PFIC, the holder will not be required to take into account the gain or loss described above during any period that we are not classified as a PFIC. If a U.S. holder makes a mark-to-market election, any gain such U.S. holder recognizes upon the sale or other disposition of our common shares in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as ordinary loss, but such loss will only be treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-market election.

Because a mark-to-market election cannot be made for any lower-tier PFICs that we may own, a U.S. holder may continue to be subject to the general PFIC rules described above with respect to such U.S. holder's indirect interest in any investments held by us that are treated as an equity interest in a PFIC for U.S. federal income tax purposes.

We have not determined whether, if we were to be classified as a PFIC for a taxable year, we will provide information necessary for a U.S. holder to make a "qualified electing fund" election which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs described above. Accordingly, U.S. holders should assume that they will not be able to make a qualified electing fund election with respect to the common shares.

If a U.S. holder owns common shares during any year in which we are a PFIC, the holder generally must file an annual report containing such information as the U.S. Treasury may require on IRS Form 8621 (or any successor form). A failure to file this report generally will suspend the statute of limitations with respect to any tax return, event, or period to which such report relates (potentially including with respect to items that do not relate to a U.S. holder's investment in common shares).

The PFIC rules are complex, and each U.S. holder should consult its own tax advisor regarding the PFIC rules, the elections which may be available to it, and how the PFIC rules may affect the U.S. federal income tax consequences relating to the ownership and disposition of common shares.

***Information Reporting and Backup Withholding***

Payments of dividends or sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries may be subject to information reporting and backup withholding, unless (i) the U.S. holder is a corporation or other exempt recipient, or (ii) in the case of backup withholding, the U.S. holder provides a correct U.S. taxpayer identification number and certifies that it is not subject to backup withholding.

Backup withholding is not an additional tax. Any amounts withheld under the U.S. backup withholding rules will be allowed as a credit against a U.S. holder's U.S. federal income tax liability, if any, or will be refunded, if such U.S. holder furnishes required information to the IRS in a timely manner. Each U.S. holder should consult its own tax advisor regarding the information reporting and backup withholding rules in their particular circumstances and the availability of and procedures for obtaining an exemption from backup withholding.

***Reporting Obligations for Certain Owners of Foreign Financial Assets***

Certain U.S. holders may be required to file information returns with respect to their investment in common shares. For example, U.S. return disclosure obligations (and related penalties) are imposed on individuals who are U.S. holders that hold certain specified foreign financial assets in excess of certain thresholds. The definition of "specified foreign financial assets" includes not only financial accounts maintained in non-U.S. financial institutions, but also, unless held in accounts maintained by a financial institution, any stock or security issued by a non-U.S. person, any financial instrument or contract held for investment that has an issuer or counterparty other than a U.S. person, and any interest in a non-U.S. entity. U.S. holders may be subject to these reporting requirements unless their common shares are held in an account at certain financial institutions.

The discussion of reporting obligations set forth above is not intended to constitute an exhaustive description of all reporting obligations that may apply to a U.S. holder. A failure to satisfy certain reporting obligations may result in an extension of the period during which the IRS can assess a tax, and under certain circumstances, such an extension may apply to assessments of amounts unrelated to any unsatisfied reporting obligation. Penalties for failure to comply with these reporting obligations are substantial. U.S. holders should consult with their own tax advisors regarding their reporting obligations under these rules, including the requirement to file an IRS Form 8938.

**U.S. Holders should consult their tax advisors regarding any reporting obligations that may arise with respect to the acquisition, ownership or disposition of our common shares. Failure to company with applicable reporting requirements could result in substantial penalties.**

**The foregoing discussion of certain U.S. federal income tax considerations is for general information only and is not intended to constitute a complete analysis of all tax consequences relating to the acquisition, ownership and disposition of our common shares. U.S. Holders should consult their own tax advisors concerning the tax consequences applicable to their particular situations.**

**UNDERWRITING** 

We have entered into an underwriting agreement with Roth Capital Partners, LLC, or Roth Capital, acting as the representative ("Representative") of the underwriters in connection with this offering. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters, and the underwriters have agreed to purchase from us on a firm commitment basis, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of common shares set forth below:

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| | |
|:---|:---|
| **Underwriters** | **Number of<br> Common Shares** |
| Roth Capital Partners, LLC |  |
| **Total:** |  |

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The underwriting agreement provides that the obligations of the underwriter to pay for and accept delivery of the shares offered by us in this prospectus are subject to various representations and warranties and other customary conditions specified in the underwriting agreement, such as receipt by the underwriter of officers' certificates and legal opinions.

We have agreed to indemnify the underwriter against specified liabilities, including liabilities under the Securities Act, and to contribute to any payments the underwriter is required to make in respect thereof.

***Commissions and Expenses***

The underwriting discount is equal to the public offering price per share, less the amount paid by the underwriters to us per share. The underwriting discount was determined through an arms' length negotiation between us and the underwriters. We have agreed to sell the common shares to the underwriters at the offering price of $[●] per common share, which represents the public offering price of the common shares set forth on the cover page of this prospectus less a 7% underwriting discount. The underwriters may allow and certain dealers may reallow a discount from the concession not in excess of $[●] per share to certain brokers and dealers. After this offering, the public offering price, concession, and reallowance to dealers may be changed by the Representative. No such change shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The common shares are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

The following table shows the public offering price, underwriting discount, and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the underwriters of the over-allotment option.

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Total<br> Without<br> Over-Allotment<br> Option** | **Total <br> With Full<br> Over-Allotment<br> Option** |
| Public offering price | $[●] | $[●] | $[●] |
| Underwriting discounts(1) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[●] | $[●] | $[●] |
| Proceeds, before expenses, to us | $[●] | $[●] | $[●] |

---

(1) Represents an underwriting discount equal to 7.0% per common share. Does not include (i) the warrants to purchase a number of common shares equal to 5.0% of the number of shares sold in the offering or (ii) amounts representing reimbursement of out-of-pocket expenses, each as described below.

We have agreed to pay all expenses relating to the Offering, including, without limitation, all filing fees and communication expenses relating to the registration of the common shares to be sold in the Offering (including the Over-allotment common shares) with the Commission and the filing of the offering materials with FINRA; all fees and expenses relating to the listing of such common shares on such stock exchange as the Company and the Representative together determine; all reasonable fees, expenses and disbursements relating to background checks of the Company's officers and directors; all fees, expenses and disbursements relating to the registration or qualification of such common shares under the "blue sky" securities laws of such states and other jurisdictions as the Representative may reasonably designate (including, without limitation, all filing and registration fees, and the fees and disbursements of the Representative's counsel for such counsel's participation in the "blue sky" and stock exchange listing process); the costs of all mailing and printing of the underwriting documents (including the Underwriting Agreement, any Blue Sky Surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers' Agreement, Underwriters' Questionnaire and Power of Attorney), Registration Statements, Prospectuses and all amendments, supplements, and exhibits thereto and as many preliminary and final Prospectuses as the Representative may reasonably deem necessary; the costs and expenses of the public relations firm; the costs of preparing, printing and delivering certificates representing such common shares; fees and expenses of the transfer agent for such common shares; stock transfer taxes, if any, payable upon the transfer of securities from the Company to the Representative; the fees and expenses of the Company's accountants and the fees and expenses of the Company's legal counsel and other agents and representatives. Upon the Representative's request, the Company shall provide funds to pay all such fees, expenses, and disbursements in advance. For the sake of clarity, it is understood and agreed that the Company shall be responsible for the Representative's legal fees, costs and expenses in connection with the Offering irrespective of whether the Offering is consummated. Any expense deposit or advance will be returned to us to the extent the Representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).

In addition, we agreed, during the engagement period of the Representative or until the consummation of this offering, whichever is earlier, not to negotiate with any other broker-dealer relating to a possible private and/or public offering of the securities without the written consent of the Representative, provided that the Representative is reasonably proceeding in good faith with preparation for this offering. Until the underwriting agreement is signed, we may terminate the Representative's participation in this offering only for cause. If terminated, we agree to reimburse the Representative for the full amount of its accountable expenses incurred to such date including but not limited to travel, lodging and other "road show" expenses, mailing, printing and reproduction expenses, and any expenses incurred by the Representative in conducting its due diligence), and also to reimburse the Representative for all fees and disbursements incurred by the Representative's counsel, less any advance and amounts previously paid to the Representative in reimbursement for such expenses; provided, however, that such fees shall be subject to FINRA Rule 5110(f)(2)(C) and shall not apply if and to the extent the Representative has advised us of the Representative's inability or unwillingness to proceed with this offering. The maximum amount we have agreed to reimburse the underwriter for their accountable expenses set forth in this and the immediately preceding paragraph will not exceed an aggregate of $300,000.

***Option to Purchase Additional Common Shares***

We have granted the underwriters an option exercisable for 45 days after the date of this prospectus to purchase, from time to time, in whole or in part, up to an aggregate of [●] common shares from us at the public offering price less underwriting discounts and commissions. To the extent that this option is exercised, each underwriter will be obligated, subject to certain conditions, to purchase its pro rata portion of these additional common shares based on the underwriter's percentage underwriting commitment in the offering as indicated in the table at the beginning of this Underwriting section.

**Representative's Warrants**

We have agreed to issue to the Representative (or permitted assignees) warrants to purchase [________] common shares, or warrants to purchase [______] common shares if the underwriters exercise the over-allotment option in full (5.0% of the common shares sold in this offering), at an exercise price equal to 110% of the public offering price of the shares sold in this offering. The Representative's Warrants will be exercisable at any time, and from time to time, in whole or in part, during the four and a half-year period commencing six (6) months from the commencement of sales of the offering and expiring five (5) years from the effectiveness of the registration statement, will have a cashless exercise provision and will terminate on the fifth (5<sup>th</sup>) anniversary of the effective date of the registration statement of which this prospectus is a part. The Representative's Warrants will also provide for customary anti-dilution provisions and "piggyback" registration rights with respect to the registration of the common shares underlying the warrants for a period of five (5) years from the commencement of sales of this offering and shall provide for automatic exercise immediately prior to expiration. We have registered the Representative's Warrants and the shares underlying the Representative's Warrants in this offering.

The Representative's Warrants and the underlying shares are deemed compensation by FINRA and therefore will be subject to a 180-day lock-up pursuant to FINRA Rule 5110(e)(1). The Representative (or permitted assignees under FINRA Rule 5110(e)(1)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days immediately following commencement of sale of this offering subject to certain exceptions permitted by FINRA Rule 5110(e)(2).

The registration statement of which this prospectus is a part also registers for sale the Representative's Warrants and the common shares issuable upon exercise of such warrant, as a portion of the underwriting compensation payable in connection with this offering.

**Lock-Up Agreements** 

We, all of our directors, executive officers, and existing shareholders have agreed with the underwriters or our company that, for a period of no less than 6 months after the date of this prospectus subject to certain limited exceptions as described below, they will not directly or indirectly, without the prior written consent of each of the underwriters, (i) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any common shares (including, without limitation, common shares that may be deemed to be beneficially owned by us in accordance with the rules and regulations of the SEC and common shares that may be issued upon exercise of any options or warrants) or securities convertible into or exercisable or exchangeable for common shares (other than the stock and shares issued pursuant to employee benefit plans, qualified stock option plans, or other employee compensation plans existing on the date of this prospectus or pursuant to currently outstanding options, warrants or rights not issued under one of those plans), or sell or grant options, rights or warrants with respect to any common shares or securities convertible into or exchangeable for common shares (other than the grant of options pursuant to option plans existing on the date of this prospectus), (ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of common shares, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of common shares or other securities, in cash or otherwise, (iii) make any demand for or exercise any right or file or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any common shares or securities convertible, exercisable or exchangeable into common shares or any of our other securities (other than any registration statement on Form S-8), or (iv) publicly disclose the intention to do any of the foregoing. These restrictions are subject to certain exceptions.

The underwriters, in their sole discretion, may release the ordinary shares and other securities subject to the lock-up agreements described above in whole or in part at any time. When determining whether or not to release ordinary shares and other securities from lock-up agreements, the underwriters will consider, among other factors, the holder's reasons for requesting the release, the number of common shares and other securities for which the release is being requested and market conditions at the time. At least three business days before the effectiveness of any release or waiver of any of the restrictions described above with respect to an officer or director of our company, the underwriters will notify us of the impending release or waiver and we have agreed to announce the impending release or waiver by press release through a major news service at least two business days before the effective date of the release or waiver, except where the release or waiver is effected solely to permit a transfer of ordinary shares that is not for consideration and where the transferee has agreed in writing to be bound by the same terms as the lock-up agreements described above to the extent and for the duration that such terms remain in effect at the time of transfer.

**Offering Price Determination** 

Prior to this offering, there has been no public market for our ordinary shares. The initial public offering price will be negotiated between the Representative and us. In determining the initial public offering price of our ordinary shares, the Representative considered:

● the history and prospects for the industry in which we compete;

● our financial information;

● the ability of our management and our business potential and earning prospects;

● the prevailing securities markets at the time of this offering; and

● the recent market prices of, and the demand for, publicly traded shares of generally comparable companies.

**Indemnification** 

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters may be required to make for these liabilities.

**Stabilization, Short Positions and Penalty Bids** 

● Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum.

● A short position involves a sale by the underwriters of common shares in excess of the number of common shares the underwriters are obligated to purchase in the offering, which creates the syndicate short position. This short position may be either a covered short position or a naked short position. In a covered short position, the number of common shares involved in the sales made by the underwriters in excess of the number of common shares they are obligated to purchase is not greater than the number of common shares that they may purchase by exercising their option to purchase additional common shares. In a naked short position, the number of common shares involved is greater than the number of common shares in their option to purchase additional common shares. The underwriters may close out any short position by either exercising their option to purchase additional common shares and/or purchasing common shares in the open market. In determining the source of common shares to close out the short position, the underwriters will consider, among other things, the price of common shares available for purchase in the open market as compared to the price at which they may purchase common shares through their option to purchase additional common shares. A naked short position is more likely to be created if the underwriters are concerned that there could be downward pressure on the price of the common shares in the open market after pricing that could adversely affect investors who purchase in the offering.

● Syndicate covering transactions involve purchases of the common shares in the open market after the distribution has been completed in order to cover syndicate short positions.

● Penalty bids permit the Representative to reclaim a selling concession from a syndicate member when the common share originally sold by the syndicate member is purchased in a stabilizing or syndicate covering transaction to cover syndicate short positions.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our common share or preventing or retarding a decline in the market price of the common share. As a result, the price of the common share may be higher than the price that might otherwise exist in the open market. These transactions may be effected on the Nasdaq or otherwise and, if commenced, may be discontinued at any time.

Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the common share. In addition, neither we nor any of the underwriters make any representations that the representatives will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

**Electronic Distribution** 

A prospectus in electronic format may be made available on the internet sites or through other online services maintained by one or more of the underwriters and/or selling group members participating in this offering, or by their affiliates. In those cases, prospective investors may view offering terms online and, depending upon the particular underwriter or selling group member, prospective investors may be allowed to place orders online. The underwriters may agree with us to allocate a specific number of common shares for sale to online brokerage account holders. Any such allocation for online distributions will be made by the representatives on the same basis as other allocations.

Other than the prospectus in electronic format, the information on any underwriter's or selling group member's website and any information contained in any other website maintained by an underwriter or selling group member is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or any underwriter or selling group member in its capacity as underwriter or selling group member and should not be relied upon by investors.

**Listing on the Nasdaq** 

We have applied to list our common shares on the Nasdaq under the symbol "KOEI." In order to meet the requirements for listing on that exchange, the underwriters have undertaken to sell a minimum number of common shares to a minimum number of beneficial owners as required by that exchange.

**Stamp Taxes** 

If you purchase common shares offered in this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus.

**Other** **Relationships** 

The underwriters and certain of their affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters and certain of their affiliates have, from time to time, performed, and may in the future perform, various commercial and investment banking and financial advisory services for the issuer and its affiliates, for which they received or may in the future receive customary fees and expenses.

In the ordinary course of their various business activities, the underwriters and certain of their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of the issuer or its affiliates. The underwriters and certain of their affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Selling Restrictions** 

This prospectus does not constitute an offer to sell to, or a solicitation of an offer to buy from, anyone in any country or jurisdiction (i) in which such an offer or solicitation is not authorized, (ii) in which any person making such offer or solicitation is not qualified to do so or (iii) in which any such offer or solicitation would otherwise be unlawful. No action has been taken that would, or is intended to, permit a public offer of the common shares or possession or distribution of this prospectus or any other offering or publicity material relating to the common shares in any country or jurisdiction (other than the United States) where any such action for that purpose is required. Accordingly, each underwriter has undertaken that it will not, directly or indirectly, offer or sell any common shares or have in its possession, distribute or publish any prospectus, form of application, advertisement or other document or information in any country or jurisdiction except under circumstances that will, to the best of its knowledge and belief, result in compliance with any applicable laws and regulations and all offers and sales of common shares by it will be made on the same terms.

***Australia***

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission ("ASIC"), in relation to the offering. This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001 (the "Corporations Act"), and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act. Any offer in Australia of the common shares may only be made to persons (the "Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the common shares without disclosure to investors under Chapter 6D of the Corporations Act. The common shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring common shares must observe such Australian on-sale restrictions. This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any common shares recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

***Bermuda***

The common shares may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act of 2003 of Bermuda which regulates the sale of securities in Bermuda. Additionally, non- Bermudian persons (including companies) may not carry on or engage in any trade or business in Bermuda unless such persons are permitted to do so under applicable Bermuda legislation.

***British Virgin Islands***

The common shares are not being, and may not be offered to the public or to any person in the British Virgin Islands for purchase or subscription by us or on our behalf. The common shares may be offered to companies incorporated under the BVI Business Companies Act, 2004 (British Virgin Islands) (each a BVI Company), but only where the offer will be made to, and received by, the relevant BVI Company entirely outside of the British Virgin Islands.

This prospectus has not been, and will not be, registered with the Financial Services Commission of the British Virgin Islands. No registered prospectus has been or will be prepared in respect of the common shares for the purposes of the Securities and Investment Business Act, 2010, or SIBA or the Public Issuers Code of the British Virgin Islands.

The common shares may be offered to persons located in the British Virgin Islands who are "qualified investors" for the purposes of SIBA. Qualified investors include (i) certain entities which are regulated by the Financial Services Commission in the British Virgin Islands, including banks, insurance companies, licensees under SIBA and public, professional and private mutual funds; (ii) a company, any securities of which are listed on a recognized exchange; and (iii) persons defined as "professional investors" under SIBA, which is any person (a) whose ordinary business involves, whether for that person's own account or the account of others, the acquisition or disposal of property of the same kind as the property, or a substantial part of our property; or (b) who has signed a declaration that he, whether individually or jointly with his spouse, has a net worth in excess of US$1,000,000 and that he consents to being treated as a professional investor.

***Canada***

*Resale Restrictions* 

The distribution of common shares in Canada is being made only in the provinces of Ontario, Quebec, Alberta and British Columbia on a private placement basis exempt from the requirement that we prepare and file a prospectus with the securities regulatory authorities in each province where trades of these securities are made. Any resale of the common shares in Canada must be made under applicable securities laws which may vary depending on the relevant jurisdiction, and which may require resales to be made under available statutory exemptions or under a discretionary exemption granted by the applicable Canadian securities regulatory authority. Purchasers are advised to seek legal advice prior to any resale of the common shares.

*Representations of Canadian Purchasers* 

● By purchasing common shares in Canada and accepting delivery of a purchase confirmation, a purchaser is representing to us and the dealer from whom the purchase confirmation is received that:

● the purchaser is entitled under applicable provincial securities laws to purchase the common shares without the benefit of a prospectus qualified under those securities laws as it is an "accredited investor" as defined under National Instrument 45-106—Prospectus Exemptions;

● the purchaser is a "permitted client" as defined in National Instrument 31-103—Registration Requirements, Exemptions and Ongoing Registrant Obligations;

● where required by law, the purchaser is purchasing as principal and not as agent; and

● the purchaser has reviewed the text above under Resale Restrictions.

*Conflicts of Interest* 

Canadian purchasers are hereby notified that the underwriters are relying on the exemption set out in section 3A.3 or 3A.4, if applicable, of National Instrument 33-105—Underwriting Conflicts from having to provide certain conflict of interest disclosure in this document.

*Statutory Rights of Action* 

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if the offering memorandum (including any amendment thereto) such as this document contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser of these securities in Canada should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

*Enforcement of Legal Rights* 

All of our directors and officers as well as the experts named herein may be located outside of Canada and, as a result, it may not be possible for Canadian purchasers to effect service of process within Canada upon us or those persons. All or a substantial portion of our assets and the assets of those persons may be located outside of Canada and, as a result, it may not be possible to satisfy a judgment against us or those persons in Canada or to enforce a judgment obtained in Canadian courts against us or those persons outside of Canada.

*Taxation and Eligibility for Investment* 

Canadian purchasers of common shares should consult their own legal and tax advisors with respect to the tax consequences of an investment in the common shares in their particular circumstances and about the eligibility of the common shares for investment by the purchaser under relevant Canadian legislation.

***Cayman Islands***

This prospectus does not constitute an invitation or offer to the public in the Cayman Islands of the common shares whether by way of sale or subscription. The underwriters have not offered or sold, and will not offer or sell, directly or indirectly, any common shares in the Cayman Islands.

***Dubai International Financial Center***

This document relates to an exempt offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority. This document is intended for distribution only to persons of a type specified in those rules. It must not be delivered to, or relied on by, any other person. The Dubai Financial Services Authority has no responsibility for reviewing or verifying any documents in connection with exempt offers. The Dubai Financial Services Authority has not approved this document nor taken steps to verify the information set out in it, and has no responsibility for it. The common shares which are the subject of the offering contemplated by this document may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the common shares offered should conduct their own due diligence on the common shares. If you do not understand the contents of this document you should consult an authorized financial advisor.

***European Economic Area***

In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a Relevant Member State), each underwriter represents and agrees that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State, it has not made and will not make an offer of common shares which are the subject of the offering contemplated by this prospectus to the public in that Relevant Member State other than:

● to any legal entity which is a qualified investor as defined in the Prospectus Directive;

● to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the representatives for any such offer; or

● in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of common shares shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Directive.

For the purposes of this provision, the expression an "offer to the public" in relation to any common shares in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the common shares to be offered so as to enable an investor to decide to purchase or subscribe the common shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, the expression Prospectus Directive means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression "2010 PD Amending Directive" means Directive 2010/73/EU.

***United Kingdom***

Each of the underwriters severally represents warrants and agrees as follows:

● it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000 (FSMA) received by it in connection with the issue or sale of the common shares in circumstances in which Section 21 of the FSMA does not apply to us; and

● it has complied with, and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the common shares in, from or otherwise involving the United Kingdom.

***France***

Neither this prospectus nor any other offering material relating to the common shares described in this prospectus has been submitted to the clearance procedures of the Autorité des Marchés Financiers or of the competent authority of another member state of the European Economic Area and notified to the Autorité des Marchés Financiers. The common shares have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither this prospectus nor any other offering material relating to the common shares has been or will be:

● to any legal entity which is a qualified investor as defined in the Prospectus Directive;

● to fewer than 100 or, if the relevant member state has implemented the relevant provision of the 2010 PD Amending Directive, 150 natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the relevant Dealer or Dealers nominated by us for any such offer;

● in any other circumstances falling within Article 3(2) of the Prospectus Directive;

● released, issued, distributed or caused to be released, issued or distributed to the public in France; or

● used in connection with any offer for subscription or sale of the common shares to the public in France.

Such offers, sales and distributions will be made in France only:

● to qualified investors (investisseurs qualifiés) and/or to a restricted circle of investors (cercle restreint d'investisseurs), in each case investing for their own account, all as defined in, and in accordance with articles L.411-2, D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the French Code monétaire et financier;

● to investment services providers authorized to engage in portfolio management on behalf of third parties; or

● in a transaction that, in accordance with article L.411-2-II-1°-or-2°-or 3° of the French Code monétaire et financier and article 211-2 of the General Regulations (Règlement Général) of the Autorité des Marchés Financiers, does not constitute a public offer (appel public à l'épargne).

The common shares may be resold directly or indirectly, only in compliance with articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier.

***Germany***

This prospectus does not constitute a Prospectus Directive-compliant prospectus in accordance with the German Securities Prospectus Act (Wertpapierprospektgesetz) and does therefore not allow any public offering in the Federal Republic of Germany ("Germany") or any other Relevant Member State pursuant to § 17 and § 18 of the German Securities Prospectus Act. No action has been or will be taken in Germany that would permit a public offering of the common shares, or distribution of a prospectus or any other offering material relating to the common shares. In particular, no securities prospectus (Wertpapierprospekt) within the meaning of the German Securities Prospectus Act or any other applicable laws of Germany, has been or will be published within Germany, nor has this prospectus been filed with or approved by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) for publication within Germany.

Each underwriter will represent, agree and undertake, (i) that it has not offered, sold or delivered and will not offer, sell or deliver the common shares within Germany other than in accordance with the German Securities Prospectus Act (Wertpapierprospektgesetz) and any other applicable laws in Germany governing the issue, sale and offering of common shares, and (ii) that it will distribute in Germany any offering material relating to the common shares only under circumstances that will result in compliance with the applicable rules and regulations of Germany.

This prospectus is strictly for use of the person who has received it. It may not be forwarded to other persons or published in Germany.

***Hong Kong***

The common shares may not be offered or sold in Hong Kong by means of any document other than (i) to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance, or (ii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of that Ordinance. No advertisement, invitation or document relating to the common shares may be issued or may be in the possession of any person for the purpose of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to common shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the Securities and Futures Ordinance and any rules made under that Ordinance.

***Israel***

This prospectus does not constitute a prospectus under the Israeli Securities Law, 5728-1968, and has not been filed with or approved by the Israel Securities Authority. In Israel, this prospectus is being distributed only to, and is directed only at, investors listed in the first addendum, or the Addendum, to the Israeli Securities Law, consisting primarily of joint investment in trust funds, provident funds, insurance companies, banks, portfolio managers, investment advisors, members of the Tel Aviv Stock Exchange, underwriters purchasing for their own account, venture capital funds, entities with equity in excess of NIS 50 million and qualified individuals, each as defined in the Addendum (as it may be amended from time to time), collectively referred to as qualified investors. Qualified investors may be required to submit written confirmation that they meet the criteria for one of the categories of investors set forth in the prospectus.

***Italy***

The offering of common shares has not been registered with the Commissione Nazionale per le Società e la Borsa ("CONSOB") pursuant to Italian securities legislation and, accordingly, no common shares may be offered, sold or delivered, nor copies of this prospectus or any other documents relating to the common shares may not be distributed in Italy except:

● to "qualified investors", as referred to in Article 100 of Legislative Decree No. 58 of 24 February 1998, as amended (the "Decree No. 58") and defined in Article 26, paragraph 1, letter d) of CONSOB Regulation No. 16190 of 29 October 2007, as amended ("Regulation No. 16190") pursuant to Article 34-ter, paragraph 1, letter b) of CONSOB Regulation No. 11971 of 14 May 1999, as amended ("Regulation No. 11971"); or

● in any other circumstances where an express exemption from compliance with the offer restrictions applies, as provided under Decree No. 58 or Regulation No. 11971.

Any offer, sale or delivery of the common shares or distribution of copies of this prospectus or any other documents relating to the common shares in the Republic of Italy must be:

● made by investment firms, banks or financial intermediaries permitted to conduct such activities in the Republic of Italy in accordance with Legislative Decree No. 385 of 1 September 1993, as amended (the "Banking Law"), Decree No. 58 and Regulation No. 16190 and any other applicable laws and regulations;

● in compliance with Article 129 of the Banking Law, and the implementing guidelines of the Bank of Italy, as amended; and

● in compliance with any other applicable notification requirement or limitation which may be imposed, from time to time, by CONSOB or the Bank of Italy or other competent authority.

Please note that, in accordance with Article 100-bis of Decree No. 58, where no exemption from the rules on public offerings applies, the subsequent distribution of the common shares on the secondary market in Italy must be made in compliance with the public offer and the prospectus requirement rules provided under Decree No. 58 and Regulation No. 11971.

Furthermore, common shares which are initially offered and placed in Italy or abroad to qualified investors only but in the following year are regularly ("sistematicamente") distributed on the secondary market in Italy to non- qualified investors become subject to the public offer and the prospectus requirement rules provided under Decree No. 58 and Regulation No. 11971. Failure to comply with such rules may result in the sale of the common shares being declared null and void and in the liability of the intermediary transferring the common shares for any damages suffered by such non-qualified investors.

***Japan***

The common shares have not been and will not be registered under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) and accordingly, will not be offered or sold, directly or indirectly, in Japan, or for the benefit of any Japanese Person or to others for re-offering or resale, directly or indirectly, in Japan or to any Japanese Person, except in compliance with all applicable laws, regulations and ministerial guidelines promulgated by relevant Japanese governmental or regulatory authorities in effect at the relevant time. For the purposes of this paragraph, "Japanese Person" shall mean any person resident in Japan, including any corporation or other entity organized under the laws of Japan.

 ****

***Kuwait***

Unless all necessary approvals from the Kuwait Ministry of Commerce and Industry required by Law No. 31/1990 "Regulating the Negotiation of Securities and Establishment of Investment Funds," its Executive Regulations and the various Ministerial Orders issued pursuant thereto or in connection therewith, have been given in relation to the marketing and sale of the common shares, these may not be marketed, offered for sale, nor sold in the State of Kuwait. Neither this prospectus (including any related document), nor any of the information contained therein is intended to lead to the conclusion of any contract of whatsoever nature within Kuwait.

***China***

This prospectus has not been and will not be circulated or distributed in China, and the common shares may not be offered or sold, and will not be offered or sold, directly or indirectly, to any PRC resident or to persons for re-offering or resale, directly or indirectly, to any PRC resident except pursuant to applicable PRC laws and regulations.

***Qatar***

The common shares have not been and will not be offered, sold or delivered at any time, directly or indirectly, in the State of Qatar ("Qatar") in a manner that would constitute a public offering. This prospectus has not been reviewed or approved by or registered with the Qatar Central Bank, the Qatar Exchange or the Qatar Financial Markets Authority. This prospectus is strictly private and confidential, and may not be reproduced or used for any other purpose, nor provided to any person other than the recipient thereof.

***Saudi Arabia***

This prospectus may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations issued by the Capital Market Authority. The Capital Market Authority does not make any representation as to the accuracy or completeness of this prospectus, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this prospectus. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this prospectus you should consult an authorized financial advisor.

***Switzerland***

This document is not intended to constitute an offer or solicitation to purchase or invest in the common shares described herein. The common shares may not be publicly offered, sold or advertised, directly or indirectly, in, into or from Switzerland and will not be listed on the SIX Swiss Exchange or on any other exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the common shares constitutes a prospectus as such term is understood pursuant to article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or any other regulated trading facility in Switzerland, and neither this document nor any other offering or marketing material relating to the common shares may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, nor our company nor the common shares have been or will be filed with or approved by any Swiss regulatory authority. The common shares are not subject to the supervision by any Swiss regulatory authority, e.g., the Swiss Financial Markets Supervisory Authority FINMA (FINMA), and investors in the common shares will not benefit from protection or supervision by such authority.

***Taiwan***

The common shares have not been and will not be registered or filed with, or approved by, the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be offered or sold in Taiwan through a public offering or in circumstances which constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or relevant laws and regulations that require a registration, filing or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer or sell the common shares in Taiwan.

 ****

***United Arab Emirates (Excluding the Dubai International Financial Center)***

The common shares have not been, and are not being, publicly offered, sold, promoted or advertised in the United Arab Emirates ("U.A.E.") other than in compliance with the laws of the U.A.E. Prospective investors in the Dubai International Financial Centre should have regard to the specific selling restrictions on prospective investors in the Dubai International Financial Centre set out below.

The information contained in this prospectus does not constitute a public offer of common shares in the U.A.E. in accordance with the Commercial Companies Law (Federal Law No. 8 of 1984 of the U.A.E., as amended) or otherwise and is not intended to be a public offer. This prospectus has not been approved by or filed with the Central Bank of the United Arab Emirates, the Emirates Securities and Commodities Authority or the Dubai Financial Services Authority, or DFSA. If you do not understand the contents of this prospectus, you should consult an authorized financial advisor. This prospectus is provided for the benefit of the recipient only, and should not be delivered to, or relied on by, any other person.

***Singapore***

This prospectus has not been and will not be registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the common shares may not be circulated or distributed, nor may the common shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where the common shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments
 and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust
 is an individual who is an accredited investor,

securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the common shares pursuant to an offer made under Section 275 of the SFA except:

&nbsp;&nbsp;&nbsp;&nbsp;(1) to
 an institutional investor or to a relevant person, or to any person arising from an offer referred to in Section 275(1A) or Section
 276(4)(i)(B) of the SFA;

&nbsp;&nbsp;&nbsp;&nbsp;(2) where
 no consideration is or will be given for the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;(3) where
 the transfer is by operation of law;

&nbsp;&nbsp;&nbsp;&nbsp;(4) as
 specified in Section 276(7) of the SFA; or

&nbsp;&nbsp;&nbsp;&nbsp;(5) as
 specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts)
 Regulations 2018.

**EXPENSES RELATED TO THE OFFERING**

The following table sets forth the costs and expenses, other than the underwriting discounts and commissions and expenses, payable in connection with this offering. All amounts shown are estimates and subject to future contingencies, except the U.S. Securities and Exchange Commission registration fee, the Financial Industry Regulatory Authority filing fee, and the entry fee of the Nasdaq.

---

| | |
|:---|:---|
| **Description** | **Amount** |
| U.S. Securities and Exchange Commission registration fee | $2828  |
| Financial Industry Regulatory Authority filing fee | 3571  |
| Nasdaq entry fee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50000 |
| Accounting fees and expenses | 225000  |
| Legal fees and expenses | 275000  |
| Printing expenses | 12000  |
| Accountable expenses | 300000  |
| Miscellaneous | 10001  |
| **Total** | $878400  |

---

**LEGAL MATTERS**

The validity of the common shares offered in this offering and certain legal matters as to Japanese law will be passed upon for us by City-Yuwa Partners, Tokyo, Japan.

Certain legal matters in connection with this offering with respect to United States federal securities law will be passed upon for us by Anthony, Linder & Cacomanolis, PLLC, West Palm Beach, Florida. Pryor Cashman LLP, New York, New York, is acting as U.S. counsel to the underwriters with respect to this offering.

**EXPERTS**

Our consolidated financial statements as of February 28, 2026 and February 28, 2025, and for the years then ended included in this prospectus have been audited by MaloneBailey, LLP, an independent registered public accounting firm, as indicated in their report with respect thereto, and have been so included in reliance upon the report of such firm given on their authority as experts in accounting and auditing.

**DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES**

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are a joint stock corporation organized under Japanese law. Most of our directors, corporate auditors and executive officers reside in Japan, and significantly all of our assets and the assets of such persons are located outside of the United States. As a result, it may not be possible for investors to effect service of process within the United States upon these persons or us, or to enforce against them or us judgments obtained in U.S. courts, whether or not predicated upon the civil liability provisions of the federal securities laws of the United States or of the securities laws of any state of the United States. Our Japanese counsel, City-Yuwa Partners, has advised us that there is doubt as to the enforceability in Japan, either in original actions or in actions for enforcement of judgments of U.S. courts, of civil liabilities predicated solely on the federal securities laws of the United States or the securities laws of any state of the United States. A Japanese court may refuse to apply provisions of U.S. securities laws in original actions, or to enforce judgments of U.S. courts that are based on such provisions, if it considers such provisions to be contrary to the public policy of Japan.

We have appointed Robert Wagner, our Chief Business Officer, located at 7001 I-10, Unit 110, San Antonio, Texas 78213, as our agent for service of process relating to any suit, action, or proceeding originating in the state and federal courts of the United States relating to this registration statement that are brought against us under the state and federal laws of the United States.

City-Yuwa Partners has further advised that the United States and Japan do not currently have a treaty providing for reciprocal recognition and enforcement of judgments, other than arbitration awards, in civil and commercial matters, and a Japanese court may deem that there is not sufficient basis for the reciprocity on the enforcement of judgments. Therefore, if you obtain a civil judgment by a U.S. court, you may not be able to enforce it in Japan.

In addition, City-Yuwa Partners have advised the Company that it is uncertain whether the Japanese courts will (i) recognize or enforce judgments of United States courts obtained against the Company or any of its directors or officers under the civil liability provisions of the securities laws of the United States or any state of the United States or (ii) accept the original action brought in Japan against the Company or any of its directors or officers under the securities laws of the United States. Japan's Civil Execution Act (Act No. 4 of 1979, as amended) and Code of Civil Procedure (Act No. 109 of 1996, as amended) require Japanese courts to deny requests for the enforcement of judgments of foreign courts where foreign judgments does not meet the requirements set forth in the Civil Execution Act and the Code of Civil Procedure, including the following:

● the jurisdiction of the foreign court shall be recognized under laws, regulations, treaties, or conventions;

● the defeated defendant has been served (excluding service by publication or other similar service) with the summons or order for the commencement of litigation, or that he/she did not receive such summons or order, but did respond to the summons or order;

● the content of the judgment and the litigation proceedings are not contrary to public policy or good morals in Japan; and

● there exists a guarantee of reciprocity as to the recognition by a court of the relevant foreign jurisdiction of a final judgment of a Japanese court.

Reciprocity is defined as the recognition in a foreign country of the validity of a judgment of a Japanese court of the same kind as that of a foreign court in that country under conditions not different in material respects from those in Japan, just as Japan recognizes the judgment of a foreign court, and the Japanese courts will determine the existence of reciprocity on a case-by-case basis for each judgment rendered by a foreign court

For example, Japanese courts recognize reciprocity for judgments of courts in the states of Hawaii, New York, California, and Nevada (mainly for monetary claims), but there is no guarantee that reciprocity will be recognized for judgments in other states or for different types of U.S. judgments. Therefore, U.S. court judgments for civil liability premised on U.S. federal and state securities laws may not be enforceable in Japan.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form F-1 under the Securities Act relating to the common shares being offered by this prospectus. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules which are part of the registration statement. Some items included in the registration statement have been omitted from this prospectus in accordance with the rules and regulations of the SEC. For further information about our Company and our common shares being offered by this prospectus, we refer you to the registration statement, including all amendments, supplements, exhibits, and schedules thereto. Statements contained in this prospectus regarding the contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, please see a copy of such contract or document that has been filed. Each statement in this prospectus relating to a contract or document that is filed as an exhibit to the registration statement is qualified in all respects by reference to the full text of such contract or document filed as an exhibit to the registration statement.

You may access and read the registration statement and this prospectus, including the related exhibits and schedules, and any document we file with the SEC at the SEC's Internet website that contains reports and other information regarding issuers that file electronically with the SEC. Our filings with the SEC are available to the public without charge through the SEC's website at http://www.sec.gov.

Upon completion of this offering, we will be subject to the information reporting requirements of the Exchange Act that are applicable to "foreign private issuers", and under those requirements will file reports with the SEC. Those other reports or other information may be inspected without charge at the locations described above. As a "foreign private issuer", we will be exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements, and our officers, directors, corporate auditors, and principal shareholders will be exempt from the reporting and "short-swing" profit recovery provisions contained in Section 16 of the Exchange Act with respect to their purchases and sales of securities. In addition, as a "foreign private issuer", we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. Furthermore, we will not be required under the Exchange Act to file annual or other reports and financial statements with the SEC as frequently or as promptly as U.S. companies that have securities registered under the Exchange Act. As such, we will file with the SEC, within 120 days after the end of each fiscal year, or such other applicable time as required by the SEC, an annual report on Form 20-F containing financial statements audited by an independent registered public accounting firm. We also intend to furnish to the SEC under cover of Form 6-K certain other material information.

Our corporate website is https://koeigrp.com/. After the consummation of this offering, you may go to our website to access our periodic reports and other information that we file with the SEC as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated by reference into, and is not a part of, this prospectus. We have included our website address in this prospectus solely for informational purposes.

**KOEI GROUP CO., LTD.**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#fap_001) | F-2 |
| [Consolidated Balance Sheets as of February 28, 2026 and 2025](#lt_001) | F-3 |
| [Consolidated Statements of Operations and Comprehensive Income for the Years Ended February 28, 2026 and 2025](#lt_002) | F-4 |
| [Consolidated Statements of Changes in Shareholders' Equity for the Years Ended February 28, 2026 and 2025](#lt_003) | F-5 |
| [Consolidated Statements of Cash Flows for the Years Ended February 28, 2026 and 2025](#lt_004) | F-6 |
| [Notes to Consolidated Financial Statements](#lt_005) | F-7 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Board of Directors of

Koei Group Co., Ltd.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Koei Group Co., Ltd. and its subsidiaries (the "Company") as of February 28, 2026 and 2025, and the related consolidated statements of operations and comprehensive income, changes in shareholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February 28, 2026 and 2025, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

 ****

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ MaloneBailey, LLP*

www.malonebailey.com

We have served as the Company's auditor since 2024.

Tokyo, Japan

June 29, 2026

**KOEI GROUP CO., LTD.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **February 28,** <br> **2026**  | **February 28,**<br> **2025** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $7459111 | $6824377 |
| &nbsp;&nbsp;&nbsp;Term deposits | 1223095 | 1161416 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 3256504 | 1808475 |
| &nbsp;&nbsp;&nbsp;Inventories | 144423 | 149299 |
| &nbsp;&nbsp;&nbsp;Income tax recoverable |  | 129625 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets, net | &nbsp;&nbsp;&nbsp; 98883 | 297300 |
| **Total current assets** | **12182016** | **10370492** |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term investments | 64 | 67 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 12516096 | 13087712 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 153062 | 162322 |
| &nbsp;&nbsp;&nbsp;Goodwill | 1779023 |  |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 207305 | 149538 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 510716 | 617854 |
| &nbsp;&nbsp;&nbsp;Other assets | 1128044 | 1094194 |
| **Total non-current assets** | **16294310** | **15111687** |
| **TOTAL ASSETS** | $**28476326** | $**25482179** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $3155675 | $2252934 |
| &nbsp;&nbsp;&nbsp;Short-term loans (including loan payable of nil and $85,239 to a related party as of February 28, 2026 and 2025, respectively) | 6417250 | 6770625 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term loans | 974086 | 1114145 |
| &nbsp;&nbsp;&nbsp;Advance from customers | 29944 | 58701 |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities, current | 68125 | 56609 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 355415 | 416401 |
| &nbsp;&nbsp;&nbsp;Income tax payables | 1105733 | 602 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 1688936 | 1304243 |
| **Total current liabilities** | **13795164** | **11974260** |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term loans | 4496340 | 5816664 |
| &nbsp;&nbsp;&nbsp;Employee benefit obligations | 2236329 | 2213889 |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities, non-current | 144461 | 97731 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, non-current | 130342 | 166493 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 81141 | 56536 |
| **Total non-current liabilities** | **7088613** | **8351313** |
| **TOTAL LIABILITIES** | **20883777** | **20325573** |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Common shares (34,320,000 shares authorized, 8,580,000 shares issued and outstanding as of February 28, 2026 and 2025, with no stated value)\* | 173025 | 173025 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital\* | 704664 | 692101 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 7001065 | 5270517 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1158512) | (979037) |
| **TOTAL KOEI GROUP CO., LTD. SHAREHOLDERS' EQUITY** | **6720242** | **5156606** |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | 872307 | **-** |
| **TOTAL SHAREHOLDERS' EQUITY** | **7592549** | **5156606** |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**28476326** | $**25482179** |

---

\* Retrospectively restated for effect of stock split effected on September 8, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

**KOEI GROUP CO., LTD.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Revenues | $47665800 | $43837761 |
| Cost of revenues | (37118717) | (36013660) |
| **Gross profit** | **10547083** | **7824101** |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses (including selling, general and administrative expenses from related parties of $97,619 and $28,553 for the years ended February 28, 2026 and 2025, respectively) | (7044702) | (5736347) |
| **Total operating expenses** | **(7044702)** | **(5736347)** |
| **Income from operations** | **3502381** | **2087754** |
| **Other income (expenses)** |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 59602 | 159361 |
| &nbsp;&nbsp;&nbsp;Other expenses | (81886) | (64814) |
| &nbsp;&nbsp;&nbsp;Interest expenses | (184821) | (145805) |
| &nbsp;&nbsp;&nbsp;Loss from equity method investments | (203830) | (360182) |
| **Total other expenses** | **(410935)** | **(411440)** |
| **Income before income taxes** | **3091446** | **1676314** |
| &nbsp;&nbsp;&nbsp;Income tax expense | (1205781) | (491229) |
| **Net income** | $**1885665** | $**1185085** |
| &nbsp;&nbsp;&nbsp;Less: net income attributable to non-controlling interests | 9129 | **-** |
| **Net income attributable to Koei Group Co., Ltd.** | **1876536** | **1185085** |
| **Net income per share attributable to Koei Group Co., Ltd. - basic and diluted\*** | $**0.22** | $**0.14** |
| &nbsp;&nbsp;&nbsp;**Weighted average shares outstanding - basic and diluted\*** | **8580000** | **8580000** |
| **Comprehensive income** |  |  |
| Net income | $1885665 | $1185085 |
| Other comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (228297) | 27012 |
| &nbsp;&nbsp;&nbsp;Adjustments related to defined benefit plans, net of tax | 50993 | (166010) |
| **Total comprehensive income** | **1708361** | **1046087** |
| &nbsp;&nbsp;&nbsp;Less: comprehensive income attributable to non-controlling interests | 11300 | **-** |
| **Comprehensive income attributable to Koei Group Co., Ltd.** | $**1697061** | $**1046087** |

---

\* Retrospectively restated for effect of share issuance on August 8, 2024, and stock split effected on September 8, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

**KOEI GROUP CO., LTD.**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**FOR THE YEARS ENDED FEBRUARY 28, 2026 AND 2025** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Shares\*** | **Additional Paid-in Capital\*** | **Retained** <br> **Earnings** | **Accumulated Other Comprehensive Loss** | **Total Koei Group Co., Ltd. Shareholders' Equity** | **Non-controlling Interests** | **Total Shareholders' Equity** |
| **Balance as of February 29, 2024** | $**173025** | $**692101** | $**4209672** | $**(840039)** | $**4234759** | $**-** | $**4234759** |
| Net income |  |  | 1185085 |  | 1185085 | **-** | 1185085 |
| Distribution of dividends |  |  | (124240) |  | (124240) | **-** | (124240) |
| Adjustments related to defined benefit plans, net of tax effect of $(85520) |  |  |  | (166010) | (166010) | **-** | (166010) |
| Foreign currency translation adjustment | - | - | - | 27012 | 27012 |  | 27012 |
| **Balance as of February 28, 2025** | **173025** | **692101** | **5270517** | **(979037)** | **5156606** | **-** | **5156606** |
| Net income |  |  | 1876536 |  | 1876536 | 9129 | 1885665 |
| Distribution of dividends |  |  | (145988) |  | (145988) |  | (145988) |
| Non-controlling interests arising from acquisition of subsidiary |  |  |  |  | **-** | 842000 | 842000 |
| Adjustments related to defined benefit plans, net of tax effect of $26,270 |  |  |  | 50993 | 50993 |  | 50993 |
| Changes in non-controlling interests arising from changes in ownership interest |  | 12563 |  |  | 12563 | 19007 | 31570 |
| Foreign currency translation adjustment | - | - | - | (230468) | (230468) | 2171 | (228297) |
| **Balance as of February 28, 2026** | $**173025** | $**704664** | $**7001065** | $**(1158512)** | $**6720242** | $**872307** | $**7592549** |

---

\* Retrospectively restated for effect of share issuance on August 8, 2024.

The accompanying notes are an integral part of these consolidated financial statements.

**KOEI GROUP CO., LTD.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Years <br> Ended** | **For the Years <br> Ended** |
|  | **February 28,**<br> **2026** | **February 28,**<br> **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net income | $1885665 | $1185085 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 743668 | 795753 |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses | 6929 | (2142) |
| &nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 42187 | 47673 |
| &nbsp;&nbsp;&nbsp;Non-cash lease expense | 602071 | 528712 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | (94565) | 196002 |
| &nbsp;&nbsp;&nbsp;Loss from equity method investments | 203830 | 360182 |
| &nbsp;&nbsp;&nbsp;Loss on modification of operating lease contracts |  | 1322 |
| &nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment | 102731 |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Term deposits | (469) | (31) |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | (1567767) | (439557) |
| &nbsp;&nbsp;&nbsp;Inventories | (1156) | 551741 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets, net | 225492 | (184055) |
| &nbsp;&nbsp;&nbsp;Other assets | (12537) | (71734) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 1032664 | 115910 |
| &nbsp;&nbsp;&nbsp;Advance from customers | (27454) | (257595) |
| &nbsp;&nbsp;&nbsp;Income tax payables | 1278564 | (790006) |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 241057 | (41427) |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | (593130) | (549363) |
| &nbsp;&nbsp;&nbsp;Other liabilities | 220871 | (353847) |
| **NET CASH PROVIDED BY OPERATING ACTIVITIES** | **4288651** | **1092623** |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of term deposits | (112105) | (110056) |
| &nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | (735417) | (416618) |
| &nbsp;&nbsp;&nbsp;Cash paid for acquisition of subsidiary, net of cash acquired | (956554) |  |
| &nbsp;&nbsp;&nbsp; Proceeds from surrender of life insurance policies |  | 681429 |
| &nbsp;&nbsp;&nbsp; Proceeds from disposal of property, plant and equipment | 15176 |  |
| **NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES** | **(1788900)** | **154755** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings from a related party |  | 52281 |
| &nbsp;&nbsp;&nbsp; Repayments to a related party | (88886) |  |
| &nbsp;&nbsp;&nbsp;Repayments of bank and other borrowings | (1271694) | (1454884) |
| &nbsp;&nbsp;&nbsp;Repayments of finance lease liabilities | (65288) | (65760) |
| &nbsp;&nbsp;&nbsp;Distribution of dividends | (145988) | (124240) |
| **NET CASH USED IN FINANCING ACTIVITIES** | **(1571856)** | **(1592603)** |
| Effect of exchange rate changes | (293161) | 22155 |
| **NET CHANGE IN CASH AND CASH EQUIVALENTS** | **634734** | **(323070)** |
| **CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF THE YEAR** | **6824377** | **7147447** |
| **CASH AND CASH EQUIVALENTS AS OF THE END OF THE YEAR** | $**7459111** | $**6824377** |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest expense | $184821 | $145805 |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes, net | $32360 | $1085217 |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $116546 | $157623 |
| &nbsp;&nbsp;&nbsp;Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications | $399887 | $491617 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets obtained in exchange for finance lease liabilities | $132290 | $24944 |
| &nbsp;&nbsp;&nbsp;Liabilities assumed in connection with purchase of property, plant and equipment | $8756 | $8929 |
| &nbsp;&nbsp;&nbsp; Proceeds receivable from changes in ownership interest in subsidiary | $31570 | $- |

---

The accompanying notes are an integral part of these consolidated financial statements.

**KOEI GROUP CO., LTD.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS**

Koei Group Co., Ltd., previously known as DARINGATE CO., LTD. ("Koei"), is a holding company incorporated in Japan on August 8, 2024. Through its consolidated subsidiaries, Koei is primarily engaged in material recycling, industrial waste management, and IT asset disposal ("ITAD").

Koei and its subsidiaries included in the consolidated financial statements are collectively referred to herein as the "Company", "we" and "us" unless specific reference is made to an entity.

*<u>Reorganization</u>*

On August 8, 2024, Koei acquired 100% of the equity interest in KOEI JAPAN CO., LTD. ("KOEI JAPAN") by exchanging all 8,580,000 common shares (given effect of the Stock Split, see Note 12) of Koei (amounting to $173,025 or JPY20 million) for all 1,430 common shares of KOEI JAPAN (amounting to $865,126 or JPY100 million). As a result, KOEI JAPAN became a wholly owned subsidiary of Koei. This transaction has been accounted for as a recapitalization between entities under common control since the same controlling shareholders controlled these two entities before and after the reorganization. The consolidation of the Company has been accounted for at historical cost and prepared on the basis as if the transaction had become effective as of the beginning of the earliest period presented in the accompanying consolidated financial statements. The difference of $692,101 (or JPY80 million) between the par values has been recognized as an adjustment to additional paid-in capital in all periods presented.

*<u>Corporate Structure</u>*

As of February 28, 2026, the Company's major subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Place of <br> Incorporation** | **Date of <br> Incorporation** | **Percentage of <br> Ownership** | **Principal Activities** |
| KOEI JAPAN CO., LTD., previously known as Koei Shoji Co., Ltd.<br> ("KOEI JAPAN") | Japan | April 20, 1995 | 100% | Recycled materials sales, industrial waste management and ITAD |
| KOEISING PTE. LTD., previously known as DARINGATE PTE. LTD. ("KOEISING") | Singapore | February 17, 2022 | 100% | Recycled materials sales and ITAD |
| Koei US, Inc., previously known as Nufika LLC<br> ("Koei US") | United States | March 10, 2025 | 51% | Professional services and ITAD |
| EPJ CO., LTD. | Japan | March 10, 2025 | 100% | Industrial waste management |

---

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**(a) Basis of Presentation and Principals of Consolidation**

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the accounts of the Company and its subsidiaries. The results of the subsidiaries are consolidated from the date on which the Company obtained control and continue to be consolidated until the date that such control ceases. All significant intercompany accounts and transactions have been eliminated.

**(b) Foreign Currency**

The Company maintains its books and record in its local currency, Japanese YEN ("JPY" or "¥"), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in other income (expenses) in the consolidated statements of operations and comprehensive income.

The reporting currency of the Company is the United States Dollars ("USD" or "$"), and the accompanying consolidated financial statements have been expressed in USD. In accordance with ASC Topic 830-30, "Translations of Financial Statements", assets and liabilities of the Company whose functional currency is not USD are translated into USD, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements are recorded as a separate component of accumulated other comprehensive income (loss) within the statements of changes in shareholders' equity.

Translation of amounts from local currency of the Company into $1 has been made at the following exchange rates:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28, 2026** | **February 28, 2025** |
| Current JPY: $1 exchange rate | 155.83 | 149.58 |
| Average JPY: $1 exchange rate | 149.86 | 152.65 |

---

**(c) Use of Estimates**

In preparing the consolidated financial statements in conformity with U.S. GAAP, the management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, useful lives and impairment of long-lived assets, valuation allowance of deferred tax assets, impairment of goodwill, purchase price allocation for business combination, uncertain tax positions, valuation of defined benefit plans, allowance for credit losses and implicit interest rate of operating and finance leases. Actual results could differ from those estimates.

**(d) Business Combinations and Asset Acquisitions** 

Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling interest, if any, based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Transaction costs directly attributable to the acquisition are expensed as incurred.

If investment involves the acquisition of an asset or group of assets that does not meet the definition of a business, the transaction is accounted for as an asset acquisition. An asset acquisition is recorded at cost, which includes capitalized transaction costs, and does not result in the recognition of goodwill. The cost of the acquisition is allocated to the assets acquired on the basis of relative fair values.

Fair value is determined based upon the guidance of ASC Topic 820, Fair Value Measurements and Disclosures, and generally are determined using Level 2 inputs and Level 3 inputs. The determination of fair value involves the use of significant judgment and estimates. The Company utilizes the assistance of a third-party appraiser to determine the fair value as of the date of an acquisition.

In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual legal criterion or the separability criterion.

**(e) Cash and Cash Equivalents**

Cash and cash equivalents include cash on hand and deposits in banks and other financial institutions that are unrestricted as to withdrawal or use, and which have original maturities of three months or less. The Company maintains bank accounts in Japan, Singapore, Thailand and the United States.

**(f) Term Deposits**

Term deposits consist of deposits placed with a financial institution with original maturities of greater than three months.

**(g) Accounts Receivable, Net**

Accounts receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). The Company's accounts receivable balances are unsecured, bear no interest and are due upon normally within a year from the date of the sale.

**(h) Inventories**

Inventories, primarily consist of unprocessed materials and processed/unprocessed recyclables ready for sale, including end-of-life electronics and electronic scrap materials. Inventories are stated at the lower of cost or estimated net realizable value, with cost computed on the first-in, first-out ("FIFO") basis. The Company records inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are recorded based on inventory obsolescence trends, historical experience and application of the specific identification method, if any.

**(i)** **Long-term Investments**

*<u>Investments in privately held companies or organizations that do not report NAV per share</u>*

Investments in privately held entities that do not report NAV per share are accounted for using a measurement alternative, under which these investments are measured at cost, adjusted for observable price changes and impairments, with changes recognized in other income (expenses).

*<u>Investments accounted for under equity method</u>*

We use the equity method to account for investments in silent partnerships (or anonymous partnerships), which is a structure similar to limited partnership, that we do not have a controlling financial interest but have the ability to influence the operating and financial policies of the investees as a silent investor, in the following ways: (i) silent investors have the right to make suggestions to the partnership operator during business operations, (ii) the partnership operator is obligated to periodically disclose the operating performance to silent investors, and (iii) the partnership operator must obtain silent investors' approval prior to terminating the business or disposing of leased assets before the partnership's maturity.

Under the equity method of accounting, we initially recognize our investments at cost and subsequently adjust the carrying amount of the investments for our share of earnings or losses reported by the investees, distributions received, and other-than-temporary impairments. Losses in excess of the carrying amount of our equity method investments, if any, are recognized when (i) we are unlikely to abandon the investee due to operating considerations, or (ii) it is anticipated that the investee's return to profitability is imminent. Losses in excess of the carrying amount of our equity method investments are presented as a liability in the consolidated balance sheets.

**(j) Property, Plant and Equipment, Net**

Property, plant and equipment are measured using the cost model and are stated at cost less accumulated depreciation. Acquisition cost includes mainly the costs directly attributable to the acquisition. Depreciation is calculated using the straight-line and declining balance methods over the estimated useful lives, as more details follow:

---

| | | |
|:---|:---|:---|
|  | Depreciation Method | Useful Life |
| Land | Not depreciated |  |
| Buildings and facilities attached to buildings | Straight-line / Declining balance method | 5-47 years |
| Machinery and equipment | Declining balance method | 2-17 years |
| Vehicles and forklifts | Declining balance method | 2-6 years |
| Tools, furniture and fixtures | Declining balance method | 3-15 years |
| Software\* | Straight-line method | 5 years |

---

\* Represents software that is non-detachable to the hardware.

The costs incurred for assets that were still under construction as of the year-end were reported as construction in progress. No provision for depreciation is made on the assets under construction until such time as the relevant assets are completed and ready for their intended use.

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon.

**(k) Intangible Assets, Net**

Intangible assets with an indefinite life are not amortized and are tested for impairment annually or more frequently if events or changes in circumstances indicate that they might be impaired.

Intangible assets with finite lives are initially recorded at cost and amortized on a straight-line basis over the estimated economic useful lives of the respective assets as follows:

---

| | |
|:---|:---|
|  | **Useful Life** |
| Trademark | 10 years |
| Facilities use right | 15 years |

---

**(l)** **Goodwill**

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in the business combination. In accordance with FASB ASC Topic 350, "Intangibles-Goodwill and Others", goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test.

The Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

When performing the annual impairment test, the Company has the option of performing a qualitative or quantitative assessment to determine if an impairment has occurred. If a qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would be required to perform a quantitative impairment analysis for goodwill. The quantitative analysis requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The fair value is generally determined using the income approach with the discounted cash flow valuation method, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rates.

**(m) Corporate-owned Life Insurance Policies**

The Company has purchased corporate-owned life insurance policies to insure the life of its CEO. Management considers these policies to be operating assets. These insurance policies are recorded at their cash surrender values, included in other assets in the consolidated balance sheets with change in cash surrender value during the period recorded in selling, general and administrative expenses.

**(n) Leases - Lessee**

The Company determines if an arrangement is or contains a lease at inception or modification of the arrangement. An arrangement is or contains a lease if there are identified assets and the right to control the use of an identified asset is conveyed for a period in exchange for consideration. Control over the use of the identified assets means the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.

We classify our leases as either finance or operating leases. If a lease meets any of the following criteria, we account for it as a finance lease; otherwise, we account for it as an operating lease.

&nbsp;&nbsp;&nbsp;&nbsp;(i) ownership
 is transferred from lessor to lessee by the end of the lease term;

(ii) an
 option to purchase is reasonably certain to be exercised;

(iii) the
 lease term is for the major part of the underlying asset's remaining economic life;

(iv) the
 present value of lease payments equals or exceeds substantially all of the fair value of the underlying assets; or

(v) the
 underlying asset is specialized and is expected to have no alternative use at the end of the lease term.

The Company recognizes right-of-use assets and lease liabilities for all leases other than those with a term of twelve months or less as the Company has elected to apply the short-term lease recognition exemption. Right-of-use assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are classified and recognized at the commencement date of a lease. Lease liabilities are measured based on the present value of fixed lease payments over the lease term. Right-of-use assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company.

As the rates implicit on the Company's leases for which it is the lessee are not readily determinable, the Company uses its incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. When determining the incremental borrowing rate, the Company assesses multiple variables such as lease term, collateral, economic conditions, and its creditworthiness.

**(o)** **Impairment of Long-Lived Assets Other Than Goodwill**

Long-lived assets with finite lives, primarily property, plant and equipment, intangible assets, operating lease right-of-use assets and finance lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset's carrying value, then the asset is deemed to be impaired and written down to its fair value.

**(p)** **Defined Benefit Plans**

The Company has unfunded defined benefit severance indemnity plans, which cover directors and a corporate auditor. Under the defined benefit severance indemnity plans, full-time directors and the corporate auditor of KOEI JAPAN are entitled to severance payments based on their earnings and the length of service until retirement or termination of employment for reasons other than dismissal for cause. The projected benefit obligation at February 28 (or 29), the measurement date, is recognized in the consolidated balance sheets. The projected benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on employee services already rendered and estimated future compensation levels. Net periodic retirement cost is recorded in the consolidated statements of operations and comprehensive income and includes service cost, interest cost, settlement cost and amortization of actuarial gains and losses, if any. Service cost represents the actuarial present value of participant benefits earned in the current year. Interest cost represents the time value of money cost associated with the passage of time. Settlement cost represents the expense related to the settlement of the defined benefit plans. Actuarial gains and losses included in accumulated other comprehensive income (loss) are amortized using the straight-line method over the average remaining service period of active employees if it exceeds the corridor, which is defined at 10% of the projected benefit obligation.

**(q)** **Revenue Recognition**

The Company recognizes revenues under ASC Topic 606, "Revenue from Contracts with Customers".

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. Revenue amount represents the invoiced value, net of consumption tax and applicable local government levies, if any. The consumption tax on sales is calculated at 10% of gross sales.

The Company currently generates its revenue from the following main sources:

*<u>Sales of Recycled Materials</u>*

The majority of the Company's revenues comes from sales of recycled materials, including electronic scrap from end-of-life electronics, dismantled home appliances, and circuit boards. Revenue is recognized at a point in time when the control of the promised goods is transferred to customers, which is generally when the goods are inspected and accepted by the customers. We do not provide warranties for the recycled materials sold.

*<u>Industrial Waste Management and Other Services Revenue</u>*

The Company generates waste management revenue by collecting, transporting and disposing of industrial waste. It also provides other miscellaneous services, primarily IT asset disposal, involving the secured destruction or erasure of data from used IT equipment, such as computers and smartphones, and professional services. Besides professional services, the service period normally ranges from one day to one week. Revenue is recognized at a point in time when the promised service is completed. The service period of professional services normally lasts for one month, and the revenue is recognized over the service period.

In certain arrangements where another party is involved in providing specified services to a customer, the Company evaluate whether it acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on the evaluation of whether (i) the Company is primarily responsible for fulfilling the promise to provide the specified goods or service, (ii) the Company has inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer and (iii) the Company has discretion in establishing the price for the specified good or service. If the terms of a transaction do not indicate the Company is acting as a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis.

The Company recognizes revenue on a gross basis as the Company is the primary obligor in the transaction, although the Company may outsource part of the disposal process to third-party suppliers during certain transactions, the Company retains cost risk and has full discretion in establishing prices and therefore is the principal in the arrangement.

Payments to customers that are not in exchange for a distinct good or service are recorded as reductions of revenue. The Company makes rebates to certain customers as a consideration for the recyclables obtained from the process of providing industrial waste management services, which will be subsequently processed by the Company and sold to other customers as recycled materials. The rebates amount is determined by mutual agreement between the Company and customers upon the completion of industrial waste management services. Rebates are generally recorded as reductions of revenue upon the receipt of the recyclable materials, in the same period when the corresponding service revenue is recognized. During the years ended February 28, 2026 and 2025, the Company recorded such rebates of $694,213 and $460,457, respectively.

*<u>Contract liabilities</u>*

Advance from customers, or contract liabilities, are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under the contractual arrangements, mainly sales of recycled materials. The Company recognizes the advanced payments received as revenue upon the satisfaction of the underlying performance obligations that transfer the control of the promised goods to customers. If the final transaction prices are lower than the advance payments received, the Company will either refund the difference to customers or retain the difference for future transactions, depending on the negotiation between the Company and the customers.

**(r) Allowance for Credit Losses**

The Company adopted Accounting Standards Updates No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments on March 1, 2022.

The allowance for credit losses reflects the Company's current estimate of credit losses expected to be incurred over the life of accounts receivables. The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses including the aging of receivables and aging trends, customer creditworthiness and specific exposures related to particular customers. The Company also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may affect a customer's ability to pay in establishing and adjusting its allowance for credit losses.

**(s)** **Advertising Expenses**

The Company expenses advertising costs as they are incurred. Total advertising expenses were $293,142 and $230,451 for the years ended February 28, 2026 and 2025, respectively, and have been included as part of selling, general and administrative expenses.

**(t)** **Concentration of Credit Risk**

Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions. The Company does not require collateral or other security to support financial instruments subject to credit risk. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

*<u>Customers</u>*

For the years ended February 28, 2026 and 2025, customers accounting for 10% or more of the Company's total revenues are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28, <br> 2026**  | **February 28, <br> 2025**  |
| Customer A | 18% | 17% |
| Customer B | 15% | 17% |

---

As of February 28, 2026 and 2025, customers accounting for 10% or more of the Company's total net outstanding accounts receivable are as follows:

---

| | | |
|:---|:---|:---|
|  | **February 28, <br> 2026**  | **February 28,<br> 2025** |
| Customer A | \*% | 23% |
| Customer B | 10% | 21% |
| Customer C | 14% | \*% |

---

*<u>Suppliers</u>*

For the years ended February 28, 2026 and 2025, suppliers accounting for 10% or more of the Company's total purchases are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Supplier A | \*% | 10% |
| Supplier B | 11% | \*% |

---

As of February 28, 2026 and 2025, suppliers accounting for 10% or more of the Company's total outstanding accounts payable are as follows:

---

| | | |
|:---|:---|:---|
|  | **February 28,** **2026** | **February 28,**<br> **2025** |
| Supplier A | 11% | 15% |
| Supplier C | 13% | \*% |

---

\*Less than 10%.

**(u)** **Segment Reporting**

ASC Topic 280, "Segment Reporting," requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's chief operating decision maker organizes segments within the company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

Management determined the Company's operations constitute a single reportable segment.

**(v) Comprehensive Income or Loss**

ASC Topic 220, "Comprehensive Income," establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in shareholders' equity during a period from non-owner sources.

**(w) Net Income Per Share**

Basic net income per share is computed by dividing net income attributable to controlling interests by the weighted average number of common shares outstanding during the reporting period. Diluted net income per share reflects the potential dilution that could occur if stock options and other commitments to issue common shares were exercised or equity awards vest resulting in the issuance of common shares that could share in the net income of the Company.

**(x) Non-controlling Interests**

Non-controlling interests in the consolidated balance sheet represent the portion of the equity in the subsidiaries not attributable, directly or indirectly, to the Company. The portion of the income or loss applicable to the non-controlling interests in the subsidiaries is also separately reflected in the statements of operations.

**(y)** **Related Parties and Transactions**

The Company identifies related parties, and accounts for, discloses related party transactions in accordance with ASC Topic 850, "Related Party Disclosures" and other relevant ASC standards.

Parties, which can be an entity or individual, are considered to be related if they have the ability, directly or indirectly, to control the Company or exercise significant influence over the Company in making financial and operational decisions. Entities are also considered to be related if they are subject to common control or common significant influence.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

**(z) Income Taxes**

Income taxes are accounted for using an asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current period and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets also include the prior years' net operating losses carried forward. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.

The Company follows ASC Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures.

Under the provisions of ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

**(aa)** **Fair Value Measurements**

The Company performs fair value measurements in accordance with ASC Topic 820. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset's or a liability's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value:

● Level 1: quoted prices in active markets for identical assets or liabilities;

● Level 2: inputs other than Level 1 that are observable, either directly or indirectly; or

● Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.

As of February 28, 2026 and 2025, the carrying values of current assets and current liabilities approximated their fair values reported in the consolidated balance sheets due to the short-term maturities of these instruments. Debt that bears variable interest rates indexed to prime also approximates fair value as it reprices when market interest rates change.

 **(bb) Commitments and Contingencies**

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

**(cc)** **Recent Accounting Pronouncements**

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvement to Income Tax Disclosures" to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024, and for annual periods beginning after December 15, 2025 for all other entities, on a prospective basis. The Company adopted this standard on February 28, 2026. See Note 11 for relevant income tax disclosures.

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606 by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. ASU 2025-11 is effective for public business entities for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. For entities other than public business entities, this amendment is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

**NOTE 3 — ACCOUNTS RECEIVABLE, NET**

Accounts receivable, net are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br>**2025** |
| Accounts receivable | $3272555 | $1818256 |
| Less: allowance for doubtful accounts | (16051) | (9781) |
| **Accounts receivable, net** | $**3256504** | $**1808475** |

---

The movements of the allowance for doubtful accounts are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended**  | **For the Years Ended**  |
|  | **February 28, <br> 2026**  | **February 28, <br> 2025**  |
| Beginning balance | $9781 | $11876 |
| Provision for credit loss | 16691 | 9584 |
| Recovery of credit loss | (9762) | (11726) |
| Foreign currency translation adjustment | (659) | 47 |
| **Ending balance** | $**16051** | $**9781** |

---

**NOTE 4 — INVENTORIES** 

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br>**2025** |
| Unprocessed materials | $24810 | $19588 |
| Recyclables ready for sale | 119613 | 129711 |
| **Total inventories** | $**144423** | $**149299** |

---

**NOTE 5 — LONG-TERM INVESTMENTS**

Long-term investments consist of the following:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br>**2025** |
| Investment in a private organization that does not report NAV per share: |  |  |
| &nbsp;&nbsp;&nbsp;An organization without observable price changes | $64 | $67 |
| Investments in silent partnerships accounted for under the equity method | - | - |
| **Total long-term investments** | $**64** | $**67** |

---

The Company invested in several silent partnerships (or anonymous partnerships), which primarily engage in aircraft leasing business and apply the declining balance depreciation method. The underlying assets are leased to generate rental income throughout the lease term and are expected to be ultimately sold to generate additional cash flow.

Losses from equity method investments during the years ended February 28, 2026 and 2025, were $203,830 and $360,182, including losses in excess of the carrying amount of equity method investments of $203,830 and $151,233, respectively.

**NOTE 6 — PROPERTY, PLANT AND EQUIPMENT, NET**

Property, plant and equipment, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br>**2025** |
| Land | $7985319 | $8294521 |
| Buildings and facilities attached to buildings | 6636430 | 6631563 |
| Machinery and equipment | 2486560 | 2842536 |
| Vehicles and forklifts | 1246273 | 1122840 |
| Tools, furniture and fixtures | 600985 | 551273 |
| Software | 275668 | 262417 |
| Construction in progress | - | 9027 |
| Subtotal | 19231235 | 19714177 |
| Less: accumulated depreciation | 6715139 | 6626465 |
| **Property, plant and equipment, net** | $**12516096** | $**13087712** |

---

Certain property, plant and equipment, mainly land and buildings, in the carrying amount of $11,082,731 and $11,745,416 as of February 28, 2026 and 2025, respectively, were pledged to secure the Company's loans, see Note 8.

Depreciation expense was $674,823 and $729,332 for the years ended February 28, 2026 and 2025, respectively.

**NOTE 7 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

Accrued expenses and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br>**2025** |
| Accrued expenses | $314267 | $257052 |
| Losses in excess of the carrying amount of equity method investments | 586136 | 406415 |
| Wage and bonus payables | 458372 | 415985 |
| Consumption tax payable | 283109 | 183322 |
| Individual income tax withheld on behalf of employees | 22995 | 17814 |
| Others | 24057 | 23655 |
| **Total accrued expenses and other current liabilities** | $**1688936** | $**1304243** |

---

**NOTE 8 —BANK AND OTHER BORROWINGS**

Bank and other borrowings consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Indebtedness** | **Weighted Average Interest Rate<sup>(1)</sup>** | **Weighted Average Years to Maturity<sup>(1)</sup>** | **Balance as of**<br> **February 28,** <br> **2026**  | **Balance as of**<br> **February 28,**<br> **2025** |
| **Unsecured short-term loans** |  |  |  |  |
| Fixed rate loan borrowed under <br> revolving line of credit | 1.30% | 0.33 | $641725 | $668539 |
| Variable rate loans borrowed under revolving lines of credit | 1.25% | 0.17 | 5775525 | 6016847 |
| Non-interest bearing loan<sup>(2)</sup> | N/A | N/A | - | 85239 |
| **Total** | **1.26%** | **0.18** | $**6417250** | $**6770625** |
| **Long-term loans** |  |  |  |  |
| **Secured loans<sup>(3)</sup>** |  |  |  |  |
| Variable rate loans | 2.00% | 5.45 | $5165886 | $6317690 |
| Subtotal | 2.00% | 5.45 | 5165886 | 6317690 |
| **Unsecured loans** |  |  |  |  |
| Fixed rate loan | N/A | N/A |  | 223559 |
| Variable rate loan | 1.66% | 3.76 | 412629 | 544431 |
| Subtotal | 1.66% | 3.76 | 412629 | 767990 |
| **Aggregate outstanding principal balance of long-term loans** | **1.97%** | **5.32** | **5578515** | **7085680** |
| Less: unamortized debt issuance costs |  |  | (108089) | (154871) |
| Less: current portion |  |  | (974086) | (1114145) |
| **Non-current portion** |  |  | $**4496340** | $**5816664** |

---

(1) Pertained
 to information for loans outstanding as of February 28, 2026.

(2) Borrowed
 from Ryuma Iwamoto, the CEO of KOEISING, who is also a director and principal shareholder of the Company, for working capital purpose,
 with the balance due on demand. As of February 28, 2026, the loan was fully repaid.

(3) Pledged
 by property, plant and equipment of the Company.

The Company borrowed loans from various financial institutions for the purpose of purchasing property, plant and equipment, and for working capital purpose.

As of February 28, 2026 and 2025, the Company had $6,417,250 and $6,685,386 of the short-term loans borrowed under revolving lines of credit with multiple banks and financial institutions, with maximum available amounts of the same. These agreements automatically renew annually unless canceled. Borrowings typically have one-month terms, renewed at the lender's discretion.

The Company's secured long-term loans are subject to covenants requiring maintenance of specified ratio of net assets, avoiding consecutive operating losses, and restrictions on material changes to the Company's primary business activities. The Company incurred issuance costs of JPY52,500,000 for these loans, of which $108,089 and $154,871 remained unamortized as of February 28, 2026 and 2025, respectively. These costs are presented as a direct deduction from the carrying amounts of the loans.

Interest expense for bank and other borrowings was $179,898 and $143,659 for the years ended February 28, 2026 and 2025, respectively.

As of February 28, 2026, future minimum payments for loans are as follows:

---

| | |
|:---|:---|
| **Years ending February 28 (29),** | **Principal <br> Repayment** |
| 2027 | $7425630 |
| 2028 | 1008381 |
| 2029 | 1008381 |
| 2030 | 981146 |
| 2031 | 898415 |
| Thereafter | 673812 |
| **Total** | $11995765 |

---

**NOTE 9 — LEASES – AS A LESSEE**

The Company has entered into operating leases mainly for offices, parking lots, facilities and warehouses purposes, with terms ranging from one to three years. Additionally, the Company has finance leases for certain office equipment, production equipment, and vehicles, with terms ranging from three to seven years. The estimated effect of lease renewal and termination options, as applicable, that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities was included in the consolidated financials.

During the years ended February 28, 2026 and 2025, one operating lease was guaranteed by the CEO of the Company.

Operating lease expenses for lease payments are recognized on a straight-line basis over the lease term. Finance lease costs include amortization, which is recognized on a straight-line basis over the expected life of the leased assets, and interest expenses, which are recognized following an effective interest rate method. Leases with initial term of twelve months or less are not recorded in the consolidated balance sheets.

The components of lease costs are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Finance lease costs |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of finance lease right-of-use assets | $65986 | $65596 |
| &nbsp;&nbsp;&nbsp;Interest on finance lease liabilities | 4923 | 2146 |
| Total finance lease costs | 70909 | 67742 |
| Operating lease costs | 615313 | 554394 |
| Short-term lease costs | 44873 | 8755 |
| **Total lease costs** | $**731095** | $**630891** |

---

The following table presents supplemental information related to the Company's leases:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows from finance leases | $4923 | $2146 |
| &nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | 621254 | 535236 |
| &nbsp;&nbsp;&nbsp;Financing cash flows from finance leases | 65288 | 65760 |
| Non-cash information: |  |  |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets obtained in exchange for finance lease liabilities | 132290 | 24944 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 116546 | 157623 |
| &nbsp;&nbsp;&nbsp;Remeasurement of operating lease liabilities and right-of-use assets due to lease modifications | 399887 | 491617 |
| **Weighted average remaining lease term (years)** |  |  |
| &nbsp;&nbsp;&nbsp;Finance leases | 2.80 | 3.37 |
| &nbsp;&nbsp;&nbsp;Operating leases | 1.01 | 1.45 |
| **Weighted average discount rate (per annum)** |  |  |
| &nbsp;&nbsp;&nbsp;Finance leases | 1.16% | 0.86% |
| &nbsp;&nbsp;&nbsp;Operating leases | 2.33% | 1.91% |

---

As of February 28, 2026, the future maturity of lease liabilities is as follows:

---

| | | |
|:---|:---|:---|
| **Years ending February 28 (29),** | **Finance Lease** | **Operating Lease** |
| 2027 | $70249 | $363059 |
| 2028 | 57763 | 121475 |
| 2029 | 39628 | 6765 |
| 2030 | 30444 |  |
| 2031 | 18013 |  |
| Thereafter | 1078 | - |
| Total undiscounted lease payments | 217175 | 491299 |
| Less: imputed interest | (4589) | (5542) |
| Present value of lease liabilities | 212586 | 485757 |
| Less: lease liabilities, current | (68125) | (355415) |
| **Lease liabilities, non-current** | $**144461** | $**130342** |

---

**NOTE 10 — DEFINED BENEFIT PLANS**

The Company has unfunded defined benefit severance indemnity plans under which qualified directors and the corporate auditor of KOEI JAPAN are entitled, under most circumstances, upon mandatory retirement at normal retirement age or earlier termination of employment, to lump-sum severance indemnities based on years of service and other factors. When a benefit is paid in a single payment to a benefit payee under the plans, the payment represents final relief of the obligation.

 

In October 2024, the Company made a one-time settlement payment of $511,759 to Eiko Iwamoto, the former corporate auditor of KOEI JAPAN and the wife of the Company's CEO, upon her retirement, in accordance with the defined benefit plan.

 

*<u>Net periodic benefit cost</u>*

The following table presents the components of net periodic benefit cost for defined benefit plans of the Company for the years ended February 28, 2026 and 2025. The Company's measurement date for defined benefit plans is February 28 or 29.

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Service cost | $155244 | $130991 |
| Interest cost | 37684 | 24055 |
| Settlement |  | 5352 |
| Amortization of gain or loss | - | (191) |
| **Net periodic benefit cost** | $**192928** | $**160207** |

---

*<u>Benefit obligations</u>* *<u> </u>*

The following table presents a reconciliation of changes in projected benefit obligation ("PBO") for the years ended February 28, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Beginning balance of PBO | $2213889 | $2298293 |
| Service cost | 155244 | 130991 |
| Interest cost | 37684 | 24055 |
| Actuarial loss (gain) | (77263) | 163605 |
| Curtailments |  | 93087 |
| Settlements |  | (511759) |
| Foreign currency translation adjustment | (93225) | 15617 |
| **Ending balance of PBO** | $**2236329** | $**2213889** |

---

The accumulated benefit obligation was $1,857,340 and $1,807,033 as of February 28, 2026 and 2025, respectively.

The following table presents the after-tax amount of the Company's plans deferred in accumulated other comprehensive income (loss) that has not yet been recognized as a component of net periodic benefit cost as of February 28, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Net actuarial loss (gain) | $(34372) | $15280 |
| **Total** | $**(34372)** | $**15280** |

---

Amount recognized in other comprehensive income (loss), net of tax, for the years ended February 28, 2026 and 2025, is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Net actuarial loss (gain) | $(50993) | $166010 |
| **Total** | $**(50993)** | $**166010** |

---

 

*<u>Assumption</u>*

The following table presents the weighted-average assumption used to determine the PBO of the Company's plans as of February 28, 2026 and 2025, respectively, and the net periodic benefit cost for the years then ended:

---

| | | |
|:---|:---|:---|
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Discount rate | 2.48% | 1.71% |

---

The Company generally determines the discount rate for its defined benefit plans by referencing indices for long-term, high-quality debt securities and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of the plans' liabilities.

*<u>Cash Flows</u>* *<u> </u>*

As of February 28, 2026, the expected future benefit payments are as follows:

---

| | |
|:---|:---|
| **Years ending February 28 (29),** | **Expected Payments** |
| 2027 | $12835 |
| 2028 | 15207 |
| 2029 | 17960 |
| 2030 | 21146 |
| 2031 | 2235739 |
| Thereafter | 33777 |
| **Total** | $**2336664** |

---

**NOTE 11 - INCOME TAXES**

*<u>Japan</u>*

The Company conducts its major businesses in Japan and is subject to tax in this jurisdiction. For the years ended February 28, 2026 and 2025, substantially all taxable income of the Company was generated in Japan. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. Income taxes in Japan applicable to the Company are imposed by the national, prefectural, and municipal governments, and in the aggregate resulted in an effective statutory rate of approximately 34.00% for KOEI JAPAN for the years ended February 28, 2026 and 2025; 34.00% for EPJ CO., LTD. for the period from its incorporation on March 10, 2025 to February 28, 2026; and 31.00% for Koei for the period from its incorporation on August 8, 2024 to February 28, 2026, as a holding company.

*<u>Singapore</u>*

KOEISING is incorporated in Singapore and subject to income tax rate at 17% statutory tax rate with respect to the assessable income generated from Singapore.

*<u>Thailand</u>*

Hidaka Koei (Thailand) Co., Ltd. is incorporated in Thailand and subject to income tax rate at 20% statutory tax rate with respect to the assessable income generated from Thailand.

*<u>United States</u>*

Koei US is incorporated in the United States and subject to federal tax rate at 21% statutory tax rate with respect to the assessable income generated from the United States.

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act ("OBBBA"). The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have incorporated the provisions that were effective before March 1, 2026 and assessed that the impacts did not have a material impact on our consolidated financial statements. We continue to assess any future impacts on our consolidated financial statements and will recognize the income tax effects beginning in the period in which they are effective.

For the years ended February 28, 2026 and 2025, the Company's income tax expenses are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Current | $1300346 | $295227 |
| Deferred | (94565) | 196002 |
| Total | $**1205781** | $**491229** |

---

A reconciliation of the provision for income taxes to the amount computed by applying the 34.00% Japanese statutory income tax rate to income before income taxes for the year ended February 28, 2026, after the adoption of ASU 2023-09 on a prospective basis, is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended February 28, 2026** | **For the Year Ended February 28, 2026** |
|  | **Amount** | **Percent** |
| Japanese statutory tax rate | $1051092 | 34.00% |
| Foreign tax effects | (19076) | (0.62)% |
| Effect of non-deductible entertainment expenses | 56212 | 1.82% |
| Effect of changes in valuation allowance | 48735 | 1.58% |
| Effect of tax payments and dues | 17887 | 0.58% |
| Others | 50931 | 1.64% |
| **Effective tax rate** | $**1205781** | **39.00%** |

---

A reconciliation of the effective income tax rate to the Japanese statutory tax rate for the year ended February 28, 2025, prior to the adoption of ASU 2023-09, is as follows:

---

| | |
|:---|:---|
|  | **For the Year Ended February 28, 2025** |
| Japanese statutory tax rate | 34.00% |
| Effect of income tax rate difference under different tax jurisdictions | (0.21)% |
| Effect of expenses not deductible | 2.45% |
| Effect of changes in valuation allowance | (0.25)% |
| Effect of tax payments and dues | (6.93)% |
| Other adjustments | 0.24% |
| **Effective tax rate** | **29.30%** |

---

The tax effects of temporary differences that give rise to the deferred income tax assets and liabilities on February 28, 2026 and 2025 are presented below:

---

| | | |
|:---|:---|:---|
|  | **February 28,**<br> **2026** | **February 28,**<br> **2025** |
| **Deferred income tax assets:** |  |  |
| Revenue and expense adjustments | $- | $16002 |
| Lease liabilities | 214803 | 228767 |
| Employee benefit obligations | 760352 | 752722 |
| Net operating losses | 4512 | 6380 |
| Losses in excess of carrying amount of equity method investments | 201234 | 140211 |
| Others | 27589 | 19223 |
| Subtotal | 1208490 | 1163305 |
| Less: valuation allowance | (4512) | (6380) |
| **Total deferred income tax assets, net** | $**1203978** | $**1156925** |
| **Deferred income tax liabilities:** |  |  |
| Revenue and expense adjustments | $(143362) | $(120720) |
| Change in cash surrender value of life insurance policies | (24001) | (23284) |
| Right-of-use assets | (221494) | (239021) |
| Others | (7036) | (474) |
| **Total deferred income tax liabilities** | $**(395893)** | $**(383499)** |
| **Deferred income tax assets, net (included in other assets)** | $**808085** | $**773426** |

---

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, projected future taxable income, and tax planning strategies.

The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company's projections for growth. The adjustments of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is adjusted. Based upon the level of historical taxable profit and projections for future taxable profit over the periods for which the deferred tax assets are deductible, management believes it is probable that the Company will utilize the benefits of these deferred tax assets as of February 28, 2026 and 2025. Uncertainty of estimates of future taxable profit could increase due to changes in the economic environment surrounding the Company, effects by market conditions, effects of currency fluctuations or other factors.

The following table presents income taxes paid, net of refunds:

---

| | |
|:---|:---|
|  | **For the Year Ended February 28, 2026** |
| Japan | $32360 |
| **Net total** | $**32360** |

---

*<u>Uncertain tax positions</u>*

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of February 28, 2026 and 2025, the management considered the Company did not have any significant unrecognized uncertain tax positions. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from February 28, 2026. Open tax years in Japan are five years. The Company's income tax returns filed in Japan for the tax years up to the year ended February 28, 2023 were examined by the relevant tax authorities.

**NOTE 12 — SHAREHOLDERS' EQUITY**

No common share was issued during the years ended February 28, 2026 and 2025.

Effective September 8, 2025, the Company approved a stock split of the Company's issued and outstanding shares of common share, at a ratio of 30,000-for-1 (the "Stock Split"). As of February 28, 2025 and immediately prior to the Stock Split, there were 286 shares of common share issued and outstanding. As a result of the Stock Split, the Company has 8,580,000 shares of common share issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

Effective October 15, 2025, the Company approved to decrease its number of authorized shares from 40,040,000 to 34,320,000.

During the years ended February 28, 2026 and 2025, the Company declared and distributed cash dividends of $145,988 and $124,240, respectively.

*<u>Change in ownership interest without change of control</u>*

Prior to February 2026, KOEI JAPAN held a 99.99% ownership interest in Hidaka Koei (Thailand) Co., Ltd. ("KOEI THAILAND"), previously known as KOEI (THAILAND) CO., LTD., with the remaining 0.01% (equivalent to one share) held by the Chief Executive Officer ("CEO") of the Company. In February 2026, the Company sold a 49% ownership interest in KOEI THAILAND to HIDAKA HOLDINGS (2008) CO., LTD., an entity incorporated in Thailand, for cash consideration of THB980,000 ($31,570), and renamed KOEI THAILAND to "Hidaka Koei (Thailand) Co., Ltd." In the same month, the Company transferred an additional 2% ownership interest in KOEI THAILAND to Siam Client Service Co., Ltd., another entity incorporated in Thailand, for no consideration. Through contractual arrangements with these Thai shareholders, the Company is able to control KOEI THAILAND and consolidate its financial results in its consolidated financial statements. As of February 28, 2026, KOEI THAILAND had no operations and incurred only immaterial expenses since its incorporation in January 2024.

*<u>Legal reserve set aside as appropriation of retained earnings and legal capital surplus</u>*

Retained earnings consist of legal reserves and accumulated earnings. The Companies Act provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain appropriations of retained earnings associated with cash outlays applicable to each period shall be appropriated and set aside as a legal reserve until the aggregate amount of legal reserve set aside as an appropriation of retained earnings and the legal capital surplus equals 25% of stated capital as defined in the Companies Act. Legal reserves may be used to eliminate or reduce a deficit or be transferred to other retained earnings upon approval of the General Meeting of Shareholders.

*<u>Stock-based compensation</u>*

On September 17, 2025, the Company entered into a Stock Acquisition Right Allotment Agreement (the "SAR Agreement") with HeartCore Enterprises, Inc. ("HeartCore") pursuant to which the Company allotted 171,600 stock acquisition rights to HeartCore on September 22, 2025 in exchange for professional services rendered in connection with its IPO. HeartCore may exercise the stock acquisition rights from October 1, 2025 to September 30, 2035, and under the condition that the IPO is completed, to purchase 2% of the fully diluted shares of the Company's common share as of the day prior to the IPO date, for an exercise price per share of US$0.01 (JPY1), subject to adjustment as provided in the SAR Agreement. The stock acquisition rights were fully vested upon allotment.

**NOTE 13 – DISAGGREGATION OF REVENUES**

Revenues generated from different revenue streams consist of the following:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Sales of recycled materials | $45398854 | $42048099 |
| Industrial waste management and other services | 2266946 | 1789662 |
| **Total** | $**47665800** | $**43837761** |

---

Changes in the Company's advance from customers for the years ended February 28, 2026 and 2025 are presented in the following table:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **February 28,** <br> **2026**  | **February 28,** <br> **2025**  |
| Advance from customers as of the beginning of the year | $58701 | $319129 |
| Net cash received in advance during the year | 12948921 | 12810101 |
| Revenue recognized (consumption tax included) from opening balance of advance from customers | (58592) | (315115) |
| Revenue recognized (consumption tax included) from advance from customers arising during current year | (12917785) | (12752580) |
| Foreign currency translation adjustment | (1301) | (2834) |
| **Advance from customers as of the end of the year** | $**29944** | $**58701** |

---

 **NOTE 14 – BUSINESS COMBINATION AND GOODWILL**

 

The Company accounted for the business combination using the acquisition method of accounting under ASC Topic 805. The total purchase price was allocated to the tangible and identifiable intangible assets acquired, liabilities assumed and non-controlling interests based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill.

The determination of fair values involved the use of significant judgments and estimates. The judgments used to determine the estimated fair value assigned to assets acquired and liabilities assumed, and non-controlling interests, as well as the expected future cash flows and related discount rates, can materially impact the Company's consolidated financial statements. Significant inputs and assumptions used for the model included the amount and timing of expected future revenues and discount rates.

 

*<u>Koei US, Inc.</u>*

On March 10, 2025, the Company acquired 51% equity interest in Koei US, formerly known as Nufika LLC, for a cash consideration of $1 million from Robert Wagner, Maki Wagner, the wife of Robert Wagner, and their daughter Hannah Wagner. The Company aimed to expand business in the U.S. market through this acquisition.

The purchase price allocation was determined by the Company with assistance of a third-party valuation. The purchase price was allocated on the acquisition date as follows:

---

| | |
|:---|:---|
| Cash and cash equivalents | $43446 |
| Accounts receivable, net | 20300 |
| Goodwill | 1779023 |
| Accrued expenses and other current liabilities | (769) |
| Non-controlling interests | (842000) |
| **Total purchase consideration** | $**1000000** |

---

Pro forma results of operations for the business combination have not been presented because they are not material to the consolidated statement of operations and comprehensive income for the year ended February 28, 2026.

The results of operations, financial position, and cash flows of Koei US have been included in the Company's consolidated financial statements since the date of acquisition.

The Company's policy is to perform its annual impairment testing on goodwill for its reporting unit on February 28 (29) of each fiscal year or more frequently if events or changes in circumstances indicate that an impairment may exist. The Company did not recognize any impairment loss on goodwill during the year ended February 28, 2026.

**NOTE 15 – RELATED PARTY TRANSACTIONS**

The Company engaged Robert Wagner and Maki Wagner, who are the relatives of the Company's CEO, for consulting services related to its initial public listing (the "IPO") and U.S. business development. Commencing October 2025, the service provider has been changed to Robert Wagner LLC, an entity controlled by Robert Wagner. The Company incurred consulting fees of $97,619 and $28,553 in connection with these services during the years ended February 28, 2026 and 2025, respectively, which were recorded in selling, general and administrative expenses.

Additionally, in February 2025, Robert Wagner and Maki Wagner were appointed as the Chief Business Officer and Chief Communications Officer, respectively, as well as directors of Koei.

Also see Note 8, 9, 10 and 14 for more transactions with related parties.

**NOTE 16 – SEGMENT REPORTING**

The Company's chief operating decision maker ("CODM"), Chief Executive Officer, reviews consolidated results of operations to make decisions, therefore the Company views its operations and manages its business as a single operating segment. The Company's revenues for its single operating segment are derived from sales of recycled materials and providing industrial waste management and other services.

The accounting policies for the single operating segment are the same as those described in Note 2. The CODM evaluates performance for the Company's single operating segment and decides how to allocate resources based on the Company's consolidated net income that it reported in the consolidated statements of operations and comprehensive income as net income. The measure of segment assets is reported in the consolidated balance sheets as total assets. The CODM allocates resources across the Company based on consolidated net income derived during the annual budgeting process and throughout the year in monitoring actual results compared to budget and updated forecasts. These results are used to assess segment performance.

*<u>Segment information</u>*

The following table summarizes selected financial information with respect to the Company's single operating segment and reportable segment for the years ended February 28, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **February 28,** | **February 28,** |
|  | **2026** | **2025** |
| Revenues | $47665800 | $43837761 |
| Less: |  |  |
| Cost of goods sold | (30525697) | (30153343) |
| Other costs of revenues | (6593020) | (5860317) |
| Total cost of revenues | **(37118717)** | **(36013660)** |
| Salaries and welfare expenses | (2307573) | (1885053) |
| Outsourcing and professional expenses | (2071271) | (1769509) |
| Business and office expenses | (918612) | (636251) |
| Lease expenses | (430465) | (396214) |
| Travel expenses | (323963) | (231316) |
| Advertising expenses | (293142) | (230451) |
| Depreciation and amortization expenses | (97046) | (121149) |
| Allowance for credit losses | (6929) |  |
| Retirement expenses | (192928) | (160208) |
| Taxes and dues | (173981) | (147847) |
| Entertainment expenses | (228792) | (158349) |
| Total selling, general and administrative expenses | **(7044702)** | **(5736347)** |
| Income from operations | 3502381 | 2087754 |
| Interest expense | (184821) | (145805) |
| Loss from equity method investments | (203830) | (360182) |
| Other income (expenses) | (22284) | 94547 |
| Income before income tax expenses | **3091446** | **1676314** |
| Income tax expense | (1205781) | (491229) |
| Net income | **1885665** | **1185085** |
| Less: net income attributable to non-controlling interests | 9129 | **-** |
| Net Income attributable to Koei Group Co., Ltd. | $**1876536** | $**1185085** |

---

As of February 28, 2026 and 2025, and for the years then ended, substantially all of our long-lived assets and revenues generated were attributed to the Company's operations in Japan.

**NOTE 17 – SUBSEQUENT EVENTS**

The Company evaluated subsequent events through June 29, 2026, which is the date the consolidated financial statements are issued, and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements other than as disclosed below.

As of the date of the consolidated financial statements are issued, the Company has renewed all of its short-term loans borrowed under revolving lines of credit.

**Common Shares**

![](formdrs_10.jpg)

**Koei Group Co., Ltd.**

**PROSPECTUS**

**Roth Capital Partners**

**[________], 2026**

**Through and including [______], 2026 (the 25<sup>th</sup> day after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.**

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 6. Indemnification of Directors and Officers.**

Article 330 of the Companies Act of Japan (which we refer to as the "Companies Act") makes the provisions of Part III, Chapter 2, Section 10 of the Civil Code of Japan applicable to the relationship between us and our directors and corporate auditors. Section 10 of the Civil Code, among other things, provides in effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Any
 director or corporate auditor of a company may demand advance payment of expenses considered necessary for the management of the
 affairs of such company entrusted to the director or corporate auditor;

2. If
 a director or a corporate auditor of a company has defrayed any expenses considered necessary for the management of the affairs of
 such company entrusted to the director or corporate auditor, the director or corporate auditor may demand reimbursement therefor
 and interest thereon after the date of payment from such company;

3. If
 a director or a corporate auditor has assumed an obligation necessary for the management of the affairs of such company, the director
 or corporate auditor may require such company to perform it in the director or corporate auditor's place or, if it is not due,
 to furnish adequate security; and

4. If
 a director or a corporate auditor, without any fault on the director or corporate auditor's part, sustains damage through the
 management of the affairs of such company, the director or corporate auditor may demand compensation therefor from such company.

Pursuant to the Articles of Incorporation of the Company and pursuant to Article 427 of the Companies Act, the Company may enter into agreements with non-executive directors and corporate auditors to limit their liability to the Company with respect to loss or damage caused by their acts stipulated in Article 423 of the Companies Act, respectively. However, the amount of such limited liability shall be the minimum liability limit stipulated by laws and regulations. The Company has no "non-executive directors" under the Companies Act.

In addition, our articles of incorporation include limitation of liability provisions, pursuant to which we can exempt, by resolution of our board of directors, our directors and corporate auditors from liabilities arising in connection with any failure to execute their respective duties in good faith or due to simple negligence (excluding gross negligence and willful misconduct), within the limits stipulated by applicable laws and regulations including Article 426, Paragraph 1 of the Companies Act.

We maintain, at our expense, a directors' and officers' liability insurance policy for each of our directors and corporate auditors. The policy insures each of our directors and corporate auditors against certain liabilities that they may incur in their capacity as a director or corporate auditor.

**Item 7. Recent Sales of Unregistered Securities.**

**Historical Common Equity Transactions**

Since its inception on August 8, 2024, the Company engaged in the following unregistered stock issuances:

***Founder Shares***

On August 8, 2024, DARINGATE CO., LTD. (now known as Koei Group Co., Ltd. ("Koei Group")) issued (i) 146 common shares to Mamoru Iwamoto for ¥10,200,000, (ii) 120 common shares to Ryuma Iwamoto for ¥8,400,000, and (iii) 20 common shares to Eiko Iwamoto for ¥1,400,000.

***Forward Stock Split***

Effective September 8, 2025, Koei Group approved a stock split of the Koei Group's issued and outstanding common shares, at a ratio of 30,000-for-1 (the "Stock Split"). As of September 8, 2025 and immediately prior to the Stock Split, there were 286 common shares issued and outstanding. As a result of the Stock Split, Koei Group has 8,580,000 common shares issued and outstanding. All share and per share data included within the consolidated financial statements and related footnotes have been adjusted to account for the effect of the Stock Split.

***Stock Acquisition Rights***

On September 22, 2025, the Company allotted 171,600 stock acquisition rights to HeartCore in exchange for services rendered as a consultant in connection with the proposed initial public offering of the Company under grants authorized by our shareholders and directors on September 17, 2025 in connection with the Service Agreement, dated as of April 11, 2024, between KOEI JAPAN (formerly Koei Shoji Co., Ltd.) and HeartCore. The stock acquisition right is exercisable upon a successful listing on the NYSE American or the Nasdaq and has an exercise price of US$0.01 per share and is fully vested. The number of shares underlying each stock acquisition right is calculated as the number of issued and outstanding common shares on a fully diluted basis as of the previous day of the listing date on a stock exchange multiplied by 2%, subject to adjustment as provided in the 1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei Group and HeartCore.

We believe that each of the foregoing issuances was exempt from registration under the Securities Act pursuant to Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. No underwriters were involved in these issuances of securities.

**Item 8. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following documents are filed as part of this registration statement:

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 1.1\*\* | Form of Underwriting Agreement |
| 3.1\* | [Articles of Incorporation of Koei Group Co., Ltd.](ex3-1.htm) |
| 3.2\* | [Bylaws of Koei US, Inc.](ex3-2.htm) |
| 4.1\*\* | Form of Representative's Warrants |
| 5.1\*\* | Opinion of City-Yuwa Partners regarding the validity of common shares being registered |
| 5.2\*\* | Opinion of Anthony, Linder & Cacomanolis, PLLC regarding the validity of Representative's Warrants being registered |
| 10.1\* | [Share Purchase Agreement, dated as of March 10, 2025, among Koei Group Co., Ltd. (formerly Daringate Co., Ltd.), Nufika LLC, Robert Wagner, Maki Wagner, and Hannah Wagner.](ex10-1.htm) |
| 10.2\* | [Service Agreement, dated as of April 11, 2024, between Koei Japan Co., Ltd. (formerly Koei Shoji Co., Ltd.) and HeartCore Enterprises, Inc.](ex10-2.htm) |
| 10.3\* | [Amendment No. 1 to Service Agreement, dated as of September 17, 2025, between Koei Japan Co., Ltd. (formerly Koei Shoji Co., Ltd.) and HeartCore Enterprises, Inc.](ex10-3.htm) |
| 10.4\* | [1st Stock Acquisition Rights Allotment Agreement, dated September 17, 2025, between Koei Group Co., Ltd. and HeartCore Enterprises, Inc.](ex10-4.htm) |
| 10.5\* | [Form of Outside Director Appointment Agreement between Koei Group Co., Ltd. and Ferdinand Groenewald](ex10-5.htm) |
| 10.6\* | [Share Sale and Purchase Agreement, dated December 19, 2025, between Koei Japan Co., Ltd. and Hidaka Holdings (2008) Co., Ltd.](ex10-6.htm) |
| 10.7\* | [Shareholders Agreement, dated February 24, 2026, between Koei Japan Co., Ltd. and Hidaka Holdings (2008) Co., Ltd.](ex10-7.htm) |
| 10.8\* | [Shareholders Agreement, dated February 5, 2026, between Koei Japan Co., Ltd. and Siam Client Service Co., Ltd.](ex10-8.htm) |
| 10.9\* | [Executive Employment Agreement, dated March 1, 2025 between Koei US, Inc. and Robert Wagner.](ex10-9.htm) |
| 10.10\* | [Job Offer, dated August 25, 2025, between Koei US, Inc. and Maki Wagner.](ex10-10.htm) |
| 10.11\* | [Koei Group Co., Ltd. 2026 Equity Incentive Plan](ex10-11.htm) |
| 10.12\* | [Loan Agreement, dated September 22, 2021, among Koei Shoji Co., Ltd. (now known as Koei Group Co., Ltd.) and Resona Bank, Limited and The Bank of Yokohama, Ltd, as lenders.](ex10-12.htm) |
| 21.1\* | [List of Subsidiaries](ex21-1.htm) |
| 23.1\* | [Consent of MaloneBailey, LLP](ex23-1.htm) |
| 23.2\*\* | Consent of City-Yuwa Partners (included in Exhibit 5.1) |
| 23.3\*\* | Consent of Anthony, Linder & Cacomanolis, PLLC (included in Exhibit 5.2) |
| 24.1\* | [Power of Attorney (included on the signature page of this registration statement)](#poa) |
| 99.1\* | [Consent of Independent Director Nominee Ferdinand Groenewald](ex99-1.htm) |
| 107\* | [Filing Fee Table](ex107.htm) |

---

\* Filed herewith. <br> \*\* To be filed upon amendment. <br> † Includes management contracts and compensation plans and arrangements

**Item 9. Undertakings.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 undersigned registrant (which we refer to as the "Registrant") hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To
 file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To
 include any prospectus required by section 10(a)(3) of the Securities Act;

(ii) To
 reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
 post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
 forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
 the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
 of the estimated maximum offering range may be reflected in the form of prospectus filed with the U.S. Securities and Exchange Commission
 pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than 20%
 change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective
 registration statement; and

(iii) To
 include any material information with respect to the plan of distribution not previously disclosed in the registration statement
 or any material change to such information in the registration statement.

---

| | |
|:---|:---|
| (2) | That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
| (3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
| (4) | To file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Securities Act need not be furnished, provided that the Registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. |
| (5) | That, for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of the securities: |
|  | The Registrant undertakes that in a primary offering of securities of the Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any
 preliminary prospectus or prospectus of the Registrant relating to the offering required to be filed pursuant to Rule 424 under the
 Securities Act;

(ii) Any
 free writing prospectus relating to the offering prepared by or on behalf of the Registrant or used or referred to by the Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 portion of any other free writing prospectus relating to the offering containing material information about the Registrant or its
 securities provided by or on behalf of the Registrant; and

(iv) Any
 other communication that is an offer in the offering made by the Registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Insofar
 as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
 of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the
 U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is,
 therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
 of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action,
 suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
 the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
 of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and
 will be governed by the final adjudication of such issue.

(c) The
 Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) That,
 for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as
 part of this registration statement in reliance upon Rule 430A under the Securities Act and contained in a form of prospectus filed
 by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
 statement as of the time it was declared effective.

(2) That,
 for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
 shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
 at that time shall be deemed to be the initial bona fide offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Tokyo, Japan on June 29, 2026.

---

| | |
|:---|:---|
| **Koei Group Co., Ltd.** | **Koei Group Co., Ltd.** |
| By: | */s/ Mamoru Iwamoto* |
|  | Mamoru Iwamoto |
|  | Chief Executive Officer |

---

**POWER OF ATTORNEY**

**KNOW ALL BY THESE PRESENTS,** that each person whose signature appears below constitutes and appoints Mamoru Iwamoto as his true and lawful attorney-in-fact and agent, with the full power of substitution, for him and in his name, place or stead, in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments), and to sign any registration statement for the same offering covered by this registration statement that is to be effective upon filing pursuant to Rule 462 promulgated under the Securities Act, and all post-effective amendments thereto, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agents or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| */s/ Mamoru Iwamoto* | Chief Executive Officer, President and Director | June 29, 2026 |
| Mamoru Iwamoto | (Principal Executive Officer) |  |
| */s/ Tomonari Takayama* | Chief Financial Officer, Chief Strategy Officer, and Director | June 29, 2026 |
| Tomonari Takayama | (Principal Financial and Accounting Officer) |  |
| */s/ Katsumi Kato* | Chief Marketing Officer, Chief Revenue Officer, and Director | June 29, 2026 |
| Katsumi Kato |  |  |
| */s/ Ryuma Iwamoto* | Chief Operating Officer and Director | June 29, 2026 |
| Ryuma Iwamoto |  |  |
| */s/ Robert Wagner* | Chief Business Officer and Director | June 29, 2026 |
| Robert Wagner |  |  |
| */s/ Maki Wagner* | Chief Communications Officer and Director | June 29, 2026 |
| Maki Wagner |  |  |
| */s/ Sachiko Tozawa* | Chief Branding Officer and Director | June 29, 2026 |
| Sachiko Tozawa |  |  |

---

**SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933 as amended, the undersigned, the duly authorized representative in the United States of America of Koei Group Co., Ltd., has signed this registration statement on June 29, 2026.

**KOEI GROUP CO., LTD.**

---

| | |
|:---|:---|
| By: | */s/ Robert Wagner* |
| Name: | Robert Wagner |
| Title: | Chief Business Officer of Koei Group Co., Ltd. |

---

## Exhibit 3.1

**Exhibit 3.1**

**Koei Group Co., Ltd.**

**Articles of Incorporation**

Chapter 1 General Provisions

(Trade Name)

Article 1: The Company shall be known as Koei Group Co., Ltd. and shall be represented in English as Koei Group Co., Ltd.

(Purpose)

Article 2: The purpose of the Company is to control and manage the business activities of companies engaged in the following businesses, and foreign companies, by owning shares or equity interests in such companies.

1, Purchase, sale, dismantling, repair, refurbishment, leasing, and import/export of secondhand goods

2, Collection, processing, sale, recycling, and import/export of iron, non-ferrous metals, and precious metals

3, Sale, repair, configuration, installation, maintenance, leasing, and import/export of computers, information and communication equipment, fixtures and fittings, and software

4, Server and network construction, installation, and maintenance <br>5, Collection, transportation, and processing of industrial waste

6, Sale and rental of construction materials, temporary construction equipment, and construction machinery

---

| | |
|:---|:---|
| 7.0 | Demolition of buildings and machinery/equipment |
| 8.0 | General freight trucking and packing services |
| 9.0 | Warehousing |

---

10, Purchase, sale, and leasing of real estate

11, Planning and guidance concerning corporate investments, mergers, acquisitions, integrations, sales, and business transfers

12, Money lending, agency services for lending, brokerage for leasing, and guarantees <br>13, Holding, trading, investment, and management of securities

14, Planning, construction, operation, and management of data centers <br>15, Resource and energy development business

16, Intermediary and consulting services related to the foregoing items

17, All incidental business related to the foregoing items

(Location of Head Office)

Article 3: The Company shall establish its head office in Minato-ku, Tokyo.

(Method of Public Notice)

Article 4: The method of public notice for the Company shall be electronic notice. However, in the event that electronic notice cannot be made due to an accident or other unavoidable circumstances, notice shall be given by publication in the Nihon Keizai Shimbun.

(Establishment of Organs)

Article 5: In addition to the General Meeting of Shareholders and the Board of Directors, the Company shall establish the following organs:

&nbsp;&nbsp;&nbsp;&nbsp;(1) Board
 of Directors

&nbsp;&nbsp;&nbsp;&nbsp;(2) Auditors

(3) Board of Auditors

Chapter 2 Shares

(Total Authorized Shares)

Article 6: The total number of shares authorized for issuance by the Company shall be 34,320,000 shares.

(Non-Issuance of Share Certificates)

Article 7: No share certificates shall be issued for the Company's shares.

(Request for Entry or Recording of Shareholder Register Information)

Article 8: To request the entry or recording of matters in the shareholder register, the acquirer of the Company's shares, the person entered or recorded in the shareholder register as the shareholder of the acquired shares, or their heir or other universal successor must jointly request it by signing or affixing their seal to a request form prescribed by the Company.

2. Notwithstanding the provisions of the preceding paragraph, where the Ministry of Justice Ordinance stipulates that there is no risk of harming the interests of interested parties, the acquirer of shares may request the entry or recording of matters in the shareholder register alone.

(Registration of Pledge and Indication of Trust Property)

Article 9: To request registration of a pledge or indication of trust property concerning the Company's shares, the parties must submit a request form in the format prescribed by the Company, signed or bearing their seal.

2. The provisions of the preceding paragraph shall apply mutatis mutandis to the cancellation of registration of a pledge or indication of trust property.

(Fees)

Article 10: When making a request as stipulated in the preceding two articles, the fees prescribed by the Company must be paid.

(Notification of Shareholder Address, etc.)

Article 11: Shareholders of the Company, registered pledgees of shares, or their legal representatives or agents must notify the Company of their name or title, address, and seal or signature using the Company's prescribed form. The same shall apply when changes occur in the notified matters.

(Record Date)

Article 12: The Company shall deem shareholders who are entitled to exercise voting rights as those listed or recorded in the final shareholder register as of the last day of each fiscal year to be shareholders entitled to exercise rights at the regular shareholders' meeting for that fiscal year.

2. In addition to the preceding paragraph, if necessary, the Board of Directors may, by resolution and after prior public notice, designate a temporary record date.

(Shareholder Registry Administrator)

Article 13: The Company shall appoint a Shareholder Registry Administrator.

2. The Shareholder Register Administrator and the location for handling its affairs shall be determined by resolution of the Board of Directors.

3. The preparation of the Company's shareholder register and share option register, their keeping, and other affairs concerning these registers shall be entrusted to the Shareholder Register Administrator. The Company shall not handle these matters.

Chapter 3 Shareholders' Meetings

(Authority of Shareholders' Meetings)

Article 14: The General Meeting of Shareholders may only resolve matters prescribed by the Companies Act and matters stipulated in the Articles of Incorporation.

(Convocation)

Article 15: The regular shareholders' meeting shall be convened within three months after the end of each fiscal year. An extraordinary shareholders' meeting may be convened at any time when necessary.

(Convocation Procedures)

Article 16: To convene a shareholders' meeting, a notice of convocation shall be issued to shareholders entitled to exercise voting rights at least two weeks prior to the date of the meeting.

2. Notwithstanding the preceding paragraph, a shareholders' meeting may be held without following the convening procedures if all shareholders entitled to exercise voting rights at that meeting consent.

(Convening Authority and Chairperson)

Article 17: Unless otherwise provided by law, the General Meeting of Shareholders shall be convened by the President and Representative Director by resolution of the Board of Directors. However, if the President and Representative Director is unable to perform his/her duties, another Director shall convene the meeting in the order predetermined by the Board of Directors.

2. The President shall preside over the shareholders' meeting. However, if the President is unable to do so, another director shall preside in the order predetermined by the board of directors.

(Method of Resolution)

Article 18: Resolutions of the shareholders' meeting shall be adopted by a majority of the votes of the shareholders present who hold a majority of the voting rights of shareholders entitled to exercise their voting rights, unless otherwise provided by law or the Articles of Incorporation.

2. Resolutions stipulated in Article 309, Paragraph 2 of the Companies Act shall be adopted by a majority representing two-thirds or more of the voting rights of the shareholders present, provided that shareholders holding a majority of the voting rights of shareholders entitled to exercise voting rights are present.

(Omission of Shareholders' Meeting Resolutions, etc.)

Article 19: Where a director or shareholder proposes a matter to be the subject of a shareholders' meeting, and all shareholders (limited to those entitled to exercise voting rights on such matter) express their consent in writing or by electronic record, such proposal shall be deemed to have been approved by a resolution of the shareholders' meeting.

2. When a director notifies all shareholders of a matter to be reported at a shareholders' meeting, if all shareholders express their consent in writing or by electronic record that reporting such matter at the shareholders' meeting is unnecessary, it shall be deemed that such matter has been reported at the shareholders' meeting.

(Proxy Exercise of Voting Rights)

Article 20: When a shareholder intends to exercise voting rights through an agent, such agent shall be one person and must be a shareholder of the Company who holds voting rights.

2. In the case of the preceding paragraph, the shareholder or proxy must submit a document evidencing the proxy authority for each shareholders' meeting.

(Minutes of Shareholders' Meetings)

Article 21: Minutes of the proceedings of the shareholders' meeting shall be prepared, recording the gist of the proceedings and the results, etc., as prescribed by the Ministry of Justice Ordinance. The chairperson, the directors who performed duties related to preparing the minutes, and the directors who attended shall sign or affix their name and seal or provide an electronic signature thereto.

(Internet Disclosure and Deemed Provision of Reference Materials for Shareholders' Meetings)

Article 22: When convening a shareholders' meeting, the Company may deem that it has provided shareholders with information pertaining to matters required to be stated or indicated in the reference materials for the shareholders' meeting, the business report, the financial statements, and the consolidated financial statements by disclosing such information via the Internet in accordance with the provisions of the Ministry of Justice Ordinance.

Chapter 4 Directors and Board of Directors

(Number of Directors)

Article 23: The Company shall have three or more directors.

(Election and Removal of Directors)

Article 24: Resolutions of the General Meeting of Shareholders to appoint or remove directors shall be adopted with the attendance of shareholders holding a majority of the voting rights of shareholders entitled to exercise voting rights, and with the majority vote of the voting rights of such attending shareholders.

2. Resolutions for the appointment of directors shall not be made by cumulative voting.

(Term of Office of Directors)

Article 25: The term of office of a director shall be until the conclusion of the ordinary general meeting of shareholders pertaining to the final fiscal year ending within two years after the director's appointment.

2. The term of office of a director elected as a substitute shall be until the expiration of the term of the director who vacated the position.

3. The term of office for directors appointed due to an increase in the number of directors shall be until the expiration of the term of the other directors.

(Selection of Representative Directors and Executive Directors)

Article 26: The Representative Director shall be determined by resolution of the Board of Directors.

2. By resolution of the Board of Directors, one President Director shall be selected from among the Representative Directors, and Vice President Directors, Senior Managing Directors, and Managing Directors may be selected from among the Directors.

3. The President shall execute the Company's business.

4. By resolution of the Board of Directors, an Executive Director may be selected from among the directors other than the President prescribed in paragraph 2.

(Convening of the Board of Directors)

Article 27: Unless otherwise provided by law, the Board of Directors shall be convened and chaired by the President. If the President is unable to perform these duties, another director shall convene and chair the meeting in his or her place according to a predetermined order.

2. Notice of the Board of Directors meeting shall be given to each director and each auditor at least three days prior to the meeting date. However, this period may be shortened in urgent cases.

3. The Board of Directors may be convened without following the convening procedures if all directors and auditors consent.

(Method of Resolution)

Article 28: Resolutions of the Board of Directors shall be made by a majority vote of the directors present, provided a majority of directors eligible to vote are present.

(Omission of Board Resolutions, etc.)

Article 29: When a director proposes a matter intended for resolution by the Board of Directors, and all directors (limited to those eligible to vote on the matter) express their consent in writing or by electromagnetic record, it shall be deemed that a resolution of the Board of Directors approving the proposal has been adopted. However, this shall not apply if an auditor objects.

2. When a director or auditor notifies all directors and auditors of a matter requiring report to the Board of Directors (excluding matters required to be reported under Article 363, Paragraph 2 of the Companies Act), it shall not be necessary to report such matter to the Board of Directors.

(Minutes of Board Meetings)

Article 30: Minutes of the board of directors' proceedings shall be prepared in accordance with the provisions of the Ministry of Justice Ordinance, and shall be signed, sealed with their name and seal, or electronically signed by the directors and auditors present.

2. Minutes of the Board of Directors shall be kept at the head office for 10 years from the date of the Board meeting.

(Board of Directors Regulations)

Article 31: Matters concerning the Board of Directors shall be governed by laws and regulations, these Articles of Incorporation, and the Board of Directors Regulations established by the Board of Directors.

(Compensation of Directors)

Article 32: The remuneration, bonuses, and other property benefits received from the Company as compensation for the performance of duties (hereinafter referred to as "remuneration, etc.") shall be determined by resolution of the General Meeting of Shareholders.

(Exemption from Liability of Directors)

Article 33: The Company may, pursuant to the provisions of Article 426, Paragraph 1 of the Companies Act, by resolution of the Board of Directors, exempt directors (including former directors) from liability under Article 423, Paragraph 1 of the same Act, within the limits prescribed by laws and regulations.

2. The Company may enter into an agreement with directors (excluding executive directors, etc.) to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act, pursuant to the provisions of Article 427, Paragraph 1 of the same Act. However, the maximum amount of liability for damages under such an agreement shall be the amount prescribed by law.

Chapter 5 Auditors and Board of Auditors

(Number of Auditors)

Article 34: The Company shall have three or more auditors.

(Election and Dismissal of Auditors)

Article 35: A resolution of the General Meeting of Shareholders to appoint an auditor shall be adopted by a majority of the voting rights of the shareholders present at the meeting who hold a majority of the total voting rights of shareholders entitled to exercise their voting rights.

2. A resolution of the shareholders' meeting to remove an auditor shall be adopted by a majority of two-thirds or more of the voting rights of the shareholders present at the meeting who hold a majority of the voting rights of shareholders entitled to exercise their voting rights.

(Term of Office of Auditors)

Article 36: The term of office of an auditor shall end at the conclusion of the ordinary shareholders' meeting pertaining to the final fiscal year ending within four years after the date of appointment.

2. The term of office of an auditor appointed as a replacement shall be until the expiration of the term of the auditor who vacated the position.

(Compensation of Auditors)

Article 37: The remuneration and other benefits of auditors shall be determined by resolution of the shareholders' meeting.

(Exemption from Liability of Auditors)

Article 38: The Company may, pursuant to the provisions of Article 426, Paragraph 1 of the Companies Act, by resolution of the Board of Directors, exempt auditors (including former auditors) from liability under Article 423, Paragraph 1 of the same Act, up to a specified amount.

2. The Company may enter into an agreement with an auditor to limit the liability for damages under Article 423, Paragraph 1 of the Companies Act, pursuant to the provisions of Article 427, Paragraph 1 of the same Act. However, the maximum amount of liability for damages under such agreement shall be the amount prescribed by laws and regulations.

(Full-Time Auditor)

Article 39: The Board of Auditors shall select a full-time auditor from among the auditors by resolution.

(Convening the Board of Auditors)

Article 40: Notice of convening the Board of Auditors shall be given to each auditor at least three days prior to the meeting date. However, this period may be shortened in urgent cases.

2. The Board of Auditors may be convened without following the convening procedures if all auditors consent.

(Method of Resolution)

Article 41 Resolutions of the Board of Auditors shall be made by a majority of the auditors, except where otherwise provided by law.

(Minutes of the Board of Auditors)

Article 42: Minutes of the Board of Auditors shall be prepared as prescribed by Ministry of Justice ordinances, and shall be signed, typed and sealed, or electronically signed by the attending auditors.

2. Minutes of the Board of Auditors shall be kept at the head office for 10 years from the date of the meeting.

(Additional Authority of the Board of Auditors)

Article 43: The Board of Auditors shall have the following powers, in addition to those permitted by law, to the extent necessary for listing and maintaining listing on the U.S. market:

1. Supervision of the establishment and operation of the internal control system

2. Establishment, operation, and supervision of the operation of the internal reporting system (including complaint handling regarding accounting, internal controls, and audits, and anonymous reporting systems)

3. Supervision of the audit firm or certified public accountant (hereinafter referred to as the "U.S. Accounting Auditor") necessary for audits under U.S. law

4. Determination of the policy for deciding on the dismissal or non-reappointment of the U.S. Accounting Auditor

5. Determining the appropriateness of reappointing the U.S. Accounting Auditor

6. Determining the content of proposals regarding the dismissal or non-reappointment of the U.S. Accounting Auditor to be submitted to the Board of Directors

7. Determining the content of proposals regarding the appointment of the U.S. Accounting Auditor to be submitted to the Board of Directors

8. Appointing a person to perform the duties of an interim U.S. Accounting Auditor in the event of a vacancy in the position of U.S. Accounting Auditor

9. Selection of an Auditor to report the dismissal and reasons therefor at a post-dismissal board meeting if the U.S. Auditor is dismissed based on foreign laws or regulations

10. approval of compensation, etc., for the U.S. Accounting Auditor or the person to perform the duties of the temporary U.S. Accounting Auditor

11. Decision on the appointment of external advisors such as attorneys

12. Matters concerning securing funding sources for expenses necessary for the Board of Auditors to perform its duties

(Scope of Audit Subjects)

Article 44: In addition to the audit subjects prescribed by laws and regulations, the Board of Auditors shall audit the business operations, accounting, and internal control status of the entire corporate group, including the Company and its subsidiaries, to the extent necessary for listing and maintaining listing on the U.S. market.

(Reporting)

Article 45 An auditor who receives a report from the U.S. Accounting Auditor shall report it to the Board of Auditors.

2. The Board of Auditors may request a report from the U.S. Accounting Auditor as necessary.

3. Regarding the preceding two paragraphs, if the U.S. Accounting Auditor notifies all auditors of matters that should be reported to the Board of Auditors, reporting such matters to the Board of Auditors shall not be required.

(Board of Auditors Secretariat)

Article 46. The Board of Auditors may assign employees to assist auditors in performing duties necessary for listing and maintaining listing on the U.S. market. The Company shall provide necessary personnel and financial resources to ensure the independence of the Board of Auditors.

(Board of Auditors Regulations)

Article 47. Matters concerning the Board of Auditors shall be governed by laws and regulations, these Articles of Incorporation, and the Board of Auditors Regulations established by the Board of Auditors.

Chapter 6 Calculation

(Fiscal Year)

Article 48: The fiscal year of the Company shall be from March 1 of each year to the last day of February of the following year.

(Distribution of Surplus, etc.)

Article 49: The Company shall distribute surplus to shareholders or registered pledgees of shares (hereinafter referred to as "Shareholders, etc.") listed or recorded in the final shareholder register as of the end of February each year, based on a resolution of the General Meeting of Shareholders.

2. In addition to the case prescribed in the preceding paragraph, the Company may set a record date and distribute surplus to Shareholders, etc. listed or recorded in the final shareholder register as of that record date.

(Interim Dividends)

Article 50: The Company may, upon resolution of the Board of Directors, distribute surplus in cash to shareholders or registered pledgees of shares listed or recorded in the final shareholder register as of August 31 each year.

(Statute of Limitations for Dividends)

Article 51: If dividends (including interim dividends) remain unclaimed for three full years from the date they are offered for payment, the Company shall be released from its obligation to pay them.

2. No interest shall be paid on dividends.

Chapter 7 Supplementary Provisions

(Number of Shares Issued at Incorporation)

Article 52: The number of shares issued upon the establishment of the Company shall be 286 shares.

(First Fiscal Year)

Article 53: The Company's first fiscal year shall be from the date of incorporation to February 28, 2025.

(Representative Director at Incorporation)

Article 54: The Representative Director at the time of establishment of the Company shall be as follows.

Representative Director at Incorporation: Ryoma Iwamoto

(Location of Head Office)

Article 55: The location of the head office at the time of the Company's establishment shall be Shinagawa Grand Central Tower, 2-16-3 Konan, Minato-ku, Tokyo.

(Matters Not Provided for in the Articles of Incorporation)

Article 56: Matters not stipulated in these Articles of Incorporation shall be governed by the provisions of the Companies Act and other applicable laws and regulations.

End

May 8, 2025 Change of Trade Name

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| | |
|:---|:---|
| May 27, 2025 | Change in Total Number of Authorized Shares |
| October 15, 2025 | Changes in the method of public notice, the establishment of the Board of Auditors, a reduction in the total number of authorized shares, the abolition of restrictions on share transfers, the appointment of a shareholder registry administrator, and the introduction of Internet disclosure and deemed provision of reference documents, etc. for general meetings of shareholders. |

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## Exhibit 3.2

**Exhibit 3.2**

**BYLAWS OF**

**KOEI US, INC.**

These BYLAWS (the "Bylaws") of **Koei US, Inc..**, a Texas corporation (the "Corporation"), is entered into and shall be effective as of **March 1, 2025**, by and between all of the shareholders and all of the directors of the Corporation.

**PREAMBLE**

**WHEREAS**, the Corporation was initially formed as **Nufika LLC**, a Texas limited liability company, on **January 3, 2023**;

**WHEREAS**, in connection with the proposed investment of **Daringate Co., Ltd.**, the Corporation converted from a Texas limited liability company to a **Texas corporation** as of **12:01 a.m. on March 1, 2025**;

**WHEREAS**, the Board of Directors deems it advisable and in the best interests of the Corporation to adopt these Bylaws to govern the regulation and management of its business and affairs;

**NOW, THEREFORE**, the Corporation hereby adopts these Bylaws, which shall take effect immediately upon approval by the Board of Directors.

**ARTICLE I**

**Offices**

***Section* 1.1. *Offices.*** The principal business office of the Corporation shall be at such location as the Board of Directors may, from time to time, establish by resolution. The Corporation may have such other business offices within or without the State of Texas as the Board of Directors may from time to time establish or the business of the Corporation may require.

**ARTICLE II**

**Capital Stock**

***Section* 2.1. *Certificated and Uncertificated Shares****.* The shares of the Corporation may be either certificated shares or uncertificated shares. As used herein, the term "certificated shares" means shares represented by instruments in bearer or registered form, and the term "uncertified shares" means shares not represented by instruments and the transfers of which are registered upon books maintained for that purpose by or on behalf of the Corporation.

***Section* 2.2. *Certificates for Certified Shares****.* Certificates representing shares of stock of the Corporation shall be consecutively numbered and in such form or forms as comply with the requirements of law and as the Board of Directors shall approve. Such certificates shall be signed by President or a Vice President and may be sealed with the seal of the Corporation. In case any officer or officers who have signed or whose facsimile signature or signatures have been placed upon such certificate shall have ceased to be such officer or officers before such certificate is issued, it may be adopted and issued by the Corporation with the same effect as if he or they had not ceased to be such officer or officers as of the date of its issuance, and the issuance and delivery thereof by the Corporation shall constitute adoption thereof by the Corporation.

***Section* 2.3. *Stock Register and Shareholders of Record****.* The Secretary of the Corporation shall keep at the Corporation's principal place of business a stock register showing the names of the shareholders and their addresses, the number of shares held by each, the number and date of issue of all certificates representing shares and uncertificated shares of the Corporation, the number and date of cancellation of every certificate and uncertificated share surrendered for cancellation and whether such certificates and uncertificated shares originated from original issue or transfer. Such information may be kept in any medium capable of reproducing the information in clearly legible form and shall be the official list of shareholders of record of the Corporation for all purposes. The Corporation shall be entitled to treat the holder of record of any shares of the Corporation as the owner thereof for all purposes, and shall not be bound to recognize any equitable or other claim to, or interest in, such shares or any rights deriving from such shares on the part of any other person, including (but without limitation) a purchaser, assignee, or transferee, unless and until such other person becomes the holder of record of such shares, whether or not the Corporation shall have either actual or constructive notice of the interest of such other person.

***Section* 2.4. *Transfer of Stock.*** The shares represented by any share certificates of the Corporation are transferable only on the stock certificate register of the Corporation by the holder of record thereof in person or by a duly authorized attorney or legal representative upon surrender of the certificate for such shares properly endorsed or assigned. With respect to uncertificated shares, upon delivery to the Corporation of an instruction originated by an appropriate person and accompanied by any reasonable assurances that such instruction is genuine and effective as the Corporation may require and after compliance with any applicable law, the Corporation shall, if it has no notice of an adverse claim or has discharged any duty with respect to any adverse claim, record the transaction upon its books, and shall send to the new registered owner of such uncertificated shares, a written notice containing the information required to be stated on certificates representing shares of stock such information as may be required by the applicable law as currently in effect and as the same may be amended from time to time hereafter.

***Section* 2.5. *Restriction on Transfer of Stock.*** No shareholder shall sell, transfer, assign, pledge, or otherwise dispose of any shares of the Corporation (whether voluntarily, involuntarily, or by operation of law) without the prior written consent of the Board of Directors.

***Section* 2.6. *Transfer Agent and Registrar.*** The Board of Directors may appoint one or more transfer agents or registrars of the shares, or both, and may require all share certificates to bear the signature of a transfer agent or registrar or both.

***Section* 2.7. *Lost, Stolen or Destroyed Certificates.*** The Corporation may issue a new certificate for shares of stock in the place of any certificate theretofore issued and alleged to have been lost, stolen or destroyed, but the Board of Directors may require the owner of such lost, stolen or destroyed certificate, or his legal representative, to furnish an affidavit as to such loss, theft, or destruction and to give a bond in such form and substance, and with such surety or sureties, with fixed or open penalty, as it may direct, to indemnify the Corporation, and the transfer agents and registrars, if any, against any claim that may be made on account of the alleged loss, theft or destruction of such certificate. Any such new certificate shall be plainly marked "Duplicate" or "Replacement" on its face.

**ARTICLE III**

**The Shareholders**

***Section* 3.1. *Annual Meetings.*** An annual meeting of the shareholders shall be held in **February** of each year at such place, within or without the State of Texas, as may be designated by the Board of Directors or officer calling the meeting, or on such other date and time as the Board of Directors or officer calling such meeting shall fix and set forth in the notice of the meeting. At such meeting, the shareholders shall elect directors and transact such other business as may properly be brought before the meeting. To be properly brought before the annual meeting of shareholders, business must be (i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors, (ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors, or (iii) otherwise properly brought before the meeting by a shareholder of the Corporation who is a shareholder of record at the time of giving of notice provided for in this Section, who shall be entitled to vote at such meeting and who complies with the notice procedures set forth in this Section. For business to be properly brought before an annual meeting by a shareholder, the shareholder, in addition to any other applicable requirements, must have given timely notice thereof in writing to the Treasurer or Secretary of the Corporation. To be timely, a shareholder's notice must be delivered to or mailed and received at the principal executive offices of the Corporation not less than ten (10) days prior to the anniversary date of the immediately preceding annual meeting of shareholders of the Corporation. A shareholder's notice to the Treasurer or Secretary shall set forth as to each matter the shareholder proposes to bring before the annual meeting: (a) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting; (b) the name and address, as they appear on the Corporation's books, of the shareholder proposing such business; (c) the class and number of shares of voting stock of the Corporation which are owned by the shareholder; (d) a representation that the shareholder intends to appear in person or by proxy at the meeting to bring the proposed business before the annual meeting; and (e) a description of any material interest of the shareholder in such business. Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted at an annual meeting except in accordance with the procedures set forth in this Section. The presiding officer of an annual meeting shall, if the facts warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section, and if he should so determine, he shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

***Section* 3.2. *Special Meetings.*** Except as otherwise provided by law or by these Bylaws, special meetings of the shareholders may be called by the Chairman of the Board (if any), the Chief Executive Officer (if any) or President, the Board of Directors, or the holders of not less than one-tenth of all the shares having voting power at such meeting, and shall be held at the principal office of the Corporation, at such time as is stated in the notice calling such meeting, or at such other place as the person or body calling such meeting may determine and state in such notice.

***Section* 3.3. *Notice of Meetings* - *Waiver.*** Written, electronic or printed notice, stating the place, day and hour of any meeting and, in case of a special shareholders' meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than thirty (30) days before the date of the meeting by or at the direction of the Chairman of the Board (if any), the Chief Executive Officer (if any) or President, or the officer, body or person calling the meeting, to each shareholder of record entitled to vote at such meeting. Notice shall be delivered personally, by mail or, subject to receipt by the Corporation of written authorization, electronic transmission. If delivered personally, such notice shall be deemed delivered when actually received by the shareholder. If delivered by mail, such notice shall be deemed delivered when deposited in the United States mail addressed to the shareholder at his address as it appears on the stock register of the Corporation, with postage thereon prepaid. If delivered by electronic transmission, such notice shall be deemed delivered when the notice or the location from which the notice can be retrieved or otherwise viewed is sent to the electronic mail address specified by each shareholder that authorized electronic transmission. Such further or earlier notice shall be given as may be required by law. Waiver by a shareholder of notice in writing of a shareholders' meeting, signed by him, whether before or after the time stated therein, shall be equivalent to the giving of such notice. No notice shall be necessary for any adjourned meeting.

***Section* 3.4. *Closing of Stock Register and Fixing Record Date****.* For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or entitled to receive payment of any dividend or in order to make a determination of shareholders for any other proper purpose, the Board of Directors of the Corporation may provide that the stock register shall be closed for a stated period but not to exceed, in any case, thirty (30) days. If the stock register shall be closed for the purpose of determining shareholders entitled to notice of or to vote at a meeting of shareholders, such registers shall be closed for at least ten (10) days immediately preceding such meeting. In lieu of closing the stock register, the Board of Directors may fix in advance a date as the record date for any such determination of shareholders, such date in any case to be not more than thirty (30) days and, in case of a meeting of shareholders, not less than ten (10) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken. If the stock register is not closed and no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to receive payment of a dividend, the date on which notice of the meeting is mailed or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of shareholders. When a determination of shareholders entitled to vote at any meeting of shareholders has been made, as provided in this Section, such determination shall apply to any adjournment thereof except where the determination has been made through the closing of the stock register and the stated period of closing has expired.

***Section* 3.5. *Voting List****.* The officer having charge of the stock register for shares of the Corporation shall make available, at least ten (10) days before such meeting of shareholders, a complete list of the shareholders entitled to vote at such meeting or any adjournment thereof, with the address of and the number of shares held by each, which list, for a period of ten (10) days prior to such meeting, shall be kept on file at the registered office of the Corporation and shall be subject to inspection by any shareholder at any time during the usual business hours. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to the inspection of any shareholder during the whole time of the meeting. Failure to comply with this Section shall not effect the validity of any action taken at such meeting.

***Section* 3.6. *Quorum and Officers****.* Except as otherwise provided by law, by the Certificate of Incorporation or by these Bylaws, the holders of a majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of shareholders, but the shareholders present at any meeting, although less than a quorum, may from time to time adjourn the meeting to some other day and hour, without notice other than announcement at the meeting. The vote of the holders of a majority of the shares entitled to vote and thus represented at a meeting at which a quorum is present shall be the act of the shareholders' meeting, unless the vote of a greater number is required by law, the Certificate of Incorporation or these Bylaws. The Chairman of the Board (if any), or in his absence, the Chief Executive Officer (if any) or President, shall preside at and the Secretary, or in his absence, any Assistant Secretary shall keep the records of each meeting of shareholders, and in the absence of all such officers, their respective duties shall be performed by persons appointed at the meeting.

***Section* 3.7. *Proxies****.* A shareholder may vote either in person or by proxy executed in writing by the shareholder, or by his duly authorized attorney-in-fact. Proxies shall be dated but need not be sealed, witnessed or acknowledged. No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy. Each proxy shall be revocable unless provided expressly therein to be irrevocable, and unless otherwise made irrevocable by law. Proxies shall be filed with the Secretary of the Corporation before or at the time of the meeting.

***Section* 3.8. *Balloting****.* Upon the demand of any shareholder, the vote upon any question before the meeting shall be by ballot. At each meeting inspectors of election may be appointed by the presiding officer of the meeting, and at any meeting for the election of directors, inspectors shall be so appointed on the demand of any shareholder present or represented by proxy and entitled to vote at the election of directors. No director or candidate for the office of directors shall be appointed as such inspector.

***Section* 3.9. *Voting Rights; Voting for Directors.*** Each outstanding share of common stock shall be entitled to one (1) vote upon each matter submitted to a vote at a meeting of shareholders. No shareholder shall have the right to cumulate his votes for the election of directors, but each share shall be entitled to one vote in the election of each director.

***Section* 3.10. *Nominations for Election* as a *Director****.* Only persons who are nominated in accordance with the procedures set forth in these Bylaws and qualify for nomination pursuant to Section 4.1 shall be eligible for election by shareholders as, and to serve as, directors. Nominations of persons for election to the Board of Directors of the Corporation may be made at a meeting of shareholders (a) by or at the direction of the Board of Directors or a duly constituted committee thereof or (b) by any shareholder of the Corporation who is a shareholder of record at the time of giving of notice provided for in this Section, who shall be entitled to vote for the election of directors at the meeting and who complies with the notice procedures set forth in this Section. Such nominations, other than those made by or at the direction of the Board of Directors, shall be made pursuant to timely notice in writing to the Secretary or Treasurer of the Corporation. To be timely, a shareholder's notice shall be delivered to or mailed and received at the principal executive offices of the Corporation (i) with respect to an election to be held at the annual meeting of the shareholders of the Corporation, not less than thirty (30) days prior to the anniversary date of the immediately preceding annual meeting of shareholders of the Corporation, and (ii) with respect to an election to be held at a special meeting of shareholders of the Corporation for the election of directors not later than the close of business on the tenth (10th) day following the day on which notice of the date of the special meeting was mailed to shareholders of the Corporation as provided in Section 3.3. Such shareholder's notice to the Secretary or Treasurer shall set forth the name, address and phone number of each person whom the shareholder proposes to nominate for election. At the request of the Board of Directors, any person nominated by the Board of Directors for election as a director shall furnish to the Secretary or Treasurer of the Corporation that information required to be set forth in a shareholder's notice of nomination which pertains to the nominee. In the event that a person is validly designated as a nominee to the Board of Directors in accordance with the procedures set forth in this Section and shall thereafter become unable or unwilling to stand for election to the Board of Directors, the Board of Directors or the shareholder who proposed such nominee, as the case may be, may designate a substitute nominee. Other than directors chosen pursuant to the provisions of Section 4.2, no person shall be eligible to serve as a director of the Corporation unless nominated in accordance with the procedures set forth in this Section. The presiding officer of the meeting of shareholders shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the procedures prescribed by these Bylaws, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

***Section* 3.11. *Action by Written Consent; Facsimile or Electronic Signatures****.* Any action required or permitted to be taken at a meeting may be taken without a meeting, without prior notice, and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the Shareholders, having not fewer than the minimum number of the Shareholders or votes that would be necessary to take the action at such a meeting. Any such consent may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. Furthermore, any written consent may be executed by the facsimile and/or electronic signature of any Shareholders and such facsimile and/or electronic signature shall be deemed an original for all purposes.

**ARTICLE IV**

**The Board of Directors**

***Section* 4.1. *Number and Qualifications.*** The business and affairs of the Corporation shall be managed and controlled by the Board of Directors, and subject to any restrictions imposed by law, by the Certificate of Incorporation, or by these Bylaws, and the Board of Directors may exercise all the powers of the Corporation. The Directors must be at least eighteen (18) years of age. The number of Directors shall be not less than one (1) or more than nine (9). The number thereof may be increased or decreased from time to time by amendment to these Bylaws, but no decrease shall have the effect of shortening the term of any incumbent director. Directors need not be residents of Texas and need not be shareholders.

***Section* 4.3. *Place of Meeting.*** Meetings of the Board of Directors may be held either within or without the State of Texas, at whatsoever place is specified by the officer or director calling the meeting. In the absence of other designation, the meeting shall be held at the principal business office of the Corporation.

***Section* 4.4. *Regular Meetings.*** The Board of Directors shall hold at least one (1) regular meeting in each fiscal year. One such regular meeting (the "Annual Meeting of Directors") shall be held immediately following the annual meeting of shareholders, at the place of such shareholder meeting, and any other regular meetings shall be held at such times and places as the Board of Directors shall establish.

***Section* 4.5. *Special Meetings.*** Special meetings of the Board of Directors shall be held at any time by call of the Chairman of the Board (if any), the Chief Executive Officer (if any) or President (if a director) or by a majority of the directors. The Secretary or officer performing his duties shall give notice of special meetings to each director at his usual business or residence address by mailing such notice at least five (5) days before the meeting or by personally delivering or, subject to receipt of written authorization, electronically transmitting the same at least one (1) day or twenty-four (24) hours before the meeting. No notice shall be necessary for any adjourned meeting.

***Section* 4.6 *. Waiver of Notice.*** A waiver of notice of any meeting, in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be equivalent to the giving of such notice. Such notice or waiver thereof need not specify the business to be transacted at, or the purpose of, such meeting. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express and announced purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

***Section* 4.7. *Quorum and Required Vote for Director Action.*** Unless otherwise required by law or provided in the Certificate of Formation or these Bylaws, a majority of the total number of directors shall constitute a quorum for the transaction of business of the Board of Directors, and the vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, but any one or more directors, although less than a quorum, may adjourn the meeting to some other day or hour.

***Section* 4.8. *Chairman of the Board.*** At each Annual Meeting of Directors, if the Board of Directors has more than one member, the Board of Directors shall elect from its membership a Chairman of the Board who shall serve in such capacity until the next Annual Meeting of Directors or until his death, resignation, disqualification or removal if sooner. The Chairman of the Board shall preside at all meetings of the Board of Directors and at all meetings of the shareholders of the Corporation.

***Section* 4.9. *Procedure at Meetings.*** The Chairman of the Board (if any) shall preside at meetings of the Board of Directors. In his absence at any meeting, the President (if a director) shall preside, and in the absence of both the Chairman of the Board and the President, a member of the Board of Directors selected by the members present shall preside. The Secretary of the Corporation shall act as secretary at all meetings of the Board, or in his absence the presiding officer of the meeting may designate any person to act as secretary. At meetings of the Board of Directors, business shall be transacted in such order as from time to time the Board of Directors may determine.

***Section* 4.10 *. Presumption of Assent.*** A director of the Corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall file his written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the Secretary of the Corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action.

***Section* 4.11 *. Compensation****.* Directors as such shall not receive any stated salary for their service, but by resolution of the Board of Directors (a) an annual directors fee and (b) a fixed sum and expenses for attendance, if any, may be allowed to each director who is not an officer or employee of the Corporation for attendance at each regular or special meeting of the Board of Directors or of any Committee thereof; but nothing herein shall preclude any director from serving the Corporation in any other capacity or receiving compensation therefor.

***Section* 4.12. *Removal of Directors.*** Notwithstanding anything contrary in these Bylaws, a director may not be removed from office except by the affirmative vote of at least sixty-six percent (66%) of the outstanding shares of the Corporation entitled to vote; provided however, that a director shall be automatically removed upon conviction of a felony or a misdemeanor involving moral turpitude, including but not limited to fraud.

***Section* 4.13. *Action by Written Consent; Facsimile or Electronic Signatures****.* Any action required or permitted to be taken at a meeting may be taken without a meeting, without prior notice, and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the members of the Board of Directors, having not fewer than the minimum number of the members of the Board of Directors or votes that would be necessary to take the action at such a meeting. Any such consent may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. Furthermore, any written consent may be executed by the facsimile and/or electronic signature of any members of the Board of Directors and such facsimile and/or electronic signature shall be deemed an original for all purposes.

**ARTICLE V**

**Officers**

***Section* 5.1. *Number.*** The officers of the Corporation shall consist of the President and Secretary. The Board of Directors may by resolution designate CEO, Treasurer and such Vice Presidents, other officers, and assistant officers. Any two or more offices may be held by the same person.

***Section* 5.2. *Election; Term; Qualification.*** Officers shall be chosen by the Board of Directors at the Annual Meeting of the Directors and may be chosen at any other meeting of the Board of Directors. Each officer shall hold office until the next following Annual Meeting of Directors, or until his death, resignation, retirement or removal.

***Section* 5.3. *Removal.*** Any officer or agent elected or appointed by the Board of Directors may be removed by the Board of Directors at its pleasure, but such removal shall be without prejudice to other contract rights, if any, of the person so removed. Election or appointment of an officer or agent shall not of itself create any contract rights.

***Section* 5.4. *Vacancies.*** Any vacancy in any office for any cause may be filled by the Board of Directors at any meeting.

***Section* 5.5. *Duties.*** The officers of the Corporation shall have such powers and duties, except as modified by the Board of Directors, as generally pertain to their offices, respectively, as well as such powers and duties as from time to time shall be conferred by the Board of Directors and by these Bylaws.

***Section* 5.6. *The Chief Executive Officer.*** The Chief Executive Officer (if any) shall, subject to the control of the Board of Directors, have general supervision and control over all of the business, assets and affairs of the Corporation. All other officers shall report as directed by the Chief Executive Officer. In the absence of the Chairman of the Board (if any), the Chief Executive Officer shall perform all of the duties of the Chairman of the Board, and when so acting shall have all of the powers of, and be subject to all restrictions upon, the Chairman of the Board.

***Section* 5.7. *The President.*** The President shall, in the absence or disability of the Chief Executive Officer (if any), perform the duties and have the authority of the Chief Executive Officer and shall perform such other powers as the Board of Directors may from time to time prescribe or the Chief Executive Officer shall delegate.

***Section* 5.8. *The Chief Operating Officer.*** The Chief Operating Officer (if any) shall, in the absence or disability of the President, perform the duties and have the authority of the President and shall perform such other powers as the Board of Directors may from time to time prescribe or the President shall delegate.

***Section* 5.9. *Secretary.*** The Secretary shall: (a) keep the minutes of all meetings of the shareholders, of the Board of Directors, and of all committees of the Board of Directors, in one or more books provided for that purpose and shall distribute a copy of all such minutes to the members of the Board of Directors immediately on receipt thereof; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corporate records and of the seal of the Corporation and see that the seal of the Corporation is affixed to all documents the execution of which on behalf of the Corporation under its seal is duly authorized; (d) have general charge of the stock register, transfer books and stock ledgers, and such other books and papers as the Board of Directors may direct, of the Corporation, all of which shall, at all reasonable times, be open to the examination of any director, upon application at the office of the Corporation during business hours; and (e) in general perform all duties and exercise all powers incident to the office of the Secretary and such other duties and powers as the Board of Directors or the President from time to time may assign to or confer on him.

***Section* 5.10. *Treasurer.*** The Treasurer shall be legal custodian of all monies, notes, securities, and other valuables which may from time to time come into the possession of the Corporation and shall perform such other duties as these Bylaws may require or the Board of Directors may prescribe.

***Section* 5.11 *. Controller.*** The Controller, if any, shall keep complete and accurate books and records of account showing accurately at all times the financial condition of the Corporation. He shall furnish at meetings of the Board of Directors, or whenever requested, a statement of the financial condition of the Corporation, and shall perform such other duties as these Bylaws may require or the Board of Directors may prescribe.

***Section* 5.12. *The Vice Presidents.*** The Board of Directors may from time to time elect such Vice Presidents as the Board of Directors deems appropriate and assign thereto such general or specific powers, authority and responsibility as the Board of Directors deems appropriate. The Board of Directors may specify the order in which the Vice Presidents may act in the absence of the President. Any action taken by a Vice President in the performance of the duties of President shall be conclusive evidence of the absence of the President. The Vice Presidents shall perform such other duties as may, from time to time, be assigned to them by the Board of Directors or the President. A Vice President may also sign with the Secretary or an Assistant Secretary the certificates of stock of the Corporation.

***Section* 5.13. *Assistant Officers.*** Any Assistant Secretary, Assistant Treasurer or Assistant Controller appointed by the Board of Directors shall have power to perform, and shall perform, all duties incumbent upon the Secretary, the Treasurer or the Controller of the Corporation, respectively, subject to the general direction of such officers, and shall perform such other duties as these Bylaws may require or the Board of Directors may prescribe.

***Section* 5.14. *Salaries.*** The salaries or other compensation of the officers shall be fixed from time to time by the Board of Directors. No officer shall be prevented from receiving such salary or other compensation by reason of the fact that he is also a director of the Corporation.

***Section* 5.15. *Bonds of Officers.*** The Board of Directors may secure the fidelity of any or all of such officers by bond or otherwise, in such terms and with such surety or sureties, conditions, penalties or securities as shall be required by the Board of Directors.

***Section* 5.16. *Delegation.*** The Board of Directors may delegate temporarily the powers and duties of any officer of the Corporation, in case of his absence or for any other reason, to any other officer, and may authorize the delegation by any officer of the Corporation of any of his powers and duties to any agent or employee subject to the general supervision of such officer.

**ARTICLE VI**

**Transfer of Stock and Buy-Out of Shares**

***Section 6.1. Triggering Events.*** The Corporation shall be obligated to purchase, or cause a third party to purchase, all or a portion of the shares held by Robert Wagner ("Robert") and Maki Wagner ("Maki") (collectively, the "Employees") at Robert and Maki's option, upon the occurrence of any of the following events (each a "Triggering Event"). The intent of this Agreement is that Robert shall remain as Chief Executive Officer (CEO) and Maki shall remain as Vice President of the Corporation. If either Robert or Maki's position as an officer is terminated by the Corporation or either is otherwise unable to fulfill his or her obligations as officer, they shall have the option to require the Corporation to buy out their shares in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Termination of Officer Position Without Cause or Resignation for Good Reason** – If the Corporation
 terminates either Robert or Maki from his or her respective position as CEO or Vice President
 without cause, or either Robert or Maki resigns for good reason (constituting constructive
 discharge without cause), Robert and/or Maki shall have the option to require the Corporation
 to purchase all of their shares at the valuation plus 20%.

(b) **Inability to Fulfill Officer Obligations** – If either Robert or Maki becomes unable to fulfill
 their obligations as an officer for any reason, including permanent disability, Robert and/or
 Maki shall have the option to require the Corporation to purchase all of their shares at
 the valuation plus 20%.

(c) **Change in Control** – If a Change in Control (which means Daringate is no longer a majority
 shareholder of the Corporation) occurs, Robert and Maki shall have the option to:

● Participate in the transaction under the same terms as the majority shareholders (tag-along right); or

● Require the Corporation or the acquiring entity to buy out both Robert's and Maki's shares at the higher of (i) the negotiated buy-out price or (ii) the price per share paid in the Change in Control transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Death of Either Robert or Maki** – If either Robert or Maki passes away, their estate shall
 have the option to require the Corporation to buy out their shares at the valuation plus
 20%.

(e) **Expiration of CEO Term Without Renewal** – If Robert serves as CEO for the agreed term and is
 not offered an extension on terms better or substantially similar to the original employment
 agreement, Robert and/or Maki shall have the option to require the Corporation to purchase
 their shares at the valuation plus 20%.

(f) **Voluntary Resignation** – If Robert or Maki resigns voluntarily, the buy-out price shall be
 determined as follows:

● **After Two Years of Service:** The buy-out price shall be at full valuation.

● **Before Completing Two Years of Service:** The buy-out price shall be at a discount of **50% prorated over 24 months**, calculated on a monthly basis. By way of illustration, the discount shall be applied as follows:

○ If the resignation occurs after 12 months, the buy-out price shall be valuation minus 25% (i.e., half of the 50% discount).

○ If the resignation occurs after 18 months, the buy-out price shall be valuation minus 12.5%.

○ If the resignation occurs at or after 24 months, the buy-out price shall be at full valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Breach of Bylaws or Employment Agreement by the Corporation** – If the Corporation breaches
 any material provision of either these Bylaws and Robert's Employment Agreement, Robert
 and/or Maki shall have the option to trigger a buy-out at the valuation plus 20%.

***Section 6.2. Valuation of Shares.*** The purchase price for Robert's and Maki's shares shall be determined through the following multi-step process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Good Faith Negotiation** – The parties shall first negotiate in good faith to reach an
 agreed-upon buy-out price.

(b) **Independent Appraisals** – If the parties cannot reach an agreement, each party shall appoint
 a qualified, independent business appraiser within 30 days after the good faith negotiation
 fails. The appraisers shall conduct independent valuations and attempt to reach a consensus.

(c) **Splitting the Difference** – If the valuations provided by the two appraisers are within 20%
 of each other, the final buy-out price shall be the average of the two valuations.

(d) **Appointment of an Umpire (Tie-Breaker)** – If the difference between the two valuations exceeds
 20%, the two appraisers shall jointly appoint an independent umpire. The umpire shall review
 both valuations and determine the final buy-out price, which must be within the range of
 the two appraisals. The umpire's valuation shall be final and binding on the parties.

(e) **Premium Buy-Out Price** – The final valuation as determined under this section shall be increased
 by 20% for all applicable buy-outs, except for voluntary resignations under Section 1(f).

***Section 6.3. Payment Terms.*** The Corporation shall pay the buy-out price according to the following schedule:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **If the total buy-out price is less than $1,000,000** – The full amount shall be paid
 in a lump sum within 30 days of the valuation determination.

(b) **If the total buy-out price is $1,000,000 or more** –

● 50% of the total buy-out price shall be paid within 30 days of the valuation determination.

● The remaining 50% shall be paid in equal monthly installments over 12 months. **]** 

**Article VII**

**Miscellaneous**

***Section 7.1. Contracts.*** The Board of Directors may authorize any officer or officers, agent or agents, of the Corporation to enter into any contract or execute and deliver any instrument in the name of or on behalf of the Corporation, and such authority may be general or confined to specific instances; and, unless so authorized by the Board of Directors or by these Bylaws, no officer, agent or employee shall have any power or authority to bind the Corporation by any contract or engagement, or to pledge its credit or to render it liable pecuniarily for any purpose or to any amount.

***Section 7.2. Checks, Drafts, etc.*** All checks, drafts, or other orders for the payment of money, notes, or other evidence of indebtedness issued in the name of the Corporation shall be signed by such officers or employees of the Corporation as shall from time to time be authorized pursuant to these Bylaws or by resolution of the Board of Directors.

***Section 7.3. Depositories.*** All funds of the Corporation shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors may from time to time designate, upon such terms and conditions as shall be fixed by the Board of Directors. The Board of Directors may from time to time authorize the opening and keeping with any such depository as it may designate general and special bank accounts and may make such special rules and regulations with respect thereto, not inconsistent with the provisions of these Bylaws, as it may deem expedient.

***Section 7.4. Endorsement of Stock Certificates.*** Subject to the specific directions of the Board of Directors, any share or shares of stock issued by any corporation and owned by the Corporation (including reacquired shares of the Corporation) may, for sale or transfer, be endorsed in the name of the Corporation by Chief Executive Officer (if any), the President or any Vice President, and attested or witnessed by the Secretary or any Assistant Secretary either with or without affixing the corporate seal.

***Section 7.5. Voting of Shares Owned by the Corporation.*** Subject to the direction of the Board of Directors, the Chief Executive Officer (if any), the President, the Secretary and the Treasurer, or any of them, shall have the power and authority on behalf of the Corporation to attend and to vote and to grant proxies to be used at any meeting of shareholders of any corporation in which the Corporation may hold stock. The Board of Directors may confer like powers upon any other person or persons.

***Section 7.6. Resignations.*** Any director or officer may resign at any time. Such resignations shall be made in writing and shall take effect at the time specified therein, or, if no time be specified, at the time of its receipt by the Chairman of the Board (if any), President or Secretary. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation.

**Section *7.7****. **Indemnification of Officers and Directors.*** To the fullest extent permitted by law, the Corporation shall defend and indemnify any person from and against any judgment, penalty, fine, settlement and reasonable expenses incurred by him in connection with any threatened, pending or completed action, suit or proceeding in which such person is or is threatened to be made a party because he is or was serving as an officer or director of the Corporation or at the request of the Corporation as an officer, director, partner, venturer, proprietor, trustee, employee, agent or other functionary of another entity and (i) such person is wholly successful in the defense thereof, or (ii) it is determined in the manner required by law that such person conducted himself in good faith, reasonably believed that his conduct was in the best interest of the Corporation and had no reasonable cause to believe that his conduct was unlawful; provided, however, that no person shall be indemnified if such indemnity is prohibited by applicable law. Any such indemnification shall be reported in writing to the shareholders of the Corporation on or before the notice or waiver of notice of the next shareholders' meeting and in any event within twelve (12) months of the indemnification. The right of indemnification under this Section shall be in addition to any other rights to which such persons may be entitled and is intended to provide the broadest benefits permitted by law.

***Section 7.8. Corporate Seal.*** The Board of Directors may provide a suitable seal, containing the name of the Corporation. The Secretary shall have charge of the seal.

**ARTICLE VIII**

***Amendments***

 ****

***Section 8.1. Amendments.*** The shareholders by affirmative vote of 66% of the issued and outstanding shares entitled to vote may alter, amend or repeal these Bylaws or adopt amended and restated bylaws, without notice at any regular meeting, or if notice of the proposed amendment be contained in the notice of any special meeting.

Adopted by the Shareholders and the Directors effective as of the date set forth above.

Shareholders and Directors

---

| | |
|:---|:---|
| */s/ Robert Wagner* | */s/ Maki Wagner* |
| Robert Wagner | Maki Wagner |
| */s/ Hannah Wagner* |  |
| Hannah Wagner |  |

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## Exhibit 10.1

**Exhibit 10.1**

**Share Purchase Agreement**

This Share Purchase Agreement (hereinafter referred to as this "Agreement") is entered into as of March 10, 2025 (hereinafter referred to as "Effective Date") by and among Daringate Co., Ltd. (hereinafter referred to as "Daringate"), a company incorporated under the laws of Japan and having its registered address at Shinagawa Grand Central Tower, 2-16-3 Konan, Minato-ku, Tokyo 108-0075, Japan, Nufika LLC (hereinafter referred to as "Nufika" or "Koei US"), a limited liability company incorporated under the laws of State of Texas, U.S.A. and having its registered address at 23147 Treemont Park, San Antonio, Texas 78261, U.S.A., Robert Wagner, an individual having his registered address at 23147 Treemont Park, San Antonio, Texas 78261, U.S.A., Maki Wagner, an individual having her registered address at 23147 Treemont Park, San Antonio, Texas 78261, U.S.A., and Hannah Wagner, an individual having her registered address at 23147 Treemont Park, San Antonio, Texas 78261, U.S.A. (hereinafter, Robert Wagner, Maki Wagner and Hannah Wagner shall be collectively referred to as "Sellers").

The parties hereby agree as follows:

Article 1 (Sale and Purchase of Shares)

Subject to the terms and conditions of this Agreement, the Sellers shall collectively sell and transfer, and Daringate shall purchase and acquire, fifty-one percent (51%) of total outstanding shares in Nufika (hereinafter referred to as "Purchased Shares") at the time of Closing (as defined in Article 10), on the condition that Nufika has been converted from LLC to C-Corporation and has been renamed to "Koei US, Inc." (or a similar name agreed upon if the name "Koei US, Inc." is not available for registration) prior to the Closing. The Sellers agree to sell, assign, transfer, and deliver to Daringate, and Daringate agrees to purchase, the Purchased Shares on an "AS IS, WHERE IS" basis, **without any representation or warranty, express or implied, as to the condition, value, or any other aspect of the Purchased Shares**, except as expressly set forth in this Agreement. Daringate acknowledges and agrees that it has conducted its own due diligence and is not relying on any statements, representations, or warranties of the Sellers, whether oral or written, except as expressly provided in this Agreement.

Article 2 (Purchase Price)

Subject to the terms and conditions of this Agreement, in consideration of its purchase of the Purchased Shares, Daringate shall pay to the Sellers in the amount of one million U.S. dollars (USD 1,000,000) at the time of Closing by remitting such payment to the bank account separately designated by the Sellers. Once Daringate remits the purchase price to the designated bank account in accordance with the written instructions signed by all Sellers, Daringate's payment obligation shall be deemed fully satisfied. The Sellers shall be responsible for allocating among themselves the purchase price remitted by Daringate.

Article 3 (Shareholding Ratio after Closing)

---

| | |
|:---|:---|
| 1. | The parties acknowledge and agree that the shareholding ratios of shareholders in Koei US after the Closing shall be as follows: |
|  | Daringate: 51% |
|  | Robert Wagner: 39% |
|  | Maki Wagner: 10% |
| 2. | The parties acknowledge and agree that the shares in Koei US shall continue to be privately-held shares even after the Closing. |

---

Article 4 (Additional Funding by Daringate)

After the Closing, Daringate shall provide Koei US with additional funding necessary for Koei US to expand its business and for M&A of other businesses. The amount of additional funding to be provided by Daringate shall be separately determined and agreed by the parties.

Article 5 (Approvals and Filings in U.S.)

The Sellers represent and warrant that Nufika or its employee holds all necessary licenses and permits required to conduct its engineering consulting business as currently conducted.

Article 6 (Nufika Brand)

The parties acknowledge and agree that Koei US owns and continues after the Closing to own the "Nufika" brand and is entitled to (and/or will) do business by using the "Nufika" brand.

Article 7 (Directors and Officers of Koei US)

1. Chief Executive Officer (CEO)

(a) Even after Nufika becomes
 Koei US, Robert Wagner shall continue to serve as CEO and Principal Engineer of Koei US for 2025.

(b) Robert Wagner shall receive
 from Nufika (and Koei US after Nufika becomes Koei US) a biweekly compensation of five thousand US dollars (USD 5,000) (annual compensation
 of one hundred thirty thousand US dollars (USD 130,000)) for 2025. Compensation and benefits to be received by Robert Wagner from
 Koei US for 2026 shall be separately negotiated among Robert Wagner, Koei US and Daringate.

(c) Robert Wagner shall remain
 CEO of Koei US for a minimum of twenty-four (24) months after the Closing. The parties acknowledge that Robert Wagner has no intention
 of leaving Koei US after such 24-month period and intends to continue to serve as CEO of Koei US to grow Koei US's business
 organically as well as through M&A.

---

| | |
|:---|:---|
| 2. | Vice President |
| (a) | Even after Nufika becomes Koei US, Maki Wagner shall continue to serve as Vice President of Koei US for 2025. |
| (b) | Maki Wagner shall receive from Nufika (and Koei US after Nufika becomes Koei US) a biweekly compensation of one thousand four hundred US dollars (USD 1,400) (annual compensation of thirty-six thousand four hundred US dollars (USD 36,400)) for 2025. Compensation and benefits to be received by Maki Wagner from Koei US for 2026 shall be separately negotiated among Maki Wagner, Koei US and Daringate. |
| 3. | Chief Operating Officer (COO) |
|  | The parties acknowledge that Nufika intends to offer Bryan Jenkins the position of COO tentatively in mid-2025. |
| 4. | Board of Directors |
|  | After Nufika becomes Koei US, Robert Wagner, Maki Wagner, Hannah Wagner and Bryan Jenkins (tentative) shall have positions as directors of Koei US. |

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Article 8 (Domain Names)

The domain names set forth in Appendix A shall transfer to Koei US at or before the Closing.

Article 9 (Representations and Warranties)

1. Daringate represents and warrants to Nufika and Sellers that all of the statements set forth below are true and complete in all material respects as of the Effective Date, and will be true and complete in all material respects as of the Closing:

(a) Daringate is duly organized
 and validly existing under the laws of Japan and has full legal right, power and authority under the applicable law to assume, comply
 with and perform the obligations under this Agreement;

(b) the execution, delivery
 and performance of this Agreement neither constitute the nonperformance or breach of other contracts or agreements in which Daringate
 is a party nor violate any applicable laws or regulations or Daringate's articles of incorporation or internal regulations;
 and

(c) there is no lawsuit, arbitration
 or other legal proceeding before any court, tribunal or governmental authority of any jurisdiction pending or, to Daringate's
 best knowledge, threatened against Daringate which would adversely affect Daringate's ability to perform this Agreement.

2. Nufika represents and warrants to Daringate and Sellers that all of the statements set forth below are true and complete in all material respects as of the Effective Date, and will be true and complete in all material respects as of the Closing:

(a) Nufika is duly organized
 and validly existing under the laws of the State of Texas, U.S.A. and has full legal right, power and authority under the applicable
 law to assume, comply with and perform the obligations under this Agreement;

(b) the execution, delivery
 and performance of this Agreement neither constitute the nonperformance or breach of other contracts or agreements in which Nufika
 is a party nor violate any applicable laws or regulations or Nufika's certificate of formation or internal regulations;

(c) there is no lawsuit, arbitration
 or other legal proceeding before any court, tribunal or governmental authority of any jurisdiction pending or, to Nufika's
 best knowledge, threatened against Nufika which would adversely affect Nufika's ability to perform this Agreement;

(d) All books and records of
 Nufika have been properly kept and are up to date with true and accurate entries and
 records in all material respects;

(e) Nufika (i) has not become
 and is not at the risk of becoming insolvent, (ii) has not ceased and is not at the risk of ceasing to carry on its business, (iii)
 has not assigned and is not at the risk of assigning all or substantial portion of its assets to a third party for the benefit of
 its creditors, and (iv) has not petitioned, has not been petitioned and is not at the risk of petitioning or being petitioned for
 commencement of bankruptcy proceedings, corporate reorganization proceedings, civil rehabilitation proceedings or any other similar
 insolvency or rehabilitation proceedings; and

(f) All taxes with respect
 to Nufika which are due and payable have been paid, and there exist no delinquent taxes.

3. Each of the Sellers represents and warrants to Daringate and Nufika that all of the statements set forth below are true and complete in all material respects as of the Effective Date, and will be true and complete in all material respects as of the Closing:

(a) Each
 of the Sellers has full legal right, power and authority under the applicable law to assume, comply
 with and perform the obligations under this Agreement;

(b) the execution, delivery
 and performance of this Agreement neither constitute the nonperformance or breach of other contracts or agreements in which any of
 the Sellers is a party nor violate any applicable laws or regulations;

(c) there is no lawsuit, arbitration
 or other legal proceeding before any court, tribunal or governmental authority of any jurisdiction pending or, to each of the Sellers'
 best knowledge, threatened against the Sellers which would adversely affect Sellers' ability to perform this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Purchased
 Shares and any certificates representing the Purchased Shares are legally and beneficially
 owned by each of the Sellers and held by each of the Sellers, free and clear of any pledges, liens, mortgages, collaterals, or any
 other claims, encumbrances or security interests. Notwithstanding the foregoing, the certified stock transfer ledger or membership
 transfer ledger shall constitute conclusive evidence of ownership of shares or membership interests in Nufika or Koei US, notwithstanding
 the issuance of any certificate representing such shares or membership interests. No person shall be recognized as a shareholder
 or member of Nufika or Koei US unless such person is listed as such in the applicable ledger.

Article 10 (Closing)

Subject to the satisfaction of conditions set forth below, the closing for the sale of the Purchased Shares shall take place at 9:00 a.m. on March 10, 2025 (Japan time), which may be conducted remotely (e.g., Zoom, Microsoft Teams, etc.), unless another time, business day and/or place is agreed in writing by each of the parties (hereinafter referred to as "Closing"):

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| | |
|:---|:---|
| 1. | Conditions to be Satisfied by Daringate |
| (a) | Daringate's representations and warranties are satisfied and remain true and correct as of Closing; and |
| (b) | Daringate delivers to Nufika and Sellers at the time of Closing true, correct and complete copy of the resolution of board of directors (and resolution of shareholders if necessary) of Daringate approving and authorizing the execution, delivery and performance of this Agreement and the purchase of Purchased Shares. |
| 2. | Conditions to be Satisfied by Nufika |
| (a) | Nufika's representations and warranties are satisfied and remain true and correct as of Closing; and |
| (b) | Nufika delivers to Daringate and Sellers at the time of Closing true, correct and complete copy of the resolution of board of directors and resolution of shareholders if necessary (or an LLC equivalent) of Nufika approving and authorizing the execution, delivery and performance of this Agreement. |
| 3. | Conditions to be Satisfied by Each of Sellers |
| (a) | Each of the Sellers' representations and warranties are satisfied and remain true and correct as of the Closing; and |
| (b) | Each of Sellers delivers to Daringate the share certificates (if requested by Daringate), representing the Purchased Shares. |
| 4. | Government Approvals |
|  | The parties have obtained any and all necessary government approvals and have made any and all necessary filings to relevant government authorities to complete the sale and purchase as of the Closing. For clarification, Daringate shall be solely responsible for investigating the applicability of the Foreign Investment Risk Review Modernization Act of 2018 ("FIRRMA") and, if applicable, ensuring compliance with FIRRMA, including, but not limited to, any required filings with the Committee on Foreign Investment in the United States ("CFIUS"). Nufika and Sellers shall fully cooperate with Daringate on such investigation and compliance. |

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| | |
|:---|:---|
| 5. | Due Diligence |
|  | Due diligence on Nufika by Daringate is complete as of Closing. |
| 6. | Bylaws |
|  | Bylaws of Koei US are executed by the parties. After the Effective Date, the parties shall negotiate the contents of bylaws in good faith, and such bylaws shall include a tag-along provision and a buy-out provision governing the Sellers' shares, setting forth the triggering events, valuation methods, and other necessary terms – which is substantially the same as the buy-out provision attached hereto as Appendix B. |
| 7. | Employment Agreement with Robert Wagner |
|  | Koei US shall execute an employment agreement with Robert Wagner, which shall incorporate the terms set forth in Article 7, as well as a provision prohibiting Koei US to terminate Robert Wagner as CEO and Principal Engineer or demote him without cause for 24 months after the Closing. |

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Article 11 (Indemnification)

Each party (hereinafter referred to as "Indemnifying Party") shall indemnify, defend and hold harmless the other parties (hereinafter referred to as "Indemnified Parties") from and against any and all judgments, claims, suits, actions, liabilities, losses, damages, penalties, costs and expenses (including reasonable attorney's fees) in connection with (i) any breach by Indemnifying Party of any of its/his/her obligations under this Agreement, (ii) any violation of applicable laws and regulations by Indemnifying Party, or (iii) any negligence, gross negligence or willful misconduct of Indemnifying Party in connection with this Agreement.

Article 12 (Confidentiality)

1. Each of party
 shall keep strictly confidential and shall not disclose or divulge to any third party without the prior written consent of the disclosing
 party the existence and contents of this Agreement and any business or technical information obtained from any other party, which
 is clearly marked as confidential in case of tangible information or which is clearly indicated as confidential by the disclosing
 party at the time of disclosure and whose summary is provided in writing by the disclosing party to the receiving party within thirty
 (30) days of disclosure in case of intangible information including such information disclosed orally or visually (hereinafter collectively
 referred to as "Confidential Information"), for a period of five (5) years after its/his/her receipt of such Confidential
 Information; provided, however, that disclosure of such information shall be permitted to the extent necessary in case the disclosure
 is made to directors, officers, employees, attorneys or other professional advisors, agents, affiliates, or subsidiaries of the receiving
 party (hereinafter after collectively referred to as "Permitted Third Parties"), provided that the receiving party shall
 ensure that the Permitted Third Parties assumes the same level of confidential obligation as this Article 12 and shall be liable
 for any breach of such confidential obligation by any of such Permitted Third Parties.

2. The following information shall not fall under the Confidential Information described in Article 12.1 above:

(a) any information which at
 the time of disclosing party's disclosure to the receiving party was already in
 the public domain;

(b) any information which entered
 the public domain after the disclosing party's disclosure to the receiving party through no fault of receiving party;

(c) any information which was
 already in the lawful possession of the receiving party prior to the disclosing party's disclosure to the receiving party;

(d) any information which was
 disclosed to the receiving party by any third party with authority to make such disclosure; or

(e) any information which is
 required to be disclosed by law or government or court order (in which case the receiving party shall provide the disclosing party
 with a prior written notice or if prior written notice is not possible, a written notice immediately after such disclosure).

3. Receiving party
 may use and copy the Confidential Information of disclosing party for the sole purpose of performing its obligations under this Agreement.

4. Upon request from the disclosing
 party or upon termination of this Agreement, the receiving party shall return to the disclosing party or destroy any and all Confidential
 Information in accordance with the disclosing party's instructions. Notwithstanding the foregoing, the receiving party may
 retain copies of Confidential Information if (i) destruction is commercially infeasible, such as in the case of automatic backup
 or archival systems maintained in the ordinary course of business, or (ii) retention is required pursuant to a reasonable document
 retention policy, so long as the confidentiality of Confidential Information is maintained pursuant to this Agreement.

5. The receiving party hereby
 acknowledges and agrees that any breach of this Article 12 will cause the disclosing party immediate and irreparable harm and that
 the damages which the disclosing party will suffer may be difficult or impossible to measure. Therefore, upon any actual or impending
 breach of this Article 12, the disclosing party shall be entitled to the issuance of an injunction restraining or enjoining such
 breach by the receiving party or any entity or person acting in concert with the receiving party. This remedy shall be in addition
 to any other remedy which may otherwise be available to the disclosing party.

Article 13 (Termination)

1. Without prejudice
 to any other right or remedy available, Daringate may terminate this Agreement upon providing prior written notice to the other parties
 if Nufika or any of the Sellers (i) commits any material breach of this Agreement and fails to cure such breach within thirty (30)
 days after receipt of written notice from Daringate; (ii) becomes insolvent, ceases to carry on its/his/her business or assigns all
 or substantial portion of its assets to a third party for the benefit of its/his/her creditors; or (iii) petitions or is petitioned
 for commencement of bankruptcy proceedings, corporate reorganization proceedings, civil rehabilitation proceedings or any other similar
 insolvency or rehabilitation proceedings.

2. Without prejudice to any
 other right or remedy available, Nufika or any of the Sellers may terminate this Agreement upon providing prior written notice to
 Daringate if Daringate (i) commits any material breach of this Agreement and fails to cure such breach within thirty (30) days after
 receipt of written notice from Nufika or any of the Sellers; (ii) becomes insolvent, ceases to carry on its business or assigns all
 or substantial portion of its assets to a third party for the benefit of its creditors; or (iii) petitions or is petitioned for commencement
 of bankruptcy proceedings, corporate reorganization proceedings, civil rehabilitation proceedings or any other similar insolvency
 or rehabilitation proceedings.

Article 14 (Governing Law)

This Agreement shall be governed by and construed in accordance with the laws of State of Texas, U.S.A.

Article 15 (Dispute Resolution)

Any dispute in connection with this Agreement that the parties cannot settle amicably between themselves shall first be submitted to mandatory mediation before a mediator mutually agreed upon by the parties. The mediation shall be conducted in Houston, Texas, U.S.A., or remotely (e.g., Zoom, Microsoft Teams, etc.), in English within 30 days of a written request for mediation by any party. The mediation process shall be concluded within 30 days of the initial session unless extended by mutual agreement. The costs of mediation shall be shared equally between the parties. If the dispute remains unresolved after mediation, either party may submit the dispute to binding arbitration conducted in English in Tokyo, Japan, in accordance with the arbitration rules of the Japan Commercial Arbitration Association. The decision and award of such arbitration shall be final and binding and shall be enforceable in any court of competent jurisdiction.

Article 16 (Miscellaneous Provisions)

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| | |
|:---|:---|
| 1. | Entire Agreement |
|  | This Agreement sets forth the entire agreement and understanding among the parties as to the subject matter hereof and supersedes all prior discussions, agreements and understandings of any nature whatsoever. |
| 2. | Assignment |
|  | None of the parties may assign to any third party, create any security interest in favor of any third party nor otherwise dispose of its/his/her contractual position, rights or obligations under this Agreement without the written consents of all other parties. |
| 3. | Amendment |
|  | This Agreement may not be amended without the prior written agreement among the parties. |
| 4. | Notice |
| (a) | All notices and other communications to be given in connection with this Agreement shall be made by facsimile or by e-mail and shall be addressed to the receiving party at the contact information provided below unless the receiving party changes its/his/her contact information by notice in accordance with this Article 16.4. |

---

Daringate:

Fax: +81-45-785-1134

E-mail: contact-us@koei-j.co.jp

Nufika:

Fax: N.A.

E-mail: contact@nufika.com

Robert Wagner:

Fax: N.A.

E-mail: robert.wagner@nufika.com

Maki Wagner:

Fax: N.A.

E-mail: maki.wagner@nufika.com

Hannah Wagner:

Fax: N.A.

E-mail: hannah.wagner@nufika.com

(b) Notices and communications mentioned above shall be deemed to have been received by the receiving party at the time of actual receipt by the intended receiving party when made by facsimile or e-mail, with commercially acceptable proof of receipt or delivery. The following shall constitute commercially acceptable proof of receipt or delivery:

(a) For facsimile notifications,
 the fax receipt generated by the sender's facsimile machine.

(b) For e-mail notifications,
 the recipient's affirmative acknowledgment of receipt or response, provided that automatically generated delivery receipts
 or read receipts shall not constitute commercially acceptable proof of receipt.

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| | |
|:---|:---|
| 5. | Succession |
|  | This Agreement and the terms and conditions contained in this Agreement shall apply to and are binding upon each party's successors, assigns, executors, administrators and beneficiaries. |
| 6. | Waiver |
|  | Any failure by either party to exercise any right provided in this Agreement or to protest any breach of this Agreement by the other party shall not be deemed to be a waiver of such party's right to exercise the said right or to protest the said breach. |
| 7. | Severability |
|  | Any provisions of this Agreement which are invalid or unenforceable shall have no influence upon the validity or enforceability of the remaining provisions of this Agreement. |

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[Remainder of this page is intentionally left blank]

IN WITNESS WHEREOF, the parties have executed this Agreement in quintuplet, with each party retaining one (1) counterpart.

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| | |
|:---|:---|
| Daringate Co., Ltd. | Daringate Co., Ltd. |
| By: | */s/ Mamoru Iwamoto* |
| Mamoru Iwamoto | Mamoru Iwamoto |
| Chief Executive Officer | Chief Executive Officer |
| Nufika LLC | Nufika LLC |
| By: | */s/ Robert Wagner* |
| Robert Wagner, CEO | Robert Wagner, CEO |
| Robert Wagner: | Robert Wagner: |
| By: | */s/ Robert Wagner* |
| Maki Wagner: | Maki Wagner: |
| By: | */s/ Maki Wagner* |
| Hannah Wagner: | Hannah Wagner: |
| By: | */s/ Hannah Wagner* |

---

**Appendix A**

<u>**Domain Names**</u>

1. <u>www.koei-</u> <u>us.com</u> 

2. <u>www.nufika.com</u> 

3. <u>www.arcflashprogram.com</u> 

4. <u>www.countrymaam.com</u> 

5. <u>www.electricalsafety.us</u> 

6. <u>www.electricalsafetyuniverse.com</u> 

7. <u>www.electricalsafetyuniversity.com</u> 

8. <u>www.electricalsafetyuniversity.org</u> 

9. <u>www.fikanu.com</u> 

10. <u>www.otuniversity.com</u> 

11. <u>www.otuniversity.org</u> 

12. <u>www.refinedtruth.com</u> 

13. <u>www.werecycleelectronics.com</u> 

Appendix B

**Buy-Out of Employees' Shares**

**1. Triggering Events**

The Company shall be obligated to purchase, or cause a third party to purchase, all or a portion of the shares held by Robert Wagner ("Robert") and Maki Wagner ("Maki") (collectively, the "Employees") at Robert and Maki's option, upon the occurrence of any of the following events (each a "Triggering Event"). The intent of this Agreement is that Robert shall remain as Chief Executive Officer (CEO) and Maki shall remain as Vice President of the Company. If either Robert or Maki's position as an officer is terminated by the Company or either is otherwise unable to fulfill his or her obligations as officer, they shall have the option to require the Company to buy out their shares in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Termination of Officer Position Without Cause or Resignation for Good Reason** – If the Company terminates either Robert or Maki from
 his or her respective position as CEO or Vice President without cause, or either Robert or Maki resigns for good reason (constituting
 constructive discharge without cause), Robert and/or Maki shall have the option to require the Company to purchase all of their shares
 at the valuation plus 20%.

(b) **Inability to Fulfill Officer Obligations** – If either Robert or Maki becomes unable to fulfill their obligations
 as an officer for any reason, including permanent disability, Robert and/or Maki shall have the option to require the Company
 to purchase all of their shares at the valuation plus 20%.

(c) **Change in Control** –
 If a Change in Control (which means Daringate is no longer a majority shareholder of the Company) occurs, Robert and Maki shall have
 the option to:

● Participate in the transaction under the same terms as the majority shareholders (tag- along right); or

● Require the Company or the acquiring entity to buy out both Robert's and Maki's shares at the higher of (i) the negotiated buy-out price or (ii) the price per share paid in the Change in Control transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Death of Either Robert or Maki** – If either Robert or Maki passes away, their estate shall have the option to require the Company
 to buy out their shares at the valuation plus 20%.

(e) **Expiration of CEO Term Without Renewal** – If Robert serves as CEO for the agreed term and is not offered an extension on terms better or substantially
 similar to the original employment agreement, Robert and/or Maki shall have the option to require the Company to purchase their shares
 at the valuation plus 20%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Voluntary Resignation** – If Robert or Maki resigns voluntarily, the buy-out price shall be determined as follows:

● **After Two Years of Service:** The buy-out price shall be at full valuation.

● **Before Completing Two Years of Service:** The buy-out price shall be at a discount of **50% prorated over 24 months**, calculated on a monthly basis. By way of illustration, the discount shall be applied as follows:

○ If the resignation occurs after 12 months, the buy-out price shall be valuation minus 25% (i.e., half of the 50% discount).

○ If the resignation occurs after 18 months, the buy-out price shall be valuation minus 12.5%.

○ If the resignation occurs at or after 24 months, the buy-out price shall be at full valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Breach of Bylaws or Employment Agreement by the Company** – If the Company breaches any material
 provision of either the Company Bylaws and Robert's Employment Agreement, Robert and/or Maki shall have the option to
 trigger a buy-out at the valuation plus 20%.

2. Valuation of Shares

The purchase price for Robert's and Maki's shares shall be determined through the following multi-step process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Good Faith Negotiation** – The parties shall first negotiate in good faith to reach an agreed-upon buy-out price.

(b) **Independent Appraisals** – If the parties cannot reach an agreement, each party shall appoint a qualified, independent business appraiser within
 30 days after the good faith negotiation fails. The appraisers shall conduct independent valuations and attempt to reach a consensus.

(c) **Splitting the Difference** – If the valuations provided by the two appraisers are within 20% of each other, the final buy-out price shall be the average
 of the two valuations.

(d) **Appointment of an Umpire (Tie-Breaker)** – If the difference between the two valuations exceeds 20%, the two appraisers shall jointly appoint an independent
 umpire. The umpire shall review both valuations and determine the final buy-out price, which must be within the range of the two
 appraisals. The umpire's valuation shall be final and binding on the parties.

(e) **Premium Buy-Out Price** – The final valuation as determined under this section shall be increased by 20% for all applicable buy-outs, except for voluntary
 resignations under Section 1(f).

3. Payment Terms

The Company shall pay the buy-out price according to the following schedule:

(a) **If the total buy-out price is less than $1,000,000** – The full amount shall be paid in a lump sum within 30 days of the valuation determination.

(b) **If the total buy-out price is $1,000,000 or more** –

● 50% of the total buy-out price shall be paid within 30 days of the valuation determination.

● The remaining 50% shall be paid in equal monthly installments over 12 months.

## Exhibit 10.2

**Exhibit 10.2**

**<u>Service Agreement</u>**

Dated as of April 11, 2024

This Service Agreement ("**Agreement**") is made and entered into as of the date first set forth above (the "**Effective Date**"), by and between Koei Shoji Co., Ltd., a Japanese Corporation (the "**Company**") and HeartCore Enterprises, Inc., a Delaware corporation ("**PMO**"). Each of the Company and PMO may be referred to herein individually as a "**Party**" and collectively as the "**Parties**."

**WHEREAS**, PMO desires to provide certain project management office services to the Company in accordance with the terms and conditions contained hereinafter; and

**WHEREAS**, the Company deems it to be in its best interest to retain PMO to render to the Company such services as may be needed in connection with a contemplated initial public offering of its stock in the United States or a merger or other similar transaction with a special purpose acquisition company (including, without limitation, a case where the Company becomes a subsidiary of such entity) or other transaction pursuant to which the Company or its affiliated company becomes a publicly traded company in the United States (each, the "**Transaction**"); and

**WHEREAS**, the Parties agree, after having a complete understanding of the services desired and the services to be provided, that the Company desires to retain PMO to provide such assistance through its services for the Company, and PMO is willing to provide such services to the Company;

**NOW, THEREFORE**, in consideration of the mutual promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

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| | |
|:---|:---|
| Section 1. | **<u>Engagement</u>.** |

---

In exchange for the compensation as set forth herein and subject to the other terms and conditions hereinafter set forth, the Company hereby engages PMO during the Term (as defined below), on an exclusive basis (i.e, no other service providers of the same type shall be appointed by the Company), to render the Services set forth in Section 2 as an independent contractor of the Company, and PMO hereby accepts such engagement.

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| | |
|:---|:---|
| Section 2. | **<u>Obligation of the Parties</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the terms and conditions herein and for the Term, the Parties shall perform the obligations
 defined in Appendix 1 (Obligation of the Parties), including, without limitation, the provision
 of the services to the Company by PMO (the "**Services** "). The Appendices
 referred to herein shall be construed with, and as an integral part of, this Agreement to
 the same extent as if they were set forth verbatim herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the definition of the "Services" as set forth above, it is acknowledged and agreed
 by the Company that PMO carries no professional licenses, and is not rendering legal advice
 or performing accounting services, nor acting as an investment advisor or broker/dealer within
 the meaning of the applicable state and federal securities laws. It is also acknowledged
 and agreed by the Company that it is the Company's responsibility to obtain necessary
 professional advice, including but not limited to legal, accounting and tax from
respective professional for any document or paperwork created, filed, signed and/or submitted in connection with the Company's
initial public offering, as well as any actions to be taken by the Company in connection with the Company's initial public offering;
and there is no guarantee that the results desired by the Company will be achieved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Company acknowledges that the Services of PMO shall not be dedicated or full-time staff nor
 shall PMO be required to render any specific number of hours or assign specific personnel
 to the Company or its projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 the definition of the "Services" as set forth above, the Company acknowledges
 and agree that the PMO will specifically not provide any of the following services to the
 Company: (i) negotiation for the sale of any the Company's securities or participation
 in discussions between the Company and the potential investors; (ii) assisting in structuring
 any transactions involving the sale of the Company's securities; (iii) engagement in
 any pre-screening of potential investors to determine their eligibility to purchase any securities
 or engaging in any pre-selling efforts for the Company's securities; (iv)
discussing details of the nature of the securities sold or whether recommendations were made concerning the sale of the securities; (v)
engagement in due diligence activities; (vi) providing advice relating to the valuation of or the financial advisability of any investments
in the Company; (vii) handling any funds or securities on behalf of the Company; (viii) assisting in organizational restructuring of
the Company; or (ix) other operations that require special licenses, permits or approvals from government authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Even
 if PMO will use its reasonable efforts to provide the Services using the its professional
 skills and in a manner consistent with generally accepted standards for the performance of
 such work, PMO does not guarantee correctness of its advice, accuracy of its work, and any
 results desired by the company to be achieved. It is acknowledged and agreed by the Company
 that accuracy of the document, figures or explanation shall be responsible by the Company
 and any decision shall be made in the Company's own responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Company acknowledges that PMO is engaged in other business activities, and that it will continue
 such activities during the term of this Agreement. PMO shall not be restricted from engaging
 in other business activities during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Ownership
 of deliverables provided by PMO shall belong to the Company save for the deliverables that
 PMO claims ownership. The Company may not use any deliverable, or any material provided by
 PMO for the purpose other than initial public offering unless prior consent with PMO.

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| | |
|:---|:---|
| Section 3. | **<u>Force Majeure</u>** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither
 party is liable for delay or failure to perform any of its obligations due to the case defined
 in Section 3(b)(ⅰ) and/or (ⅱ).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 case of force majeure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) war,
 invasion, act of foreign enemies, act of public enemies, rebellion, insurrection, military
 or usurped power, civil war, riot, mobilization, act of God, fire, lightning, storm,
tempest, flood, bursting or overflowing of water, earthquake, natural disaster, epidemic, explosion, shortage of transport, general shortage
of material, strike, industrial action, arrest or restraint or princes, rulers or people, seizure under legal process, embargo, requisition,
hostilities, quarantine restrictions, restriction in the use of power, perils of the seas, pirates, assailing thieves, currency restrictions;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) legal
 amendment in both Japan and/or the US, revision of OECD BEPS policy, tax rate change in both
 Japan and/or the US, revision of SEC regulations, revision of general accounting principles
 in both Japan and/or US, internal rules' revisions of any related party, including,
 but not limited to, PMO, the Company, stock exchange, underwriter, auditor, law firm, bank,
 and any other cause of any kind whatsoever beyond the control of PMO.

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| | |
|:---|:---|
| Section 4. | **<u>Term; Termination</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 term of this Agreement shall commence on the Effective Date and shall continue until the
 earlier of (i) three (3) years from the Effective Date and (ii) two (2) years later from
 the date on which the stock of the Company or any successor or resulting entity in the Transaction
 commences trading in the United States (as applicable, the "**Term** "), unless
 sooner terminated in accordance with the terms herein. The Term may be renewed upon the mutual
 written agreement of the Parties via an amendment of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Term will be split into the following three phases as defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Solving
 the existing issues of the Company ()"**Phase 1** ")"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This
 term shall be two months from the Effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Preparation
 for NASDAQ or NYSE American listing ()"**Phase 2** ")"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This
 term shall be six months after Phase 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Actual
 duration might be extended subject to the progress for the preparation of NASDAQ or NYSE
 American listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Once
 the Phase 2 were extended to more than 8 months, the provisions of Section 4 and Section
 5 might be amended by mutual written consent by the Parties if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Once
 either Party requests the other Party to suspend this Agreement, the provisions of Section
 4 and Section 5 might be amended by mutual written consent by the Parties if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) After
 NASDAQ or NYSE American listing ()"**Phase 3** ")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This
 term shall be the remaining durations of the Term other than Phase 1 and Phase 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Procedures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This
 Agreement and the Term may be terminated by either Party upon one-month written notice to
 the other Party, with payment defined in Appendix 2 if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) However,
 if either Party engages anti-social force activities, the other Party shall terminate this
 Agreement without written notice immediately. If so, the other Party shall pay the compensation
 defined in Appendix 2 if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 the termination or expiration of the Term, the Parties shall have no further obligations
 other than the duty of confidentiality hereunder, obligations for compensation under Section
5 that have not yet been fulfilled, and those which arose prior to such termination or which are explicitly set forth herein as surviving
any such termination or expiration.

---

| | |
|:---|:---|
| Section 5. | **<u>Compensation and Expenses</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 full and complete compensation for PMO's agreement with respect to the Services, the
 Company shall compensate PMO as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For
 Phase 1 and Phase 2, the Company shall pay to the PMO the sum of $500,000 (the "**Services Fee** "). The billing schedule of the Services Fee shall be defined in Appendix 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For
 Phase 3, in return for the Company's NADAQ listing, the Company shall issue, and PMO
 shall be entitled to receive, a warrant to acquire a number of shares of capital stock of
 the entity designated by PMO from among the Company and its affiliated company becoming a
 publicly traded company, by executing a warrant substantially in the form as attached hereto
 as Appendix 3 (the "**Warrant** "), which may be revised by mutual agreement
 between the Parties to change the issuing entity from Company to another entity. The total
 amount of such shares shall be an amount equal to 3% of the fully diluted share capital of
 the Company as of Effective Date; provided, however, that the number of such shares may be
 adjusted subject to the Warrant. The right to receive Warrant shall be deemed fully earned
 and vested as of the Effective Date. The Warrant shall be issued within 15 days upon establishment
 of a holding entity of the Company. Specific terms and conditions and other details of the
 Warrant's issuance shall be set forth in Appendix 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In
 the event of termination of this Agreement and the Term, the Company shall pay the amount
 that shall be calculated on a pro rata basis for the number of months lapsed in each period
 as defined in Appendix 2. PMO shall not be subject to repayment of the compensation, including
 the Services Fee, to the Company in any event of termination or expiration of the Term and/or
 this Agreement. However, this is not intended to prevent the Company from claiming damages
 against PMO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If
 this Agreement is suspended, the provisions above should be applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During
 the Term of the Agreement the Company will reimburse the PMO's travel and other reasonable
 expenses related to PMO's performance under this Agreement, on a monthly basis, within
 30 days of PMO's submission to Company of invoices and receipts related to said expenses
 in form as reasonably acceptable to the Company. However, if the cumulative amount of reimbursement
 exceeds ¥500,000, PMO shall obtain Company's prior approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) PMO
 shall be responsible for any and all taxes incurred by or payable by PMO with respect to
 all compensation or reimbursement of expenses or any other payments made to PMO hereunder.
 In furtherance thereof, PMO shall pay to the Company, or make arrangements satisfactory to
 the Company regarding the payment of, all federal, state, local and foreign taxes that are
 required by applicable laws and regulations to be withheld by the Company with respect to
 such amount.

---

| | |
|:---|:---|
| Section 6. | **<u>No Employee Status</u>.** |

---

The Parties also acknowledge and agree that PMO is an independent contractor and is not an employee or agent of Company in its position as a consultant and advisor. As such, Company shall not be liable for any employment tax, withholding tax, social security tax, worker's compensation or any other tax, insurance, expense or liability with respect to any or all compensation, reimbursements and remuneration PMO may receive hereunder, all of which shall be the sole responsibility of PMO. PMO is solely responsible for the reporting and payment of, all pertinent federal, state, or local self-employment or income taxes, licensing fees, or any other taxes or assessments levied by governmental authorities, as well as for all other liabilities or payments related to those services. The Parties also acknowledge and agree that PMO is not a licensed securities broker or salesperson, and that PMO will not be participating in, nor compensated for, any unlicensed securities sales activities other than those permitted under any of the exemptions set forth in applicable securities laws.

---

| | |
|:---|:---|
| Section 7. | **<u>Relationship of the Parties</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) PMO
 is retained by the Company only for the purposes of and to the extent set forth in this Agreement,
 and PMO' relation to the Company during the period of its engagement hereunder shall
 be that of an independent contractor. PMO shall not, nor, as applicable, shall any of its
 agents, have employee status with the Company or be entitled to participate in any plans,
 arrangements or distributions by the Company pertaining to or in connection with any pension,
 stock, bonus, profit-sharing or similar benefits as may be available to the Company's
 employees. PMO shall be responsible for the reporting and payment of all income and self-employment
 taxes for all compensation paid to PMO hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This
 Agreement does not create a relationship of principal and agent, joint venture, partnership
 or employment between the Company and PMO. PMO' engagement hereunder is not a franchise
 or business opportunity. Neither Party shall be liable for any obligations incurred by the
 other except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) PMO
 shall not have authority to enter into contracts binding the Company or to create any obligations
 or incur liabilities on behalf of the Company. PMO shall not act or represent himself, directly
 or by implication, as an agent of the Company with any authority other than as set forth
 expressly in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 person hired by PMO shall be the employee of PMO and not of the Company, and all compensation,
 payroll taxes, facilities and related expenses for any such employee shall be the sole responsibility
 of PMO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) PMO
 acknowledges that it is not an officer, director or agent of Company, it is not, and will
 not, be responsible for any management decisions on behalf of Company, and may not commit
 Company to any action. Company represents that PMO does not have, through stock ownership
 or otherwise, the power neither to control Company, nor to exercise any dominating influences
 over its management.

---

| | |
|:---|:---|
| Section 8. | **<u>Representations and Warranties</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties of the Company</u>. Company represents and warrants hereunder
that this Agreement and the transactions contemplated hereunder have been duly and validly authorized by all requisite corporate action;
that Company has the full right, power and capacity to execute, deliver and perform its obligations hereunder; and that this Agreement,
upon execution and delivery of the same by Company, will represent the valid and binding obligation of Company enforceable in accordance
with its terms, subject to the application of bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors' rights generally and general principles of equity, regardless of whether enforceability is considered
in a proceeding at law or in equity (the "Enforceability Exceptions"). The representations and warranties set forth herein
shall survive the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Representations and Warranties of PMO.</u> PMO represents and warrants hereunder that this Agreement and
 the transactions contemplated hereunder have been duly and validly authorized by all requisite
 action; that PMO has the full right, power and capacity to execute, deliver and perform its
 obligations hereunder; and that this Agreement, upon execution and delivery of the same by
 PMO, will represent the valid and binding obligation of PMO enforceable in accordance with
 its terms, subject to the Enforceability Exceptions. PMO represents and warrants that all
 personnel or agents of PMO who perform any activities on behalf of the Company hereunder
 or otherwise are legally authorized and permitted to work in the United States and for the
 benefit of the Company hereunder. The representations and warranties set forth herein shall
 survive the termination or expiration of this Agreement.

---

| | |
|:---|:---|
| Section 9. | **<u>Indemnification</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 the event PMO is subject to any action, claim or proceeding resulting from the Company's
 business, contemplated initial public offering, or subsequent operations, the Company agrees
 to indemnify and hold harmless PMO from any such action, claim or proceeding. However, this
 does not apply if such action, claim or proceeding are resulting from willful misconduct
 or gross negligence by PMO. Indemnification shall include all fees, costs and reasonable
 attorneys' fees that PMO may incur. In claiming indemnification hereunder, PMO shall
 promptly provide the Company written notice of any claim that PMO reasonably believes falls
 within the scope of this Agreement. PMO may, at its expense, assist in the defense if it
 so chooses, provided that the Company shall control such defense, and all negotiations relative
 to the settlement of any such claim. Any settlement intended to bind PMO shall not be final
 without PMO's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 liability of PMO and its officers, directors, controlling persons, employees or agents shall
 not exceed the amount of the Services Fee actually paid to PMO by the Company pursuant this
 Agreement.

---

| | |
|:---|:---|
| Section 10. | **<u>Confidentiality</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Confidential Information** 

For purposes of this Agreement, and except as provided below, "Confidential Information" of the Company shall mean any confidential, proprietary or trade secret information, data or know-how which relates to the business, research, services, products, customers, suppliers, employees, or financial information of the Company, including, but not limited to, product or service specifications, designs, drawings, protypes, computer programs, models, business plans, marketing plans, financial data, financial statements, financial forecasts and statistical information, in each that is marked as confidential, proprietary or secret, or with an alternate legend or making indicating the confidentiality thereof or which, from the nature thereof should reasonably be expected to be confidential or proprietary, and any other Material Non-Public Information (as defined below), in each case which is disclosed by the Company or on its behalf, before or after the date hereof, to the Recipient either in writing, orally, by inspection or in any other form or medium. Any technical or business information of a third person furnished or disclosed shall be deemed "Confidential information" of the Company unless otherwise specifically indicated in writing to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Material Non-Public Information** 

For purposes of this Agreement, and except as provided below, "Material Non-Public Information" shall mean any information obtained by the Recipient hereunder, whether otherwise constituting Confidential Information or not, with respect to which there is substantial likelihood that a reasonable investor would consider such information important or valuable in making any of his, her or its investment decisions or recommendations to others with respect to the Company or any of its equity securities or debt, or any derivatives thereof, or information that is reasonably certain to have a substantial effect on the price of the Company's securities or debt, or any derivatives thereof, whether positive or negative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Restrictions** 

The Recipient agrees to use the Confidential Information only for the Purpose and shall use reasonable care not to disclose Confidential Information to any non-affiliated third party, such care to be at least equal to the care exercised by Recipient as to its own Confidential Information, which standard of care shall not be less than the current industry standard in effect as of the date of such receipt. Recipient agrees that it shall make disclosure of any such Confidential Information only to employees (including temporary and leased employees subject to a confidentiality obligation), officers, directors, attorneys, shareholders, investors and wholly owned subsidiaries (collectively, "Representatives"), to whom disclosure is reasonably necessary for the Purpose. Recipient shall appropriately notify such Representatives that the disclosure is made in confidence and shall be kept in confidence in accordance with this Agreement. Recipient shall be responsible for the failure of its Representatives to comply with the terms of this Agreement.

---

| | |
|:---|:---|
| Section 11. | **<u>Miscellaneous.</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>.
 All notices under this Agreement shall be in writing. Notices may be served by certified
 or registered mail, postage paid with return receipt requested; by private courier, prepaid;
 by other reliable form of electronic communication; or personally. Mailed notices shall be
 deemed delivered five (5) days after mailing, properly addressed. Couriered notices shall
 be deemed delivered on the date that the courier warrants that delivery will occur. Electronic
 communication notices shall be deemed delivered when receipt is either confirmed by confirming
 transmission equipment or acknowledged by the addressee or its office. Personal delivery
 shall be effective when accomplished. Any Party may change its address by giving notice,
 in writing, stating its new address, to the other Party. Subject to the forgoing, notices
 shall be sent as follows:

If to the PMO:

HeartCore Enterprises, Inc.

Attn: Sumitaka Yamamoto

848 Jordan Ave. Apt G

Los Altos CA 94022

Email: kanno@heartcore.co.jp

With a copy, which shall not constitute notice, to:

Anthony L.G., PLLC

Attn: John Cacomanolis

625 N. Flagler Drive, Suite 600

West Palm Beach, FL 33401

Email: JCacomanolis@anthonypllc.com

If to the Company, to:

Koei Shoji Co., Ltd.

Attn: Mamoru Iwamoto

1-13-3, Fukuura, Kanawza-ku, Yokohama City

Kanagawa, 236-0004

Email: iwamoto@koei-j.co.jp

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Accuracy of Statements</u>. Each Party represents and warrants that no representation or warranty
 contained in this Agreement, and no statement delivered or information supplied to the other
 Party pursuant hereto, contains an untrue statement of material fact or omits to state a
 material fact necessary in order to make the statements or information contained herein or
 therein not misleading. The representations and warranties made in this Agreement will be
 continued and will remain true and complete in all material respects and will survive the
 execution of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Entire Agreement</u>. This Agreement sets forth all the promises, covenants, agreements, conditions
 and understandings between the Parties, and supersedes all prior and contemporaneous agreements,
 understandings, inducements or conditions, expressed or implied, oral or written, except
 as herein or therein contained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Survival</u>.
 The provisions of Section 9 and Section 10 of this Agreement, and any additional provisions
 as required to effect any of such Sections, shall survive any termination or expiration hereof,
 and provided that no expiration or termination of this Agreement shall excuse a Party for
 any liability for obligations arising prior to such expiration or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Binding Effect; Assignment</u>. This Agreement shall be binding upon and shall inure to the benefit
 of the Parties and their respective successors and permitted assigns. No Party shall have
 any power or any right to assign or transfer, in whole or in part, this Agreement, or any
 of its rights or any of its obligations hereunder, including, without limitation, any right
 to pursue any claim for damages pursuant to this Agreement or the transactions contemplated
 herein, or to pursue any claim for any breach or default of this Agreement, or any right
 arising from the purported assignor's due performance of its obligations hereunder,
without the prior written consent of the other Party and any such purported assignment in contravention of the provisions herein shall
be null and void and of no force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment</u>.
 The Parties hereby irrevocably agree that no attempted amendment, modification, termination,
 discharge or change (collectively, "Amendment") of this Agreement shall be valid
 and effective, unless the Parties shall unanimously agree in writing to such Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Waiver</u>. No waiver of any provision of this Agreement shall be effective unless it is
 in writing and signed by the Party against whom it is asserted, and any such written waiver
 shall only be applicable to the specific instance to which it relates and shall not be deemed
 to be a continuing or future waiver. No failure to exercise and no delay in exercising on
 the part of either of the Parties any right, power or privilege under this Agreement shall
 operate as a waiver of it, nor shall any single or partial exercise of any other right, power
 or privilege preclude any other or further exercise of its exercise of any other right, power
 or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Gender and Use of Singular and Plural</u>. All pronouns shall be deemed to refer to the masculine,
 feminine, neuter, singular or plural, as the identity of the Party or Parties, or their personal
 representatives, successors and assigns may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Headings</u>.
 The article and section headings contained in this Agreement are inserted for convenience
 only and shall not affect in any way the meaning or interpretation of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Governing Law; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This
 Agreement, and all matters based upon, arising out of or relating in any way to the Transaction,
 including all disputes, claims or causes of action arising out of or relating to the Transaction
 as well as the interpretation, construction, performance and enforcement of the Transaction,
 shall be governed by the laws of Japan, without regard to any jurisdiction's conflict-of-laws
 principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ANY
 CONTROVERSIES, DISPUTES, LEGAL SUIT, ACTION OR PROCEEDING, BETWEEN THE PARTIES INCLUDING
 THEIR RESPECTIVE AFFILIATES, OWNERS, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES, ARISING OUT
 OF, BASED UPON, OR RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS (WHETHER
 BASED ON CONTRACT, TORT OR ANY OTHER THEORY) SHALL BE INSTITUTED AND ADJUDICATED SOLELY IN
 TOKYO DISTRICT COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each
 of the Parties acknowledge that each has been represented in connection with the signing
 of this agreement by independent legal counsel selected by the respective Party and that
 such Party has discussed the legal consequences and import of this agreement with legal counsel.
 Each of the Parties further acknowledge that each has read and understands the meaning of
 this agreement and grants this agreement knowingly, voluntarily, without duress and only
 after consideration
of the consequences of this agreement with legal counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability; Expenses; Further Assurances</u>. If any term, condition or other provision of this Agreement
 is determined by a court of competent jurisdiction to be invalid, illegal or incapable of
 being enforced by any rule of law or public policy, all other terms, conditions and provisions
 of this Agreement shall nevertheless remain in full force and effect so long as the economic
 or legal substance of the transactions contemplated by this Agreement is not affected in
 any manner materially adverse to any Party. Upon such determination that any term or other
 provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate
 in good faith to modify this Agreement so as to effect the original intent of the Parties
 as closely as possible in a mutually acceptable manner in order that the transactions contemplated
 by this Agreement be consummated as originally contemplated to the fullest extent possible.
 Except as otherwise specifically provided in this Agreement, each Party shall be responsible
 for the expenses it may incur in connection with the negotiation, preparation, execution,
 delivery, performance and enforcement of this Agreement. The Parties shall from time to time
 do and perform any additional acts and execute and deliver any additional documents and instruments
 that may be required by Law or reasonably requested by any Party to establish, maintain or
 protect its rights and remedies under, or to effect the intents and purposes of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Specific Performance</u>. Each Party agrees that irreparable damage would occur if any provision of
 this Agreement were not performed in accordance with the terms hereof and that each Party
 shall be entitled to seek specific performance of the terms hereof in addition to any other
 remedy at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Attorneys' Fees</u>. If any Party hereto is required to engage in litigation against any other Party,
 either as plaintiff or as defendant, in order to enforce or defend any rights under this
 Agreement, and such litigation results in a final judgment in favor of such Party ("Prevailing
 Party"), then the party or parties against whom said final judgment is obtained shall
 reimburse the Prevailing Party for all direct, indirect or incidental expenses incurred,
 including, but not limited to, all attorneys' fees, court costs and other expenses
 incurred throughout all negotiations, trials or appeals undertaken in order to enforce the
 Prevailing Party's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Parties in Interest</u>. This Agreement shall be binding upon and inure solely to the benefit of
 each Party, and nothing in this Agreement, express or implied, is intended to confer upon
 any other person or entity any rights or remedies of any nature whatsoever under or by reason
 of this Agreement other than as specifically set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Execution in Counterparts, Electronic Transmission</u>. This Agreement may be executed in multiple
 counterparts, each of which shall be deemed an original and all of which taken together shall
 be but a single instrument. Counterparts may be delivered via facsimile, electronic mail
 (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000,
 e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall
 be deemed to have been duly and validly delivered and be valid and effective for all purposes.

*[Signatures appear on following page]*

 

 

**IN WITNESS WHEREOF**, the Parties hereto have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| HeartCore Enterprises, Inc. | HeartCore Enterprises, Inc. |
| By: | */s/ Sumitaka Yamamoto* |
| Name: | Sumitaka Yamamoto |
| Title: | Chief Executive Officer |
| Koei Shoji Co., Ltd. | Koei Shoji Co., Ltd. |
| By: | */s/ Mamoru Iwamoto* |
| Name: | Mamoru Iwamoto |
| Title: | Chief Executive Officer |

---

Appendix 1

Obligations of the Parties

(1) <u>Obligations of the Company:</u> 

The Company shall perform the following obligations to aim and execute NASDAQ or NYSE American public listing.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Phase 1</u> 

● Hiring necessary human resource and workforce;

● Converting the own financial statements from Japanese Tax Law basis to Japanese Generally Accepted Accounting Principles;

● Removing problematic accounting account;

● Translating accounting documents;

● Translating investor presentation/deck, executive summary of the Company's operation, and other necessary materials;

● Consideration of listing structure.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Phase 2</u> 

● Attending a meeting with a law firm, underwriter, auditing firm and other advisors;

● Responding inquires from a law firm, underwriter, auditing firm and other advisors;

● Creating Web Page and other necessary tools in English for investor relations;

● Converting the own financial statement based on and into the United States Generally Accounting Principles (US GAAP).

(2) <u>Obligations of PMO:</u> 

PMO shall provide the following services to the Company to let the Company go to NASDAQ or NYSE American, and additional services as agreed by the Company and PMO.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Phase 1</u> 

● Proposing to hire human resource of the Company, if PMO deems necessary;

● Proposing to convert financial statements from Japanese Tax Law basis to Japanese Generally Accepted Accounting Principles, if PMO deems necessary;

● Proposing to remove problematic accounting account, if PMO deems necessary;

● Proposing to translate accounting documents (i.e., financial statement, general ledger, journal entry), if PMO deems necessary;

● Proposing to develop growth strategy after public listing;

● Proposing to consider the listing structure, if PMO deems necessary.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Phase 2</u> 

● Proposing for the selection and negotiation of terms for a law firm, underwriter and auditing firm for the Company, if PMO deems necessary;

● Proposing for the preparation of documentation for internal controls required for an initial public offering or de-SPAC transaction by the Company;

● Proposing for converting the Company's financial statement based on the United States Generally Accounting Principles (US GAAP), if PMO deems necessary;

● Translation of documents into English which PMO agrees to translate;

● Attending and, if requested by the Company and PMO deems necessary, leading, the Company's meetings regarding the initial public offering;

● Proposing the Company with support services related to the Company's NASDAQ or NYSE American listing;

● Proposing the preparation of Form S-1 or Form F-1, Form S-4 or Form F-4 filings, if PMO deems necessary;

● Support for investor relations activities, if PMO deems necessary;

● Proposing for preparing of investor presentation/deck and executive summary of the Company's operation, if PMO deems necessary;

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Phase 3</u> 

● Support for investor relations activities, if PMO deems necessary;

Appendix 2

Billing Schedule

<u>Schedule</u>

The billing schedule and payment due of the Services Fee shall be as follows. For the avoidance of doubt, PMO shall not be subject to repayment of the billing amount to the Company (i.e., the Services Fee) in any event of termination or expiration of the Term or this Agreement.

---

| | | | |
|:---|:---|:---|:---|
|  | Period | Amount | Date (D) |
| Phase 1 | 1 | US$200,000 (1) | Effective Date |
| Phase 2 | 2 | US$150,000 (2) | The 3 month after Effective Date |
|  | 3 | US$150,000 (3) | The 6 month after Effective Date |

---

<u>Formular of billing amount in the event of early termination:</u>

The following formula shall be applied if any of the Parties terminates between the period of any Phase

(Case1) Between Effective Date and the 3 month after Effective Date:

---

| | | |
|:---|:---|:---|
|  | (*Amount* (2)) |  |
| (*Billing amount*) = | 3 | X (*months lapsed since Effective Date*) |

---

(Case2) Between the 3 month after Effective Date and the 6 month after Effective Date:

---

| | | |
|:---|:---|:---|
|  | (*Amount* (3)) |  |
| (*Billing amount*) = | 3 | X (*months lapsed since 3 months after Effective Date*) |

---

Appendix. 3

Warrant Agreement

(Attached)

## Exhibit 10.3

**Exhibit 10.3**

**<u>Amendment No. 1 to Service Agreement</u>**

Dated as of 17 September 2025

This Amendment No. 1 to Service Agreement (this "Amendment") is made and entered into as of the date first set forth above (the "Amendment Date"), by and between HeartCore Enterprises, Inc., a Delaware corporation (the "PMO") and KOEI JAPAN CO., LTD. (formerly Koei Shoji Co., Ltd.), a Japanese corporation (the "Company"). Each of the Company and PMO may be referred to herein individually as a "Party" and collectively as the "Parties."

WHEREAS, the Parties are parties to that certain Service Agreement, dated as of 11 April 2024 (the "Original Agreement"); and

WHEREAS, the Parties now desire to amend the Original Agreement, and pursuant to the provisions of Section 11(f) of the Original Agreement the Parties may amend the Original Agreement in writing;

NOW, THEREFORE, in consideration of the mutual promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

Section 1. <u>Definitions</u>. Capital terms used herein without definition shall have the meanings given in the Original Agreement.

Section 2. <u>Amendment</u>. Pursuant to the provisions of Section 11(f) of the Original Agreement, the Parties agree, and the Original Agreement is hereby amended, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Parties acknowledge and agree that the Original Agreement contemplated the issuance by Koei
 Group Co., Ltd. (parent company of KOEI JAPAN CO., LTD.) to PMO of the Warrant, pursuant
 to Section 5(a)(ii) of the Original Agreement, but that the Warrant was not issued, and in
 lieu thereof Koei Group Co., Ltd. and PMO have entered into the First Series Stock Acquisition
 Rights Allotment Agreement as attached hereto as Exhibit A (the "SAR").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Original Agreement is hereby amended such that the SAR replaces the Warrant for all purposes
 of the Original Agreement, and Appendix 3 of the Original Agreement is hereby amended by
 replacing the Warrant as attached to the Original Agreement with the SAR as attached hereto.

Section 3. <u>Remainder in Force</u>. Other than as amended herein, the Original Agreement shall remain in full force and effect. Following the full execution of this Amendment, any references in the Original Agreement to the "Agreement" shall be deemed a reference to the Original Agreement as amended by this Amendment and the Original Agreement and this Amendment shall be interpreted and enforced as one combined agreement.

Section 4. <u>Miscellaneous.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Headings</u>.
 The article and section headings contained in this Amendment are inserted for convenience
 only and shall not affect in any way the meaning or interpretation of the Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Governing Law</u>. This Amendment, and all matters based upon, arising out of or relating in any way
 hereto, as well as the interpretation, construction, performance and enforcement of this
 Amendment, shall be governed by the laws of the Japan, without regard to any jurisdiction's
 conflict-of-laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Execution in Counterparts, Electronic Transmission</u>. This Amendment may be executed in multiple
 counterparts, each of which shall be deemed an original and all of which taken together shall
 be but a single instrument. Counterparts may be delivered via facsimile, electronic mail
 (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000,
 e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall
 be deemed to have been duly and validly delivered and be valid and effective for all purposes.

*[Signatures appear on following page]*

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the Amendment Date.

---

| | |
|:---|:---|
| HeartCore Enterprises, Inc. | HeartCore Enterprises, Inc. |
| By: | */s/ Sumitaka Kanno* |
| Name: | Sumitaka Kanno |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| KOEI JAPAN CO., LTD. | KOEI JAPAN CO., LTD. |
| By: | */s/ Mamoru Iwamoto* |
| Name: | Mamoru Iwamoto |
| Title: | Chief Executive Officer |

---

Exhibit A

First Series Stock Acquisition Rights Allotment Agreement

(Attached)

**First Series Stock Acquisition Rights Allotment Agreement**

HeartCore Enterprise, Inc. (hereinafter the "Holder") and Koei Group Co., Ltd. (hereinafter the "Issuer") enter into this First Series Stock Acquisition Rights Allotment Agreement (hereinafter the "Agreement") on September 17, 2025 (hereinafter the "Effective Date") with respect to the allotment of stock acquisition rights by the Issuer to the Holder, as set forth below.

This Agreement supersedes Appendix 3 ("Appendix 3") of the service agreement (hereinafter the "Service Agreement") entered into between the Holder and the Issuer on April 11, 2024, and is executed as a replacement thereof.

Furthermore, with respect to the rights referred to as the "Warrant" in Section 5.(a)(ii) of the Service Agreement, this Agreement specifies and defines such rights as stock acquisition rights under the Companies Act of Japan.

For the avoidance of doubt, in filings with or disclosures to U.S. securities regulators (including the U.S. Securities and Exchange Commission) and similar bodies, these stock acquisition rights may, for ease of communication to investors, be referred to as "Warrants"; however, their legal nature is that of stock acquisition rights under Japanese law.

**1.** **Allotment of Stock Acquisition Rights** 

---

| | |
|:---|:---|
| 1. | The Issuer shall, pursuant to this Agreement and the special resolution of its shareholders' meeting dated September 17, 2025 (hereinafter the "Resolution"), allot to the Holder on September 22, 2025, the First Series of Stock Acquisition Rights (hereinafter the "Stock Acquisition Rights") to be issued in accordance with the separate "Terms of Issuance of Stock Acquisition Rights" (hereinafter the "Terms"). |
|  | The number of Stock Acquisition Rights shall be the number obtained by multiplying 2.0% by the total number of the Issuer's issued common shares (including potential shares; hereinafter the "Total Shares") as of the allotment. |
| 2. | The amount payable per share to be delivered upon exercise of the Stock Acquisition Rights and all other details of the Stock Acquisition Rights shall be as set forth in the Terms (including any amendments thereto, if amended), and all provisions of the Terms shall constitute an integral part of this Agreement. |
| 3. | The bank handling payments related to the Stock Acquisition Rights shall be as follows: |

---

---

| | |
|:---|:---|
| Bank / Branch: | Resona Bank, Tsunashima Branch |
| Account Type: | Ordinary |
| Account Number: | 1727913 |
| Account Name: | Koei Group Co., Ltd. |

---

**2.** **Method of Exercise** 

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 method and effect of exercising the Stock Acquisition Rights shall be in accordance with
 the Terms and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. To
 exercise, the Holder shall pay in cash to the bank account designated by the Issuer, by the
 date specified by the Issuer, an amount equal to the value of property to be contributed
 per right multiplied by the number of rights exercised, and shall submit the Issuer-prescribed
 exercise request and required documents.

**3.** **Waiver** 

If the Holder submits the Issuer's prescribed written notice of waiver of all or part of the Stock Acquisition Rights, the waived portion can no longer be exercised.

**4.** **Compliance with Laws and Internal Rules** 

Delivery of shares upon exercise (including issuance, transfer or assignment) shall not violate the matters prescribed in Article 238(1) of the Companies Act. The Holder shall comply with the Companies Act, Financial Instruments and Exchange Act, tax laws, and all other domestic and foreign laws in connection with exercise, disposition, and related transactions.

**5.** **Taxes and Expenses** 

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Holder shall bear and pay, at its own cost and responsibility, all income taxes and other
 domestic and foreign taxes arising from exercise or disposition of shares obtained through
 exercise.

&nbsp;&nbsp;&nbsp;&nbsp;2. Except
 as otherwise provided, each party shall bear its own costs related to negotiation, execution,
 and matters contemplated herein.

**6.** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;1. Both
 parties shall use all non-public information disclosed in relation to this Agreement ("Confidential
 Information") solely for the purposes of this Agreement and shall not disclose it to
 third parties without prior written consent, except to officers, employees, advisors, or
 agents under equivalent confidentiality obligations, or to securities exchanges/regulators
 as necessary for listing.

&nbsp;&nbsp;&nbsp;&nbsp;2. Information
 already public, lawfully obtained from a third party, independently developed, etc., is excluded.

&nbsp;&nbsp;&nbsp;&nbsp;3. Disclosure
 required by law, regulation, or governmental order is permitted with prior notice to the
 other party where practicable.

**7.** **Exclusion of Anti-Social Forces** 

Each party represents and warrants that neither it nor its officers/employees is, or has been within five years, an organized crime group member or related entity, and covenants not to have or form such relationships or engage in violent or unlawful demands, threats, defamation, or similar acts. If breached, the other party may terminate this Agreement immediately without notice.

**8.** **Indemnification** 

Each party shall indemnify the other for damages, losses, or expenses (including lost profits and reasonable attorney fees) arising from breach of its obligations hereunder, limited to damages ordinarily foreseeable.

**9.** **Amendments** 

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 any provision hereof conflicts with current or amended laws, the Issuer may revise the necessary
 provisions upon notice.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the Holder breaches obligations, it shall negotiate in good faith regarding reduction of
 rights to be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;3. In
 the event of a reorganization as defined in the Terms, the Issuer's position hereunder
 shall be succeeded by the reorganized company, and the rights delivered shall be deemed Stock
 Acquisition Rights under this Agreement.

**10.** **Termination** 

The Issuer may terminate all or part of this Agreement if the Holder violates its terms and fails to cure after notice.

**11.** **Term** 

This Agreement becomes effective on the Effective Date and remains in force while the Stock Acquisition Rights exist. Provisions applicable to shares issued upon exercise survive their extinction, and Articles 6, 8, and 11–13 survive termination.

**12.** **Severability** 

If any provision is held invalid or unenforceable, the remaining provisions remain fully effective, and the parties shall endeavor to amend the invalid portion to validly reflect their intent.

**13.** **Governing Law and Jurisdiction** 

This Agreement is governed by and construed under Japanese law. Any disputes shall first be resolved through good-faith negotiation and, if unresolved, shall be subject to the exclusive jurisdiction of the Tokyo District Court as the court of first instance.

**14.** **Matters Not Provided** 

Any matters not provided herein shall be determined through good-faith consultation between the parties.

**15.** **Post-Exercise Sale Restrictions** 

1. The
 Holder shall comply with the lock-up restrictions (including any extensions thereof) imposed
 under the underwriting agreement to be executed between the Issuer and the underwriters in
 connection with the Issuer's initial public offering, and agrees to be bound by such
 lock-up restrictions as if the Holder were a party to said underwriting agreement.

2. With
 respect to the shares acquired upon exercise of the Stock Acquisition Rights, the Holder
 agrees to the following phased restrictions after the Issuer's initial public offering.
 During the lock-up period, the restrictions of the preceding paragraph shall apply. After
 the lock-up restrictions are lifted, the Holder shall not sell, in a single transaction,
 more than twenty percent (20%) of the **total number of shares acquired through the exercise of the Stock Acquisition Rights**, and shall observe an interval of at least three (3)
 months between each sale. Any such sale shall be conducted in compliance with all laws and
 regulations applicable to the Issuer's initial public offering and with full consideration
 of the potential impact on the market.

3. If
 the Holder intends to sell shares in accordance with the preceding paragraphs, the Holder
 shall give the Issuer prior written notice. If, upon such notice, the Issuer informs the
 Holder of its desire to repurchase the shares, the Issuer shall have the right, prior to
 any market sale or other transfer, to repurchase such shares from the Holder with priority.
 The terms and conditions of such repurchase, including the repurchase price, shall be determined
 through consultation between the Issuer and the Holder.

**16.** **Invalidity if IPO Not Completed** 

If the Issuer's initial public offering ("IPO") is not completed, the Issuer may declare this Agreement null and void and the Stock Acquisition Rights shall lapse automatically.

Notwithstanding such termination, the provisions of Articles 6 (Confidentiality), 7 (Exclusion of Anti-Social Forces), 8 (Indemnification), 11 (Term), 12 (Severability), and 13 (Governing Law and Jurisdiction) shall survive and remain in full force and effect.

---

| | |
|:---|:---|
| Executed in duplicate on September 17, 2025.<br>Issuer: Koei Group Co., Ltd.<br>Shinagawa Grand Central Tower, 2-16-3 Konan, Minato-ku, Tokyo<br> Representative Director: Mamoru Iwamoto | ![](ex10-3_001.jpg) |

---

---

| | |
|:---|:---|
| Holder: HeartCore Enterprise, Inc.<br> 848 Jordan Ave. Apt G, Los Altos, CA 94022<br> Director: Sumitaka Yamamoto | ![](ex10-3_002.jpg) |

---

**Attachment**

**Koei Group Co., Ltd. – Terms of Issuance of First Series Stock Acquisition Rights**

---

| | |
|:---|:---|
| **1.** | **Name of Stock Acquisition Rights**<br>|
|  | First Series Stock Acquisition Rights (hereinafter the "Stock Acquisition Rights"). |

---

---

| | |
|:---|:---|
| **2.** | **Number of Stock Acquisition Rights**<br>|
|  | A number equal to **2.0 percent** of the total number of the Company's issued common shares (including potential shares) (hereinafter the "Total Shares"). |

---

---

| | |
|:---|:---|
| **3.** | **Allotment Date of Stock Acquisition Rights**<br>|
|  | September 22, 2025. |

---

---

| | |
|:---|:---|
| **4.** | **Amount of Money Payable in Exchange for the Stock Acquisition Rights**<br>|
|  | No payment of money shall be required in exchange for the Stock Acquisition Rights. |

---

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Details of the Stock Acquisition Rights** 

---

| | |
|:---|:---|
| **(1)** | **Type and Number of Shares Underlying Each Stock Acquisition Right and Method of Calculation** |
|  | The type of shares underlying each Stock Acquisition Right shall be the Company's common stock, and the number of shares deliverable upon exercise of each Stock Acquisition Right (hereinafter the "Allotted Shares") shall be one (1) share of the Company's common stock. |
|  | However, if the Company's common stock (including depositary shares) is first listed on a financial instruments exchange established under U.S. law, the Allotted Shares shall be reasonably adjusted so that the total number of shares underlying all Stock Acquisition Rights will equal 2.0 percent of the Total Shares as of the day immediately preceding such listing date (hereinafter the "Listing Date"). |
|  | In the event that fractions of less than one share arise, such fractional shares shall be **rounded down to the nearest whole share and no cash adjustment shall be made.** |
|  | If, after the Allotment Date, the Company conducts a stock split of its common stock (including a free allotment of shares; hereinafter "stock split") or a reverse stock split, the Allotted Shares shall be adjusted according to the following formula. Fractions of less than one share resulting from such adjustment shall be rounded down, and for any such fractional share the Company shall pay an amount equal to the product of the fraction and the higher of the opening or closing price of the Company's common stock on the Listing Date. All fees and expenses incurred in such payment shall be borne by the Company. |
|  | Adjusted Allotted Shares<br>|
|  | ＝ Pre-adjustment Allotted Shares × ratio of stock split or reverse stock split |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if, after the Allotment Date, the Company conducts a merger, corporate split, or reduction of stated capital (except a free reduction of capital) or in other similar cases where adjustment of the Allotted Shares is necessary, the Company may make appropriate adjustments to the Allotted Shares within a reasonable scope.<br>|

---

---

| | |
|:---|:---|
|  | Such adjustments apply only to the Allotted Shares of Stock Acquisition Rights that have not been exercised at the time of the adjustment. |
| **(2)** | **Value or Method of Calculation of Property to Be Contributed upon Exercise** |
|  | The property to be contributed upon exercise of the Stock Acquisition Rights shall be cash, and its value shall be the amount obtained by multiplying the payment amount per share to be delivered upon exercise (hereinafter the "Exercise Price") by the number of Allotted Shares. The initial Exercise Price shall be one (1) yen per share. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> If, after the Allotment Date, the Company conducts a stock split or a reverse stock split of its common stock, the Exercise Price shall be adjusted according to the following formula, and any fraction of less than one yen resulting from the adjustment shall be rounded up. |
|  | Adjusted Exercise Price<br>|
|  | = Pre-adjustment Exercise Price × 1 ÷ ratio of stock split or reverse stock split |
|  | <br>If, after the Allotment Date, the Company issues new shares or disposes of treasury shares of its common stock at a price below the Exercise Price (excluding issuance of new shares or disposition of treasury shares upon exercise of stock acquisition rights, delivery of common stock in exchange for acquisition of shares with acquisition clauses or acquisition-right-attached shares issued by the Company, or transfer of treasury shares through a share exchange), the adjusted Exercise Price shall be the paid-in amount or disposal price for such issuance or disposition as of the payment date (or, if a payment period is set, the last day thereof). |

---

---

| | |
|:---|:---|
| **(3)** | **Exercise Period of the Stock Acquisition Rights** |
|  | From October 1, 2025 to September 30, 2035. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> If the final day of the exercise period is a bank holiday, the immediately preceding business day shall be the final day. |
| **(4)** | **Increase in Capital and Capital Reserve upon Exercise** |
| ① | When common stock is issued upon exercise of the Stock Acquisition Rights, the amount of capital to be increased shall be one-half of the maximum increase amount calculated pursuant to Article 17, Paragraph 1 of the Company Accounting Rules. Any fraction of less than one yen shall be rounded up. |
| ② | The amount of capital reserve to be increased upon such issuance shall be the amount obtained by subtracting the amount of capital increase set forth in ① above from the maximum increase amount of capital, etc., as calculated under the same provision. |
| **(5)** | **Restriction on Acquisition of Stock Acquisition Rights by Transfer** |
|  | Acquisition of the Stock Acquisition Rights by transfer shall require approval by a resolution of the Company's Board of Directors. |
| **(6)** | **Conditions for Exercise of the Stock Acquisition Rights** |
|  | The number of shares delivered upon exercise of one or more Stock Acquisition Rights must be an integer; any fraction of less than one share shall be discarded and no share shall be allotted for such fraction, and no cash adjustment shall be made for the discarded fraction. |
|  | Holders may not exercise the Stock Acquisition Rights until the Company's shares (including depositary shares) are listed on a financial instruments exchange established under U.S. law. |

---

---

| | |
|:---|:---|
| **6.** | **Treatment of Stock Acquisition Rights in the Event of a Corporate Reorganization** |
|  | If the Company engages in a merger (limited to cases where the Company ceases to exist due to the merger), absorption-type company split, incorporation-type company split, share exchange, or share transfer (collectively, a "Reorganization"), the Company shall, on the effective date of the Reorganization, deliver to each holder of Stock Acquisition Rights the stock acquisition rights of the relevant reorganized company (the "Reorganized Company") as set forth in Article 236, Paragraph 1, Item 8(a)–(e) of the Companies Act, subject to the following conditions, provided that the relevant absorption-type merger agreement, incorporation-type merger agreement, absorption-type company split agreement, incorporation-type company split plan, share exchange agreement, or share transfer plan so provides: |

---

---

| | |
|:---|:---|
| **(1)** | **Number of Stock Acquisition Rights to Be Delivered**<br>|
|  | A number equal to the number of Stock Acquisition Rights held by each holder. |
| **(2)** | **Type of Shares Underlying the Reorganized Company's Stock Acquisition Rights**<br>|
|  | Common stock of the Reorganized Company. |
| **(3)** | **Number of Shares Underlying the Reorganized Company's Stock Acquisition Rights**<br>|
|  | Determined with reference to the conditions of the Reorganization and in accordance with Section 5(1) above. |
| **(4)** | **Value of Property to Be Contributed upon Exercise**<br>|
|  | Determined by adjusting the Exercise Price as set forth in Section 5(2) above to reflect the Reorganization terms, multiplied by the number of shares underlying such stock acquisition rights as determined in (3) above. |
| **(5)** | **Exercise Period**<br>|
|  | From the later of (i) the commencement date of the exercise period specified in Section 5(3) above or (ii) the effective date of the Reorganization, until the final day of the exercise period specified in Section 5(3). |
| **(6)** | **Increase in Capital and Capital Reserve upon Exercise**<br>|
|  | Determined in accordance with Section 5(4) above. |
| **(7)** | **Restriction on Acquisition by Transfer**<br>|
|  | Acquisition of such stock acquisition rights by transfer shall require approval by a resolution of the board of directors of the Reorganized Company (or, if the Reorganized Company is not a company with a board of directors, approval by a resolution of its shareholders' meeting). |
| **(8)** | **Other Conditions for Exercise**<br>|
|  | Determined in accordance with Section 5(6) above. |
| **(9)** | **Other Conditions**<br>|
|  | As determined by the Reorganized Company. |

---

---

| | |
|:---|:---|
| **7.** | **Stock Acquisition Right Certificates**<br>|
|  | The Company shall not issue certificates for the Stock Acquisition Rights. |
| 8. | **Method and Place for Submitting Exercise Requests**<br>|
|  | (1) Exercise of the Stock Acquisition Rights shall be effected by submitting to the place designated by the Company for acceptance of exercise requests a stock acquisition right exercise request form prescribed by the Company, stating the details and number of the Stock Acquisition Rights to be exercised, the intended exercise date, the holder's address, and other required information, and affixing the holder's name and seal (or, in the case of a foreign national where signature is customary, by signature in lieu of seal), together with all other required documents. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> (2) In addition to submitting the exercise request form set forth in the preceding item, the holder shall pay in full, in cash, to the bank account specified by the Company at the payment handling location designated by the Company (the "Designated Account") the total amount of money to be contributed upon exercise (the "Payment Amount"). |
| **9.** | **Effective Date of Exercise Request** |
|  | The exercise request shall become effective on the date specified as the exercise date in the exercise request form, provided that all required documents have been received at the place of acceptance of exercise requests and the Payment Amount has been deposited into the Designated Account. |
|  | However, if either the arrival of the exercise request form at the acceptance place or the deposit of the Payment Amount into the Designated Account occurs on or after the day following the date specified in the exercise request form as the exercise date, the exercise shall become effective on the later of the date of arrival of the request form or the date of such deposit, and the Company may note this on the exercise request form. |

---

## Exhibit 10.4

**Exhibit 10.4**

**First Series Stock Acquisition Rights Allotment Agreement**

HeartCore Enterprise, Inc. (hereinafter the "Holder") and Koei Group Co., Ltd. (hereinafter the "Issuer") enter into this First Series Stock Acquisition Rights Allotment Agreement (hereinafter the "Agreement") on September 17, 2025 (hereinafter the "Effective Date") with respect to the allotment of stock acquisition rights by the Issuer to the Holder, as set forth below.

This Agreement supersedes Appendix 3 ("Appendix 3") of the service agreement (hereinafter the "Service Agreement") entered into between the Holder and the Issuer on April 11, 2024, and is executed as a replacement thereof.

Furthermore, with respect to the rights referred to as the "Warrant" in Section 5.(a)(ii) of the Service Agreement, this Agreement specifies and defines such rights as stock acquisition rights under the Companies Act of Japan.

For the avoidance of doubt, in filings with or disclosures to U.S. securities regulators (including the U.S. Securities and Exchange Commission) and similar bodies, these stock acquisition rights may, for ease of communication to investors, be referred to as "Warrants"; however, their legal nature is that of stock acquisition rights under Japanese law.

1. Allotment of Stock Acquisition Rights

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Issuer shall, pursuant to this Agreement and the special resolution of its shareholders'
 meeting dated September 17, 2025 (hereinafter the "Resolution"), allot to the
 Holder on September 22, 2025, the First Series of Stock Acquisition Rights (hereinafter the
 "Stock Acquisition Rights") to be issued in accordance with the separate "Terms
 of Issuance of Stock Acquisition Rights" (hereinafter the "Terms").

The number of Stock Acquisition Rights shall be the number obtained by multiplying 2.0% by the total number of the Issuer's issued common shares (including potential shares; hereinafter the "Total Shares") as of the allotment.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 amount payable per share to be delivered upon exercise of the Stock Acquisition Rights and
 all other details of the Stock Acquisition Rights shall be as set forth in the Terms (including
 any amendments thereto, if amended), and all provisions of the Terms shall constitute an
 integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3. The bank handling payments related to the Stock Acquisition Rights shall be as follows:

Bank / Branch: Resona Bank, Tsunashima Branch

Account Type: Ordinary

Account Number: 1727913

Account Name: Koei Group Co., Ltd.

2. Method of Exercise

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 method and effect of exercising the Stock Acquisition Rights shall be in accordance with
 the Terms and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. To
 exercise, the Holder shall pay in cash to the bank account designated by the Issuer, by the
 date specified by the Issuer, an amount equal to the value of property to be contributed
 per right multiplied by the number of rights exercised, and shall submit the Issuer-prescribed
 exercise request and required documents.

3. Waiver

If the Holder submits the Issuer's prescribed written notice of waiver of all or part of the Stock Acquisition Rights, the waived portion can no longer be exercised.

4. Compliance with Laws and Internal Rules

Delivery of shares upon exercise (including issuance, transfer or assignment) shall not violate the matters prescribed in Article 238(1) of the Companies Act. The Holder shall comply with the Companies Act, Financial Instruments and Exchange Act, tax laws, and all other domestic and foreign laws in connection with exercise, disposition, and related transactions.

5. Taxes and Expenses

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Holder shall bear and pay, at its own cost and responsibility, all income taxes and other
 domestic and foreign taxes arising from exercise or disposition of shares obtained through
 exercise.

&nbsp;&nbsp;&nbsp;&nbsp;2. Except
 as otherwise provided, each party shall bear its own costs related to negotiation, execution,
 and matters contemplated herein.

6. Confidentiality

&nbsp;&nbsp;&nbsp;&nbsp;1. Both
 parties shall use all non-public information disclosed in relation to this Agreement ("Confidential
 Information") solely for the purposes of this Agreement and shall not disclose it to
 third parties without prior written consent, except to officers, employees, advisors, or
 agents under equivalent confidentiality obligations, or to securities exchanges/regulators
 as necessary for listing.

&nbsp;&nbsp;&nbsp;&nbsp;2. Information
 already public, lawfully obtained from a third party, independently developed, etc., is excluded.

&nbsp;&nbsp;&nbsp;&nbsp;3. Disclosure
 required by law, regulation, or governmental order is permitted with prior notice to the
 other party where practicable.

7. Exclusion of Anti-Social Forces

Each party represents and warrants that neither it nor its officers/employees is, or has been within five years, an organized crime group member or related entity, and covenants not to have or form such relationships or engage in violent or unlawful demands, threats, defamation, or similar acts. If breached, the other party may terminate this Agreement immediately without notice.

8. Indemnification

Each party shall indemnify the other for damages, losses, or expenses (including lost profits and reasonable attorney fees) arising from breach of its obligations hereunder, limited to damages ordinarily foreseeable.

9. Amendments

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 any provision hereof conflicts with current or amended laws, the Issuer may revise the necessary
 provisions upon notice.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the Holder breaches obligations, it shall negotiate in good faith regarding reduction of
 rights to be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;3. In
 the event of a reorganization as defined in the Terms, the Issuer's position hereunder
 shall be succeeded by the reorganized company, and the rights delivered shall be deemed Stock
 Acquisition Rights under this Agreement.

10. Termination

The Issuer may terminate all or part of this Agreement if the Holder violates its terms and fails to cure after notice.

11. Term

This Agreement becomes effective on the Effective Date and remains in force while the Stock Acquisition Rights exist. Provisions applicable to shares issued upon exercise survive their extinction, and Articles 6, 8, and 11–13 survive termination.

12. Severability

If any provision is held invalid or unenforceable, the remaining provisions remain fully effective, and the parties shall endeavor to amend the invalid portion to validly reflect their intent.

13. Governing Law and Jurisdiction

This Agreement is governed by and construed under Japanese law. Any disputes shall first be resolved through good-faith negotiation and, if unresolved, shall be subject to the exclusive jurisdiction of the Tokyo District Court as the court of first instance.

14. Matters Not Provided

Any matters not provided herein shall be determined through good-faith consultation between the parties.

15. Post-Exercise Sale Restrictions

1. The
 Holder shall comply with the lock-up restrictions (including any extensions thereof) imposed
 under the underwriting agreement to be executed between the Issuer and the underwriters in
 connection with the Issuer's initial public offering, and agrees to be bound by such
 lock-up restrictions as if the Holder were a party to said underwriting agreement.

2. With
 respect to the shares acquired upon exercise of the Stock Acquisition Rights, the Holder
 agrees to the following phased restrictions after the Issuer's initial public offering.
 During the lock-up period, the restrictions of the preceding paragraph shall apply. After
 the lock-up restrictions are lifted, the Holder shall not sell, in a single transaction,
 more than twenty percent (20%) of the **total number of shares acquired through the exercise of the Stock Acquisition Rights**, and shall observe an interval of at least three (3)
 months between each sale. Any such sale shall be conducted in compliance with all laws and
 regulations applicable to the Issuer's initial public offering and with full consideration
 of the potential impact on the market.

3. If
 the Holder intends to sell shares in accordance with the preceding paragraphs, the Holder
 shall give the Issuer prior written notice. If, upon such notice, the Issuer informs the
 Holder of its desire to repurchase the shares, the Issuer shall have the right, prior to
 any market sale or other transfer, to repurchase such shares from the Holder with priority.
 The terms and conditions of such repurchase, including the repurchase price, shall be determined
 through consultation between the Issuer and the Holder.

16. Invalidity if IPO Not Completed

If the Issuer's initial public offering ("IPO") is not completed, the Issuer may declare this Agreement null and void and the Stock Acquisition Rights shall lapse automatically.

Notwithstanding such termination, the provisions of Articles 6 (Confidentiality), 7 (Exclusion of Anti-Social Forces), 8 (Indemnification), 11 (Term), 12 (Severability), and 13 (Governing Law and Jurisdiction) shall survive and remain in full force and effect.

Executed in duplicate on September 17, 2025.

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| | |
|:---|:---|
| Issuer: Koei Group Co., Ltd.<br> Shinagawa Grand Central Tower, 2-16-3 Konan, Minato-ku, Tokyo<br> Representative Director: Mamoru Iwamoto | ![](ex10-4_001.jpg) |

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| | |
|:---|:---|
| Holder: HeartCore Enterprise, Inc.<br> 848 Jordan Ave. Apt G, Los Altos, CA 94022<br> Director: Sumitaka Yamamoto | ![](ex10-4_002.jpg) |

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**Attachment**

**Koei Group Co., Ltd. – Terms of Issuance of First Series Stock Acquisition Rights**

&nbsp;&nbsp;&nbsp;&nbsp;1. **Name of Stock Acquisition Rights** 

First Series Stock Acquisition Rights (hereinafter the "Stock Acquisition Rights").

&nbsp;&nbsp;&nbsp;&nbsp;2. **Number of Stock Acquisition Rights** 

A number equal to **2.0 percent** of the total number of the Company's issued common shares (including potential shares) (hereinafter the "Total Shares").

&nbsp;&nbsp;&nbsp;&nbsp;3. **Allotment Date of Stock Acquisition Rights** 

September 22, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Amount of Money Payable in Exchange for the Stock Acquisition Rights** 

No payment of money shall be required in exchange for the Stock Acquisition Rights.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Details of the Stock Acquisition Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Type and Number of Shares Underlying Each Stock Acquisition Right and Method of Calculation**

The type of shares underlying each Stock Acquisition Right shall be the Company's common stock, and the number of shares deliverable upon exercise of each Stock Acquisition Right (hereinafter the "Allotted Shares") shall be one (1) share of the Company's common stock.

However, if the Company's common stock (including depositary shares) is first listed on a financial instruments exchange established under U.S. law, the Allotted Shares shall be reasonably adjusted so that the total number of shares underlying all Stock Acquisition Rights will equal 2.0 percent of the Total Shares as of the day immediately preceding such listing date (hereinafter the "Listing Date").

In the event that fractions of less than one share arise, such fractional shares shall be **rounded down to the nearest whole share and no cash adjustment shall be made**.

If, after the Allotment Date, the Company conducts a stock split of its common stock (including a free allotment of shares; hereinafter "stock split") or a reverse stock split, the Allotted Shares shall be adjusted according to the following formula. Fractions of less than one share resulting from such adjustment shall be rounded down, and for any such fractional share the Company shall pay an amount equal to the product of the fraction and the higher of the opening or closing price of the Company's common stock on the Listing Date. All fees and expenses incurred in such payment shall be borne by the Company.

Adjusted Allotted Shares

＝ Pre-adjustment Allotted Shares × ratio of stock split or reverse stock split

In addition, if, after the Allotment Date, the Company conducts a merger, corporate split, or reduction of stated capital (except a free reduction of capital) or in other similar cases where adjustment of the Allotted Shares is necessary, the Company may make appropriate adjustments to the Allotted Shares within a reasonable scope.

Such adjustments apply only to the Allotted Shares of Stock Acquisition Rights that have not been exercised at the time of the adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Value or Method of Calculation of Property to Be Contributed upon Exercise**

The property to be contributed upon exercise of the Stock Acquisition Rights shall be cash, and its value shall be the amount obtained by multiplying the payment amount per share to be delivered upon exercise (hereinafter the "Exercise Price") by the number of Allotted Shares. The initial Exercise Price shall be one (1) yen per share.

If, after the Allotment Date, the Company conducts a stock split or a reverse stock split of its common stock, the Exercise Price shall be adjusted according to the following formula, and any fraction of less than one yen resulting from the adjustment shall be rounded up.

Adjusted Exercise Price

＝ Pre-adjustment Exercise Price × 1 ÷ ratio of stock split or reverse stock split

If, after the Allotment Date, the Company issues new shares or disposes of treasury shares of its common stock at a price below the Exercise Price (excluding issuance of new shares or disposition of treasury shares upon exercise of stock acquisition rights, delivery of common stock in exchange for acquisition of shares with acquisition clauses or acquisition-right-attached shares issued by the Company, or transfer of treasury shares through a share exchange), the adjusted Exercise Price shall be the paid-in amount or disposal price for such issuance or disposition as of the payment date (or, if a payment period is set, the last day thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) **Exercise Period of the Stock Acquisition Rights**

From October 1, 2025 to September 30, 2035.

If the final day of the exercise period is a bank holiday, the immediately preceding business day shall be the final day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) **Increase in Capital and Capital Reserve upon Exercise**

① When common stock is issued upon exercise of the Stock Acquisition Rights, the amount of capital to be increased shall be one-half of the maximum increase amount calculated pursuant to Article 17, Paragraph 1 of the Company Accounting Rules. Any fraction of less than one yen shall be rounded up.

② The amount of capital reserve to be increased upon such issuance shall be the amount obtained by subtracting the amount of capital increase set forth in ① above from the maximum increase amount of capital, etc., as calculated under the same provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) **Restriction on Acquisition of Stock Acquisition Rights by Transfer**

Acquisition of the Stock Acquisition Rights by transfer shall require approval by a resolution of the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) **Conditions for Exercise of the Stock Acquisition Rights**

The number of shares delivered upon exercise of one or more Stock Acquisition Rights must be an integer; any fraction of less than one share shall be discarded and no share shall be allotted for such fraction, and no cash adjustment shall be made for the discarded fraction.

Holders may not exercise the Stock Acquisition Rights until the Company's shares (including depositary shares) are listed on a financial instruments exchange established under U.S. law.

&nbsp;&nbsp;&nbsp;&nbsp;6. **Treatment of Stock Acquisition Rights in the Event of a Corporate Reorganization** 

If the Company engages in a merger (limited to cases where the Company ceases to exist due to the merger), absorption-type company split, incorporation-type company split, share exchange, or share transfer (collectively, a "Reorganization"), the Company shall, on the effective date of the Reorganization, deliver to each holder of Stock Acquisition Rights the stock acquisition rights of the relevant reorganized company (the "Reorganized Company") as set forth in Article 236, Paragraph 1, Item 8(a)–(e) of the Companies Act, subject to the following conditions, provided that the relevant absorption-type merger agreement, incorporation-type merger agreement, absorption-type company split agreement, incorporation-type company split plan, share exchange agreement, or share transfer plan so provides:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Number of Stock Acquisition Rights to Be Delivered**

A number equal to the number of Stock Acquisition Rights held by each holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **Type of Shares Underlying the Reorganized Company's Stock Acquisition Rights**

Common stock of the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) **Number of Shares Underlying the Reorganized Company's Stock Acquisition Rights** Determined with reference to the conditions of the Reorganization and in accordance with Section 5(1) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) **Value of Property to Be Contributed upon Exercise**

Determined by adjusting the Exercise Price as set forth in Section 5(2) above to reflect the Reorganization terms, multiplied by the number of shares underlying such stock acquisition rights as determined in (3) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) **Exercise Period**

From the later of (i) the commencement date of the exercise period specified in Section 5(3) above or (ii) the effective date of the Reorganization, until the final day of the exercise period specified in Section 5(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) **Increase in Capital and Capital Reserve upon Exercise**

Determined in accordance with Section 5(4) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) **Restriction on Acquisition by Transfer**

Acquisition of such stock acquisition rights by transfer shall require approval by a resolution of the board of directors of the Reorganized Company (or, if the Reorganized Company is not a company with a board of directors, approval by a resolution of its shareholders' meeting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) **Other Conditions for Exercise**

Determined in accordance with Section 5(6) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) **Other Conditions**

As determined by the Reorganized Company.

&nbsp;&nbsp;&nbsp;&nbsp;7. **Stock Acquisition Right Certificates** 

The Company shall not issue certificates for the Stock Acquisition Rights.

&nbsp;&nbsp;&nbsp;&nbsp;8. **Method and Place for Submitting Exercise Requests** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Exercise of the Stock Acquisition Rights shall be effected by submitting to the place designated by the Company for acceptance of exercise requests a stock acquisition right exercise request form prescribed by the Company, stating the details and number of the Stock Acquisition Rights to be exercised, the intended exercise date, the holder's address, and other required information, and affixing the holder's name and seal (or, in the case of a foreign national where signature is customary, by signature in lieu of seal), together with all other required documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In addition to submitting the exercise request form set forth in the preceding item, the holder shall pay in full, in cash, to the bank account specified by the Company at the payment handling location designated by the Company (the "Designated Account") the total amount of money to be contributed upon exercise (the "Payment Amount").

&nbsp;&nbsp;&nbsp;&nbsp;9. **Effective Date of Exercise Request** 

The exercise request shall become effective on the date specified as the exercise date in the exercise request form, provided that all required documents have been received at the place of acceptance of exercise requests and the Payment Amount has been deposited into the Designated Account.

However, if either the arrival of the exercise request form at the acceptance place or the deposit of the Payment Amount into the Designated Account occurs on or after the day following the date specified in the exercise request form as the exercise date, the exercise shall become effective on the later of the date of arrival of the request form or the date of such deposit, and the Company may note this on the exercise request form.

## Exhibit 10.5

**Exhibit 10.5**

OUTSIDE DIRECTOR APPOINTMENT AGREEMENT

社外取締役就任契約書

This Outside Director Appointment Agreement (this "Agreement") is entered into by and between Koei Group Co., Ltd. (the "Company") and Ferdinand Groenewald (the "Director").

Koei Group株式会社（以下「甲」という。）とFerdinand Groenewald（以下「乙」という。）は、次のとおり社外取締役就任契約書（以下「本契約」という。）を締結する。

Article 1 (Appointment as Outside Director)

第1条（社外取締役への就任）

Subject to the condition precedent that the Director is elected as a director at a general meeting of shareholders of the Company, the Company shall delegate to the Director the duties of an outside director (as defined in Article 2(15) of the Companies Act of Japan; the same shall apply hereinafter), and the Director shall accept such delegation.

甲は、乙が株主総会において取締役に選任されることを条件として、乙に対し社外取締役（会社法第2条第15号に定める「社外取締役」をいう。以下同じ。）としての職務を委任し、乙はこれを受任する。

Article 2 (Duties)

第2条（職務）

1. The
 Director shall, in accordance with the provisions of Article 330 of the Companies Act (Relationship
 between the Stock Company and its Officers), recognize the role required of an outside director
 and faithfully execute his duties for the purpose of enhancing the corporate value of the
 Company.

乙は甲に対して、会社法第330条（株式会社と役員等との関係）の定めに従い、社外取締役に求められる役割を認識し、甲の企業価値の向上のために誠実に職務を執行する。

2. The
 Director shall comply with the Articles of Incorporation, other internal rules and regulations
 of the Company, the laws and regulations of Japan including the Companies Act, as well as
 the laws and regulations of the United States and any other countries applicable in connection
 with the business of the Company.

乙は、甲の定款、その他社内規則、会社法を含む日本国の法令並びに甲の事業に関連して適用される米国その他の国の法令及び規則を遵守するものとする。

Article 3 (Representation and Maintenance of Independence)

第3条（独立性の表明及び維持）

1. The
 Director represents and warrants that he satisfies the independence requirements set forth
 in the applicable laws and regulations and stock exchange rules, including, without limitation,
 Nasdaq Listing Rule 5605 and Rule 10A-3 under the U.S. Securities Exchange Act of 1934.

乙は、適用法令及び証券取引所規則に定める独立性要件（Nasdaq Listing Rule 5605及び1934年米国証券取引法Rule 10A-3を含むがこれらに限られない。）を充足していることを表明し、保証する。

2. During
 the Director's term of office set forth in this Agreement, the Director shall promptly
 notify the Company in writing in the event of any occurrence that may affect the Director's
 independence.

乙は、本契約に定める乙の職務期間中、独立性に影響を及ぼす事由が生じた場合には、速やかに甲に書面で通知するものとする。

Article 4 (Term of Office)

第4条（就任期間）

The term of office of the Director under this Agreement shall be from [Month] [Day], 2026, until the conclusion of the ordinary general meeting of shareholders for the last fiscal year ending within [two (2)] years; provided, however, that if the Director is re-elected as an outside director at such general meeting of shareholders, the terms and conditions applicable thereafter shall be subject to a separate written agreement entered into between the Company and the Director.

本契約に定める乙の職務期間は、2026年●月●日から[2]年以内に終了する事業年度のうち最終のものに関する定時株主総会が終結する時までとする。ただし、当該株主総会において乙が社外取締役として再任された場合は、甲乙間で別途書面により合意した内容に従うものとする。

Article 5 (Maximum Term of Office)

第5条（就任期間の上限）

The Director's total term of office shall not exceed ten (10) years; provided, however, that this shall not apply if the Board of Directors of the Company reasonably determines that there is no impact on the Director's independence in light of the independence criteria set forth in applicable laws and regulations and stock exchange rules.

乙の職務期間は、通算して10年を超えないものとする。ただし、適用法令及び証券取引所規則に定める独立性基準に照らし、甲の取締役会が乙の独立性に影響がないと合理的に判断した場合はこの限りではない。

Article 6 (Prohibition of Execution of Business)

第6条（業務執行の禁止）

In executing his duties as an outside director of the Company, the Director shall not execute the business of the Company; provided, however, that the following cases shall not be deemed to constitute the execution of business:

乙は、甲の社外取締役として職務を執行するにあたり、甲の業務を執行してはならない。ただし、以下の場合は業務執行に該当しないものとする。

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Where
 the Director serves as a member of any voluntary committee of the Company and engages in
 activities of such committee.

乙が甲の任意の委員会の構成員に就任し、当該委員会活動を行う場合。

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Where
 the Director is involved in the internal whistleblowing system established by the Company
 in a supervisory or oversight capacity.

甲が設置した内部通報制度に関し、乙が当該制度の監督又は監視の立場で関与する場合。

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Where
 the Director serves as a member of an investigation committee established for the purpose
 of investigating facts, analyzing causes, and considering measures to prevent recurrence
 in the event of corporate misconduct or other incidents involving the Company.

甲に関連する企業不祥事等が発生し、事実関係の調査、原因分析、再発防止策の検討等のために設置された調査委員会の委員に就任した場合。

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Where
 the Director serves as a member of a committee established for the purpose of valuation due
 to the necessity of calculating the Company's corporate value.

甲の企業価値算定の必要性から、価値評価のために設置された委員会の委員に就任した場合。

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Where
 the Board of Directors, by its resolution and to the extent permitted by laws and regulations,
 commissions the Director to investigate or provide advice on specific matters in circumstances
 where a conflict of interest exists between the Company and the Director, or where the Director's
 execution of the Company's business otherwise poses a risk of harming the interests
 of shareholders.

甲と乙との利益が相反する状況にあるとき、その他乙が甲の業務を執行することにより株主の利益を害するおそれがあるときに、法令上許容される範囲で、取締役会の決議により乙に特定の業務の調査又は助言を委嘱した場合。

Article 7 (Base Remuneration)

第7条（基本報酬）

1. Subject
 to the condition that the remuneration is within the total amount of remuneration approved
 by the general meeting of shareholders, the remuneration to be paid by the Company to the
 Director shall be [Amount] U.S. Dollars (USD) per year. The Company shall bear any fees required
 for the remittance.

甲が乙に対して支払う役員報酬は、株主総会において承認された報酬総額の範囲内であることを条件として、年額金●米ドルとする。なお、送金に要する手数料は甲の負担とする。

2. In
 the event that the Company submits a proposal for the re-appointment of the Director to the
 general meeting of shareholders, the Company and the Director shall consult with each other
 regarding the revision of the remuneration before the decision on such proposal is made.

甲が乙を再任する議案を株主総会に上程する場合には、当該議案を決定する前に、役員報酬の見直しについて甲乙間で協議するものとする。

3. The
 Company shall pay the remuneration for the current fiscal year to the Director in twelve
 (12) equal installments by the end of each month by wire transfer to the account designated
 by the Director.

甲は乙に対し、当年度の役員報酬を12等分し、毎月末日までに乙の指定する口座へ振込送金にて支払うものとする。

Article 8 (Special Remuneration)

第8条（特別報酬）

In the event that the Director engages in any of the activities set forth in Article 6 and such activities are reasonably determined to exceed the ordinary scope of duties of an outside director, the Company may, subject to approval by the Board of Directors excluding the Director and provided that such additional remuneration does not impair the Director's independence under applicable laws and stock exchange rules, pay additional remuneration upon consultation with the Director.

乙が第6条各号に定める活動に従事した場合において、当該活動が通常の社外取締役の職務の範囲を超えると合理的に認められるときは、乙を除く取締役会の決議により、かつ適用法令及び証券取引所規則に基づく独立性を損なわない範囲で、甲乙協議の上、追加報酬を支払うことができる。

Article 9 (Limitation of Liability Agreement and Indemnification)

第9条（責任限定契約等）

1. The
 Company and the Director agree that if the Director has acted in good faith and without gross
 negligence in performing his duties, the amount of liability for damages resulting from a
 breach of his duties shall be limited to the minimum liability amount set forth in Article
 425.1 of the Companies Act. Based on this paragraph, the Company and the Director shall separately
 enter into a Limitation of Liability Agreement pursuant to Article 427.1 of the Companies
 Act.

甲と乙は、乙が職務を行うにつき善意かつ重大な過失がないときは、任務懈怠によって生じた損害に関する賠償額については、会社法第425条第1項に定める最低責任限度額を限度とすることに合意する。本項の定めに基づき、甲と乙は別途、会社法第427条第1項に基づく責任限定契約を締結するものとする。

2. The
 Company and the Director shall separately enter into an indemnification agreement pursuant
 to Article 430-2 of the Companies Act.

甲と乙は、会社法第430条の2に基づく補償契約を別途締結する。

3. In
 the event that a claim is made against the Director by a third party in connection with his
 duties, the Company shall, within a reasonable range, advance defense costs until it is finally
 determined that such claim is not subject to indemnification; provided, however, that if
 it is finally determined that the claim is not subject to indemnification, the Director shall
 promptly return the advanced funds received.

甲は、乙がその職務に関連して第三者から請求を受けた場合、最終的に補償対象外であることが確定するまでの間、防御費用を合理的な範囲で前払いするものとする。ただし、乙は、最終的に補償対象外であることが確定した場合には、受領した前払金を速やかに返還するものとする。

4. The
 indemnification provided for in this Article shall include attorneys' fees, investigation
 costs, settlement amounts, judgment amounts, and any other reasonably incurred expenses.

本条が定める補償には、弁護士費用、調査費用、和解金、判決金その他合理的に発生した費用を含む。

5. The
 indemnification provided under this Article shall apply to the maximum extent permitted by
 applicable laws.

本条に基づく補償は、適用法令により許容される最大限の範囲で適用されるものとする。

Article 10 (Directors and Officers Liability Insurance)

第10条（役員賠償責任保険）

1. The
 Company shall, on or prior to the contemplated listing of the Company in Nasdaq, obtain and
 maintain a Directors and Officers (D&O) liability insurance policy that includes the
 Director as an insured person.

甲は、甲の意図されているNasdaq上場時点までに、乙を被保険者に含む役員賠償責任保険契約（D&O保険）を締結し、これを維持する。

2. During
 the Director's term of office, the Company shall maintain D&O insurance coverage
 at a level substantially equivalent to that in effect at the commencement of the Director's
 term, including with respect to limits of liability, deductibles, and scope of coverage;
 provided, however, that if maintaining such level becomes materially impracticable due to
 significant changes in the insurance market or other reasonable circumstances, the Company
 may maintain coverage at a level reasonably comparable under prevailing market conditions.

甲は、乙の職務期間中、補償限度額、免責金額及び補償範囲を含め、乙の職務期間の開始時点における補償と実質的に同等の水準のD&O保険を維持するものとする。ただし、保険市場の著しい変動その他合理的な事情により当該水準の維持が著しく困難となった場合には、市場慣行に照らし合理的な範囲でこれに近い水準の補償を維持する。

3. Following
 the Director's retirement, the Company shall maintain tail (run-off) D&O coverage
 for a period of not less than six (6) years with coverage substantially equivalent to that
 maintained during the Director's term of office with respect to claims arising from
 acts or omissions during such term. Such coverage shall include liability arising under U.S.
 securities laws.

甲は、乙の退任後も、乙の在任期間中の行為に起因する請求に対応するため、退任後少なくとも6年間、乙の在任中と実質的に同等の補償水準を有するテールカバレッジ（ランオフ保険）を維持するものとする。当該保険には、米国証券法に基づく請求を含む役員賠償責任が含まれるものとする。

Article 11 (Information Provision)

第11条（情報提供）

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Company shall timely provide the Director with information and materials that the Director
 reasonably deems necessary for the performance of his duties.

甲は、乙がその職務遂行のために合理的に必要と認める情報及び資料を適時に提供する。

&nbsp;&nbsp;&nbsp;&nbsp;2. In
 the event that the Director reasonably requests, the Company shall permit the Director to
 inspect minutes of Board of Directors meetings and other important materials.

甲は、乙が合理的に要求する場合には、取締役会議事録その他の重要な資料の閲覧を認めるものとする。

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Director may, upon prior notice to the Company, seek advice from external experts reasonably
 selected by the Director at the Company's expense.

乙は、甲に対する事前通知を経て、甲の費用負担により、自己が合理的に選任した外部専門家の助言を受けることができる。

Article 12 (Confidentiality)

第12条（秘密保持）

The Director shall not provide any confidential information obtained through his duties as an outside director to any third party without the prior written consent of the Company, during the term of office and for a period of five (5) years following termination thereof, except as provided by laws and regulations; provided, however, that this shall not apply in cases where disclosure is required based on applicable laws and regulations, stock exchange rules, or requests from relevant authorities.

乙は、社外取締役としての職務によって知り得た秘密について、法令等に定める場合を除き、職務期間中及び職務期間終了後5年間、甲の事前の書面による承諾なく第三者に提供してはならない。ただし、適用法令、証券取引所規則及び関連当局の要請に基づき開示が求められる場合を除く。

Article 13 (Compliance with Laws and Regulations)

第13条（法令遵守）

1. The
 Director shall cooperate with reporting obligations based on applicable laws and regulations,
 stock exchange rules, and requests from relevant authorities. The Company shall timely provide
 the Director with information necessary for such submissions.

乙は、適用法令、証券取引所規則及び関連当局の要請に基づく報告義務に協力するものとする。甲は、当該提出に必要な情報を適時に乙に提供するものとする。

2. The
 Director shall comply with the internal rules and regulations established by the Company.

乙は、甲が定める社内規程を遵守するものとする。

3. The
 Director guarantees that the content of the disclosure, such as the Director's biographical
 information described in the documents to be submitted by the Company to relevant authorities,
 is true and accurate in all material respects to the best of the Director's knowledge,
 and the Director shall cooperate in providing information necessary for such disclosure.

乙は、甲が関連当局に提出する書類に記載される乙の経歴情報等の開示内容が、乙の知る限り重要な点において真実かつ正確であることを保証し、当該開示に必要な情報提供に協力するものとする。

Article 14 (Conflict of Interest)

第14条（利益相反）

In the event that a situation arises during the term of office where the Director's interests conflict with those of the Company, the Director shall promptly report such situation to the Company. The Director shall refrain from participating in deliberations and resolutions concerning relevant matters if required under applicable laws or stock exchange rules. In the event that a situation of conflict of interest occurs repeatedly or continuously, the Company and the Director shall consult in good faith regarding the Director's resignation from his office.

乙は、職務期間中において甲と利益が相反する状況が生じた場合には、当該状況を速やかに甲に報告し、乙は、適用法令又は証券取引所規則に基づき必要とされる場合には、関係する議案について審議及び決議に参加しないものとする。利益相反の状況が反復継続する場合には、甲の取締役の辞任について甲乙間で誠実に協議する。

Article 15 (Resignation)

第15条（辞任）

The Director may resign from his office in accordance with the provisions of applicable laws and regulations in the event of any unavoidable circumstances.

乙は、やむを得ない事由がある場合には、適用法令の定めに従い辞任することができる。

Article 16 (Possibility of Non-reappointment)

第16条（不再任の可能性）

The Director acknowledges and agrees that the Company may not submit a proposal for the Director's re-appointment to the general meeting of shareholders due to circumstances such as changes in the Company's business strategy or the implementation of an evaluation of the effectiveness of the Board of Directors.

乙は、甲における事業戦略の変更、取締役会の実効性評価の実施等の事情により、乙の再任議案を甲が株主総会に上程しない場合があることを承諾する。

Article 17 (Survival)

第17条（存続条項）

Articles 9, 10, 12, 13, and 18 shall survive the termination of this Agreement and continue in full force and effect.

第9条、第10条、第12条、第13条及び第18条は、本契約終了後も有効に存続する。

Article 18 (Governing Law and Dispute Resolution)

第18条（準拠法及び紛争解決）

1. This
 Agreement shall be governed by and construed in accordance with the laws of Japan.

本契約は、日本法に準拠し、日本法に従って解釈される。

2. Any
 and all disputes arising out of or relating to this Agreement shall be subject to the exclusive
 jurisdiction of the Tokyo District Court as the court of first instance.

本契約に起因又は関連して生ずる一切の紛争については、東京地方裁判所を第一審の専属的合意管轄裁判所とする。

Article 19 (Language)

第19条（言語）

This Agreement is prepared in both Japanese and English languages. In the event of any discrepancy between the two versions or any ambiguity in interpretation, the English version shall prevail.

本契約は、日本語及び英語により作成される。両言語の内容に相違又は解釈上の疑義が生じた場合には、英語を優先する。

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate, and each party shall retain one (1) copy after signing or affixing their names and seals.

以上のとおり合意したので、これを証するため本書を2通作成し、甲乙それぞれ署名又は記名押印のうえ、各1通を保有する。

[Month] [Day], 2026

2026年＿＿月＿＿日

---

| | |
|:---|:---|
| The Company/甲： | Shinagawa Grand Central Tower |
|  | 2-16-3 Konan, Minato-ku, Tokyo, Japan |
|  | 東京都港区港南二丁目16番3号 |
|  | 品川グランドセントラルタワー |
|  | Koei Group Co., Ltd. |
|  | Koei Group株式会社 |
|  | Representative Director Mamoru Iwamoto |
|  | 代表取締役 岩本 守 |
| The Director/乙： | [Melbourne, Florida 32940, United States] |
|  | Ferdinand Groenewald |

---

## Exhibit 10.6

**Exhibit 10.6**

**SHARE SALE AND PURCHASE AGREEMENT**

**THIS SHARE SALE AND PURCHASE AGREEMENT** ("**SPA**") is entered into as of 19 December 2025 ("**Effective Date**").

**BY AND BETWEEN:**

(1) **HIDAKA HOLDLINGS (2008) CO., LTD.**, a company incorporated and existing under the laws of Thailand,
 having its registered office at 27 Hidaka Building, Floor 4 Soi Bangna-Trad 25, Bangna-Trad
 Road, Bangna Nuea Subdistrict, Bangna District, Bangkok 10260, Thailand ()"**Purchaser** ");
 and

(2) **KOEI JAPAN CO., LTD.**, a company incorporated and existing under the laws of Japan, having
 its registered office at 1-13-3 Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa 236-0004, Japan
 ()"**Seller** ").

Each of the Purchaser and the Seller may be referred to individually as a "**Party**" and collectively as the "**Parties**".

**WHEREAS:**

(A) The
 Purchaser intends to acquire forty-nine (49) percent of the total Shares in the Company from
 the Seller.

(B) Therefore,
 the Purchaser wishes to purchase from the Seller the Sale Shares (as specified in Article
 2.1) and the Seller intends to sell the Sale Shares to the Purchaser in accordance with the
 terms and conditions of this SPA.

Page **1** of **16**

**NOW THEREFORE** the Parties hereby agree as follows:

**1.**  **<u>DEFINITIONS</u>** 

1.1 In
 this SPA, unless otherwise specified, the following capitalized terms shall have the following
 meanings:

---

| | |
|:---|:---|
| **Applicable Stamp Duty** | shall have the meaning as prescribed to it in Article 5.4. |
| **Authorized Persons** | shall have the meaning as prescribed to it in Article 9.4(a). |
| **Claims** | shall have the meaning as prescribed to it in Article 8.1. |
| **Closing** | means the completion of the Share Transfer pursuant to Article 2 and in accordance with Article 5. |
| **Closing Date** | shall have the meaning as prescribed to it in Article 5.1. |
| **Closing EGM** | shall have the meaning as prescribed to it in Article 6.3. |
| **Communications** | shall have the meaning as prescribed to it in Article 13.2. |
| **Company or Target Company** | means Koei (Thailand) Co., Ltd. a limited company organized and existing under the laws of Thailand, having the registration number 0205567002627. |
| **Conditions Precedent for the Purchaser** | shall have the meaning as prescribed to it in Article 4.2. |
| **Conditions Precedent for the Seller** | shall have the meaning as prescribed to it in Article 4.1. |
| **Confidential Information** | shall have the meaning as prescribed to it in Article 9.2. |
| **De Minimis Amount** | shall have the meaning as prescribed to it in Article 8.3.2(a). |
| **Delivering Party** | shall have the meaning as prescribed to it in Article 13.2. |
| **Effective Date** | shall have the meaning as prescribed to it in the preamble. |
| **EGM Matters** | shall have the meaning as prescribed to it in Article 6.3. |
| **Encumbrances** | means any claim, charge, lien, mortgage, servitude, pledge, easement, trust, power or title retention, or guarantee for payment or performance of obligation, or any other third party right or security interest of any kind, or any agreement, arrangement or obligation to create any of the foregoing or allow any of them to exist. |
| **Indemnified Party** | shall have the meaning as prescribed to it in Article 8.1. |
| **Indemnifying Party** | shall have the meaning as prescribed to it in Article 8.1. |
| **Party** | shall have the meaning as prescribed to it in the preamble. |
| **Parties** | shall have the meaning as prescribed to it in the preamble. |
| **Purchase Price** | shall have the meaning as prescribed to it in Article 3.1. |
| **Purchaser** | shall have the meaning as prescribed to it in the preamble. |
| **Related Costs** | shall have the meaning as prescribed to it in Article 13.1. |
| **Representations and Warranties of the Purchaser** | shall have the meaning as prescribed to it in Article 7.2. |
| **Representations and Warranties of the Seller** | shall have the meaning as prescribed to it in Article 7.1. |
| **Sale Shares** | shall have the meaning as prescribed to it in Article 2.1. |
| **Seller** | shall have the meaning as prescribed to it in the preamble. |
| **Seller Support Letter** | shall have the meaning as prescribed to it in Article 6.1.3. |
| **Seller's Share Certificate** | shall have the meaning as prescribed to it in Article 5.2(c). |
| **SHA** | shall mean the Shareholders Agreement concerning the management and operation of the Company to be entered into by the Parties. |
| **Share Transfer** | shall have the meaning as prescribed to it in Article 2.1. |
| **Share Transfer Instruments** | shall have the meaning as prescribed to it in Article 5.2(a). |
| **Shares** | means any or all shares issued by the Company. |
| **SPA** | means this Share Sale and Purchase Agreement, including its Article (s) and Annex(es), and all its amendment(s) as may be duly amended in accordance with this SPA. |
| **THB** | means Thai Baht. |
| **Threshold Amount** | shall have the meaning as prescribed to it in Article 8.3.2(b). |

---

Page **2** of **16**

**2.**  **<u>SALE AND PURCHASE OF SALE SHARES</u>** 

2.1 At
 the Closing, on and subject to the terms and conditions of this SPA, the Seller agrees to
 sell and transfer Shares to the Purchaser and the Purchaser agrees to purchase and acquire
 Shares from the Seller Nine Thousand Eight Hundred (9,800) Shares ()"**Sale Shares** "),
 including legal and beneficial rights and interest now and hereafter attaching thereto or
 accrued therefrom in and to the Sale Shares, free from all Encumbrances ()"**Share Transfer** ").

2.2 Legal
 and beneficial ownership of the Sale Shares shall pass from the Seller to the Purchaser at
 the Closing.

**3.**  **<u>PURCHASE PRICE AND PAYMENT</u>** 

3.1 The
 purchase price of the Sale Shares shall be THB 980,000 ()"**Purchase Price** "),
 exclusive of taxes (if any).

3.2 The
 Purchase Price shall be paid by wire transfer to the bank account designated by the Seller.

3.3 The
 Purchaser shall be responsible for the transfer fee, bank charges and/or any other expenses
 relating to the payment and the transfer of the Purchase Price and any other payment to the
 Seller.

**4.**  **<u>CONDITIONS PRECEDENT</u>** 

4.1 **Conditions Precedent for the Obligation of the Seller** 

The obligation of the Seller to proceed with and complete the Share Transfer on the Closing Date under Article 5 is conditional upon the satisfaction or waiver (by the Seller) of the following conditions precedent ("**Conditions Precedent for the Seller**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 the covenants, conditions, obligations and agreements required to be performed prior to or
 on the Closing Date and complied with by the Purchaser under this SPA have been duly performed
 and/or complied with (except for any covenant, condition, obligation or agreement which shall
 be performed or complied with only after the Closing);

Page **3** of **16**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 of the Representations and Warranties of the Purchaser shall be true, complete, correct and
 accurate, and not misleading in all aspects, as at the Closing;

(c) All
 necessary consents, approvals, permits, licenses, authorizations, or waivers as required
 for the Share Transfer, if any, have been obtained without any condition, and where any such
 consents, approvals, permits, licenses, authorizations, or waivers as required for the Share
 Transfer are subject to any condition, such condition being fulfilled to the satisfaction
 of the Seller in its absolute discretion;

(d) The
 sale, purchase, or transfer of the Sale Shares not being prohibited by any laws or by any
 government authority.

(e) The
 SHA has been duly executed by the Parties, and it is reasonably certain that the SHA will
 come into full force and effect simultaneously with the Closing.

4.2 **Conditions Precedent for the Obligation of the Purchaser** 

The obligation of the Purchaser to proceed with and complete the Share Transfer on the Closing Date under Article 5 is conditional upon the satisfaction or waiver (by the Purchaser) of the following conditions precedent ("**Conditions Precedent for the Purchaser**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 the covenants, conditions, obligations and agreements required to be performed prior to or
 on the Closing Date and complied with by the Seller under this SPA have been duly performed
 and/or complied with (except for any covenant, condition, obligation or agreement which shall
 be performed or complied with only after the Closing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 of the Representations and Warranties of the Seller shall be true, complete, correct and
 accurate, and not misleading in all aspects, as at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All
 necessary consents, approvals, permits, licenses, authorizations, or waivers as required
 for the Share Transfer, if any, have been obtained without any condition, and where any such
 consents, approvals, permits, licenses, authorizations, or waivers as required for the Share
 Transfer are subject to any condition, such condition being fulfilled to the satisfaction
 of the Purchaser in its absolute discretion.

Page **4** of **16**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 sale, purchase, or transfer of the Sale Shares not being prohibited by any laws or by any
 government authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Seller has issued to the Purchaser a letter confirming the fulfilment of the Conditions Precedent
 for the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 SHA has been duly executed by the Parties, and it is reasonably certain that the SHA will
 come into full force and effect simultaneously with the Closing.

4.3 **Non-Satisfaction or Waiver** 

4.3.1 If
 the Conditions Precedent for the Seller are not satisfied or waived by the Seller prior to
 or on the Closing Date, the Seller shall not be bound to proceed with the Share Transfer,
 and, in addition to and without prejudice to any rights, claims, or remedies available to
 it, may in its sole and absolute discretion terminate this SPA by written notice to the Purchaser,
 unless otherwise mutually agreed by the Parties.

4.3.2 If
 the Conditions Precedent for the Purchaser are not satisfied or waived by the Purchaser prior
 to or on the Closing Date, the Purchaser shall not be bound to proceed with the Share Transfer,
 and, in addition to and without prejudice to any rights, claims, or remedies available to
 it, may in its sole and absolute discretion terminate this SPA by written notice to the Seller,
 unless otherwise mutually agreed by the Parties.

**5.**  **<u>COMPLETION OF SHARE TRANSFER</u>** 

5.1 The
 Closing shall take place on 28 February 2026 or any other time or date as may be mutually
 agreed by the Parties ()"**Closing Date** "). Unless otherwise mutually agreed
 by the Parties, in the event the Closing Date is deferred, the provisions of this SPA shall
 apply to the Share Transfer on such Closing Date so deferred.

5.2 At
 the Closing, subject to Article 4, the Parties shall take the following actions in the following
 order to proceed with and complete the Share Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Seller shall execute the original Share Transfer Instruments of the Sale Shares, as one (1)
 original copy and one (1) duplicate copy, in favor of the Purchaser ()"**Share Transfer Instruments** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Purchaser shall execute the Share Transfer Instruments and pay the Purchase Price to the
 Seller in accordance with Article 3;

Page **5** of **16**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Seller shall deliver the share certificates of the Sale Shares ()"**Seller's Share Certificate**") to the Company and procure the Company to cancel the Seller's
 Share Certificate and issue the new original share certificate of the Sale Shares to the
 Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Seller shall procure the Company to record the Share Transfer in the shareholder register
 book of the Company and to deliver a copy of the updated shareholder register book to the
 Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Seller shall deliver a receipt of the Purchase Price payment issued by the Seller.

5.3 The
 obligations of the Seller and the Purchaser under this Article 5 are interdependent and shall
 be performed concurrently, to the greatest extent practicable. In the event that either Party
 fails to perform its respective obligation, the other Party shall not be required to perform
 its corresponding obligation. To the extent any actions have already been taken by either
 Party in anticipation of such performance of the other Party, the Parties shall take all
 reasonable steps necessary to unwind or reverse such actions.

5.4 With
 respect to the stamp duty applicable to the Share Transfer Instruments executed by the Parties,
 the Seller and the Purchaser agree to bear such stamp duty in equal amount with each Party
 bearing fifty (50) percent of the stamp duty ()"**Applicable Stamp Duty** ").

**6.**  **<u>EFFECT OF CLOSING; POST-CLOSING ACTIONS</u>** 

6.1 **Effect of Closing** 

6.1.1 **Company New Office** 

The location of the Target Company after the Closing will be 165 Moo 3 Soi Wat Suan Som, Pu Chao Samingprai Rd., Bang Prong Subdistrict, Mueang District, Samut Prakan Province. The Target Company shall lease such land from the Purchaser and carry out construction work related to the factory building thereon by itself. The details of such construction work, including its scope and cost allocation, shall be separately agreed upon between the Parties.

6.1.2 **Company New Name** 

The Company's name shall be changed to HIDAKA KOEI (THAILAND) CO., LTD. Therefore, the Seller shall and shall procure the Company to prepare for the amendment of the name, logo, and company seal of the Company to be resolved at the Closing EGM.

Page **6** of **16**

6.1.3 **Shareholders structure after Closing Date** 

The Shareholders structure of the Company is the Purchaser, the Seller, and one or two Thai corporations or individuals with Thai nationality designated by the Seller ("**Third Shareholder**").

6.1.4 **Registered capital of the Target Company after Closing Date** 

The registered capital shall be increased to THB 4,000,000 after Closing Date, and thereafter the specific amount shall be determined separately through consultation among the Purchaser, the Seller, and the Third Shareholder with reference to the Thai Baht equivalent of JPY 100 million. Each shareholder shall make its capital contribution in cash from its own funds.

Shareholding ratios upon the Closing and completion of Article 6.1.4 are the Purchaser 49%, the Seller 49%, and the Third Shareholder 2%.

6.2 **Financing Support to Company** 

The Parties acknowledge that, between the Parties, the Parties are responsible for maintaining the financial stability of the Company upon the Closing.

6.3 **Shareholders Agreement** 

The Parties shall enter into the SHA before the Closing, which shall come into force upon the Closing.

6.4 **Filing of the List of Shareholders** 

Within five (5) days following the Closing Date, the Seller shall procure the Company to update a list of shareholders (BOJ.5) of the Company showing the Purchaser is the shareholder of the Sale Shares issued by the Department of Business Development, the Ministry of Commerce and to deliver a copy of the updated list of shareholders (BOJ.5) to the Purchaser

**7.**  **<u>REPRESENTATIONS AND WARRANTIES</u>** 

7.1 **Representations and Warranties of the Seller** 

The Seller represents and warrants to the Purchaser that on the Effective Date and the Closing Date each of the following Seller's representations and warranties ("**Representations and Warranties of the Seller**") is true, complete, correct and not misleading:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is a company duly incorporated and validly existing under the laws of its place of incorporation,
 and has the legal right, power and authority to enter into, deliver and perform this SPA.

Page **7** of **16**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this
 SPA constitutes, and the other documents to be executed by it pursuant to this SPA will,
 when executed, constitute legal, valid and binding obligations of the Seller enforceable
 against the Seller in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 has adopted or obtained all necessary authorizations, permits, consents and approvals required
 in order to enter into, deliver and perform this SPA and the transactions contemplated herein.
 The execution and performance of this SPA and the transactions contemplated herein by the
 Seller do not contravene or breach any contract adopted or executed by the Seller, or any
 order, judgment, decree, regulation, any applicable laws or any other restriction of any
 kind by which the Seller is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 has not been declared insolvent or bankrupt (or subject to any analogous proceedings), nor
 is it the subject of any pending petition, action or proceeding that could result in the
 filing of bankruptcy or insolvency or analogous proceedings, bankruptcy, insolvency, any
 judicial composition, or any extra-judicial arrangement or settlement with its creditors.
 It has not been subject to dissolution, winding up or liquidation, and there is no outstanding
 proceeding seeking such dissolution, winding up or liquidation.

7.2 **Representations and Warranties of the Purchaser** 

The Purchaser represents and warrants to the Seller that on the Effective Date and the Closing Date each of the following Purchaser's representations and warranties ("**Representations and Warranties of the Purchaser**") is true, complete, correct and not misleading:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is a company duly incorporated and validly existing under the laws of its place of incorporation,
 and has the legal right, power and authority to enter into, deliver and perform this SPA.

Page **8** of **16**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this
 SPA constitutes, and the other documents to be executed by it pursuant to this SPA will,
 when executed, constitute legal, valid and binding obligations of the Purchaser enforceable
 against the Purchaser in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 has adopted or obtained all necessary authorizations, permits, consents and approvals required
 in order to enter into, deliver and perform this SPA and the transactions contemplated herein.
 The execution and performance of this SPA and the transactions contemplated herein by the
 Purchaser do not contravene or breach any contract adopted or executed by the Purchaser,
 or any order, judgment, decree, regulation, any applicable laws or any other restriction
 of any kind by which the Purchaser is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 has not been declared insolvent or bankrupt (or subject to any analogous proceedings), nor
 is it the subject of any pending petition, action or proceeding that could result in the
 filing of bankruptcy or insolvency or analogous proceedings, bankruptcy, insolvency, any
 judicial composition, or any extra-judicial arrangement or settlement with its creditors.
 It has not been subject to dissolution, winding up or liquidation, and there is no outstanding
 proceeding seeking such dissolution, winding up or liquidation.

**8.**  **<u>INDEMNITY AND LIABILITY</u>** 

8.1 Each
 Party ()"**Indemnifying Party**") shall indemnify and be liable to the other
 Party ()"**Indemnified Party**") and hold the Indemnified Party harmless from
 and against any and all allegations, obligations, debts, claims, cause of action, proceedings,
 suits, demands, damages, liabilities, losses, and costs and expenses (including, without
 limitation, reasonable attorneys', consultants' or professionals' fees
 and expenses) (collectively, "**Claims**") paid, incurred or suffered by the
 Indemnified Party due to any breach by the Indemnifying Party of any of its representations
 or warranties under this SPA.

Page **9** of **16**

8.2 For the avoidance of doubt, the indemnification and the liability of the Seller shall be
 subject to and limited by the provisions of Article 8.3, provided that the Purchaser shall
 make any claim against the Seller in accordance with the procedures set out in Article 8.3,
 including Article 8.3.6.

8.3 **Limitation of Liability** 

8.3.1 The
 Purchaser acknowledges and agrees that the Share Transfer and any transactions contemplated
 in this SPA are made on an 'as-is' basis as at the Closing. Therefore, in this
 respect, the Seller shall not indemnify or be liable for any Claims unless a representation,
 warranty or covenant is explicitly provided by the Seller in this SPA.

8.3.2 The
 Indemnifying Party or the Seller shall not be liable for any Claims unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 liability in respect of any such Claims exceeds one (1) percent of the Purchase Price ()"**De Minimis Amount** "); and

(b) the
 aggregate amount of the Indemnifying Party's or the Seller's liability in respect
 of such Claims mentioned in item (a) above exceeds ten (10) percent of the Purchase Price
 ()"**Threshold Amount** "),

in which case, the Indemnifying Party or the Seller shall be liable for the amount of such qualifying Claims. However, any Claims equal to or below the De Minimis Amount shall not be counted toward the Threshold Amount.

8.3.3 The
 Seller shall not be liable in respect of any Claims, or any part or increased part thereof,
 in the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Claim arises from any act, omission, transaction or arrangement of the Purchaser;

(b) the
 Claim relates to any matter, liability, or event that was disclosed to or otherwise known
 by the Purchaser prior to the Effective Date;

(c) the
 Claim arises from or is based on any change in law which comes into force or otherwise takes
 effect after the Effective Date;

(d) the
 Claim arises from or is based on any change to the accounting policy or any method applied
 in preparing any accounts, or the valuation of any assets or liabilities of the Company occurring
 after the Closing, for which the change thereof is as agreed with the Purchaser;

(e) the
 Claim arises from the Purchaser's failure to take reasonable steps to avoid or mitigate
 the loss or damage;

(a) the
 loss or damage forming the basis of the Claim is contingent and has not yet resulted in any
 actual loss or damage suffered by the Purchaser; and/or

(f) the
 Purchaser has already been compensated in respect of the same loss or damage under any provision
 of this SPA or otherwise.

Page **10** of **16**

8.3.4 The
 Purchaser shall not be entitled to recover or otherwise claim the Seller for any Claims unless
 (i) the Purchaser has taken reasonable steps to enforce the recovery or otherwise claim reimbursement
 or damages from the relevant third party, and (ii) the Seller's liability in respect
 of such relevant Claims shall be reduced by the amount recovered, reimbursed or paid by or
 from the relevant third party, or be extinguished if the amount recovered, reimbursed or
 paid by or from the relevant third party exceeds the amount of the relevant Claims.

8.3.5 The
 Purchaser shall not have the right to recover damages, or to receive payment, reimbursement,
 indemnity, or otherwise more than once in respect of the same loss or damage that has already
 been claimed, compensated and recovered. The Purchaser shall take all reasonable steps to
 avoid or mitigate any losses or damages that it may suffer or incur, which could give rise
 to a Claim.

8.3.6 Any
 claim for indemnification or liabilities against the Indemnifying Party or the Seller, as
 the case may be, under this SPA shall be notified in writing to the Indemnifying Party or
 the Seller, as the case may be, within [six (6) months] from the date on which the Purchaser
 becomes aware, or ought reasonably to have become aware, of the circumstances giving rise
 to such claim, and in any event no later than one(1) year from the Closing Date, provided
 that any claim so notified within such period shall survive until it is finally resolved.

8.3.7 The
 total indemnification and liabilities of the Seller in this SPA are capped at twenty (20)
 percent of the Purchase Price. For the avoidance of doubt, the limitations set forth in this
 Article 8.3 (including the De Minimis Amount, the Threshold Amount and the cap) shall not
 apply to (i) any failure by the Purchaser to pay the Purchase Price in accordance with Article
 3 (in that case the Seller shall be entitled to recover up to 100% of the Purchase Price,
 together with any applicable interest and costs), and (ii) any fraud or willful misconduct.

Page **11** of **16**

**9.**  **<u>CONFIDENTIALITY; PUBLIC ANNOUNCEMENT</u>** 

9.1 Each
 Party shall use the Confidential Information only for the purpose of the Share Transfer and
 any transactions contemplated in this SPA.

9.2 For
 the purpose of this SPA, the "**Confidential Information**" is the information,
 in any format or manner, received or obtained in relation to this SPA, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 provisions or the subject matter of this SPA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 provisions or the subject matter of any transactions contemplated in this SPA; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 negotiation, discussion or any form of Communications between the Parties related to this
 SPA or related to any transactions contemplated in this SPA.

9.3 In
 all regards, the receiving Party shall keep confidential the Confidential Information of,
 in connection with or as disclosed by the disclosing Party until such Confidential Information
 becomes generally available to the public by any reasons not attributable to the receiving
 Party.

9.4 Each
 Party shall not disclose the Confidential Information to any third party unless such disclosure
 is made as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) disclosure
 is made to its affiliates, shareholders, successors or permitted assignees, directors, officers,
 employees, or professional advisers or auditors (as necessary to advise on this SPA or facilitate
 or evaluate the transactions as contemplated by this SPA) (collectively, "**Authorized Persons**") on a 'need-to-know' basis, provided that the Authorized Persons
 are bound by this confidential obligation or its equivalent; or

(b) disclosure
 is made to fulfill the statutory obligation of disclosure under the law or as required by
 the governmental authority or court, provided that the Party required to make such disclosure
 shall, to the extent legally permissible, consult with the other Party in advance and take
 into account any reasonable requests the other Party may have in relation to such disclosure.

Page **12** of **16**

9.5 Upon
 the termination of this SPA or as reasonably requested by the disclosing Party, the receiving
 Party shall return the Confidential Information of, or disclosed by, the disclosing Party
 (and any copies made thereto) to the disclosing Party; or destroy such Confidential Information
 upon the request of the disclosing Party, unless the receiving Party is required by the applicable
 law to retain such Confidential Information for the retention period under the applicable
 law.

9.6 No
 public announcement, release or statement relating to this SPA shall be made by either Party
 without the prior consent of the other Party, unless the Party is required by the applicable
 law to make such public announcement, release or statement under the applicable law.

**10.**  **<u>TERMINATION</u>** 

10.1 **Termination Events** 

10.1.1 This
 SPA may be terminated at any time prior to the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 the non-defaulting Party, by a written notice to the defaulting Party, if there is any material
 breach or default by the defaulting Party of any of its obligations, covenants or undertakings
 under this SPA, including the falsity or inaccuracy of any of the representations and warranties
 of the defaulting Party which, in the opinion of the non-defaulting Party, is not rectifiable,
 or, if in the opinion of the non-defaulting Party is rectifiable, but is not remedied within
 fifteen (15) days from the date of notice to such defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 either Party, by a written notice to the other Party with immediate effect, if a legislative
 or governmental action has occurred or been taken that prohibit, restrict or limit the consummation
 of the Share Transfer as contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by
 either Party, by a written notice to the other Party with immediate effect, in the event
 of and pursuant to Article 4.3.1 or Article 4.3.2, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by
 either Party, by a written notice to the other Party, if the other Party files a petition
 in bankruptcy or a petition in bankruptcy is filed against the other Party, or the other
 Party becomes insolvent, bankrupt, or makes a general assignment or agreement for the benefit
 of its creditors, or goes into dissolution, liquidation or receivership, or any analogous
 proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by
 mutual agreement of the Parties.

Page **13** of **16**

10.1.2 This
 SPA shall not be terminated for any events or reasons other than those set forth in Article
 10.1.1. For the avoidance of doubt, no Party shall have the right to terminate this SPA after
 the completion of the Closing.

10.2 **Consequences of Termination** 

10.2.1 Nothing
 in this SPA shall preclude or restrict a Party from recourse, such as remedies, as may be
 available at law, in lieu of or in addition to the termination of this SPA.

**11.**  **<u>GOVERNING LAW</u>** 

This SPA shall be governed by and construed in accordance with the laws of Thailand, regardless of the laws that may be applicable to it under the conflict of laws rules.

**12.**  **<u>JURISDICTION</u>** 

Any dispute, controversy or claim arising out of or relating to this SPA, or the validity, breach or termination thereof, shall be settled by arbitration in accordance with the Arbitration Rules of the Thai Arbitration Institute, Office of the Judiciary, applicable at the time of submission of dispute to arbitration, and the conduct of arbitration thereof shall be under the auspices of the Thai Arbitration Institute. The place of arbitration shall be Bangkok, Thailand. The language of the arbitration shall be English. The prevailing Party in any arbitration shall be entitled to recover all costs and expenses actually incurred, including the costs of the arbitration, irrespective of the amount of the award. The award rendered by arbitration shall be final and binding upon the Parties.

**13.**  **<u>MISCELLANEOUS</u>** 

13.1 **Costs and Expenses.** Save as otherwise provided in this SPA, (i) the Seller shall bear all costs,
 expenses, or fees however arising from or relating to this SPA ()"**Related Costs** ")
 as incurred by the Seller, and (ii) the Purchaser shall bear all Related Costs as incurred
 by the Purchaser.

Page **14** of **16**

13.2 **Notices.** Save as otherwise provided in this SPA, any demand, notice or other communication (collectively,
 "**Communications**") served by a Party ()"**Delivering Party** ")
 to the other Party shall be made in writing and sent (i) in person, (ii) by e-mail, or (iii)
 by registered local or international mail of recognized courier. Communications shall be
 effective upon receipt and shall be deemed served and received (i) at the time of delivery
 (if delivered in person to the designated address), (ii) at the time of actual receipt by
 the recipient (if transmit by email), or at 17:00 (Bangkok, Thailand time) on the date of
 transmission (if the receiving Party rejects or refuses to accept the Communications by e-mail),
 (iii) three (3) business days from the date of delivery by a local courier or five (5) business
 days from the date of delivery by an international courier (if delivered by registered mail),
 or (iv) at the time the Delivering Party obtains evidence of delivery or evidence that delivery
 was refused or rejected from the delivery services (if delivered by registered mail), whichever
 of item (iii) or (iv) is earlier.

13.3 **Severability.** If any provisions (or parts thereof) of this SPA is held invalid, illegal, or unenforceable
 for any reason, such provision (or parts thereof) shall not affect the validity, legality,
 or enforceability of the other provisions (or other parts thereof) of this SPA. The Parties
 agree to revise or substitute such provision (or part thereof) to comply with the applicable
 laws, or exclude such provision (or part thereof), for this SPA to be interpreted to the
 truest intention of the Parties.

13.4 **No Implied Waiver.** Save as otherwise provided in this SPA, no waiver, or failure to exercise
 its right to require any performance, in this SPA shall be valid and effective except when
 executed in writing by the Party. No waiver of any provisions of this SPA shall constitute
 a waiver of any other provision, or any subsequent right or breach as available to that Party.

13.5 **No Assignment.** No Party may assign, transfer or delegate its right or obligation set forth
 in this SPA to any person without a prior written consent of the other Party.

13.6 **No Agency.** Nothing contained in this SPA shall be construed to cause an agency or any dependency
 relationship between the Parties. No Party shall have the right and authority to act on behalf
 of or bind the other Party through its act or otherwise, unless such authority is expressly
 granted in writing.

13.7 **Entire Agreement.** This SPA and other documents as contemplated hereunder shall constitute the
 entire agreement between the Parties concerning the subject matter hereof and shall supersede
 all prior communications between the Parties in connection with the subject matter hereof.
 In the event of discrepancy among the documents with respect to the matters as contemplated
 hereunder, this SPA shall prevail, unless otherwise agreed in writing by the Parties. Any
 amendment made to this SPA shall be valid and effective when executed in writing by the Parties.

13.8 **Counterparts.** This SPA may be executed in any numbers of counterparts, by respective Parties of this
 SPA on separate counterparts, each of which as so executed and exchanged shall constitute
 an original document, and all such separate counterparts shall constitute one and the same
 document.

[*The remainder of this page is intentionally left blank. Signature page follows.*]

Page **15** of **16**

**IN WITNESS WHEREOF**, the Parties hereto have executed this SPA by their duly authorized representatives as of the date first above written.

---

| | |
|:---|:---|
| **HIDAKA HOLDINGS (2008) CO., LTD.** | **HIDAKA HOLDINGS (2008) CO., LTD.** |
| */s/ Yasuo Altitrungsiri* |  |
| <br>**Name:** Mr. Yasuo Altitrungsiri<br>| *- Company Seal-* |
| **Title:** President |  |
| **Witness** |  |
| <br>**Name:** |  |

---

**IN WITNESS WHEREOF**, the Parties hereto have executed this SPA by their duly authorized representatives as of the date first above written.

---

| | |
|:---|:---|
| **KOEI JAPAN CO., LTD.** |  |
| */s/ Masaru Iwamoto* |  |
| <br>**Name:** Mr. Masaru Iwamoto<br>| *- Company Seal-* |
| **Title:** Representative Director |  |
| **Witness** |  |
| <br>**Name:** |  |

---

Page **16** of **16**

## Exhibit 10.7

**Exhibit 10.7**

**SHAREHOLDERS AGREEMENT**

**THIS SHAREHOLDERS AGREEMENT** (this "Agreement" or the "SHA") is made as of 24 February 2026 by and between:

**HIDAKA HOLDINGS (2008) CO., LTD.**, a company incorporated under the laws of Thailand, having corporate registration number 0115551009709, with its registered office at 27 Hidaka Building, Floor 4 Soi Bangna-Trad 25, Bangna-Trad Road, Bangna Nuea Subdistrict, Bangna District, Bangkok 10260, Thailand ("**HIDAKA**"); and

**KOEI JAPAN CO., LTD.**, a company incorporated under the laws of Japan, having corporate registration number 020001034739, with its registered office at 1-13-3 Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa 236-0004, Japan ("**KOEI**").

Each a "**Party**" and, collectively, the "**Parties**".

**RECITALS:**

A. The
 Parties are or will be shareholders in Hidaka Koei (Thailand) Co., Ltd. (the "**Company** ").

B. The
 Parties agree to enter into this Agreement to formalize their respective rights and obligations
 as shareholders of the Company in accordance with its terms.

**THE PARTIES AGREE AS FOLLOWS:**

**1. DEFINITIONS AND INTERPRETATIONS**

1.1 Definitions

The capitalized terms used in this Agreement shall have the following meanings.

**"Accession Agreement"** means the document in the form and in the substance as set forth in Schedule 2.

**"Affiliate"** means in relation to a person, any person that, directly or indirectly, Controls, is Controlled by, or is under common Control with, the first person.

**"Applicable Law"** means all legally binding laws, statutes, regulations, subordinate legislation, by-laws, orders and decrees of any Governmental Authority, and any judgments, decisions and injunctions of any court or tribunal, in each case having jurisdiction over the matter in question.

**"AOA"** means the articles of association of the Company, as amended from time to time.

**"Board"** means the board of directors of the Company.

**"Board Reserved Matters"** means matters set forth in Part 1 of Schedule 1.

**"Budget and Business Plan"** shall have the meaning given to it in Clause 5.8.

**"Business"** means (a) the conduct in Thailand of IT asset disposition (ITAD) activities covering, without limitation: collection/receipt, storage, sorting, testing and grading of used electronic and IT equipment; secure data erasure and/or destruction, refurbishment, repair and parts replacement, redeployment and remarketing/resale, lease-return processing, harvesting of reusable components and materials, and environmentally sound end-of-life processing; (b) other recycling activities mutually agreed by the Parties from time to time; (c) any other businesses as approved from time to time by the meeting of the Shareholders in accordance with the terms of this Agreement; and (d) ancillary services reasonably necessary for the foregoing.

**"Business Day"** means a day other than a Saturday, Sunday or public holiday on which commercial banks are generally open for normal business in Thailand.

**"Chairperson"** means the chairperson of the Board.

**"Change of Control"** shall have the meaning given to it in Clause 13.1.

**"Company"** means a company incorporated under the laws of Thailand having the registration number 0205567002627, the name of which shall be changed to Hidaka Koei (Thailand) Co., Ltd..

**"Confidential Information"** means the contents of this Agreement, any and all information regarding the customers, business, assets, knowhow, affairs of the Company or the other Shareholders, or information otherwise received from or in connection with any of the transactions contemplated by or further to the negotiations hereof. For the avoidance of doubt, the Confidential Information shall not include any information in the public domain or any information already known to the third party (as evidenced in writing) by the relevant third party prior to disclosure.

**"Control"** means possession, directly or indirectly, of the power to direct management and policies through ownership of voting securities or otherwise and includes (a) ownership directly or indirectly of more than 50% of the shares in issue or other equity interests of such person, or (b) possession directly or indirectly of more than 50% of the voting power of such person.

**"Deadlock"** shall have the meaning given to it in Clause 10.1.

**"Deadlock Call Option"** shall have the meaning given to it in Clause 10.3.

**"Deadlock Call Option Notice"** shall have the meaning given to it in Clause 10.3.

**"Deadlock Consultation Period"** shall have the meaning given to it in Clause 10.2.

**"Default"** shall have the meaning given to it in Clause 13.1.

**"Default Call Option Shares"** shall have the meaning given to it in Clause 13.2.

**"Default Notice"** shall have the meaning given to it in Clause 13.2.

**"Default Put Option Shares"** shall have the meaning given to it in Clause 13.2.

**"Defaulting Party"** shall have the meaning given to it in Clause 13.1.

**"Director"** means any director or directors of the Company from time to time.

**"Effective Date"** means the date on which closing occurs under the Share Sale and Purchase Agreement dated 19 December 2025 entered into by and between the Parties.

**"Encumbrance"** means any mortgage, pledge, lien, option, right to acquire, assignment by way of security, or any other security interest of any kind, including retention arrangements and any agreement to create any of the foregoing.

**"Event of Default"** shall have the meaning given to it in Clause 13.1.

**"Fiscal Year"** shall have the meaning given to it in Clause 7.6.

**"Force Majeure"** means acts beyond the affected Party's reasonable control, including, without limitation, the following events that frustrates such Party's ability to perform its obligations: (i) acts of God; (ii) flood, fire, earthquake or explosion; (iii) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (iv) Governmental Authority order or law; (v) actions, embargoes or blockades in effect on or after the date of this Agreement; (vi) action by any Governmental Authority; (vii) national or regional emergency; (viii) strikes, labor stoppages or slowdowns or other industrial disturbances; (ix) epidemic, pandemic or similar influenza or bacterial infection that may cause global outbreak, or pandemic, or serious illness; (x) declaration by a Thai Governmental Authority of a state of emergency; (xi) shortage of power or transportation facilities; and (xii) other similar events beyond the reasonable control of the affected Party.

**"Governmental Authority"** of any country or sub-division thereof means any governmental, semi-governmental or judicial entity or authority (including tax authorities such as the Revenue Department of Thailand) and includes a self-regulatory organization.

**"MOA"** means the memorandum of association of the Company, as amended from time to time.

**"Negative Party"** shall have the meaning given to it in Clause 14.2.

**"Net Asset Value"** means the defined net asset value, calculated as the disparity between (a) the total value of the Company's assets (on an unconsolidated basis) derived from the most recent audited financial statements and (b) the total value of the Company's liabilities (on an unconsolidated basis) based on the latest audited financial statements.

**"Non-Defaulting Party"** shall have the meaning given to it in Clause 13.1.

**"Ordinary General Meeting"** shall have the meaning given to it in Clause 6.1.

**"Positive Party"** shall have the meaning given to it in Clause 14.2.

**"ROFR Notice"** shall have the meaning given to it in Clause 9.2.

**"ROFR Exercise Period"** shall have the meaning given to it in Clause 9.2.

**"ROFR Shares"** shall have the meaning given to it in Clause 9.2.

**"Sale Shares"** shall have the meaning given to it in Clause 10.3.

**"Share"** means any ordinary shares in the registered capital of the Company from time to time having the rights and benefits and being subject to the restrictions and limitations assigned to them as set forth in the constitutional documents and this Agreement.

**"Shareholders"** means the shareholders of the Company.

**"Shareholders Reserved Matters"** means matters set forth in Part 2 of Schedule 2.

**"TAI"** means the Thai Arbitration Institute, Office of the Judiciary.

**"THB"** means Thai Baht, the lawful currency of the Kingdom of Thailand.

**"TFRS"** means the Thai Financial Reporting Standards issued by the Federation of Accounting Professions, as amended.

1.2 Interpretation

In this Agreement, unless the context indicates otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) references
 to this Agreement are references to this Agreement as amended or varied from time to time
 in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) references
 to Recitals, Clauses and Schedules are to recitals, clauses and schedules of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Clause,
 Schedule and paragraph headings do not affect the interpretation of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 person includes a natural person and a corporate or unincorporated body, whether or not having
 separate legal personality, and that person's personal representatives, successors
 or permitted assigns.

**2. EFFECTIVENESS**

This Agreement shall become legally valid and effective upon the Effective Date and shall remain in full force and effect until terminated in accordance with its terms.

**3. THE COMPANY**

3.1 Registered
 Capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 or as soon as practicable after the Effective Date, the Company shall have a registered capital
 of THB 4,000,000, which shall be represented by 40,000 ordinary shares, each with a par value
 of THB 100 and all fully paid up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With
 further capital to be determined by consultation among the Parties by reference to the THB
 equivalent of JPY 100 million, with cash contributions from each shareholder, consistent
 with SPA Article 6.1.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 registered capital of the Company may be further increased from time to time as the Board
 deems necessary and appropriate, subject to approval of a meeting of the Shareholders in
 accordance with the terms of this Agreement.

3.2 Shares

The Shares of the Company shall be ordinary shares.

3.3 Shareholding
 Structure

The shareholding structure of the Company shall be HIDAKA 49%, KOEI 49%, and one (1) Thai national or Thai entity designated by KOEI (the "**Third Shareholder**") holding 2%.

3.4 Articles
 of Association

As soon as practicable after the Effective Date, the Parties shall procure that the AOA shall be amended to reflect the terms of this Agreement and as so amended shall be registered with the Department of Business Development, the Ministry of Commerce, to the extent permitted by Applicable Law. If any provision of this Agreement is not incorporated into the AOA, the provisions of this Agreement shall take precedence, in the extent of Applicable Law.

3.5 Pre-emptive
 Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When
 there is an increase of the registered capital of the Company, each Shareholder shall have
 a pre-emptive right to subscribe for any new shares issued by the Company pro rata to its
 shareholding in the Company at the time of such capital increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For
 the purposes of this Agreement, the subscription for any new Shares by a Shareholder shall
 be attributed to such Shareholder in proportion to its shareholding ratio, and, unless otherwise
 agreed by the Parties under this Agreement, the shareholding structure ratio of the shareholding
 structure as specified in Clause 3.3 shall be maintained and remain unchanged, to the extent
 practicable, notwithstanding any increase or decrease of the registered capital of the Company.

**4. BUSINESS OF THE COMPANY**

4.1 Business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall engage in the Business as its ordinary course of business, and any other businesses
 as approved from time to time by the meeting of the Shareholders in accordance with the terms
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company shall obtain and maintain all required approvals, licenses and registrations and
 conduct the Business in compliance with Applicable Law and permit conditions.

4.2 Ancillary
 Agreements

As soon as practicable after the Effective Date, the following agreements shall be executed, with commercial terms and fees to be agreed separately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 services agreement for back-office and related support between HIDAKA as the service provider
 and the Company as the service recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A
 lease agreement for a portion of the Company's factory and land between HIDAKA as the
 lessor and the Company as the lessee. The Parties shall agree the scope of construction or
 fit-out works for the leased area, and the costs of the construction or fit-out works incurred
 by HIDAKA, which will be recovered through rent or related payments under the lease agreement
 or related arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A
 know-how license agreement between KOEI as the licensor and the Company as the licensee;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A
 trademark license agreement between KOEI as the licensor and the Company as the licensee.

4.3 Responsibilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Parties shall use their best endeavors to collaborate and work together in good faith to
 reach a consensus on all Company matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HIDAKA
 shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide
 back-office and related support services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) lease
 factory and/or land, which is located at 165 Moo 3 Soi Wat Suan Som, Pu Chao Samingprai Rd.,
 Bang Prong Subdistrict, Mueang District, Samut Prakan Province to the Company throughout
 the period of the Company's operation unless otherwise agreed by the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) advise
 and provide necessary support to the Company in managing domestic affairs, including applications
 for necessary licenses and permits, local customer relations, relations with any Governmental
 Authority, and other matters in Thailand (if any); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) undertake
 any additional responsibilities as mutually agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) KOEI
 shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) grant
 know-how and trademark licenses to the Company in accordance with the terms of the related
 agreements to be made between KOEI and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) support
 the Company in its sales activities toward Japanese companies in Thailand or Japan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) advise
 and provide necessary support to the Company in Japan-related affairs (if any), including
 Japanese customer relations, relations with any Governmental Authority, and other matters
 in Japan (if any); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) undertake
 any additional responsibilities as mutually agreed upon by the Parties.

**5. BOARD**

5.1 Management
 and Supervision by the Board

The Company shall be managed by the Board in accordance with the provisions of the AOA, this Agreement, and Applicable Law.

The Board shall have responsibility for the overall direction, supervision, and management of the Company and the Business, except for those matters that require a resolution of the Shareholders' meeting under Applicable Law.

5.2 Appointment
 of the Directors

The appointment of the Directors shall take place in the meeting of the Shareholders. The number and composition of the Board shall be in accordance with the provisions set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company's Board shall consist of four (4) Directors, comprising of two (2) Directors
 nominated by HIDAKA and two (2) Directors nominated by KOEI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 right of nomination conferred upon each Party under item (a) above shall include the right
 of such Party to remove from office, at any time, any Director nominated by that Party.

The Parties, in their capacity as the Shareholders, agree to vote to ratify the appointment or removal of Directors in accordance with the rights of each Party under items (a) and (b) above.

It is agreed that the Third Shareholder shall have no right to nominate any Director.

5.3 Board
 Remuneration

The Directors are not entitled to remuneration unless they concurrently serve as employees of the Company or unless agreed otherwise by the Shareholders.

5.4 Chairperson

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Chairperson shall be appointed by the Board. In the event of an equality of votes at any
 meeting of the Board or the Shareholders, the Chairperson shall have a casting vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Chairperson shall preside at all meetings of the Shareholders and the Board and chairs as
 the Chairperson of the meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that the Chairperson is absent or the Chairperson is unable to perform his duty
 at any meeting of the Board, the Directors who attend the meeting of the Board may appoint
 any Director nominated by KOEI presenting as Chairperson of the meeting of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In
 the event that the Chairperson is absent or the Chairperson is unable to perform his duty
 at any meeting of the Shareholders, the Shareholders who attend the meeting of the Shareholders
 may appoint any Shareholder presenting as Chairperson of the meeting of the Shareholders.

5.5 Authorized
 Directors

Each of the Directors shall be authorized to singly sign with the company seal affixed to bind the Company.

5.6 President

The President, who shall be responsible for the day-to-day management and operations of the Company in accordance with the Budget and Business Plan, shall be nominated by KOEI and appointed by the Board.

5.7 Board
 Meetings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Place
 and Method:

The Board meetings shall be held physically at the Company's registered office or any other place as may be determined by the Parties; or by electronic means permitted under Applicable Law, provided that all participating Directors are able to correspond with one another without requiring physical presence. In all cases, the attendance of the Directors at a meeting shall be sufficient to form a quorum and shall comply with the requirements under Applicable Law and the AOA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Quorum:

A quorum for any meeting of the Board shall require the presence of at least two (2) Directors in person, provided that at least one (1) Director nominated by KOEI and at least one (1) Director nominated by HIDAKA shall be present in person at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Resolution:

At any meeting of the Board, each Director shall have one (1) vote, and all resolutions of the Board meeting shall be adopted by a simple majority of all Directors present at the meeting. However, the Board Reserved Matters shall require affirmative votes by at least one (1) Director nominated by KOEI and one (1) Director nominated by HIDAKA.

5.8 Budget
 and Business Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 budget and business plan shall be prepared on an annual basis in accordance with the Company's
 Fiscal Year and shall set forth, *inter alia*, the detailed business development and
 budgeting plans of the Company (the "**Budget and Business Plan** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Budget and Business Plan shall be submitted for approval by the meeting of the Board. The
 Parties agree that once the Budget and Business Plan of the Company have been approved, the
 Budget and Business Plan shall be implemented in the operations of the Company in the Company's
 ordinary course of business. Any material amendments to the Budget and Business Plan shall
 be approved by the meeting of the Board.

**6. SHAREHOLDERS' MEETING**

6.1 Place
 and Method

A general meeting of Shareholders of the Company shall be held at least once in every twelve (12) months. Such general meeting shall be called an "**Ordinary General Meeting**" and all other general meetings are called "**Extraordinary General Meetings**". The Board may summon general meetings whenever it sees fit or when required by the Applicable Law.

A general meeting of the Shareholders shall be held physically at the Company's registered office or any other place as otherwise determined by the Parties; or by electronic means permitted under Applicable Law, provided that all participating Shareholders are able to correspond with one another without requiring physical presence. In all cases, the attendance of the Shareholders at a meeting shall be sufficient to form a quorum and shall comply with the requirements under Applicable Law and the AOA.

6.2 Notice

Written notice of any general meeting of the Shareholders shall be served or transmitted in accordance with the Applicable Law at least seven (7) days prior to the scheduled date of a meeting convened to pass an ordinary resolution; and at least fourteen (14) days prior to the scheduled date of the meeting convened to pass a special resolution.

6.3 Quorum

A quorum for a meeting of Shareholders and any adjourned meetings shall require the presence of two (2) Shareholders in person or by proxy, holding shares in the Company representing more than 50% of the total shares issued of the Company.

6.4 Resolution

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Share shall carry one (1) vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 matters discussed and decided at any duly convened general meeting of Shareholders shall
 be decided by a simple majority of the votes of the Shareholders present at such meeting,
 in person or by proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 the foregoing, any resolution relating to a Shareholders Reserved Matter, or any resolution
 required by law to be passed as a special resolution shall be valid only if the resolution
 is approved by at least seventy-five percent (75%) of the votes of the Shareholders present,
 whether in person or by proxy, and entitled to vote, and receives the affirmative votes of
 both KOEI and HIDAKA.

**7. BOOKS, ACCOUNTS AND RECORDS**

7.1 Accounts
 and Record Keeping

The Parties agree that the Company shall prepare and maintain accurate records in relation to the operations, finances and accounts of the Company in the book and account maintained in a form sufficient to show and explain its transactions and, in this connection, shall maintain such records as fairly represent the costs, revenue and financial position of the Company's business and in accordance with the TFRS, and the requirements of the applicable laws of Thailand.

7.2 Financial
 Statements

The Parties agree that the Board shall cause the audited financial statements, including the balance sheet and the profit and loss statement, to be prepared at least once in every twelve (12) months in accordance with Applicable Law, and to be submitted for consideration by the general meeting of the Shareholders within four (4) months from the end of each Fiscal Year.

The Company shall, upon reasonable request of any Party for group consolidation purposes, provide, in a timely manner, a consolidation reporting package (including mapping and policy adjustments) without preparing standalone financial statements any GAAP other than under TFRS; incremental external costs shall be borne by the requesting Party unless budgeted.

7.3 Minutes
 and Resolution of the Meetings

The Parties agree that the Board shall cause minutes of all proceedings and resolutions of all meetings of the Shareholders and the Board to be duly entered in the minute book which shall be kept at the registered office of the Company. Any such minutes signed by the Chairperson of the meeting at which such resolution were passed or proceedings were conducted, or by the Chairperson of the next succeeding meeting, are presumed correct evidence of the matters contained therein, and all resolutions and proceedings of which minutes have been made are presumed to have been duly passed.

7.4 Auditors

An auditor shall be nominated and appointed by the Board and approved by the resolution of an Ordinary General Meeting of the Shareholders to audit the financial statements of the Company. A retiring auditor is eligible for re-election.

7.5 Access
 to Books, Accounts and Records

Any Director and/or Shareholder of the Company shall have reasonable access to the books of account and records of the Company and the audited financial statements and to make extracts or copies therefrom during business hours of the Company upon the reasonable request of such Director and/or Shareholder. The Company shall furnish the Parties with a copy of its audited balance sheet and profit and loss statement in English at the Parties's request.

7.6 Fiscal
 Year

The fiscal year of the Company, unless otherwise determined by a meeting of the Shareholders, will commence on 1 January and end on 31 December (the "**Fiscal Year**").

7.7 Operational
 Audits and Investigations

The Parties shall have the right to conduct operational audits of the Company. the Parties may examine any documents and/or records relating to the Company at any reasonable time during the Company's working hours. For any request for a search report which is required within a reasonable period from the Parties, the Company shall furnish the Parties with it accordingly. The Company shall, at the request of the Parties, supply information and investigation report as requested to the extent reasonable.

**8. DIVIDEND POLICY**

Subject to Applicable Laws, the Parties agree that the Company shall distribute its profits (after tax) as dividends, taking into account the Company's financing commitments and working capital position required for the Company's future plans and growth, as soon as practicable and, in any event, no later than the period specified in the Applicable Laws.

**9. TRANSFER OF SHARES**

9.1 Restriction
 related to the Shares

No Shareholder may sell, dispose of, transfer, give, pledge, assign rights, or create any encumbrance in any manner over its Shares without the prior written approval of the other Party.

9.2 Right
 of First Refusal

Where prior written approval has been granted for the sale or transfer of Shares pursuant to Clause 9.1 (the "**ROFR Shares**"), the non-transferring Party shall have the right to purchase the ROFR Shares on the same terms and conditions as those offered by the transferring Party to a third party. The transferring Party shall deliver a written notice specifying the number of Shares, the proposed transferee, and all material terms of the proposed transfer (including the price and payment terms) (the "**ROFR Notice**").

Within sixty (60) Business Days after receipt of the ROFR Notice (the "**ROFR Exercise Period**"), the non-transferring Party shall be entitled to exercise its right, by delivering a written notice, to purchase all (but not less than all) of the ROFR Shares on such terms.

If the non-transferring Party does not wish to exercise its right to purchase all (but not less than all) of the ROFR Shares on such terms, it may, within the ROFR Exercise Period, deliver a written notice to the transferring Party expressly waiving such right.

If the non-transferring Party exercises its right by delivering a written notice within the ROFR Exercise Period, the transferring Party shall sell the ROFR Shares to the non-transferring Party on the same terms and conditions as those offered by the transferring Party to the third party.

Completion of the transfer shall take place within thirty (30) Business Days after delivery of such written notice, or on such other date as the Parties may agree in writing.

If the non-transferring Party expressly waives its right or fails to exercise its right within the ROFR Exercise Period, it shall be deemed to have irrevocably waived its right to purchase the ROFR Shares, and such waiver or failure shall not be deemed approval of the proposed sale or transfer of the ROFR Shares.

9.3 Permitted
 Transfers

Notwithstanding preceding clauses, the following transfers of Shares may be made with thirty (30) days prior written notice to HIDAKA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Transfer
 between KOEI and the Third Shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Transfer
 by KOEI or the Third Shareholder to an Affiliate of KOEI or a related individual. In such
 a case, the transferee shall thereafter be treated as the Third Shareholder.

9.4 Prohibited
 Transferees

Notwithstanding the preceding clauses, no Shares shall be transferred to any third party falling under any of the following categories, provided that in cases where applicability is unclear, the Parties shall discuss and determine in good faith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 company or its Affiliate that is engaged in a business competing with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 person or a company or its Affiliate that is involved in any an antisocial force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 company whose owner or any of its officers has a criminal record; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a
 company that has been subject to any material administrative sanction by any governmental
 or regulatory authority.

9.5 Accession
 by the Transferee

Any transferor under this Clause 9 shall procure that the transferee assumes all rights and obligations of the transferor and shall have executed and delivered to the other Shareholders an Accession Agreement, substantially in the form of Schedule 2.

Any transfer of Shares of the Company in violation of this Clause 9 shall be deemed non-binding for the Company and shall be denied registration in the Company's share register book.

**10. DEADLOCK**

10.1 A
 deadlock between the Parties (the "**Deadlock**") shall be deemed to have
 occurred if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at
 two (2) consecutive meetings of Shareholders, a decision regarding any Shareholders Reserved
 Matter submitted for consideration by the Shareholders at such meeting cannot be reached
 by the required vote, or two (2) consecutive meetings of Shareholders have been dissolved
 because a quorum was not present; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at
 two (2) consecutive meetings of the Board, a decision regarding any Board Reserved Matter
 submitted for consideration by the Board at such meeting cannot be reached by the required
 vote, or two (2) consecutive meetings of the Board have been dissolved because a quorum was
 not present.

The date on which such second consecutive meeting of the Shareholders or the Board, as the case may be, is held shall be deemed the date on which the Deadlock has occurred.

10.2 The
 representative of each Party shall, within a period of thirty (30) days following the date
 of the Deadlock, commence consultations with each other in good faith to resolve the Deadlock.
 The Parties shall use all reasonable endeavors to resolve the Deadlock within ninety (90)
 days from the date the Deadlock is deemed to have occurred pursuant to Clause 10.1 (the "**Deadlock Consultation Period** ").

10.3 If
 the Parties have not resolved the Deadlock within the Deadlock Consultation Period, KOEI
 shall exercise a call option to purchase, or cause a third party to purchase, all (but not
 less than all) of the Shares held by HIDAKA by delivering a written notice (the "**Deadlock Call Option Notice**") within thirty (30) Business Days after the Deadlock Consultation
 Period expires (the "**Deadlock Call Option** "). The purchase price shall
 be equal to the Net Asset Value per Share multiplied by the number of the Shares held by
 HIDAKA ()"**Sale Shares** "). Closing shall occur within thirty (30) Business
 Days after service of the Deadlock Call Option Notice on HIDAKA.

If any Governmental Authority issues a written assessment, order or direction (which is final, legitimate and non-appealable) requiring an adjustment to the purchase price for compliance with Applicable Law, the Parties shall adjust such price accordingly and settle any difference within thirty (30) Business Days after such requirement becomes effective.

**11. NON-COMPETITION AND NON-SOLICITATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither
 Party nor any of its Affiliates shall, during the term of this Agreement and for a period
 of three (3) years after such Party ceases to be a shareholder of the Company, carry on or
 be employed, or engaged in any business in Thailand which would be in competition with any
 part of the Business, including any developments in the Business after the date of this Agreement,
 other than any business carried on by such Party or any of its Affiliates prior to the execution
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither
 Party nor any of its Affiliates shall, during the term of this Agreement and for a period
 of three (3) years after such Party ceases to be a shareholder of the Company, offer employment
 to, enter into a contract for the services of, or attempt to solicit or seek to entice away
 from the Company, or procure or facilitate the solicitation or enticement by any other person
 of, any individual who, at the time of such offer or attempt, is a director, officer, or
 employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 undertakings in this Clause 11 are given by each Party and its Affiliates to the other Party
 and to the Company and apply to actions carried out by them in any capacity and whether directly
 or indirectly.

**12. CONFIDENTIALITY**

12.1 Each
 Party shall keep confidential the Confidential Information.

12.2 Notwithstanding
 the above, no Party shall be required to keep confidential or to restrict its use of the
 Confidential Information if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) information
 that the Parties agree in writing is not confidential;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) information
 that is or becomes public knowledge other than as a direct or indirect result of the information
 being disclosed in breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) information
 about the other Party or its Affiliates, or the Company, that it finds out from a source
 that is not obligated to keep that information confidential and is not connected with that
 Party or its Affiliates or the Company, and that it has acquired free from any obligation
 of confidence to any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) information
 to the extent that the disclosure is required (i) by Applicable Law or (ii) by any Governmental
 Authority, provided that the disclosing Party consults the other Party and take into account
 any reasonable requests it may have in relation to such disclosure, to the extent practicable,
 before making such disclosure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) information
 disclosed to its employees, officers, directors, shareholders or professional advisers on
 a need-to-know basis, if the disclosing Party procures that the people to whom the information
 is disclosed keep it confidential as if they were that Party.

**13. DEFAULT**

13.1 Event
 of Default

A Party (the "**Defaulting Party**") shall be in default (the "**Default**") under this Agreement (each, an "**Event of Default**") if a Defaulting Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) commits
 a material or persistent breach of this Agreement; and, in the case of any material breach
 that is capable of remedy, fails to remedy such breach within ninety (90) days after receipt
 of written notice from the other Party (the "**Non-Defaulting Party**") specifying
 such breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) becomes,
 or is deemed under Applicable Law to have become, insolvent or becomes unable to pay its
 debts as and when they fall due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) convenes
 a meeting for the purpose of considering any resolution for, or to petition for, its winding-up
 and to appoint a liquidator or for its rehabilitation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) takes
 any action to appoint or suffers the appointment of a receiver, administrator, administrative
 receiver, trustee or similar officer over all or a material part of its assets or undertaking;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) has
 made against it a winding-up, rehabilitation, or administration order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) commits
 a fraud or willful misconduct against the other Party in relation to this Agreement or the
 Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) undergoes
 a Change of Control in a Party without the prior written consent of the other Party.

**For the purposes of this Clause, "Change of Control"** occurs if a person who controls a corporate body ceases to control it or if any person acquires Control of such corporate body.

13.2 Option
 of Non-Defaulting Party

Upon the occurrence of a Default and upon the Non-Defaulting Party becoming aware of the Default, the Non-Defaulting Party shall have the right, by serving a written notice to the Defaulting Party (the "**Default Notice**") within sixty (60) days upon the acknowledgement of such Default, in order to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) purchase,
 or cause a third party to purchase, all the Shares held by the Defaulting Party (the "**Default Call Option Shares**") at a purchase price equal to 70% of its Net Asset Value per
 Share multiplied by the number of the Shares held by the Defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sell
 all of its Shares (the "**Default Put Option Shares**") to the Defaulting
 Party, or a third party designated by the Defaulting Party, at a purchase price equal to
 130% of its Net Asset Value per Share multiplied by the number of the Shares held by the
 Non-Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) terminate
 this Agreement and dissolve the Company.

If any Governmental Authority issues a written assessment, order or direction (which is final, legitimate and non-appealable) requiring an adjustment to the purchase price for compliance with Applicable Law, the Parties shall adjust such price accordingly and settle any difference within thirty (30) Business Days after such requirement becomes effective.

**14. DISSOLUTION**

14.1 Dissolution
 Events

The Parties shall cooperate to dissolve the Company if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Parties agree to dissolve the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company has received a dissolution order from a Governmental Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Non-Defaulting Party determines to dissolve the Company under Clause 13.2(c).

14.2 Dissolution
 Request Events

A Party (the "**Positive Party**") may request the other Party (the "**Negative Party**") to dissolve the Company if any of the following events has occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Company has suffered significant losses for three (3) consecutive years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company has been unable to achieve its Business purpose, and determined at the reasonable
 opinion of a Party, that there is no prospect of the Company's future development;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Company has suffered significant damage from a Force Majeure event, and, determined at the
 reasonable opinion of a Party, that it is difficult to continue the operation of the Company.

If an agreement for dissolution is unable to be reached due to opposition of the Negative Party, the Negative Party shall purchase, or cause a third party to purchase, the Shares owned by the Positive Party. The purchase price for such Shares shall be the Net Asset Value per Share multiplied by the number of such Shares.

14.3 Use
 of Location Upon Dissolution

In the event that the Company is dissolved, in whatsoever cases, due to the reason that HIDAKA ceases from being the Shareholder of the Company, and if requested by KOEI, HIDAKA agrees to continue renting out the Company the land and/or factory set forth in Clause 4.3 at the agreed rental rate, provided that (i) such rental shall reflect the prevailing economic conditions, thereby ensuring the continuation of the Company's operations; and (ii) the renting period shall be until the dissolution and liquidation process is completed.

**15. TERM OF AGREEMENT AND TERMINATION**

15.1 This
 Agreement shall become effective in accordance with Clause 2 and shall continue in effect
 unless earlier terminated as provided in this Agreement.

15.2 This
 Agreement shall automatically terminate upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither
 Party remains a Shareholder of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company has been dissolved pursuant to Clause 14.

15.3 Clauses
 11, 12, 13, 14, 15, 16 and 17 shall remain in full force and effect notwithstanding the termination
 or cessation of this Agreement, unless agreed otherwise by the Parties in writing.

15.4 The
 termination of this Agreement for any reason shall not release any Party from any obligation
 or liability, which at the time of termination, has already accrued, or which thereafter
 may accrue out of or in connection with any act, omission or breach occurring prior to termination,
 and is without prejudice to the continuing effect of Clauses 11 to 17 pursuant to Clause
 15.3.

**16. SPECIFIC PERFORMANCE**

In the event that a Party fails to abide by the provisions of this Agreement, the other Party may commence an action against such Party to obtain any legal remedy available, including but not limited to an award of contractual damage and/or specific performance.

**17. MISCELLANEOUS**

17.1 Successors
 and Assigns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement shall be binding upon and inure to the benefit of the Parties and their respective
 successors, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This
 Agreement may not be assigned by any Party without the prior written consent of the other
 Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event that any Shares are transferred in accordance with the terms of this Agreement,
 the benefit of this Agreement may be assigned by the transferors in proportion to the number
 of Shares transferred, provided that if any Party shall transfer all or any of its Shares,
 it shall procure that the transferee agrees to be bound by the provisions of this Agreement,
 including this provision, *mutatis mutandis*.

17.2 Notices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A
 notice served under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall
 be in writing and in English or be accompanied by a certified, accurate translation into
 English; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall
 be delivered by hand or sent by email, by pre-paid registered mail with return receipt requested
 or by airmail or reputable international overnight courier if the notice is to be served
 by post to an address outside the country from which it is sent, to the address or email
 address given in or in accordance with this Clause 17.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 addresses and email addresses for service of notices are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to HIDAKA:

HIDAKA HOLDINGS (2008) CO., LTD., a company incorporated under the laws of Thailand, having its registered office at

Address: 27 Hidaka Building, Floor 4 Soi Bangna-Trad 25, Bangna-Trad Road, Bangna Nuea Subdistrict, Bangna District, Bangkok 10260, Thailand

Attention: Mr. Takahiko Hishiyama

Email: hishiyama-t@hidakayookoo.co.th

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to KOEI:

KOEI JAPAN CO., LTD.,

Address: 1-13-3 Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa 236-0004, Japan

Attention: Mr. Masanori Tategami

Email: tategami_masanori@koei-j.co.jp

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Delivery
 of a notice is deemed to have taken place provided that all other requirements in this Clause
 17.2 have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 delivered by hand, on signature of a delivery receipt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 sent by pre-paid registered mail with return receipt requested to an address in 17.2(b),
 at the time it was posted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 sent by reputable international overnight courier to an address outside the country from
 which it is sent, on signature of a delivery receipt or at the time the notice was left at
 the address; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 sent by e-mail, at the time it was sent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To
 prove service, it is sufficient to prove that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 delivered by hand or by reputable international overnight courier, the notice was delivered
 to the correct address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 sent by post, the envelope containing the notice was properly addressed, paid for and posted;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 sent by e-mail, the notice was properly addressed and sent to the e-mail address of the recipient.

17.3 Entire
 Agreement

This Agreement, together with any documents referred to in it, constitute the entire agreement between the Parties and supersede all previous discussions, correspondence, negotiations, drafts, agreements, promises, assurances, warranties, representations, arrangements and understandings between them, whether written or oral, relating to their subject matter.

17.4 Amendment

No amendment to this Agreement shall be effective unless it is in writing and signed by the Parties.

17.5 Costs
 and Expenses

Each Party shall bear its own costs and expenses incurred in connection with the negotiation, preparation, execution, delivery, and performance of this Agreement.

17.6 Severability

If any provision of this Agreement or any part of such provision is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part shall be deemed deleted. Any modification to or deletion of a provision under this Clause shall not affect the validity and enforceability of the rest of this Agreement.

17.7 Language

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement is prepared and executed in the English language. If this Agreement is translated
 into Thai and there is a conflict or discrepancy between the English and the Thai versions,
 the English version shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 notices, demands, requests, statements, certificates or other documents or communications
 to be given or provided in connection with this Agreement and the other documents referred
 to in it shall be in English, or accompanied by a certified English translation, in which
 case the English translation shall prevail unless the document or communication is a statutory
 or other official document or communication.

17.8 Governing
 Law

This Agreement shall be governed by and construed in accordance with the laws of Thailand.

17.9 Dispute
 Resolution

If any dispute, controversy or claim of whatever nature arises under, out of or in connection with this Agreement, either Party may notify the other Party in writing and the Parties shall use all reasonable endeavors to resolve the matter amicably within thirty (30) days from the earliest date of such notification by any Party, failing which such Party may refer the matter to arbitration before the Thai Arbitration Institute, Office of the Judiciary (the "TAI") in accordance with its arbitration rules (the "Rules"). The arbitration proceedings shall take place in Bangkok, Thailand. The arbitration tribunal shall consist of three (3) arbitrators. Each Party shall appoint one arbitrator, within thirty (30) days after either Party has given notice to the other of its desire to commence arbitration. If either Party fails or refuses to appoint its arbitrator within the specified time period, the other Party may request the TAI to appoint the arbitrator on behalf of the defaulting Party in accordance with the Rules. The two (2) appointed arbitrators by each Party shall, within thirty (30) days of the appointment of the second arbitrator, jointly appoint the third arbitrator, who shall act as the presiding arbitrator of the panel. If the two appointed arbitrators fail to appoint the third arbitrator within the specified time period, the third arbitrator shall be appointed by the TAI in accordance with its Rules. The language of the arbitration shall be English. The arbitral award shall be final and binding on the Parties.

*(Signature Page Follows)*

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized person thereunder:

**HIDAKA HOLDINGS (2008) CO., LTD.**

---

| | |
|:---|:---|
| By: | */s/ Yasuo Atitrungsiri* |
| Name: | Yasuo Atitrungsiri |
| Title: | President |

---

**KOEI JAPAN CO., LTD.**

---

| | |
|:---|:---|
| By: | */s/ Mamoru Iwamoto* |
| Name: | Mamoru Iwamoto |
| Title: | Representative Director |
| By: | */s/ Masanori Tategami* |
| Name: | Masanori Tategami |

---

**SCHEDULE 1**

**RESERVED MATTERS**

**Part 1: Board Reserved Matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Formulation
 of or amendment to the Budget and Business Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Execution
 of transaction agreements exceeding THB 5,000,000 in total (including, but not limited to,
 asset transfer agreements and loan agreements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Declaration
 or payment of interim dividends of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Formation
 of any subsidiary of the Company, or acquisition of any shares in any other company, such
 that the company concerned becomes a subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Commencement
 or settlement of any litigation, arbitration or other legal proceedings brought by or against
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Appointment
 and removal of bank signatories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any
 matter which has been determined by the general meeting of Shareholders to be resolved at
 a meeting of the Board.

**Part 2: Shareholders Reserved Matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amendment
 to the MOA or the AOA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any
 increase or decrease of the Company's share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any
 merger or amalgamation of the Company with any other company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Dissolution,
 liquidation, or winding-up of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Declaration
 or payment of dividends of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Conversion
 from a private limited company to a public limited company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Appointment
 or removal of Directors; provided, however, that unless there is a special reason, each Party
 shall consent without objection to the Directors nominated by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any
 change of the Company's name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Any
 other matters that requires a special resolution of shareholders under the Applicable Law.

**SCHEDULE 2**

**FORM OF ACCESSION AGREEMENT**

*[Date]*

*[Name of the non-transferring Party]*

*[Address]*

Dear Sirs,

**Re: Accession to the Shareholders Agreement**

The undersigned, *[Name of the Transferee]* (the "**Transferee**") is the transferee of [●] shares in the Company, share numbers [●] (the "**Transferred Shares**"). Unless expressly otherwise defined herein, the capitalized terms used herein shall have the same meaning as prescribed in the Shareholders Agreement of the Company dated [\*] 2026 (the "**Shareholders Agreement**").

1. The
 Transferee hereby acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 the
 acquisition of the Transferred Shares by the Transferee from *[Name of the transferring Party]* (the "**Transferor**") is subject to the terms and conditions of
 the Shareholders Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 upon
 becoming a shareholder of the Company, it shall be bound by all terms and conditions of the
 Shareholders Agreement in the place of the Transferor, and the Shareholders Agreement shall
 have the same force and effect with respect to the Transferee as if it were originally a
 Party thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 all
 notices to be sent to the Transferee pursuant to the terms and conditions of the Shareholders
 Agreement shall be sent to the following address:

Address: [●]

Telephone
 No: [●]

Email: [●]

Attention: [●]

2. The
 Transferee represents and warrants that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Transferee and its Affiliates are not engaged in a business competing with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 Transferee and its Affiliates are not involved in any antisocial force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 Transferee's owner and officers do not have a criminal record; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 Transferee has never been subject to any material administrative sanction by any governmental
 or regulatory authority.

Sincerely yours,

*([Name of the Transferee])*

## Exhibit 10.8

**Exhibit 10.8**

Shareholders Agreement

This Shareholders Agreement (this "Agreement"), made and entered into by and between the parties hereto on February 5, 2026.

"Party A"

KOEI JAPAN CO.,

LTD.

Address: 1-13-3 Fukuura, Kanazawa Ward,

Yokohama-shi

"Party B"

Siam Client Service Co., Ltd.

No. 2 Prima Sathorn Building, 7th floor, Room No. 8705-8706, Naradhiwas Rajanagarindra Road, Yannawa, Sathorn, Bangkok 10120

Party A requested Party B to make a capital contribution by way of purchase of the shares of the Company in order to engage in the business related to industrial waste disposal in Thailand.

Party B, in response to Party A's request, agreed to the investment by way of purchase of such shares.

In consideration of the foregoing premises and the mutual covenants hereinafter set forth, the Parties agree as follows:

Article 1 (Purpose of Contract)

The parties hereto acknowledge that the purpose of this Agreement is to invest in a company in Thailand managed and operated by Party A as the main body.

All the provisions of this Agreement shall be construed in order to accomplish the purpose of entering into the Agreement as declared above.

Article 2 (Definitions)

In this Agreement, the following words and phrases shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. "Company" shall mean a private joint stock company as defined by the laws of Thailand, which is incorporated in accordance with Article 3 hereof. This shall mean a registered company.

Article 3 (Company)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The trade name of the company is KOEI (THAILAND) CO., LTD.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company was incorporated in Bangkok, Thailand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The capital of the company at the time of its establishment is 4,000,000 baht.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To the extent permitted by Thai law, the Articles of Incorporation and / or By-Laws of the Company may be made or modified to reflect the terms and conditions set forth in this Agreement and any other agreements between the Parties. If any of the provisions of this Agreement is not contained in the Articles of Incorporation and / or By-Laws of the Company, or is contained in any modified form for any reason, then each party shall be fully and duly bound by this Agreement as if the whole of this Agreement were contained in the basic Articles of Incorporation and / or By-Laws of the Company. In the event of any conflict between this Agreement and the Articles of Incorporation and / or By-Laws of the Company, the provisions of this Agreement shall prevail and be binding upon the parties.

Article 4 (Investment and Subscription of Shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The parties hereby confirm that the Company has requested JGC and JPI as well as Hidaka Holdings (2008) Co., Ltd. ("Local Partner") to acquire the shares of the Company in accordance with the resolution of the Board of Directors and the resolution of the General Meeting of Shareholders separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The parties hereby confirm that as a result of the transfer of shares and the allotment of new shares to be executed in accordance with the resolution of the Board of Directors and the resolution of the General Meeting of Shareholders separately passed by the Company, Party B and Local Partner shall participate in the Company and the ratio of contribution of each party and Local Partner to the issued share capital of the Company shall be 49% for Party A, 2% for Party B and 49% for Local Partner, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The parties agree that Party A shall not enter into any shareholder agreement or any other agreement with the Local Partner with respect to the management of the Company.

We hereby confirm that a similar agreement ("Shareholders Agreement") will be entered into. In the event of any inconsistency between the Shareholders Agreement and this Agreement, Party B shall consult with Party A in good faith to amend this Agreement in order to correct such inconsistency, to the extent that such amendment does not have a material adverse effect on the rights and interests of Party B under this Agreement.

Article 5 (Roles)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A shall be responsible for the management of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B shall not be responsible for the business activities and behavior of the Company, and Party A shall not pursue such responsibility.

Article 6 (Contract with Shareholders after Subscription of Shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. After the acquisition of the Company's shares by Party B as provided in Article 4, Paragraph 2, the Company shall enter into a consulting agreement (the "Consulting Agreement") with Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (Intentionally deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the Company pays dividends as stipulated in Article 9, the consulting fee shall be reduced according to the amount of payment in accordance with this Consulting Contract.

Article 7 (Conditions for Investment in the Company)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Promptly after the execution of this Agreement, Party A shall submit to Party B the Company's financial statements (if any) for the latest three (3) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company shall submit to the Employee the financial statements or trial balance for such fiscal year within three (3) months after the end of the accounting period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party A and Party B represent and warrant to the other party that they do not and will not fall under any of the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) The Company itself or its officers (employees who execute business, Directors and Executive Officers, or persons equivalent thereto. (hereinafter referred to as "Anti-Social Forces")).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I will not allow Antisocial Forces to use my name and enter into this Agreement.

3 You shall not engage in any of the following acts by yourself or by using a third party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) Acts of using threatening words or violence against the other party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) Using fraudulent means or force to obstruct the business of the other party or damage the other party's reputation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If any of the following events occurs, Party B shall have the right to request the purchase of its shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) In the event that the Company has not paid the consulting fees under this Consulting Agreement by the due date set forth in such Consulting Agreement, if the Company still fails to make such payment within five (5) business days after receiving a notice from Party B pointing out such delay in payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In case that the operation of the Company has become impossible for reasons such as liquidation or bankruptcy of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) In case that Party B has become unable to hold the Company's shares due to government orders or laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the right to request the purchase of shares set forth in Paragraph 4 is exercised, Party A and Party B shall be obliged to find a transferee of the shares held by Party B. The transfer price at that time shall be the acquisition price at the time of acquisition of shares by Party B or the underwriting price at the time of underwriting. If the transferee cannot be found within six (6) months after the exercise of the right to request the purchase of shares, Party B may search for the transferee by itself, and in such case, the transfer price shall be free.

Article 8. (Transfer of Shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise expressly provided for in this Agreement, a party may not sell, transfer, pledge, lien or otherwise encumber any of its shares in the Company to any third party without the prior written consent of the other party, whether in exchange for payment or free of charge. Any transfer of shares not in accordance with this Agreement shall be deemed null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding Paragraph 1 of this Article, if Party A sells the shares of the Company held by Party A to another transferee, Party A shall have the following obligations to Party B:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) The Institute shall notify Party B of the relevant sale at least 2 months prior to the scheduled date of sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In case that Party A has received a request from Party B to transfer the relevant shares, including the shares held by Party B, to the transferee, Party A shall make reasonable efforts to sell such shares, including the shares held by Party B, to the transferee or a party designated thereby. In case that Party A is unable to sell the shares held by Party B to the transferee or a party designated thereby, Party A shall not sell its own shares to the transferee or a party designated thereby. In addition, the transfer price of the shares of the Company held by Party B at that time shall be the higher of either the price at the time of acquisition of shares by Party B or at the time of subscription or the market price. Party A shall be responsible for any payment for tax purposes, and Party B shall not be responsible therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In the event that Party A or a person designated by Party A indicates to Party B its intention to purchase the shares held by Party B, Party B shall transfer the shares of the Company it holds in accordance with such purchase. Party A shall notify Party B of its intention to purchase at least 14 days in advance. The purchase price shall be the higher of the price at the time of acquisition of the shares of Party B or the price at the time of subscription or the market price. Party A shall be responsible for any payment for tax purposes, and Party B shall not be responsible therefor. The term "market value" as used herein means the amount calculated by multiplying the number of shares to be transferred by the net asset value per share of the company, which is calculated based on the audited financial statements of the most recent company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. (Intentionally deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the sale of the Company's shares becomes necessary for any reason not attributable to the voluntary intention of MV Chubu, such as the commencement of bankruptcy, civil rehabilitation, business reorganization or attachment proceedings by MV Chubu, MV Chubu shall, so far as permitted by laws and regulations, propose the sale of the Company's shares to MV Chubu before any other party. If Party A declares that it has no intention to purchase, or if Party B fails to receive a reply from Party A within thirty (30) days after making a sale proposal to Party A, Party B may make a sale proposal to another transferee. In such case, Party B may sell the shares to the transferee at any price, and Party A shall not raise any objection to such transfer to a third party. If Party A expresses its intention to purchase the above shares within thirty (30) days after Party B offers to sell such shares to Party A, Party B shall transfer the shares of the Company held by Party A at the market price to Party A or a person designated by Party A. The term "market value" as used herein means the amount calculated by multiplying the number of shares to be transferred by the net asset value of the company's shares per share, which is calculated based on the audited financial statements of the latest company. The Company shall be responsible for any tax payment arising from such transfer of shares to the Company or a person designated by the Company, and the Employee shall not be responsible therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. In the event that Party B has no choice but to sell the shares of the Company with the intention of Party B for the reason of business withdrawal or liquidation of the Company, Party B shall secure a transferee of the shares and conduct the transfer with the prior written consent of Party A. Party B shall make every possible effort to secure the transferee, but shall not be responsible for the outcome.

Article 9. (Dividends)

The distribution of dividends is subject to the applicable laws and regulations of Thailand or the shareholders agreement.

Article 10 (Performance of Contract)

The parties agree to enter into or cause to be entered into any and all documents, contracts and instruments necessary to carry out the object and purpose of this Agreement. No modification of this Agreement shall be effective unless in writing and signed by the party to be bound thereby.

Article 11 (Arbitration)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Agreement is based primarily on mutual trust and confidence. The parties agree to perform this Agreement for their mutual benefit and in a spirit of fairness and cooperation. If any dispute, difference or disagreement arises between the parties in connection with or arising out of this Agreement, the parties shall try to settle it amicably in the spirit of friendship, cooperation, mutual trust and confidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any dispute, difference or discrepancy in the preceding paragraph shall be submitted to and finally settled by binding arbitration in Tokyo, Japan in accordance with the rules of The Japan Commercial Arbitration Association. The language to be used in the arbitral proceedings shall be Japanese.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The award in the arbitration referred to in the preceding paragraph shall be final and binding and shall be enforced by a court of competent jurisdiction.

Article 12. (Assignment)

The assignment of each party's rights and obligations in this Agreement shall be expressly permitted, or permitted only to the extent included herein, with the prior written consent of the other party.

Article 13 (Term and Termination of Agreement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Agreement shall remain in force unless terminated in accordance with this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Either party may immediately terminate this Agreement in any of the following cases:

1 In the event that the other party fails to perform any of its obligations under this Agreement;

2 A Party becomes the subject of a petition, whether voluntary or not, in liquidation, dissolution, bankruptcy or rehabilitation or other insolvency proceedings (or, if such proceedings are not voluntary, such proceedings are not suspended or terminated after thirty (30) days have elapsed from the date of commencement thereof);).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If Party A terminates this Agreement in accordance with the provisions of the preceding paragraph, Party A may purchase the shares of the Company held by Party B. The purchase price in this case shall be the price at the time of acquisition of shares by Party B or at the time of underwriting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In case that Party B terminates this Agreement in accordance with the provisions of Paragraph 2, Party B may sell the shares of the Company held by Party B to Party A. In this case, the selling price shall be the price at the time of acquisition of shares by Party B or at the time of underwriting. Provided, however, that Party A shall be responsible for any tax payment arising at that time, and Party B shall not be responsible therefor.

Article 14 (Termination of Ancillary Agreement)

In the event that Party B ceases to be a shareholder of the Company due to termination of this Agreement or transfer of shares, this Consulting Agreement shall also terminate at the same time.

Article 15 (Miscellaneous Provisions)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Confidentiality The Party agrees that it will keep confidential and not disclose to any third party the contents of this Agreement and any amendments thereto and any other agreements hereunder except by law, rules of the stock exchange or orders or requirements of any governmental authority. The provisions of this paragraph shall survive the termination of this Agreement for a period of two (2) years. In the event of a breach of the above provisions by one party, the other party shall be entitled to a remedy and to damages which shall be compensated by the breaching party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Entire Agreement This Agreement constitutes the entire and only agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all previous discussions and agreements. No modification or change of this Agreement shall be effective unless made in writing and signed by duly authorized persons of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Waiver No waiver by either party, whether express or implied, of any default or breach by the other party, shall be deemed a waiver of any provision providing for such right or performance or of any right thereafter to enforce such provision or of any other right under this Agreement. The rights and remedies contained in this Agreement shall not be exclusive but shall be in addition to any other rights and remedies permitted by this Agreement or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. No Agency Unless otherwise expressly provided in this Agreement, this Agreement does not require that either Party. Nothing herein shall be deemed to be the legal representative of the other party, and nothing herein shall be deemed to confer upon the other party any right or authority to assume or incur any liability or obligation, express or implied, against, in the name of or on behalf of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Severability The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Successor and Transferee This Agreement shall be binding upon the parties hereto and their successors and transferees. Shall be binding upon each of the parties hereto and any person who has acquired any shares or any part of the shares of the Company held by such party pursuant to this Agreement and the By-Laws of the Company. However, unless otherwise provided herein, neither party may assign any of its rights and obligations under this Agreement without the prior written consent of the other party.

Article 16 (Governing Law)

This Agreement shall be governed by and construed in accordance with the laws of Japan.

IN WITNESS WHEREOF, the parties have executed this Agreement in Thailand this 5th day of February, 2026.

Party A (KOEI JAPAN CO., LTD.)

---

| |
|:---|
| */s/ Mamoru Iwamoto* |
| Representative Director |
| Mamoru Iwamoto |

---

Party B

Siam Client Service Co., Ltd.

---

| |
|:---|
| */s/ Tae Yamane* |
| Authorized Director |
| Tae Yamane |

---

## Exhibit 10.9

**Exhibit 10.9**

**EXECUTIVE EMPLOYMENT AGREEMENT**

This EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of March 1, 2025 (the "Effective Date") by and between Koei US, Inc., a Texas corporation (the "Corporation") and Robert Wagner (the "Executive").

**RECITALS**

**WHEREAS,** the Corporation was initially formed as Nufika LLC, a Texas limited liability company, on January 3, 2023;

**WHEREAS,** in connection with the proposed investment of Daringate Co., Ltd., the Corporation converted from a Texas limited liability company to a Texas corporation as of 12:01 a.m. on March 1, 2025; and

**WHEREAS,** the Executive has been serving as the Chief Executive Officer ("CEO") and Principal Engineer of Nufika, and both the Corporation and the Executive wish to formalize the continuation of his leadership role within the Corporation.

**AGREEMENT**

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Corporation and the Executive agree as follows:

**1.** **EMPLOYMENT** 

The Corporation hereby agrees to employ the Executive and the Executive hereby accepts such employment, on the terms and conditions hereinafter set forth (the "Employment").

**2.** **TERM** 

Subject to the terms and conditions of the Agreement, the Executive shall serve as CEO and Principal Engineer of the Corporation. The Executive shall continue to serve as CEO for a minimum of twenty-four (24) months following the Effective Date. Notwithstanding the foregoing, the parties acknowledge that the Executive has no intention of leaving the Corporation after such 24-month period and intends to continue serving as CEO to grow the Corporation's business as well as through mergers and acquisitions.

**3.** **POSITION AND DUTIES** 

During the Term, the Executive shall serve as CEO and Principal Engineer of the Corporation or in such other position or positions with a level of duties and responsibilities consistent with the foregoing, as the Board of Directors of the Corporation (the "Board") may reasonably specify from time to time. The Executive shall have the duties, responsibilities, and obligations customarily assigned to individuals serving in similar positions in a corporation of like size and nature.

**4.** **COMPENSATION AND BENEFITS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As
 compensation for the performance by the Executive of his obligations hereunder, during the
 Term, the Corporation shall pay the Executive a biweekly salary of five thousand U.S. dollars
 (USD 5,000), amounting to an annual salary of one hundred thirty thousand U.S. dollars (USD
 130,000) (the "Base Salary").

(b) The
 Executive's compensation and benefits for the year 2026 shall be separately negotiated
 among the Executive, the Corporation, and Daringate Co., Ltd.

**5.** **TERMINATION** 

The Employment may be terminated as set forth in the terms of this Agreement and in accordance with the Corporation's governing documents and applicable laws.

**6.** **ASSIGNMENT** 

The Agreement is personal in its nature and the Executive may not assign or transfer the Agreement or any rights or obligations hereunder to any third party without the Corporation's consent.

**7.** **SEVERABILITY** 

If any provision of the Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of the Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of the Agreement are declared to be severable.

**8.** **ENTIRE AGREEMENT** 

The Agreement (along with the applicable provisions of the Bylaws, which are incorporated by this reference) constitutes the entire agreement and understanding between the Executive and the Corporation regarding the terms of the Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter.

**9.** **GOVERNING LAW** 

The Agreement shall be governed by and construed in accordance with the law of the State of Texas, without regard to the conflicts of law principles.

**10.** **AMENDMENT AND MODIFICATIONS** 

The Agreement may not be amended, modified or otherwise changed (in whole or in part), except by a writing executed by both parties hereto.

**11.** **WAIVER** 

Neither the failure nor any delay on the part of a party to exercise any right or remedy, under the Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other exercise of the same, nor shall any waiver of any right or remedy with respect to any occurrence be construed as a waiver of such right or remedy with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party granting such waiver.

**12.** **NOTICES** 

All notices, requests, demands and other communications required or permitted under the Agreement shall be in writing and shall be deemed to have been duly given and made if (i) delivered by hand, (ii) sent by a nationally recognized overnight courier; or (iii) sent by e-mail. Such notice is deemed to have been received on the date and at the time indicated on a commercially acceptable confirmation of receipt. For email notices, the recipient's actual confirmation of receipt shall be considered a commercially acceptable confirmation of receipt.

**13.** **COUNTERPARTS** 

The Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Agreement has been executed as of the date first written above.

---

| | | |
|:---|:---|:---|
| **KOEI US, INC.** | **KOEI US, INC.** | **EXECUTIVE** |
| By: | */s/ Robert Wagner* | */s/ Robert Wagner* |
|  | Robert Wagner, Authorized Director | Robert Wagner |

---

## Exhibit 10.10

**Exhibit 10.10**

![](ex10-10_001.jpg)

August 25, 2025

*Via* Email: makiwagner3@gmail.com

Maki Wagner

Dear Maki,

Koei US, Inc. ("Koei" or the "Company") is pleased to offer you the position of **Chief Communications Officer ("CCO")**. We are confident that your expertise and experience will be a valuable asset to our team. We look forward to having you contribute to the growth and success of our Company.

**YOUR EMPLOYMENT WITH KOEI WILL BE "AT WILL" MEANING THAT EITHER YOU OR KOEI MAY TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME AND FOR ANY REASON, WITH OR WITHOUT CAUSE. FURTHERMORE, THE FOLLOWING ARE THE CONDITIONS OF YOUR EMPLOYMENT, WHICH MAY BE MODIFIED FROM TIME TO TIME AT THE DISCRETION OF KOEI.**

**1.** **EMPLOYMENT DETAILS** 

● Target Start Date: August 25, 2025

● Position: Chief Communications Officer

● Employment Type: Part-time, salary, non-exempt

● Work Days: Monday through Friday

● Work Hours: Not to exceed 29 hours per week

● Annual Salary: $50,000

● Location: San Antonio, Texas

● Travel: 10% or less (periodic overnight travel will be required)

● After-Hours Support: Not required

● Work Arrangement:

○ Hybrid remote

○ In-office presence required as needed

○ The Company will provide a computer, two monitors, mouse, keyboard, and required software.

○ Employee must provide their own home office furniture, any additional equipment, and internet connectivity

**2.** **COMPENSATION & PAY STRUCTURE** 

● Paid on the Company's bi-weekly pay cycle.

Page 1 of 3

![](ex10-10_001.jpg)

**3.** **BENEFITS & TIME OFF** 

● Health & Retirement Benefits:

○ Eligible for a Company-sponsored group health policy

● Paid Time Off (PTO):

○ Not eligible for PTO

● Cellphone Reimbursement Benefit:

○ $25 per pay period

● Holidays

○ Eligible for the following Company holidays (see Table 1)

**Table 1 - Company Holidays**

---

| | |
|:---|:---|
| **Holiday** | **Day Observed** |
| New Year's Day | January 1st, or next business day |
| Good Friday | The Friday before Easter Sunday |
| Memorial Day | Last Monday in May |
| Independence Day | July 4th, or next business day |
| Labor Day | First Monday in September |
| Thanksgiving Day | Fourth Thursday in November |
| Day After Thanksgiving | Fourth Friday in November |
| Christmas Eve | December 24th, or next business day |
| Christmas Day | December 25th or next business day |
| Floating Holiday | Employee choice |

---

**4.** **BONUS STRUCTURE** 

● The Company intends to provide a discretionary performance bonus in May and November of each year

● The bonus amount may vary based on individual and Company performance

**5.** **EXPENSE REIMBURSEMENTS** 

● PPE: Reimbursement of up to $750 per year

● TWIC Badge: Cost covered by the Company

● Travel: Covered by Company or reimbursed if travel is approved or required

● Mileage: Reimbursed at the prevailing IRS rate for use of personal vehicle

Page 2 of 3

![](ex10-10_001.jpg)

**6.** **COMPLIANCE & WORKPLACE POLICIES** 

● Timekeeping:

○ If required, employee is shall complete a daily timesheet using the Company's timekeeping system.

● Drug & Alcohol Testing:

○ Employee may be required to take a random drug and/or alcohol test at the Company's expense

○ Employee may be required to enroll in a random drug and alcohol testing program, which mandates same-day testing if randomly selected

● All employees shall read and sign that they agree to the terms and conditions in the Employee Handbook

**7.** **WORKING AT CLIENT'S FACILITY** 

● Each employee must acknowledge and agree to comply with the terms and conditions set by the client before being assigned to and accessing any client facility

**8.** **RESTRICTIVE COVENANTS & IP ASSIGNMENTS** 

● Each employee is required to sign:

○ Restrictive covenants, including non-disclosure, non-solicitation, non-compete, and non-engagement

○ Intellectual Properties (IP) assignment of IP rights and work product

**9.** **OTHER FORMS** 

● Upon acceptance of this offer, you will be required to fill out and submit, among other forms:

○ W-4 Form (Employee's Withholding Certificate)

○ I-9 Form (Employment Eligibility Verification)

○ State Tax Withholding Form

○ Direct Deposit Authorization Form

If you choose to accept this offer of employment, please sign below, and return this offer letter by the end of the day August 29, 2025, to Robert Wagner, President & CEO of Koei US, Inc. at robert.wagner@koei-us.com.

---

| | |
|:---|:---|
|  | Sincerely, |
|  | Robert Wagner |
|  | President & CEO, Koei US, Inc. |
| Accepted: |  |
| */s/ Maki Wagner* |  |
| Maki Wagner |  |

---

Page 3 of 3

**CHIEF COMMUNICATIONS OFFICER**

**1.** **INTRODUCTION** 

The Chief Communications Officer (CCO) is responsible for leading all investor relations, public relations, and international affairs for Koei US, Inc. This role focuses on building and managing the company's external communications with stakeholders, the media, and global partners. The CCO will work closely with the executive team to support the company's growth, reputation, and international engagement.

**2.** **REQUIRED QUALIFICATIONS** 

● Education & Experience

○ Bachelor's degree.

● Attributes

○ Background in communications, investor relations, public relations, or related fields.

○ Excellent written and verbal communication skills.

○ Ability to work independently and collaboratively in a hybrid environment.

○ International experience or cross-cultural communication skills preferred.

**3.** **KEY RESPONSIBILITIES** 

● Develop and oversee investor relations strategies and communications.

● Lead all public relations activities, including media engagement, press releases, and company announcements.

● Manage international affairs, supporting communications and coordination with overseas partners and affiliates.

● Act as liaison with industry associations, partners, and key stakeholders.

● Build and maintain strong networks with industry peers to enhance visibility and opportunities.

● Advise leadership on communication strategies to strengthen corporate reputation.

● Prepare presentations, reports, and key messaging for investors and external stakeholders.

● Represent the company in public, investor, and international forums.

● May supervise communications staff in the future (currently no direct reports).

Page 1 of 1

## Exhibit 10.11

**Exhibit 10.11**

**KOEI GROUP CO., LTD.**

**2026 EQUITY INCENTIVE COMPENSATION PLAN**

1.<u>Purpose; Eligibility</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1<u>General Purpose</u>. The name of this plan is the Koei Group Co., Ltd. 2026 Equity Incentive Compensation Plan (the "**Plan**"). The purposes of the Plan are to (a) enable Koei Group Co., Ltd., a Japanese joint-stock corporation (the "**Company**"), and any Affiliate to attract and retain the types of Employees, Consultants, Directors and Statutory Auditors who will contribute to the Company's long term success; (b) provide incentives that align the interests of Employees, Consultants, Directors and Statutory Auditors with those of the shareholders of the Company; and (c) promote the success of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2<u>Eligible Award Recipients</u>. The persons eligible to receive Awards are the Employees (including Officers), Consultants, Directors and Statutory Auditors of the Company and its Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants, Directors and Statutory Auditors after the receipt of Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3<u>Available Awards</u>. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted Awards and (e) Performance Share Awards.

2.<u>Definitions</u>.

"**ADSs**" means American Depositary Shares representing Common Shares.

"**Affiliate**" means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control with, the Company.

"**Applicable Laws**" means the requirements related to or implicated by the administration of the Plan under applicable Japanese corporate law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Shares (or ADSs) are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.

"**Award**" means any Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation Right, a Restricted Award or a Performance Share Award, together with any other right or interest relating to the Common Shares, granted to a Participant under the Plan.

"**Award Agreement**" means a written agreement, contract, certificate or other instrument or document (including without limitation the terms of issuance (*hakkō yōkō*) of any Japanese SAR) evidencing the terms and conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

"**Beneficial Owner**" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular Person, such Person shall be deemed to have beneficial ownership of all securities that such Person has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.

"**Board**" means the Board of Directors of the Company, as constituted at any time.

"**Cause**" means:

With respect to any Employee or Consultant, unless the applicable Award Agreement states otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such agreement provides for a definition of Cause (including without limitation, in a Japanese language agreement, "*seitō na riyū*" or "*gōriteki na riyū*"), the definition contained therein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no contest to, a felony (including without limitation any criminal offense under Japanese law punishable by more than one year of imprisonment) or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material fiduciary breach with respect to the Company or an Affiliate; (ii) conduct that brings or is reasonably likely to bring the Company or an Affiliate negative publicity or into public disgrace, embarrassment, or disrepute; (iii) gross negligence or willful misconduct with respect to the Company or an Affiliate; (iv) material violation of U.S. state or federal or Japanese securities laws; or (v) material violation of the Company's or an Affiliate's written policies or codes of conduct, including without limitation written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct and any work rules (*shūgyō kisoku*).

With respect to any Director or Statutory Auditor, unless the applicable Award Agreement states otherwise, a determination by a majority of the disinterested Board members that the Director has engaged in any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) malfeasance in office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) gross misconduct or neglect (including without limitation *jūkashitsu* under Japanese law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) false or fraudulent misrepresentation inducing the Director's or Statutory Auditor's appointment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) willful conversion of corporate funds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) repeated failure to participate in Board meetings (or meetings of Statutory Auditors, if applicable) on a regular basis despite having received proper notice of the meetings in advance.

The Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause. The good faith determination by the Committee of whether the Participant's Continuous Service is terminated by the Company for Cause shall be final and binding for all purposes hereunder.

"**Change in Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries, taken as a whole, to any Person that is not a subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Incumbent Directors cease for any reason to constitute at least a majority of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The date which is ten (10) business days prior to the consummation of a complete liquidation or dissolution of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The acquisition by any Person of Beneficial Ownership of 50% or more (on a fully diluted basis) of either (i) the then outstanding Common Shares of the Company, taking into account as outstanding for this purpose such Common Shares issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Shares (the "**Outstanding Company Common Shares**") or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "**Outstanding Company Voting Securities**"); *provided, however*, that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or maintained by the Company or any subsidiary, (C) any acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e) of this definition or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of persons including the Participant (or any entity controlled by the Participant or any group of persons including the Participant); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company that requires the approval of the Company's shareholders, whether for such transaction or the issuance of securities in the transaction (a "**Business Combination**"), unless immediately following such Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the "**Surviving Company**"), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company (the "**Parent Company**"), is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination.

"**Code**" means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.

"**Committee**" means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section 3.3 and Section 3.4 (or, if the Board does not so appoint or delegate administration of the Plan, the Board).

"**Common Shares**" means the common shares, no par value, of the Company, or such other securities of the Company as may be designated by the Committee from time to time in substitution thereof.

"**Companies Act of Japan**" means the Companies Act of Japan (Act No. 86 of 2005, as amended).

"**Company**" means Koei Group Co., Ltd., a Japanese joint-stock corporation, and any successor thereto.

"**Consultant**" means any individual or entity which performs bona fide services to the Company or an Affiliate, other than as an Employee or Director, and who may be offered securities registerable pursuant to a registration statement on Form S-8 under the Securities Act, so long as (i) such person renders bona fide services that are not in connection with the offer and sale of the Company's securities in a capital-raising transaction, (ii) such person does not directly or indirectly promote or maintain a market for the Company's securities and (iii) the identity of such person would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on the registration of those securities on a Form S-8 Registration Statement under the Securities Act.

"**Continuous Service**" means the uninterrupted provision of services to the Company or any Affiliate in any capacity of Employee, Consultant, Director, Statutory Auditor, or other service provider. Subject to the determination and/or approval by the Committee or its delegate, Continuous Service shall not be considered to be interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Affiliate, or any successor entities, in any capacity of Employee, Consultant, Director, Statutory Auditor, or other service provider, or (iii) any change in status as long as the individual remains in the service of the Company or an Affiliate in any capacity of Employee, Consultant, Director, Statutory Auditor, or other service provider (except as otherwise provided in the applicable Award Agreement); *provided that* if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence. The Committee or its delegate, in its sole discretion, may determine whether a Company transaction, such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in a termination of Continuous Service for purposes of affected Awards, and such decision shall be final, conclusive and binding. In the case of an Employee, Continuous Service shall terminate at the time that the Company (or an Affiliate, if applicable) informs such Employee of the Company's (or such Affiliate's) intent to terminate, or seek the voluntary resignation of, such Employee, unless expressly agreed otherwise in writing by the Committee or its delegate.

"**Deferred Stock Units (DSUs)**" has the meaning set forth in Section 8.1(b) hereof.

"**Director**" means a member of the Board.

"**Disability**" means, unless the applicable Award Agreement provides otherwise, that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment; *provided, however,* for purposes of determining the term of an Incentive Stock Option pursuant to Section 6.10 hereof, the term Disability shall have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an Incentive Stock Option pursuant to Section 6.10 hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under any

long-term disability plan maintained by the Company or any Affiliate in which a Participant participates.

"**Disqualifying Disposition**" has the meaning set forth in Section 16.12.

"**Effective Date**" shall mean the date that the Company's shareholders approve this Plan if such shareholder approval occurs before the first anniversary of the date the Plan is adopted by the Board.

"**Employee**" means any person, including an Officer or Director, employed by the Company or an Affiliate; *provided, that,* for purposes of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or Statutory Auditor or payment of a Director's (or Statutory Auditor's) fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, including the rules thereunder and the successor provisions and rules thereto.

"**Fair Market Value**" means the fair market value of the Common Shares, ADSs, Awards or other property on the date as of which the value is being determined, as determined by the Committee, or under procedures established by the Committee, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, on such date, the ADSs representing Common Shares are listed on any established stock exchange or a national market system in the United States:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Fair Market Value of a Common Share shall be the aggregate price of the applicable number of ADSs which represent one Common Share, determined based upon the closing price of an ADS (or if no sales were reported, the closing price on the last day on which the ADSs were so traded prior to the relevant date, or such other appropriate day as shall be determined by the Committee in its discretion) as quoted on such exchange or system on the day of determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Fair Market Value of an ADS shall be the closing price of an ADS (or if no sales were reported, the closing price on the last day on which the ADSs were so traded prior to the relevant date, or such other appropriate day as shall be determined by the Committee in its discretion) as quoted on such exchange or system on the day of determination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Fair Market Value shall be determined in good faith by the Committee without regard to any restriction other than a restriction which, by its terms, will never lapse, and such determination shall be conclusive and binding on all persons.

"**Fiscal Year**" means the Company's fiscal year.

"**Free Standing Rights**" has the meaning set forth in Section 7.

"**Good Reason**" means, unless the applicable Award Agreement states otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such agreement provides for a definition of Good Reason (including without limitation, in a Japanese language agreement, "*seitō na riyū*" or "*gōriteki na riyū*"), the definition contained therein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If no such agreement exists or if such agreement does not define Good Reason, the occurrence of one or more of the following without the Participant's express written consent, which circumstances are not remedied by the Company within thirty (30) days of its receipt of a written notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant within ninety (90) days of the Participant's knowledge of the applicable circumstances): (i) any material, adverse change in the Participant's duties, responsibilities or title; (ii) a material reduction in the Participant's base salary or bonus opportunity; or (iii) a geographical relocation of the Participant's principal office location by more than fifty (50) miles.

"**Grant Date**" means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such date as is set forth in such resolution.

"**Incentive Stock Option**" means an Option that is designated by the Committee as an incentive stock option within the meaning of Section 422 of the Code and that meets the requirements set out in the Plan.

"**Income Tax Act of Japan**" means the Income Tax Act of Japan (Act No. 33 of 1965, as amended).

"**Incumbent Directors**" means individuals who, on the Effective Date, constitute the Board, *provided that* any individual becoming a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director without objection to such nomination) shall be an Incumbent Director. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be an Incumbent Director.

"**Japanese SAR**" means a stock acquisition right (*shinkabuyoyakuken*), as described in Article 236 of the Companies Act of Japan and certain other provisions thereof.

"**Listing Market**" means the national securities exchange on which any securities of the Company are listed for trading, and if no such securities are listed for trading, the Nasdaq Stock Market.

"**Non-Employee Director**" means a Director who is a "non-employee director" within the meaning of Rule 16b-3.

"**Non-qualified Stock Option**" means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. For the avoidance of doubt, the terms Incentive Stock Option and Non-qualified Stock Option as used herein are defined with respect to United States law and do not refer to the qualification or lack of qualification for certain tax treatment under Japanese law (for example, *zeisei tekikaku* status or *zeisei hi-tekikaku* status under Japanese law).

"**Officer**" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

"**Option**" means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan. For clarity, an Option may be in the form of a Japanese SAR.

"**Optionholder**" means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

"**Option Exercise Price**" means the price at which a Common Share (or, in the case of an Option exercisable for ADSs, the number of ADSs representing one Common Share) may be purchased upon the exercise of an Option.

"**Participant**" means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

"**Performance Goals**" means, for a Performance Period, the one or more goals established by the Committee for the Performance Period based upon business criteria or other performance measures determined by the Committee in its discretion.

"**Performance Period**" means one or more periods of time not less than one fiscal quarter in duration as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant's right to and the payment of a Performance Share Award.

"**Performance Share Award**" means any Award granted pursuant to Section 9 hereof.

"**Performance Share**" means the grant of a right to receive a number of actual Common Shares (or, pursuant to Section 4.7, ADSs) or share units based upon the performance of the Company during a Performance Period, as determined by the Committee.

"**Permitted Transferee**" means: (a) a member of the Optionholder's immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships), any person sharing the Optionholder's household (other than a tenant or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder) own more than 50% of the voting interests; (b) third parties designated by the Committee in connection with a program established and approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration for the transfer of a Non-qualified Stock Option; and (c) such other transferees as may be permitted by the Committee in its sole discretion.

**"Person"** means a person as defined in Section 13(d)(3) of the Exchange Act.

"**Plan**" means this Koei Group Co., Ltd. 2026 Equity Incentive Compensation Plan, as amended and/or amended and restated from time to time.

"**Related Rights**" has the meaning set forth in Section 7.

"**Restricted Award**" means any Award granted pursuant to Section 8.

"**Restricted Period**" has the meaning set forth in Section 8.

"**Rule 16b-3**" means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

"**Securities Act**" means the Securities Act of 1933, as amended.

"**Statutory Auditor**" means a statutory auditor (*kansayaku*), as described in Article 332 of the Companies Act of Japan and certain other provisions thereof.

"**Stock Appreciation Right**" means the right pursuant to an Award granted under Section 7 to receive, upon exercise, an amount payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (a) the Fair Market Value of a Common Share (or the corresponding number of ADSs) on the date the Award is exercised, over (b) the exercise price specified in the Stock Appreciation Right Award Agreement.

"**Stock for Stock Exchange**" has the meaning set forth in Section 6.4.

**"Substitute Award"** has the meaning set forth in Section 4.6.

"**Ten Percent Shareholder**" means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

**"Total Share Reserve**" has the meaning set forth in Section 4.1.

3.<u>Administration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<u>Authority of Committee</u>. The Plan shall be administered by the Committee or, in the Board's sole discretion, by the Board. Subject to the terms of the Plan, the Committee's charter and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Committee shall have the authority:

(a)to construe and interpret the Plan and apply its provisions;

(b)to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

(c)to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

(d)to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve "insiders" within the meaning of Section 16 of the Exchange Act;

(e)to determine when Awards are to be granted under the Plan and the applicable Grant Date;

(f)from time to time to select, subject to the limitations set forth in this Plan, those eligible Award recipients to whom Awards shall be granted;

(g)to determine the number of Common Shares (or ADSs) to be made subject to each Award and whether the Awards will be exercisable into Common Shares (or ADSs);

(h)to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

(i)to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

(j)to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures that will be used to establish the Performance Goals, the Performance Period(s) and the number of Performance Shares earned by a Participant;

(k)to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award; *provided, however*, that if any such amendment impairs a Participant's rights or increases a Participant's obligations under his or her Award or creates or increases a Participant's federal income tax liability with respect to an Award, such amendment shall also be subject to the Participant's consent;

(l)to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company's employment policies;

(m)to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers anti-dilution adjustments;

(n)to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; and

(o)to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan.

The Committee also may modify the purchase price or the exercise price of any outstanding Award, *provided that* if the modification effects a repricing, shareholder approval shall be required before the repricing is effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<u>Committee Decisions Final</u>. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company, any Affiliate, any Participant or Beneficial Owner, any Permitted Transferee and any other person claiming rights from or through any of the foregoing persons or entities, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<u>Delegation</u>. The Committee or, if no Committee has been appointed, the Board may delegate administration of the Plan to a committee or committees of one or more members of the Board, and the term "**Committee**" shall apply to any person or persons to whom such authority has been delegated (and, if no such appointment or delegation has been made, the Board). The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<u>Committee Composition</u>. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3. However, if the Board intends to satisfy such exemption requirements, with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee Directors. Within the scope of such authority, the Board or the Committee may delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. The Committee may appoint agents to assist it in administering the Plan. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards are granted under the Plan by a compensation or other committee of the Board that does not at all times consist solely of two or more Non-Employee Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5<u>Reliance on Information</u>. The Committee and the Board, and each member thereof, shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any Officer or Employee, the Company's independent auditors, Consultants or any other agents assisting in the administration of this Plan. Members of the Committee and the Board, and any Officer or Employee acting at the direction or on behalf of the Committee or the Board, shall not be personally liable for any action or determination taken or made in good faith with respect to this Plan, and shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action or determination.

4.<u>Shares Subject to the Plan</u>.

4.1Subject to adjustment in accordance with Section 13, the total number of Common Shares reserved and available for delivery under this Plan as of any date shall be no more than 1,287,000 Common Shares (including Common Shares represented by ADSs) (the "**Total Share Reserve**"), less the number of Shares with respect to which Awards have previously been granted under the Plan (the "**Currently Outstanding Awards**"). Any Common Shares (including ADSs representing Common Shares) granted in connection with Options, Stock Appreciation Rights, or any other Awards shall be counted against this limit as one (1) share for every one (1) Option, Stock Appreciation Right or Common Share awarded. During the terms of the Awards, the Company shall keep available at all times the number of Common Shares required to satisfy such Awards.

4.2Common Shares available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner.

4.3Subject to adjustment in accordance with Section 13, the total number of Common Shares reserved and available for delivery under the Plan as a result of the exercise of Incentive Stock Options as of any date shall be no more than 321,750 Common Shares (including Common Shares represented by ADSs) (the **"ISO Limit"**).

4.4The maximum number of Common Shares (including Common Shares represented by ADSs) subject to Awards granted during a single Fiscal Year to any Non-Employee Director, together with any cash fees paid to such Non-Employee Director during the Fiscal Year shall not exceed a total value of $100,000 (calculating the value of any Awards based on the grant date fair value for financial reporting purposes).

4.5Any Common Shares (including Common Shares represented by ADSs) subject to an Award that expires or is canceled, forfeited, or terminated without issuance of the full number of Common Shares to which the Award related will again be available for issuance under the Plan and not be deemed to be, and not be counted as, a Currently Outstanding Award. Any Common Shares that again become available for future grants pursuant to this Section 4.5 shall be added back as one (1) share. Notwithstanding anything to the contrary contained herein, shares subject to an Award under the Plan shall be deemed to be and counted as Currently Outstanding Awards if such shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other Awards that were not issued upon the settlement of the Award.

4.6Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity acquired by the Company or with which the Company combines ("**Substitute Awards**"). Substitute Awards shall not be deemed to be, and not be counted as, Currently Outstanding Awards, and shall not reduce the Total Share Reserve; *provided, that*, Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as Incentive Stock Options shall be counted against the ISO Limit. Subject to applicable stock exchange requirements, available shares under a shareholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect such acquisition or transaction) may be used for Awards under the Plan and shall not reduce the Total Share Reserve.

4.7In fulfilment of any Award relating to Common Shares under the Plan, the Company may, at any time while ADSs are listed on a national securities exchange, in its sole discretion, deliver to the depositary of the Company (the "**Depositary**") the relevant Common Shares and the Depositary shall be instructed to deliver to the applicable Participant a corresponding amount of ADSs to the designated securities account of the Participant. Upon such ADSs being so delivered, the relevant Common Shares (or, in the case of awards exercisable for ADSs, the relevant ADSs) shall be considered to have been issued by the Company to the Participant without any further action being required.

5.<u>Eligibility</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<u>Eligibility for Specific Awards</u>. Incentive Stock Options may be granted only to Employees. Awards other than Incentive Stock Options may be granted to Employees, Consultants, Directors and Statutory Auditors and those individuals whom the Committee determines are reasonably expected to become Employees, Consultants, Directors and Statutory Auditors following the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<u>Ten Percent Shareholders</u>. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market Value of the Common Shares (or, in the case of an Incentive Stock Option exercisable for ADSs, 110% of the Fair Market Value of the number of ADSs representing one Common Share) on the Grant Date and the Option is not exercisable after the expiration of five years from the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Option Provisions</u>. Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in this Section 6, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-qualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for Common Shares (or ADSs) purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other person if an Option designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1<u>Term</u>. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from the Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Committee; *provided, however*, no Non-qualified Stock Option shall be exercisable after the expiration of ten (10) years from the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2<u>Exercise Price of an Incentive Stock Option</u>. Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Shares (or, in the case of an Incentive Stock Option exercisable for ADSs, 100% of the Fair Market Value of the number of ADSs representing one Common Share) subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3<u>Exercise Price of a Non-qualified Stock Option</u>. Unless approved by a special majority of shareholders pursuant to the Companies Act of Japan, the Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the Fair Market Value of the Common Shares (or ADSs, as applicable) subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4<u>Consideration</u>. The Option Exercise Price of Common Shares (or ADSs) acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (a) in cash, by bank remittance or by certified or bank check at the time the Option is exercised or (b) in the discretion of the Committee, upon such terms as the Committee shall approve. The Option Exercise Price may be paid: (i) by delivery to the Company of other Common Shares (or ADSs), duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the Participant identifies for delivery specific Common Shares (or ADSs) that have an aggregate Fair Market Value on the date of attestation equal to the Option Exercise Price (or portion thereof) and receives a number of Common Shares (or ADSs) equal to the difference between the number of shares thereby purchased and the number of identified attestation Common Shares (or ADSs) (a "**Stock for Stock Exchange**"); (ii) by a "cashless" exercise program established with a broker; (iii) by reduction in the number of Common Shares (or ADSs) otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise; (iv) by any combination of the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to the Committee. Unless otherwise specifically provided in the Option, the exercise price of Common Shares (or ADSs) acquired pursuant to an Option that is paid by delivery (or attestation) to the Company of other Common Shares (or ADSs) acquired, directly or indirectly from the Company, shall be paid only by Common Shares (or ADSs) of the Company that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period for which the Common Shares or ADSs are publicly traded (i.e., the Common Shares is, or ADSs are, listed on any established stock exchange or a national market system) an exercise by a Director, Statutory Auditor or Officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect to any Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5<u>Transferability of an Incentive Stock Option</u>. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6<u>Transferability of a Non-qualified Stock Option</u>. A Non-qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Non-qualified Stock Option does not provide for transferability, then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7<u>Vesting of Options</u>. Each Option that vests solely based on the continued service of the Participant shall vest and therefore become exercisable no earlier than one (1) year after the Grant Date. Each Option that vests based on the achievement of performance or other criteria shall vest and therefore become exercisable no earlier than one (1) year after the Grant Date. No Option may be exercised for a fraction of a Common Share or a number of ADSs representing a fraction of a Common Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of the Optionholder's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8<u>Termination of Continuous Service</u>. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee, in the event an Optionholder's Continuous Service terminates (other than upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (a) the date three months following the termination of the Optionholder's Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement; *provided that*, if the termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9<u>Extension of Termination Date</u>. An Optionholder's Award Agreement may also provide that if the exercise of the Option following the termination of the Optionholder's Continuous Service for any reason would be prohibited at any time because the issuance of Common Shares (or ADSs) would violate the registration requirements under the Securities Act or any other state or federal securities law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate on the earlier of (a) the expiration of the term of the Option in accordance with Section 6.1 or (b) the expiration of a period after termination of the Participant's Continuous Service that is three months after the end of the period during which the exercise of the Option would be in violation of such registration or other securities law requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10<u>Disability of Optionholder</u>. Unless otherwise provided in an Award Agreement, in the event that an Optionholder's Continuous Service terminates as a result of the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11<u>Death of Optionholder</u>. Unless otherwise provided in an Award Agreement, in the event an Optionholder's Continuous Service terminates as a result of the Optionholder's death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder's death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in the Award Agreement. If, after the Optionholder's death, the Option is not exercised within the time specified herein or in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12<u>Incentive Stock Option $100,000 Limitation</u>. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Shares (or ADSs) with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Non-qualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Stock Appreciation Rights</u>. Each Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation Right so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone ("**Free Standing Rights**") or in tandem with an Option granted under the Plan ("**Related Rights**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1<u>Grant Requirements for Related Rights</u>. Any Related Right that relates to a Non-qualified Stock Option may be granted at the same time the Option is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2<u>Term</u>. The term of a Stock Appreciation Right granted under the Plan shall be determined by the Committee; *provided, however*, no Stock Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3<u>Vesting</u>. Each Stock Appreciation Right shall vest and therefore become exercisable no earlier than one (1) year after the Grant Date. No Stock Appreciation Right may be exercised for a fraction of a Common Share or a number of ADSs representing a fraction of a Common Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of the Award recipient's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4<u>Exercise and Payment</u>. Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company an amount equal to the number of Common Shares (or ADSs) subject to the Stock Appreciation Right that is being exercised multiplied by the excess of (i) the Fair Market Value of a Common Share (or ADSs) on the date the Award is exercised, over (ii) the exercise price specified in the Stock Appreciation Right or related Option. Payment with respect to the exercise of a Stock Appreciation Right shall be made on the date of exercise. Payment shall be made in the form of Common Shares (or ADSs) (with or without restrictions as to substantial risk of forfeiture and transferability, as determined by the Committee in its sole discretion), cash or a combination thereof, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5<u>Exercise Price</u>. The exercise price of a Free Standing Right shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value of the Common Shares (or ADSs representing such Common Shares, as applicable) subject to such Free Standing Right on the Grant Date of such Stock Appreciation Right. A Related Right granted simultaneously with or subsequent to the grant of an Option and in conjunction therewith or in the alternative thereto shall have the same exercise price as the related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be exercisable only to the same extent as the related Option; *provided, however*, that a Stock Appreciation Right, by its terms, shall be exercisable only when the Fair Market Value per Common Share (or per the number of ADSs representing one Common Share, as applicable) subject to the Stock Appreciation Right and related Option exceeds the exercise price per share thereof and no Stock Appreciation Rights may be granted in tandem with an Option unless the Committee determines that the requirements of Section 7.1 are satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6<u>Reduction in the Underlying Option Shares</u>. Upon any exercise of a Related Right, the number of Common Shares (or ADSs) for which any related Option shall be exercisable shall be reduced by the number of shares (or ADSs) for which the Stock Appreciation Right has been exercised. The number of Common Shares (or ADSs) for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the number of Common Shares (or ADSs) for which such Option has been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Restricted Awards</u>. A Restricted Award is an Award of actual Common Shares or ADSs ("**Restricted Stock**") or hypothetical Common Shares or ADS units ("**Restricted Stock Units**") having a value equal to the Fair Market Value of an identical number of Common Shares (or ADSs, as applicable), which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such period (the "**Restricted Period**") as the Committee shall determine. Each Restricted Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1<u>Restricted Stock and Restricted Stock Units</u>.

(a)Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive dividends; *provided that*, any cash dividends and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant's account, and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in Common Shares or ADSs having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends.

(b)The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No Common Shares or ADSs shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting date until the occurrence of a future payment date or event set forth in an Award Agreement ("**Deferred Stock Units**"). At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one Common Share or the number of ADSs which represent one Common Share) may be credited with an amount equal to the cash and stock dividends paid by the Company in respect of one Common Share (or in respect of the number of ADSs which represent one Common Share, as applicable) ("**Dividend Equivalents**"). Dividend Equivalents shall be withheld by the Company and credited to the Participant's account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant's account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant's account and attributable to any particular Restricted Stock Unit or Deferred Stock Unit (and earnings thereon, if applicable) shall be distributed in cash or, at the discretion of the Committee, in Common Shares (or ADSs) having a Fair Market Value equal to the amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted Stock Unit or Deferred Stock Unit and, if such Restricted Stock Unit or Deferred Stock Unit is forfeited, the Participant shall have no right to such Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2<u>Restrictions</u>.

(a)Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company, and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further obligation on the part of the Company.

(b)Restricted Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of the Participant to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

(c)The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock Units and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3<u>Restricted Period</u>. The Restricted Period shall commence on the Grant Date and end no earlier than one (1) year after the Grant Date. Any Restricted Award that vests based on the achievement of performance or other criteria shall vest no earlier than one (1) year after the Grant Date. No Restricted Award may be granted or settled for a fraction of a Common Share or a number of ADSs representing a fraction of a Common Share. The Committee may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence of the Award recipient's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4<u>Delivery of Restricted Stock and Settlement of Restricted Stock Units</u>. Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section 8.2 and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock (or the ADS, as applicable) which have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any cash dividends or stock dividends credited to the Participant's account with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, or at the expiration of the deferral period with respect to any outstanding Deferred Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one Common Share (or the number of ADSs which represent one Common Share) for each such outstanding vested Restricted Stock Unit or Deferred Stock Unit ("**Vested Unit**") and cash equal to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 8.1(b) hereof and the interest thereon or, at the discretion of the Committee, in Common Shares (or ADSs) having a Fair Market Value equal to such Dividend Equivalents and the interest thereon, if any; *provided, however*, that, if explicitly provided in the applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Shares (or ADSs) in lieu of delivering only Common Shares (or ADSs) for Vested Units. If a cash payment is made in lieu of delivering Common Shares (or ADSs), the amount of such payment shall be equal to the Fair Market Value of the Common Shares (or ADSs) as of the date on which the Restricted Period lapsed in the case of Restricted Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5<u>Stock Restrictions</u>. Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Performance Share Awards</u>. Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each Performance Share Award so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the discretion to determine: (i) the number of Common Shares (or ADSs) or stock-denominated units subject to a Performance Share Award granted to any Participant; (ii) the Performance Period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other terms, conditions and restrictions of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1<u>Earning Performance Share Awards</u>. The number of Performance Shares earned by a Participant will depend on the extent to which the performance goals established by the Committee are attained within the applicable Performance Period, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Securities Law Compliance</u>. Each Award Agreement shall provide that no Common Shares or ADSs shall be purchased or sold thereunder unless and until (a) any then applicable requirements of Japanese and U.S. state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and delivered to the Company a letter of investment intent in such form and containing such provisions as the Committee may require. The Company may, to the extent deemed necessary or advisable by the Committee, postpone the issuance or delivery of Common Shares (or ADSs) under any Award until completion of such registration or qualification of such Common Shares (or ADSs) or other required action under any Japanese or U.S. federal or state law, rule or regulation; listing or other required action with respect to the Listing Market; or compliance with any other obligation of the Company, as the Committee may consider necessary or appropriate, and may require any Participant to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the issuance or delivery of Common Shares in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations. Notwithstanding anything to the contrary in this Plan, the Company shall not be required to register under the Securities Act the Plan, any Award or any Common Shares (or ADSs) issued or issuable pursuant to any such Award.

11.<u>Use of Proceeds from Stock</u>. Proceeds from the sale of Common Shares or ADSs pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

12.<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1<u>Acceleration of Exercisability and Vesting</u>. The Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest; provided that such acceleration occurs upon the Award recipient's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2<u>Shareholder Rights</u>. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Common Shares or ADSs subject to such Award unless and until such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common Shares (or, in the case of ADSs, the shares represented by the ADSs) are issued, except as provided in Section 13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3<u>No Employment or Other Service Rights</u>. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause or (b) the service of a Director pursuant to the By-laws and Articles of Incorporation of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4<u>Transfer; Approved Leave of Absence</u>. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee's right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5<u>Withholding Obligations</u>. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal, national, state, prefectural or local tax withholding obligation relating to the exercise or acquisition of Common Shares (or ADSs) under an Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (a) tendering cash payment; (b) authorizing the Company to withhold Common Shares (or ADSs) from the Common Shares (or ADSs) otherwise issuable to the Participant as a result of the exercise or acquisition of Common Shares (or ADSs) under the Award, *provided, however*, that no Common Shares (or ADSs) are withheld with a value exceeding the maximum amount of tax required to be withheld by law; (c) delivering to the Company previously owned and unencumbered Common Shares (or ADSs representing such shares) of the Company; or (d) withholding by the Company from subsequent compensation paid to the Participant (to the extent permitted by Applicable Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6<u>Nature of Awards</u>. For clarity, no Award granted under this Plan to an Employee who is a resident of Japan shall be, or shall be deemed to be, wages (*chingin*) or salary (*kyuryo*), unless otherwise required by Applicable Laws.

13.<u>Adjustments Upon Changes in Stock</u>. In the event of changes in the outstanding Common Shares or ADSs or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options and Stock Appreciation Rights, the Performance Goals to which Performance Share Awards are subject, and the maximum number of Common Shares (including ADSs) subject to all Awards stated in Section 4 will be equitably adjusted or substituted, as to the number, price or kind of a Common Share, ADSs or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant to this Section 13, unless the Committee specifically determines that such adjustment is in the best interests of the Company or its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section 13 will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section 13 will not constitute a modification of such Non-qualified Stock Options within the meaning of Section 409A of the Code. Any adjustments made under this Section 13 shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act, to the extent applicable. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

14.<u>Effect of Change in Control</u>.

14.1Unless an Award Agreement expressly provides otherwise in connection with a Change in Control, notwithstanding any provision of the Plan to the contrary:

(a)In the event of a Participant's termination of Continuous Service without Cause or for Good Reason during the 12-month period following a Change in Control, notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary (except to the extent such Award Agreement expressly provides otherwise in connection with a Change in Control), all outstanding Options and Stock Appreciation Rights shall become immediately exercisable with respect to 100% of the shares (or ADSs) subject to such Options or Stock Appreciation Rights, and/or the Restricted Period shall expire immediately with respect to 100% of the outstanding shares of Restricted Stock or Restricted Stock Units as of the date of the Participant's termination of Continuous Service.

(b)With respect to Performance Share Awards, in the event of a Participant's termination of Continuous Service without Cause or for Good Reason, in either case, within 12 months following a Change in Control, all Performance Goals or other vesting criteria will be deemed achieved at 100% of target levels and all other terms and conditions will be deemed met as of the date of the Participant's termination of Continuous Service.

To the extent practicable, any actions taken by the Committee under the immediately preceding clauses (a) and (b) shall occur in a manner and at a time which allows affected Participants the ability to participate in the Change in Control with respect to the Common Shares (and ADSs, as applicable) subject to their Awards.

14.2In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days' advance notice to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination thereof, the value of such Awards based upon the price per Common Share (or ADS) received or to be received by other shareholders of the Company in the event. In the case of any Option or Stock Appreciation Right with an exercise price that equals or exceeds the price paid for a Common Share (or the number of ADSs representing one Common Share) in connection with the Change in Control, the Committee may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

14.3The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

15.<u>Amendment of the Plan and Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1<u>Amendment of Plan</u>. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided in Section 13 relating to adjustments upon changes in Common Shares (or ADSs) and Section 15.3, no amendment shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2<u>Shareholder Approval</u>. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3<u>Contemplated Amendments</u>. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants, Directors and Statutory Auditors with the maximum benefits provided or to be provided under the provisions of the Code, the Income Tax Act of Japan, the Japanese Act on Special Measures Concerning Taxation and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4<u>No Impairment of Rights</u>. Rights granted to a Participant under any Award granted prior to an amendment of the Plan shall not be materially and adversely impaired by any amendment of the Plan unless (a) the Company requests the consent of the affected Participant and (b) the affected Participant consents in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5<u>Amendment of Awards</u>. The Committee at any time, and from time to time, may amend the terms of any one or more Awards; *provided, however*, that the Committee may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

16.<u>General Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1<u>Forfeiture Events</u>. The Committee may specify in an Award Agreement that the Participant's rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation, confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the Participant's Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2<u>Clawback</u>. Notwithstanding any other provisions in this Plan, the Company may cancel any Award, require reimbursement of any Award by a Participant, and effect any other right of recoupment of equity or other compensation provided under the Plan in accordance with any Company policies that may be adopted and/or modified from time to time (**"Clawback Policy"**). In addition, a Participant may be required to repay to the Company previously paid compensation, whether provided pursuant to the Plan or an Award Agreement, in accordance with the Clawback Policy. By accepting an Award, the Participant is agreeing to be bound by the Clawback Policy, as in effect or as may be adopted and/or modified from time to time by the Company in its discretion (including, without limitation, to comply with applicable law or stock exchange listing requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3<u>Other Compensation Arrangements</u>. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4<u>Sub-Plans</u>. The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying securities, tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5<u>Deferral of Awards</u>. The Committee may establish one or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or receipt of Common Shares, ADSs or other consideration under an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee deems advisable for the administration of any such deferral program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6<u>Unfunded Plan</u>. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7<u>Recapitalizations</u>. Each Award Agreement shall contain provisions required to reflect the provisions of Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8<u>Delivery</u>. Upon exercise of a right granted under this Plan, the Company shall issue Common Shares, deliver ADSs or pay any amounts due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered a reasonable period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9<u>No Fractional Shares</u>. No fractional Common Shares (and no number of ADSs representing fractional Common Shares) shall be issued or delivered pursuant to the Plan, provided that a non-fractional number of ADSs that represents a fractional number of Common Shares may be issued or delivered hereunder. The Committee shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional Common Shares or ADSs or whether any fractional shares or ADSs should be rounded, forfeited or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10<u>Other Provisions</u>. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of Awards, as the Committee may deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11<u>Section 409A</u>. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant's termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant's separation from service (or the Participant's death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12<u>Disqualifying Dispositions</u>. Any Participant who shall make a "disposition" (as defined in Section 424 of the Code) of all or any portion of Common Shares (or ADSs) acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within one year after the issuance of the Common Shares (or ADSs, as applicable) acquired upon exercise of such Incentive Stock Option (a "**Disqualifying Disposition**") shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale of such Common Shares (or ADSs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13<u>Section 16</u>. If the Board resolves that it intends to implement the Plan in a manner that satisfies the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act, then, if the operation of any provision of the Plan would conflict with the intent expressed in this Section 16.13, such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14<u>Beneficiary Designation</u>. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of such Participant's death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during the Participant's lifetime.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.15<u>Expenses</u>. The costs of administering the Plan shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.16<u>Severability</u>. If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.17<u>Plan Headings</u>. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.18<u>Non-Uniform Treatment</u>. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Effective Date of Plan</u>. The Plan shall become effective as of the Effective Date, but no Award shall be exercised (or, in the case of a stock Award, shall be granted) unless and until the Plan has been approved by the shareholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Termination or Suspension of the Plan</u>. The Plan shall terminate automatically on March 8, 2034, the tenth anniversary of the date on which the Plan is adopted by the Board. No Award shall be granted pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier date pursuant to Section 15.1 hereof. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Choice of Law</u>. The law of Japan shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to conflict of law rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>English Language Governs</u>. The Plan was prepared in the English language, which language shall govern the interpretation of, and any dispute regarding, the terms of the Plan. If the Plan is translated into other languages, then the English language version will control.

As adopted by the Board of Directors of Koei Group Co., Ltd. on May 21, 2026.

As approved by the shareholders of Koei Group Co., Ltd. on May 21, 2026.

## Exhibit 10.12

**Exhibit 10.12**

**Loan Agreement**

**(Term Loan Agreement)**

**(1.4 billion yen)**

Borrower: Koei Shoji Co., Ltd.

Arranger: Resona Bank, Limited

The Bank of Yokohama, Ltd.

Lender: Financial institutions listed in appendix 1 to this Agreement

Agent: Resona Bank, Limited

September 22, 2021

**Table of Contents**

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| | |
|:---|:---|
| Article 1. (Definition) | 1 |
| Article 2. (Rights and Obligations of Lenders) | 6 |
| Article 3. (Use of Funds) | 7 |
| Article 4. (Prerequisites for Loans) | 7 |
| Article 5. (Disbursement of Loans) | 8 |
| Article 6. (Non-disbursement of Loans) | 8 |
| Article 7. (Lender's Disclaimer) | 9 |
| Article 8. (Repayment of Principal) | 9 |
| Article 9. (Interest Payment) | 9 |
| Article 10. (Early Repayment) | 9 |
| Article 11. (Late Fees) | 10 |
| Article 12. (Agent Fees) | 10 |
| Article 13. (Miscellaneous Expenses and Taxes and Public Dues, etc.) | 10 |
| Article 14. (Performance of Borrower's Obligations) | 10 |
| Article 15. (Appropriation of Repayment) | 11 |
| Article 16. (Distribution to the Lender) | 11 |
| Article 17. (Representations and Warranties to Borrower) | 12 |
| Article 18. (Borrower's Assurances) | 13 |
| Article 19. (Financial Restrictions) | 14 |
| Article 20. (Event of Loss of Term Benefit) | 14 |
| Article 21. (Offsetting) | 16 |
| Article 22. (Allowable Security Interests, etc.) | 17 |
| Article 23. (Adjustments Among Lenders) | 17 |
| Article 24. (Rights and Obligation of Agents) | 18 |
| Article 25. (Agent's Indemnity) | 19 |
| Article 26. (Resignation and Dismissal of Agents) | 20 |
| Article 27. (Rallying of Lenders' Intentions) | 21 |
| Article 28. (Assignment of Status) | 22 |
| Article 29. (Assignment of Loan Receivables) | 23 |
| Article 30. (Collection from Third Parties, etc.) | 25 |
| Article 31. (Changes in Laws and Regulations, etc.) | 26 |
| Article 32. (General Provisions) | 26 |

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**Loan Agreement**

**(Term Loan Agreement)**

Koei Shoji Co., Ltd. (Hereinafter referred to as the "Borrower"), the financial institutions listed in Appendix 1 to this Agreement (Each financial institution is hereinafter referred to as a "Lender."), and Resona Bank, Limited (Hereinafter referred to as the "Agent") agree as follows on September 22, 2021 (Hereinafter referred to as the "Agreement").

**Article 1. (Definition)**

Whenever used in this Agreement, each of the following terms shall have the meaning set forth below, unless the context clearly requires otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Business
 Day" means any day other than days that are considered bank holidays in Japan.

&nbsp;&nbsp;&nbsp;&nbsp;(2) "Agent
 Services" means the services set forth in the respective Articles of this Agreement
 entrusted to the Agent by and on behalf of all Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;(3) "Agent
 Fee" means the fee to be paid by the Borrower to the Agent upon separate agreement
 between the Borrower and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;(4) "Parent
 Company", "Subsidiaries" and "Affiliated Companies" are as
 defined in Article 8 of the Regulations on the Terms, Forms, and Preparation Methods of Supplementary
 Financial Statements, etc.

&nbsp;&nbsp;&nbsp;&nbsp;(5) "Loan"
 means the aggregate of individual loans made pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(6) "Loan
 Amount" means the amount of the loan scheduled to be made on the Execution Date, which
 is 1.4 billion yen.

&nbsp;&nbsp;&nbsp;&nbsp;(7) "Loan
 Obligation" means the obligation of a Lender to make an individual loan to a Borrower
 on the Execution Date, subject to the satisfaction of the requirements described in each
 item of Article 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;(8) "Loan
 Claims" means claims related to individual loans.

&nbsp;&nbsp;&nbsp;&nbsp;(9) "Loan
 Disability Period" means the period from the date the Borrower receives the notice
 under Article 7.1 (including the very same day) to the date the Borrower receives the notice
 under Article 7.2 (including the very same day).

&nbsp;&nbsp;&nbsp;&nbsp;(10) "Event
 of Loan Disability" means any of the following events that, in the judgment of the
 majority Lender, have made it impossible to make a loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Outbreak
 of natural disasters, epidemics, wars, and terrorist attacks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Disconnection
 or failure of electricity, telecommunications, and various payment systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Circumstances
 that make it impossible to conduct yen money lending transactions in the Tokyo interbank
 market

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Other
 reasons beyond the Lender's control

&nbsp;&nbsp;&nbsp;&nbsp;(11) "Principal
 Repayment Date" means each of the dates listed in the "Principal Repayment Date"
 column in the repayment schedule in Appendix 2 hereto as the date on which the principal
 of the amount listed in the "Principal Repayment Amount" column is repaid.

&nbsp;&nbsp;&nbsp;&nbsp;(12) "Event
 of Loss of Term Benefit" means any of the events set forth in each item of Article
 20, Paragraph 1 and each item of Paragraph 2.

&nbsp;&nbsp;&nbsp;&nbsp;(13) "Early
 Repayment" means the repayment, in whole or in part, of the principal of a loan before
 maturity.

&nbsp;&nbsp;&nbsp;&nbsp;(14) "Requested
 Date for Prepayment" means the date on which the Borrower wishes to make prepayment
 in accordance with Article 10.

&nbsp;&nbsp;&nbsp;&nbsp;(15) "Base
 Rate" means, with respect to each Interest Calculation Period, the rate for the period
 corresponding to such Interest Calculation Period among the Japanese Yen TIBOR (Telerate17097
 page or its successor page) published by the JBA TIBOR Administration as of 11:00 a.m. or
 as close as possible to 11:00 a.m. or later two business days prior to the commencement date
 of such Interest Calculation Period. However, if such interest rate is less than 0%, it shall
 be 0%. In addition, in the following cases, the interest rate shall be as set forth below,
 respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 there is no interest rate for the period corresponding to such interest calculation period.

The interest rate shall be the higher of the rate corresponding to the nearest period shorter than such interest period or the rate corresponding to the nearest period longer than such interest period. However, if such interest rate is less than 0%, it shall be 0%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 for some reason the interest rate is not published.

The interest rate (per annum) shall be the rate reasonably determined by the Agent based on the offered trade of Yen money lending transactions for the period corresponding to the relevant interest calculation period on the Tokyo Interbank Market at 11:00 a.m. two business days prior to the start of each such interest calculation period or as soon as practicable prior thereto.

&nbsp;&nbsp;&nbsp;&nbsp;(16) "Allowable
 Security Interests" means, collectively, the following security interests

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A
 revolving security interest that has already been established over the assets of the Borrower
 at the time of execution of this Agreement and that includes the Lender's or Agent's
 claim hereunder as a non-secured claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A
 security interest in the assets of the Borrower that is created after the execution of this
 Agreement without breach of any provision of this Agreement and that includes the Lender's
 or Agent's claim hereunder as a secured claim (Including revolving security interests.
 The same shall apply hereinafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens
 and possessory liens and other security rights that are naturally established based on laws
 and ordinances, etc."

&nbsp;&nbsp;&nbsp;&nbsp;(17) "Accrued
 Interest" means, in the event of prepayment by the Borrower pursuant to this Agreement,
 interest accrued on the principal amount to be prepaid from the very last preceding interest
 payment date (However, for the first time, it shall be the date of execution.) (Including
 the very same date) to the date such prepayment is made (Including the very same date).

&nbsp;&nbsp;&nbsp;&nbsp;(18) "Financial
 Statements, etc." means, with respect to companies other than those required to submit
 annual securities reports pursuant to Article 24, Paragraph 1 of the Financial Instruments
 and Exchange Act, the following documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial
 Statements and Business Report and their Supplementary Schedules stipulated in Article 435,
 Paragraph 2 of the Companies Act, and Extraordinary Financial Statements stipulated in Article
 441, Paragraph 1 of the same Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consolidated
 Financial Statements as stipulated in Article 444, Paragraph 1 of the Companies Act (Only
 when required by law)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 addition to the above items, consolidated and non-consolidated balance sheets, statements
 of income, statements of changes in net assets, and notes (Only when required by law)

&nbsp;&nbsp;&nbsp;&nbsp;(19) "Taxes
 and Other Public Charges" means all taxes and public charges, including income tax,
 corporate tax, and other taxes that may be imposed in Japan.

&nbsp;&nbsp;&nbsp;&nbsp;(20) "Individual
 Loan" means a loan transaction executed for each Lender pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(21) "Individual
 Loan Receivables" means the money lent by a Lender to a Borrower under an Individual
 Loan, and the term "Individual Loan Amount" means the amount of the Individual
 Loan Receivables as set forth in Appendix 1 to this Agreement for each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;(22) "Individual
 Loan Payables" means the principal, interest, delay damages, liquidated money, and
 all other amounts owed by the Borrower under this Agreement with respect to an Individual
 Loan.

&nbsp;&nbsp;&nbsp;&nbsp;(23) "Participation
 Ratio" means, prior to the loan origination, the ratio of the individual loan amount
 originated by each Lender to the loan amount, and after the loan origination, the ratio of
 the principal amount of the individual outstanding loans by each Lender to the total principal
 amount of the individual outstanding loans.

&nbsp;&nbsp;&nbsp;&nbsp;(24) "Execution
 Date" means September 30, 2021

&nbsp;&nbsp;&nbsp;&nbsp;(25) "Payment
 Time Limit" means 11:00 a.m. on the Payment Date in the event that the Agreement provides
 for a Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;(26) "Syndicate
 Account" means the following account held by the Borrower or an account opened by the
 Borrower and accepted by the Agent at the head office or any branch of Resona Bank, Limited.

&nbsp;&nbsp;&nbsp;&nbsp;(27) "Spread"
 means 0.9% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;(28) "Liquidation
 Amount" means the amount to be liquidated if (a) The principal is repaid or set off
 on a date other than the interest payment date, (b) The Borrower cancels the loan agreement
 for the individual loan in accordance with the former section of Article 587-2(2) of the
 Civil Code before the individual loan is disbursed, (c) An individual loan is not executed
 because all or part of the conditions specified in Article 4.1 are not met, or (d) The Borrower
 loses the benefit of time for an individual loan, and is calculated by multiplying the principal
 amount subject to liquidation (With respect to (a), the principal amount for which such repayment
 or offset has been made; with respect to (b) and (c), the individually executed amount for
 such individual loans; and with respect to (d), the principal amount for each such individual
 loan at the time of forfeiture of the benefit of time. Hereinafter the same.) by the difference
 between the Reinvestment Rate and the Applicable Rate and the actual number of remaining
 periods on the balance sheet. The "remaining period" refers to the period from
 the start date of the liquidation payment calculation (With respect to (a), the date on which
 such repayment or setoff is made; with respect to (b) and (c), the date of execution; and
 with respect to (d), the date of execution of the calculation as reasonably determined by
 the Lender, which shall be a date after the date on which the benefit of time has been forfeited.
 Hereinafter the same.) to the next interest payment date, and the "reinvestment rate"
 refers to the interest rate reasonably determined by the Lender as the interest rate that
 would apply if the principal amount subject to liquidation payment were re-deployed in the
 Tokyo interbank market over the remaining period. The method of calculation of the relevant
 liquidation proceeds shall be one end by debit and the other end by pro-rata calculation
 with one year being 365 days, and division shall be made at the end and any amount less than
 one yen shall be rounded down.

&nbsp;&nbsp;&nbsp;&nbsp;(29) "All
 Lenders" means, collectively, all Lenders prior to the execution of the loan, and after
 the execution of the loan, all Lenders who have the right to demand payment of individual
 outstanding loan amounts from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;(30) "Preliminary
 Agreement (A)" means the Loan Agreement dated May 15, 2012 among Borrower, Mamoru Iwamoto,
 Resona Bank, Limited and The Bank of Yokohama as Lenders and Resona Bank, Limited as Agent
 (Term Loan Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;(31) "Preliminary
 Agreement (B)" means the Loan Agreement dated May 15, 2013 among Borrower, Mamoru Iwamoto,
 Resona Bank, Limited. and The Bank of Yokohama as Lenders and Resona Bank, Limited. as Agent
 (Term Loan Agreement with Commitment Period).

&nbsp;&nbsp;&nbsp;&nbsp;(32) "Total
 Loan Balance" means the aggregate principal amount of individual loan arrears of all
 Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;(33) "Majority
 Lender" is defined as a single or multiple Lender whose total percentage of participation
 as of the intentionality threshold time is 67% or more. The term "Decision Rally Reference
 Point" means the time when the Agent issues the notice in Article 27.1.1 if the Agent
 itself determines that a decision by the majority Lender is necessary, or when the Lender
 determines that an event has occurred that requires instructions by the majority Lender,
 or when the Agent receives the notice in Article 27.2 if the Lender determines that an event
 has occurred that requires instructions by the majority Lender.

&nbsp;&nbsp;&nbsp;&nbsp;(34) "Applicable
 Interest Rate" means the base interest rate plus a spread.

&nbsp;&nbsp;&nbsp;&nbsp;(35) "Non-Bank
 Lender" means, among Lenders, a Lender who has been registered under Article 3, Paragraph
 (1) of the Act on Loans for Money Laundering, and a Lender who has acquired the status of
 a Lender or loan claims under this Agreement from a Non-Loan Lender and to whom all or part
 of the provisions of the Loan Proposal Act are applicable with respect to the loan claims
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(36) "Antisocial
 Behavior" means (a) violent demands, (b) unreasonable demands beyond legal responsibility,
 (c) acts of threatening words and actions or acts of using force in dealing, (d) acts of
 spreading propaganda, using fraudulent means or using force to steal the trust of the other
 party of the transaction, or obstructing the voting, (e) any act equivalent to (a) through
 (d).

&nbsp;&nbsp;&nbsp;&nbsp;(37) "Anti-Social
 Forces" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An
 organized crime group (An organization that may encourage its members (including members
 of the constituent organizations of such organizations) to engage collectively or habitually
 in violent and unlawful acts, etc. The same applies hereinafter.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Organized
 crime group member (meaning a member of an organized crime group. The same applies hereinafter.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A
 person for whom five years have not passed since he/she ceased to be a member of an organized
 crime group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Quasi-member
 of an organized crime group (A person, other than an organized crime group member, who has
 a relationship with an organized crime group and is likely to engage in violent illegal acts,
 etc., backed by the power of the organized crime group, or a person who cooperates or participates
 in the maintenance or operation of an organized crime group by supplying funds, weapons,
 etc. to the organized crime group or its members. The same applies hereinafter.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Company
 affiliated with organized crime group (A company in which an organized crime group member
 is substantially involved in its management, a company managed by a quasi-member of an organized
 crime group or former organized crime group member that actively cooperates or participates
 in the maintenance or operation of an organized crime group by providing funds to the organized
 crime group, or a company that actively uses an organized crime group in the conduct of its
 business and cooperates in the maintenance or operation of an organized crime group.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Corporate
 racketeer, etc. (A person who threatens the safety of citizens' lives by threatening
 to engage in violent and illegal acts in pursuit of illicit gains against companies, such
 as corporate racketeers and extortionist that blackmail corporations.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Social
 movement advocacy group (A person who poses as or advocates social or political activities,
 may engage in violent or illegal acts in pursuit of illicit gains, and poses a threat to
 the safety of civic life.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Special
 Intelligent Violent Groups, etc. (A group or individual, other than those listed in (a) through
 (g) above, that uses its power or has financial ties to an organized crime group, and is
 at the core of a structural injustice.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Others
 equivalent to (a) through (h) above

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) A
 person who has a relationship in which a person falling under (a) through (i) above is deemed
 to control the management of the company (hereinafter referred to as "organized crime
 group members, etc.")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Those
 having a relationship in which an organized crime group member, etc.is deemed to be substantially
 involved in the management of the company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) A
 person who has a relationship with an organized crime group member, etc. that is deemed to
 be using the organized crime group, etc. unjustly, such as for the purpose of making unjust
 profits for oneself, one's own company or a third party, or for the purpose of inflicting
 damage on a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) A
 person who has a relationship with an organized crime group member, etc. in which it is found
 that the person is involved in providing funds, etc., or providing convenience, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) A
 person who has a socially reprehensible relationship with an organized crime group member,
 etc., as an officer or a person substantially involved in the management of the company.

&nbsp;&nbsp;&nbsp;&nbsp;(38) "Due
 Date" means, with respect to the principal of a loan, the principal repayment date,
 with respect to interest, the interest payment date, and with respect to other monies, the
 date fixed as the date on which payment is to be made in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(39) "Report,
 etc." means, with respect to a company that is required to submit a securities report
 pursuant to Article 24, Paragraph 1 of the Financial Instruments and Exchange Act, a securities
 report, a quarterly report, an extraordinary report, and their amendment reports prescribed
 in Article 24, Article 24-4-7 and Article 24-5 of the said Act.

&nbsp;&nbsp;&nbsp;&nbsp;(40) "Laws,
 etc." means the treaties, laws, cabinet orders, ministerial ordinances, regulations,
 notices, ordinances, judgments, decisions, arbitral awards, notices and policies of the relevant
 authorities applicable to this Agreement, the transactions contemplated hereby or to the
 parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;(41) "Property"
 means the property described in Appendix 3.

&nbsp;&nbsp;&nbsp;&nbsp;(42) "Maturity
 Date" means September 20, 2031.

&nbsp;&nbsp;&nbsp;&nbsp;(43) "Interest
 Calculation Period" means the period from the Execution Date to the first interest
 payment date for the first installment, and each period from the last interest payment date
 to the next interest payment date for the second and subsequent installments.

&nbsp;&nbsp;&nbsp;&nbsp;(44) "Interest
 Payment Date" means the date of interest payment, each of which is set forth in the
 'Interest Payment Date' column in the Repayment Schedule attached hereto as Appendix
 2 hereto.

**Article 2. (Rights and Obligations of Lenders)**

&nbsp;&nbsp;&nbsp;&nbsp;1. Except
 as otherwise provided herein, the Lender may exercise its rights under this Agreement individually
 and independently.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Lender shall assume the obligation to lend.

&nbsp;&nbsp;&nbsp;&nbsp;3. Except
 as otherwise provided herein, the obligations of the Lender under this Agreement shall be
 individual and independent, and the Lender shall not be released from its obligations under
 this Agreement by reason of any failure of any other Lender to perform any such obligations,
 nor shall the Lender be liable for any failure of any other Lender to perform any of its
 obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. If
 a Lender fails to make an individual loan on the Execution Date in breach of its loan obligations,
 such Lender shall indemnify the Borrower immediately upon demand by the Borrower for all
 damages, losses and expenses incurred by the Borrower as a result of such breach of loan
 obligations. However, the Lender shall reimburse the Borrower for such damages, losses and
 expenses, etc. to the extent of the difference between the interest and other expenses which
 the Borrower would have been required to pay or would have been required to pay for the period
 from the Execution Date (including the same day) to the first Interest Payment Date (not
 including the same day) and the interest and other expenses which the Borrower would have
 been required to pay for the period from the Execution Date (including the same day) to the
 First Interest Payment Date (not including the same day) if an individual loan had been made
 on the Execution Date and a separate loan had been made because no loan by value had been
 made on the Execution Date.

**Article 3. (Use of Funds)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Borrower shall use the money raised by the loan to fund its business (including funds for
 repayment of Preliminary Agreement (A) and Preliminary Agreement (B)).

&nbsp;&nbsp;&nbsp;&nbsp;2. Neither
 the Agent nor the Lender is obligated to supervise or review the actual use of the loan proceeds.

**Article 4. (Prerequisites for Loans)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Lender shall execute an individual loan on the condition that all of the following conditions
 are satisfied as of the Execution Date (However, whether or not notice is given in accordance
 with Article 6, Paragraph 1.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 event of non-eligibility for loans has not occurred and has not continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All
 of the matters stated in the items of Article 17 are true and accurate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 Borrower has not violated any of the provisions of this Agreement and there is no risk of
 such violation occurring on or after the Execution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No
 consultation pursuant to the provisions of Article 31, paragraph 2 has taken place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) All
 or part of the loan agreement pertaining to the loan has not been terminated in accordance
 with the former section of Article 587-2, paragraph 2 of the Civil Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) That
 the Borrower has submitted to the Agent and all Lenders (However, all Lenders will be given
 a copy of the documents received by the Agent from the Borrower.) all of the following documents,
 the contents of which are satisfactory to the Agent and all Lenders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Certificate
 of seal impression of the representative of the Borrower who signs or stamps his/her name
 and seal on this agreement (but issued within 3 months prior to the date of execution of
 this agreement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A
 certified copy of the Borrower's commercial register or a certificate of all historical
 matters or a certificate of all current matters (but issued within 3 months prior to the
 date of execution of this agreement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Issuance
 of a seal or signature in stock prescribed by the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A
 certified copy of the original board of directors' minutes of the Borrower authorizing
 the execution of this Agreement and the borrowing hereunder, or a certificate executed by
 a representative director certifying that all internal procedures necessary to execute this
 Agreement and to borrow hereunder have been completed.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 determination of the satisfaction of the conditions set forth in the preceding paragraph
 shall be made for each Lender, and the other Lenders and the Agent shall bear no responsibility
 for the determination of the selected Lender or the non-execution of the Loan.

**Article 5. (Disbursement of Loans)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 no notice is given in accordance with Article 6.1 and all conditions specified in each item
 of Article 4.1 are satisfied on the Execution Date, the Lender shall complete the procedures
 for remittance of the Individual Loan Amount to the Syndicate Account by 11:00 a.m. on the
 Execution Date. The individual loan shall be deemed to have been executed with respect to
 such Lender at the time such money is deposited into the syndicate account.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the loan referred to in the preceding paragraph is not fully disbursed, the Borrower shall
 immediately notify the Agent to that effect, and the Agent shall, upon receipt of such notice,
 promptly execute and notify all Lenders to that effect.

**Article 6. (Non-disbursement of Loans)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A
 Lender that decides not to extend an individual loan on the grounds that all or part of the
 conditions specified in Article 4.1 are not satisfied may notify the Agent (hereinafter referred
 to as "Non-Performing Lender"), the Borrower, and all other Lenders of its decision
 not to extend the individual loan, with reasons attached, by 9:00 a.m. on the business day
 preceding the date of extension. However, if an individual loan is not executed despite the
 fulfillment of all the conditions of Article 4.1, the Non-Performing Lender may not be exempted
 from liability for breach of loan obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the Non-Performing Lender fails to make an individual loan, the Borrower shall pay liquidation
 money to the Non-Performing Lender. Provided, however, that this shall not apply to cases
 where the non-execution of the Individual Loan constitutes a violation of the lending standards
 of the Non-Performing Lender.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 the Borrower terminates the Loan Agreement under the former section of Article 587, paragraph
 (2) of the Civil Code prior to the disbursement of the Individual Loan, the Borrower shall
 notify the Lender and the Agent of the Loan Agreement to be terminated in writing. In this
 case, the Agent shall promptly notify all Lenders in the area of the termination upon receipt
 of the notification. If the Borrower terminates the Loan Agreement, the Borrower shall pay
 liquidation money to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;4. In
 the case of the preceding two paragraphs, such Lender shall notify the Agent of the amount
 of the liquidation proceeds no later than two business days after the commencement date of
 the liquidation calculation. The Agent shall promptly notify the Borrower thereof upon receipt
 of such notice. The Borrower shall pay the relevant liquidation money immediately upon receipt
 of notice thereof from the Agent in accordance with the provisions of Article 14.

**Article 7. (Lender's Disclaimer)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Agent shall notify the Borrower and all Lenders in writing of the occurrence of any event
 of loan disability.

&nbsp;&nbsp;&nbsp;&nbsp;2. If,
 after the notice under the preceding paragraph has been given, a majority of the Lenders
 (Agents when it is difficult to collect the decision by a majority Lenders) determine that
 the relevant event of loan disability has been resolved, the Agent shall immediately notify
 the Borrower and all Lenders that the relevant event of loan disability has been resolved.

&nbsp;&nbsp;&nbsp;&nbsp;3. All
 Lenders are released from their lending obligations during the Non-disbursement period.

**Article 8. (Repayment of Principal)**

The Borrower shall pay to each Lender on each Principal Repayment Date the principal of the separate loan in accordance with the repayment schedule set forth in Schedule 2 attached hereto.

**Article 9. (Interest Payment)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Borrower shall pay to each Lender, on each Interest Payment Date, interest calculated by
 multiplying the principal amount of the Individual Loan for each Interest Calculation Period
 by the Applicable Interest Rate and the actual number of days in the Interest Calculation
 Period corresponding to the Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 method of calculating the interest set forth in the preceding paragraph shall be one end
 by debit and the other end by pro-rata calculation with one year being 365 days, and the
 gradual calculation shall be made at the end, and any amount less than one yen shall be rounded
 down to the nearest one yen.

&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding
 Paragraph 1, if the interest rate on the loan hereunder exceeds the interest rate specified
 in Article 1 of the Interest Rate Restriction Act, the Borrower shall not be obligated to
 pay for such excess.

**Article 10. (Early Repayment)**

&nbsp;&nbsp;&nbsp;&nbsp;1. No
 early repayment may be made by the Borrower except in accordance with Article 31 or with
 the prior written consent of all Lenders (Excluding, however, Lenders who did not execute
 the loan. The same shall apply hereinafter in this Article.) and the Agent in accordance
 with the procedures in this Article.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 procedure for obtaining approval for early repayment shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 the Borrower wishes to make an early repayment, the Borrower shall notify the Agent at least
 20 business days prior to the desired prepayment date of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Principal
 amount of loans for which early repayment is requested (10% or more of the total loan balance
 or total loan balance in increments of 10%.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) That
 the full amount of accrued interest will be paid on the requested early repayment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Desired
 date of early repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) After
 receiving the notice from the Borrower, the Agent shall notify all Lenders of the contents
 of such notice no later than 19 days before the early repayment ate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) After
 receiving notice from the Agent, the Lender shall notify the Agent of its acceptance or rejection
 of such early repayment at least five (5) business days prior to the desired early repayment
 date. However, if notice of acceptance or rejection by either Lender is not received by the
 Agent by such deadline, such Lender shall be deemed not to have accepted such early repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Upon
 receipt of each Lender's notice of acceptance or rejection, the Agent shall notify
 the Borrower and all Lenders of its acceptance or rejection of such early repayment no later
 than four (4) business days prior to the requested early repayment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) If
 early repayment is accepted by all Lenders in accordance with the preceding procedures, the
 Lender shall notify the Agent of the amount of the liquidation proceeds for such early repayment
 at least two business days prior to the desired date of early repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 Agent shall notify the Borrower of the amount of such liquidation proceeds no later than
 the business day prior to the desired date of early repayment after receipt of notice of
 the amount of such liquidation proceeds from the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 early repayment is accepted in accordance with the procedures in Paragraph 2, the Borrower
 shall pay to the Lender, on the requested early repayment date, the principal of the loan
 to be prepaid, together with accrued interest and liquidated money

&nbsp;&nbsp;&nbsp;&nbsp;4. If
 a portion of the principal is prepaid, the principal amount of such prepayment shall be applied
 to the principal amount due and payable to the Lender on each principal repayment date as
 set forth in the repayment schedule in Appendix 2 hereto, beginning with the principal amount
 that is later due.

**Article 11. (Late Fees)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 the Borrower defaults in the performance of any of its obligations (hereinafter referred
 to as "Obligations for Delayed Performance") hereunder to the Lender or the Agent,
 for the period from the date on which the performance of such defaulted obligation is to
 be performed (including the same day) until the date of fulfillment of all Obligations for
 Delayed Performance (including the same day), a percentage of the amount of the defaulted
 obligation plus 2% per annum of the reasonable financing costs (at an interest rate reasonably
 determined by such debtor.) of the debtor of the defaulted obligation or 14% per annum, whichever
 is higher (However, this is only insofar as it does not violate laws and regulations, etc.),
 shall be paid immediately upon demand by the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 method of calculation of the amount of late payment as set forth in the preceding paragraph
 shall be calculated on a pro-rata basis with both ends and one year being 365 days, division
 being made at the end, and any fraction less than one yen shall be rounded down to the nearest
 whole yen.

**Article 12. (Agent Fees)**

In consideration for the Agent's performance of the Agent Services set forth herein, the Borrower shall pay the Agent Fee as separately agreed upon by the Borrower and the Agent.

**Article 13. (Miscellaneous Expenses and Taxes and Public Dues, etc.)**

&nbsp;&nbsp;&nbsp;&nbsp;1. All
 costs incurred in the preparation of this Agreement and any related documents and any amendments
 or modifications thereof (including attorney's fees), and all costs incurred by the
 Lender and the Agent in securing and performing its rights or performing its obligations
 hereunder (including attorney's fees), shall be borne by the Borrower to the extent
 not contrary to law or otherwise, and shall be paid by the Lender or Agent on behalf of the
 Borrower, the Borrower shall pay the same as soon as the Agent so requests.

&nbsp;&nbsp;&nbsp;&nbsp;2. All
 stamp taxes and other similar taxes and dues incurred in connection with the preparation,
 modification, execution, etc. of this Agreement and documents related hereto shall be borne
 by the Borrower, and if the Lender or the Agent bears the same on behalf of the Borrower,
 the Borrower shall pay the same immediately upon receipt of a demand therefor from the Agent.

**Article 14. (Performance of Borrower's Obligations)**

&nbsp;&nbsp;&nbsp;&nbsp;1. All
 payments by the Borrower of its financial obligations under this Agreement shall be made
 as provided in this Article, unless otherwise provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. In
 the event that the Borrower fulfills its financial obligations under this Agreement, the
 Borrower shall pay the amounts due under this Agreement by the payment deadline, if any,
 and the amounts due under this Agreement, if any, immediately upon request from the Agent,
 by way of deposit into the Syndicate Account, respectively (Obligations may not be satisfied
 by payment in lieu of payment without the prior written consent of the Agent and all Lenders.).

&nbsp;&nbsp;&nbsp;&nbsp;3. Even
 if the Borrower, in violation of Paragraph 2, makes a payment directly to a Lender other
 than the Agent, such payment shall not be deemed performance of any obligation hereunder,
 and the Lender receiving such direct payment shall immediately pay to the Agent the money
 so received.

&nbsp;&nbsp;&nbsp;&nbsp;4. Payment
 by the Borrower of the monetary obligations hereunder shall be deemed to be made at the time
 of debit by the Agent from the Syndicate Account, and the obligations shall be deemed to
 have been performed at the time of debit by the Agent from the Syndicate Account.

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Agent shall debit the Syndicate Account on or before the due date for any payment due, or
 promptly after the date of deposit for any payment not due, and shall not assume any further
 obligation of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;6. If
 the Borrower has made any direct payment to any Lender other than the Agent in violation
 of Section 2. the Agent shall be deemed to have performed its obligations with respect to
 the Proceeds upon receipt of the Proceeds from the Lender from which the Borrower received
 the direct payment.

**Article 15. (Appropriation of Repayment)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 amount deducted by the Agent from the Syndicate Account pursuant to Article 14 shall be applied
 in the following order, unless the Borrower has forfeited the benefit of any loss of profits
 pursuant to Article 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Expenses
 and other costs and expenses that the Agent is required to incur on behalf of the Borrower
 under this Agreement and the Agent's Fees and any late fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Expenses
 and other payments to third parties that the Borrower is required to incur under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Expenses
 and other costs that the Lender incurs on behalf of the Borrower under this agreement and
 any late fees for such expenses and costs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Late
 fees (Excluding the delay damages stipulated in item 1 and the preceding item.) and liquidated
 money

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Interest
 on loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Loan
 principal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If,
 upon the appropriation set forth in the preceding paragraph, the amount appropriated is less
 than the amount of any item, the remaining amount after appropriation to the first item that
 falls short (hereinafter referred to as "Deficiency Item") shall be appropriated
 pro rata in proportion to the proportion of the amount of individual payment obligations
 that have become due and payable with respect to the relevant Deficiency Item, after appropriation
 to the items that have been first in line.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In
 the event that the Borrower loses the benefit of time pursuant to Article 20, notwithstanding
 the preceding paragraph 2, the Agent shall allocate the amount remaining after deducting
 items 1 and 2 of paragraph 1 from the amount debited from the Syndicate Account pro rata
 in proportion to the amount of the Borrower's obligations to the Lender under this
 Agreement (Appropriations by each Lender shall be made in the order and in the manner that
 each Lender deems appropriate.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Borrower shall not deduct taxes, public dues, etc. from the payment of its obligations under
 this Agreement except as required by law or regulation, and if the Borrower must deduct taxes,
 public dues, etc. from the amount payable by the Borrower, the Borrower shall not be required
 to pay taxes, public dues, etc. to receive the amount the Lender would receive if no taxes,
 public dues, etc. were imposed on the Borrower additional amounts as necessary to receive
 the amounts that would be received if the Lender were not subject to the taxes, dues, etc.
 In such case, the Borrower shall send directly to the Lender within thirty (30) days from
 the date of payment a tax declaration issued by the Japanese tax authority or other official
 in charge of the withholding tax.

**Article 16. (Distribution to the Lender)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If,
 after deducting the amounts corresponding to Article 15.1.1 and 15.1.2 from the amount debited
 from the Syndicate Account, there still remains any residual amount, the Agent shall immediately
 distribute such residual amount to the Lenders in accordance with the provisions of this
 Article. However, if such money has been paid in accordance with Article 31, notwithstanding
 the provisions of this Article, the Agent shall distribute such money to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;2. Upon
 the Agent's request and if such request is based on reasonable grounds, the Lender
 receiving such request shall immediately notify the Agent of the amount of the monetary claim
 (including breakdown) that such Lender has against the Borrower under this Agreement. In
 such case, the obligation to make the distribution provided for in paragraph 1 shall accrue
 to the Agent at the time all such notices reach the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 any payment by the Borrower under this Agreement is delayed beyond the time for payment,
 the Agent shall not be obligated to make the distribution provided for in Paragraph 1 on
 the same day and shall make such distribution promptly after receiving payment from the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;4. If
 the Agent also serves as a Lender, the method of calculating the distribution amount under
 this Article shall be as follows, except for the calculation of the relevant distribution
 amount, in which case the Agent shall use any method it deems appropriate to treat fractions
 of less than one yen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Distributions
 to Lenders other than Agents shall be rounded down to the nearest yen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 amount of the distribution to a Lender who is also an Agent shall be the total amount of
 the distribution to all Lenders minus the total amount of the distribution to Lenders who
 are not Agents.

&nbsp;&nbsp;&nbsp;&nbsp;5. If
 any payment by the Borrower under this Agreement proves to be later than payment time limit,
 the Borrower shall compensate the Lender or the Agent for any damages, losses and expenses
 incurred by the Lender or the Agent due to such delay.

&nbsp;&nbsp;&nbsp;&nbsp;6. If
 notice under Article 18.3 is received by the Agent prior to the completion of the distribution
 of the money to be debited from the Syndicate Account by the Agent, the Agent may withhold
 distribution (or by any other method deemed reasonable by the Agent) under this Article with
 respect only to the Loan Receivables to which such notice relates.

**Article 17. (Representations and Warranties to Borrower)**

Borrower represents and warrants to Lender and Agent that, as of the date of execution and

execution of this Agreement, the statements set forth in the following items are true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Borrower is a corporation duly organized and validly existing under the laws of Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 execution and performance by the Borrower of the Agreement and the transactions contemplated
 thereunder are acts within the scope of the Borrower's corporate purposes, and the
 Borrower has completed all procedures required by law or otherwise, the Articles of Incorporation
 and other internal regulations with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 execution and performance by the Borrower of this Agreement and the transactions contemplated
 hereby and thereunder shall not (a) be contrary to any Laws or regulations binding upon the
 Borrower, (b) be contrary to the Borrower's Articles of Incorporation or other internal
 rules and regulations, or (c) be contrary to any agreement to which the Borrower is a party
 or with any third party binding upon the Borrower or its property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 person signing or affixing his/her name to this Agreement is authorized to sign or affix
 his/her name to this Agreement on behalf of the Borrower in accordance with the procedures
 required by law, etc. or by the Articles of Incorporation or other internal regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) This
 Agreement shall be legally and validly binding upon the Borrower and enforceable in accordance
 with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 financial statements, etc. or reports, etc. prepared by the Borrower have been accurately
 and legally prepared in accordance with accounting principles generally accepted in Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) No
 material changes have occurred since the end of the fiscal year immediately preceding the
 fiscal year in which the date of this Agreement falls that could diminish the Borrower's
 business, property or financial condition as shown by the audited financial statements for
 such immediately preceding fiscal year or materially affect the Borrower's performance
 of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) No
 litigation, arbitration, administrative proceeding, or other dispute has been commenced or
 is threatened with respect to Borrower that would or might have a material adverse effect
 on Borrower's performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) No
 event of forfeiture of the benefit of time has occurred or is likely to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The
 Borrower does not fall under the category of anti-social forces.

**Article 18. (Borrower's Assurances)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Borrower agrees to pay the following at its own expense from the time of the conclusion of
 this Agreement until the Borrower completes the performance of all its obligations to the
 Lender and the Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Immediately
 notify the Agent and all Lenders of the occurrence or threatened occurrence of a forfeiture
 of the benefit of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provide
 copies of financial statements, etc. or reports, etc. to the Agent and all Lenders in accordance
 with the following categories. Prepare financial statements, etc. or reports, etc. accurately
 and legally in accordance with accounting principles generally accepted in Japan, and obtain
 audits of such financial statements, etc. or reports, etc. as required by law or regulation,
 if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 the Borrower is a company that is required to submit a securities report pursuant to Article
 24, Paragraph 1 of the Financial Instruments and Exchange Act, submit a copy of the report,
 etc. to the head of the competent financial bureau as soon as the report, etc. is submitted.
 However, if the Borrower discloses the Report, etc. through the electronic disclosure procedures
 provided for in Chapter 2-4 of the Financial Instruments and Exchange Law, a copy of such
 Report, etc. shall be deemed to have been submitted to the Agent and all Lenders at the time
 of such disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Borrower is a company other than a company that is required to submit securities reports
 pursuant to Article 24, Paragraph 1 of the Financial Instruments and Exchange Act, a copy
 of such financial statements, etc. shall be submitted promptly after the financial statements,
 etc. are approved through appropriate internal procedures by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Immediately
 upon request of the Agent or any Lender through the Agent, report to the Agent and all Lenders
 the property, management or business affairs of the Borrower and its subsidiaries and affiliates
 and provide the Agent and all Lenders with the necessary facilities to make such investigations
 concerning them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Immediately
 report to the Agent and to all Borrowers if any of the following applies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 significant change in the management or business conditions of the Borrower and its subsidiaries
 and affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 litigation, arbitration, administrative proceeding, or other dispute is commenced with respect
 to the Borrower that materially affects or has the potential to materially affect the Borrower's
 performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 there is a risk that any of the matters described in (a) or (b) of this item may occur due
 to the passage of time or for any other reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) If
 any one of the items listed in Article 17 is found to be untrue, it shall be immediately
 reported to the Agent and all Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Inform
 Agent and all Borrowers in writing in advance of any of the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrower and its subsidiaries and affiliates undergo a reorganization as defined in Article
 2, Item 26 of the Companies Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower and its subsidiaries and affiliates amend their articles of incorporation to newly
 establish or not establish any of the institutions specified in Article 326(2) of the Companies
 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) If
 any damage, loss or other material event occurs or is likely to occur with respect to the
 Property that may damage the value of the Property, immediately report the details thereof
 to the Agent and all Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Borrower affirms that from the date of execution of this Agreement and until the Borrower
 has completed the performance of all of its obligations hereunder to the Lenders and the
 Agent, the Borrower will comply with each of the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Maintain
 the necessary permits, etc., to operate the principal business and continue the business
 in compliance with all laws and regulations, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No
 change in the main business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Except
 as otherwise required by law or regulation, the payment of any and all obligations under
 this Agreement shall not be subordinated to the payment of any other unsecured obligations
 and shall be treated at least in the same order of priority (Including secured loans for
 which there is still a shortfall in collections even after the collateral is realized or
 disposed of).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Without
 the consent of the Agent and all Lenders, none of the following will be done which will or
 may materially affect the Borrower's performance of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Merger

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Company
 split

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Share
 exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Share
 transfer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Transfer
 of business or assets, in whole or in part, to a third party (Includes transfers for sale
 and leaseback)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Acquisition
 of all or part of the material business or assets of a third party

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Other
 acts similar to the above

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Not
 be an antisocial force and not engage in antisocial acts by themselves or through the use
 of third parties.

&nbsp;&nbsp;&nbsp;&nbsp;3. Upon
 service of an order of provisional attachment, provisional total attachment, or garnishment
 with respect to a loan claim, the Borrower shall immediately notify all Lenders in writing
 through the Agent of such order, together with a copy of such order.

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Borrower shall complete performance of all obligations relating to the loan under the Preliminary
 Agreement (A) by September 30, 2021 (including the same day).

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Borrower shall complete performance of all obligations relating to the loan under the Preliminary
 Agreement (B) by September 30, 2021 (including the same day).

**Article 19. (Financial Restrictions)**

The Borrower affirms that from the date of execution of this Agreement and until the Borrower has completed the performance of all of its obligations hereunder to the Lenders and the Agent, the Borrower will comply with each of the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Maintain
 the amount of net assets in the non-consolidated balance sheet as of the end of each fiscal
 year at 75% or more of the amount of net assets in the non-consolidated balance sheet as
 of the end of each fiscal year compared to the same period of the previous year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Ensure
 that ordinary income/loss for the current fiscal year, as shown in the non-consolidated statement
 of income for each fiscal year, does not result in losses for two consecutive fiscal years.

**Article 20. (Event of Loss of Term Benefit)**

&nbsp;&nbsp;&nbsp;&nbsp;1. In
 the event of the occurrence of any one of the following events with respect to the Borrower,
 the Borrower shall, without notice or demand from the Lenders or the Agent, immediately lose
 the benefit of time with respect to all of its obligations hereunder to the Lenders and the
 Agent and shall immediately pay the principal of and interest on the loan, liquidated damages
 and other amounts due under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) When
 there is a suspension of payment or a petition for commencement of bankruptcy proceedings,
 civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation,
 or other similar legal liquidation proceedings is filed (including similar allegations outside
 Japan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) When
 a resolution for dissolution is passed or an order for dissolution is received (except in
 the case of dissolution due to merger).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) When
 the business is discontinued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) When
 a transaction is suspended by a clearing house, or when a transaction is suspended by the
 Zengin Electronic Claims Network, Inc. or when an equivalent action is taken by another electronic
 reconstructing and recording institution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) When
 an order or notice of provisional seizure, preservative attachment (including similar procedures
 outside Japan), or seizure has been dispatched to a Lender with respect to a deposit claim
 or other claim held by the Borrower, or when a judicial decision ordering a preservative
 attachment or execution of a seizure has been made.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 any one of the following events occurs with respect to the Borrower, upon notice to the Borrower
 by the Agent at the request of a majority of the Lenders, the Borrower shall forfeit all
 of its obligations under this Agreement to all Lenders and the Agent and shall immediately
 pay the principal of and interest on the Loan, liquidated damages and other amounts due under
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) When
 the Borrower defaults in the performance of all or any part of its financial obligations
 (However, interest shall be limited to the maximum interest rate stipulated in Article 1
 of the Interest Rate Restriction Law.) to the Lender or the Agent, whether or not such obligations
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) When
 any of the items listed in Article 17 is found to be untrue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Except
 for the preceding two items, any breach of the Borrower's obligations under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) When
 an order or notice of seizure, provisional seizure, temporary restraining order, or provisional
 disposition is issued or auction proceedings are commenced with respect to the subject matter
 of the collateral pledged by the Borrower to the Lender (including similar procedures outside
 Japan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) When
 the Borrower loses the benefit of time with respect to the bonds issued by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) When
 the Borrower loses the benefit of time with respect to all or part of the Borrower's
 obligations other than the obligations under this Agreement, or the Borrower is unable to
 perform its guarantee obligations with respect to obligations incurred by a third party,
 even though the obligation to perform has accrued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) When
 a decision is made to suspend or discontinue business, or when a disposition such as suspension
 of business is imposed by a competent government agency, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) When
 a petition for specified mediation (including similar procedures outside Japan) is filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Except
 for the preceding items, when the condition of the Borrower's business or assets has
 deteriorated or is likely to deteriorate and it is deemed necessary for the preservation
 of claims.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 the notice set forth in the preceding paragraph is delayed or not received due to the fault
 of the Borrower, the provisions of the preceding paragraph shall apply as if the Borrower
 had forfeited the benefit of time with respect to all obligations hereunder to all Lenders
 and Agents as of the time when such notice would normally have been received.

&nbsp;&nbsp;&nbsp;&nbsp;4. If
 the Lender becomes aware of the occurrence of any of the events specified in Items 1.1 through
 1.4 or the items of Paragraph 2 with respect to the Borrower, the Lender shall immediately
 notify the Agent, and the Agent shall notify all other Lenders of the occurrence of the relevant
 event.

&nbsp;&nbsp;&nbsp;&nbsp;5. If
 any event specified in Paragraph 1.5 occurs, and the Lender who is the Borrower of the claim
 for such event becomes aware that such event has occurred, such Lender shall immediately
 notify the Borrower, all other Lenders and the Agent of the occurrence of such event.

&nbsp;&nbsp;&nbsp;&nbsp;6. If
 the Borrower loses the benefit of term of an individual loan, the Lender shall notify the
 Agent of the amount of the liquidation money no later than two business days after the commencement
 date of the liquidation money calculation, and the Agent shall promptly notify the Borrower
 thereof upon receipt of such notice. Notwithstanding the provisions of the first sentence
 of this paragraph, the Lender shall notify the Borrower directly of the amount of the liquidation
 money after the commencement of bankruptcy proceedings, civil rehabilitation proceedings,
 corporate reorganization proceedings, special liquidation, or other similar legal liquidation
 money against the Borrower. The Borrower shall pay the relevant liquidation money immediately
 after receiving notice thereof from the Agent (or, in the case provided in the second sentence
 of this paragraph, the relevant Lender) in accordance with the provisions of Article 14.

&nbsp;&nbsp;&nbsp;&nbsp;7. The
 Borrower shall not make any claim against the Lender or the Agent, and the Borrower shall
 be liable for any damages to the Lender or the Agent, even if the application of the provisions
 of Paragraphs 1 and 2 (including, but not limited to, the loss of the benefit of time due
 to the fact that Article 17, Item 10 was found to be untrue and the breach of the obligation
 under Article 18, Paragraph 2, Item 5.) results in any loss or damage to the Borrower.

**Article 21. (Offsetting)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 the Borrower is required to perform any obligation to any Lender or Agent by reason of any
 event of default, default or otherwise, such Lender or Agent shall, notwithstanding Section
 14, (a) the credit to the Borrower under this Agreement may be set off against the deposit
 obligations, insurance policy obligations and other obligations of such Lender or Agent to
 the Borrower in an amount equal to the amount of such credit; and (b) may be refunded, cancelled
 or disposed of on behalf of the Borrower without prior notice and without following the prescribed
 procedures, and the proceeds may be applied to the payment of the obligation.

&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding
 Article 14, the Borrower may set off such claims against its obligations hereunder to the
 Lender or the Agent in an amount equal to the amount of the loan, only if the loan is due
 and payable and it is necessary to preserve claims against the Lender or the Agent for deposit,
 claims under insurance policies, or other claims (limited to those that have become due)
 that the Borrower has against the Lender or the Agent. In such case, the Borrower shall give
 written notice of setoff and shall promptly submit to such Lender or Agent the certificates
 of deposit credits and other credits set off and the passbooks with their registered seals
 affixed.

&nbsp;&nbsp;&nbsp;&nbsp;3. With
 respect to the calculation of interest, liquidated damages, late payment charges, etc. on
 claims and debts in the case of setoff or allocation of payment in accordance with Paragraph
 1, the date of execution of such calculation, and with respect to the calculation of interest,
 liquidated damages, late payment charges, etc. on claims and debts in the case of setoff
 in accordance with Paragraph 2, the date when the notice of such setoff arrives shall be
 considered as the date on which the claims and debts are extinguished, the rate of interest
 and the rate of charge shall be in accordance with the provisions of each agreement, and
 the foreign exchange rate shall be the rate at the time of execution of the calculation as
 reasonably determined by the relevant Lender or Agent. If such setoff or allocation of payments
 is not sufficient to discharge the entire amount of the Borrower's obligation, then
 the first paragraph may be allocated in the order and manner deemed appropriate by the relevant
 Lender or Agent, and the second paragraph may be allocated in the order and manner deemed
 appropriate by the Borrower (However, if the Borrower does not specify the order and method,
 the order and method shall be the order and method deemed appropriate by such Lender or Agent.).

&nbsp;&nbsp;&nbsp;&nbsp;4. In
 the case where the principal of an Individual Loan is extinguished as a result of a setoff
 pursuant to Paragraph 1, if the date for performing the calculation in the case of Paragraph
 1 is a date other than an interest payment date, the Borrower shall pay to the Lender for
 the Individual Loan concerned accrued interest and liquidated damages for the Individual
 Loan extinguished as a result of the setoff at the same time as the setoff.

&nbsp;&nbsp;&nbsp;&nbsp;5. In
 the event of a setoff or payment appropriation pursuant to paragraph 1 or 2, the Lender with
 respect to paragraph 1 and the Borrower with respect to paragraph 2 shall promptly notify
 the Agent of the details of the setoff or payment appropriation. Any damage, loss or expense
 incurred by the Lender or Agent as a result of any delay in giving such notice without reasonable
 cause shall be borne by the Lender who failed to give such notice or the Borrower who failed
 to give such notice.

**Article 22. (Allowable Security Interests, etc.)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 the Borrower is obligated to perform an obligation to a Lender or Agent because of the arrival
 of a due date, forfeiture of the benefit of a due date, or for any other reason, such Lender
 or Agent may enforce the Allowable Security Interests, notwithstanding Article 14 (Including
 execution by way of imputed liquidation or dispositional liquidation or by any other method
 other than a statutory procedure in accordance with the terms of the permitted security interest,
 and including recovery by way of subrogation or payment in lieu thereof.).

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the Borrower is required to perform any obligation to any Lender or Agent by reason of the
 arrival of the due date, forfeiture of the benefit of the due date or otherwise, the Borrower
 may, notwithstanding Section 14, upon prior written notice to Agent and all Lenders, sell
 to any Lender or Agent the assets subject to the Allowable Security Interests, with the proceeds
 received as security interest, directly to such Lender or Agent.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 an Allowable Security Interests are enforced pursuant to paragraph 1 or if the assets subject
 to an Allowable Security Interests are voluntarily sold pursuant to paragraph 2, the Lender
 with respect to paragraph 1 or the Borrower with respect to paragraph 2 shall promptly notify
 the Agent of the details thereof. Any damage, loss or expense incurred by the Lender or Agent
 as a result of any delay in giving such notice without reasonable cause shall be borne by
 the Lender who failed to give such notice or the Borrower who failed to give such notice.

**Article 23. (Adjustments Among Lenders)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In
 the event that the Lender has made the deposit obligations pertaining to the Syndicate Account
 an active claim pursuant to Article 21 (1), or in the event that the Borrower has made a
 set-off pursuant to Article 21 (2) (hereinafter, the Lender of the individual loan cancelled
 by set-off shall be referred to as the "Set-off Lender"), the amount of the claim
 of the Lender shall be adjusted by the method of assignment of claims in accordance with
 the determination in each of the following items. Provided, however, that in the event of
 off-set by the Borrower, it shall be limited to the case where any Lender other than the
 Set-off Lender has requested it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Agent shall calculate the amount that would have been paid by a Lender other than the Set-off
 Lender under Article 16 (hereinafter referred to as "assumed distribution"),
 assuming that the amount owed to the Agent on the individual loans extinguished by the setoff
 had been paid to the Agent. Even if a Lender other than the Set-off Lender refuses to sell
 the claim in accordance with the proviso of the next item, the assignment shall be calculated
 as if the relevant assignment had been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Set-off Lender shall purchase from Lenders other than the Set-off Lender, at par value, the
 loan claims in an amount equivalent to the assumed distribution. Provided, however, that
 Lenders other than the Set-off Lenders may refuse to sell the claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In
 the event of an assignment under the preceding item, the Lender that assigned the claim shall,
 at its own expense, give notice to the Borrower promptly after the assignment by deed with
 a definite date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In
 the event that a Lender files a petition for compulsory execution or an auction for the exercise
 of a security interest in certain assets of the Borrower (hereinafter referred to as "compulsory
 execution, etc."), or a Lender demands a dividend with respect to compulsory execution,
 etc. by a third party, etc., and as a result, such Lender receives payment of its claim against
 the Borrower under this Agreement (excluding those related to permitted security interests),
 the Lender shall make adjustments in accordance with the provisions of paragraph 1. However,
 in such cases, an amount equivalent to all costs incurred by the Lender for compulsory execution,
 etc. or for the demand for distribution shall be attributed to the Lender (including attorney's
 fees), and the calculation of the assumed distribution shall assume that the remaining amount
 after deducting such amount from the amount received as a result of compulsory execution,
 etc. had been paid to the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding
 the preceding paragraph, in any of the following cases, no assignment of claims shall be
 made in accordance with the provisions of paragraph 1, and only the relevant Lender may receive
 payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 the Lender executes an Allowable Security Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If,
 as a result of compulsory execution, etc. by a third party with respect to an Allowable Security
 Interests, the Lender receives payment of the claim held by the Lender against the Borrower
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If
 a voluntary sale of the assets subject to the Allowable Security Interests are conducted
 pursuant to Article 22.2 and the proceeds of the sale received are paid directly to the Lender
 as security interest holder in satisfaction of the Borrower's obligations under this
 Agreement.

**Article 24. (Rights and Obligation of Agents)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Agent shall perform the Agent Duties for and on behalf of all the Lenders on behalf of all
 the Lenders and shall exercise the Agent Duties normally required or required by the Agent
 for Agent services.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Borrower hereby authorizes the Agent to debit the Syndicate Account with any monies paid
 by the Borrower hereunder and waives its right to terminate such commitment (the Borrower
 shall not be desirous of issuing a cheque or refund request form for such withdrawal).

&nbsp;&nbsp;&nbsp;&nbsp;3. Agent
 shall have no obligations other than those expressly set forth in the respective provisions
 of this Agreement and shall not be liable for any failure by Lender to perform its obligations
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. Agent
 shall exercise due care of a prudent manager in performing its duties or exercising its rights
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;5. If
 the Agent also serves as a Lender, notwithstanding the Agent's obligations under this
 Agreement, the rights and obligations of a Lender who also serves as such Agent as a Lender
 shall be the same as those of any Lender other than such Lender. The Agent may also enter
 into banking transactions with the Borrower outside of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;6. Agent
 shall not be obligated under this Agreement to disclose to any Lender other than Agent any
 information concerning Borrower obtained in any transaction other than this Agreement, nor
 shall Agent be obligated to distribute to any Lender other than Agent any money received
 from Borrower in any transaction with Borrower other than this Agreement (Information received
 from the Borrower shall be deemed to be information received pursuant to a transaction other
 than this Agreement unless expressly indicated to have been sent pursuant to this Agreement.).

&nbsp;&nbsp;&nbsp;&nbsp;7. Upon
 receipt by Agent of any notice to be given to the Lender or the Borrower under this Agreement,
 Agent shall promptly communicate the contents of such notice to all persons who are required
 to comply with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. The
 Agent shall make the documents obtained and retained by the Borrower available for inspection
 by the Lender during normal business hours.

&nbsp;&nbsp;&nbsp;&nbsp;9. The
 Agent shall be an Agent of the Lender and shall not be an Agent of the Borrower unless otherwise
 specified.

&nbsp;&nbsp;&nbsp;&nbsp;10. The
 Non-Bank Lender shall at its own responsibility and expense perform any and all obligations
 under the Money Lending Business Act of the Non-Bank Lender, and the Agent shall bear no
 responsibility for the performance of such obligations, notwithstanding the Agent's
 duties which the Lender hereby entrusts to the Agent.

**Article 25 (Agent's Indemnity)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Agent may act in reliance upon any communication, document or paper signed or stamped and
 delivered by an appropriate person and believed to be true and correct and may act in reliance
 upon any written opinion or statement of an expert appointed by the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;2. Neither
 the Agent nor any director, employee or Agent of the Agent shall be liable to any Lender
 for any act or omission under or in connection with this Agreement, except in the absence
 of willful or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;3. Lenders
 other than the Agent shall indemnify the Agent jointly and severally with each other for
 the balance of any obligation, damage, loss or expense (Including costs incurred for measures
 not to incur loss or damage, and costs necessary to recover damage or loss (including attorney's
 fees).) used by the Agent to fulfill its obligations under this Agreement, less any amounts
 reimbursed by the Borrower. However, from the amount of compensation, the portion of the
 burden corresponding to the percentage of participation of the Lender that is an Agent shall
 be deducted.

&nbsp;&nbsp;&nbsp;&nbsp;4. Agent
 shall, upon the written direction of a Majority Lender or all Lenders, act in accordance
 with such direction so long as such action does not violate any express provision of this
 Agreement and is lawful, and in such case shall not be liable to any Borrower or Lender for
 any consequences resulting from such action.

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Agent shall be deemed to have had no knowledge of the existence of the relevant event unless
 it has received notice from the Borrower or Lender that a loss of time benefit event exists.

&nbsp;&nbsp;&nbsp;&nbsp;6. Agent
 makes no warranty as to the validity of this Agreement or the matters represented hereunder,
 and Lender shall enter into this Agreement and enter into the transactions contemplated by
 this Agreement at its sole discretion after examining the creditworthiness of Borrower and
 other necessary matters based on documents and information it deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;7. In
 the event of an assignment of status under Article 28 or an assignment of a loan claim or
 any other claim under this Agreement under Article 29, the Agent shall treat the previous
 Lender as the effective Lender or creditor until it notifies the Borrower, assignee, and
 transferee that the administrative procedures for a change of Lender or creditor upon the
 assignment of status under Article 28 or the assignment of a claim under Article 29 are completed.
 Any damage, loss or expense (including, but not limited to, distributions pursuant to Article
 16 or other acts of the Agent) incurred by the transferee or any other third party as a result
 of such handling shall be handled by the Borrower and the transferee at their own cost and
 responsibility, and the Agent shall not bear any responsibility for such.

&nbsp;&nbsp;&nbsp;&nbsp;8. In
 the event that an order of provisional attachment, preservative attachment, or seizure of
 a loan claim is served on the Borrower or in any other case, if any damage, loss or expense
 is caused to any Lender, Borrower, assignee, provisional attachment right holder, provisional
 attachment right holder, foreclosure right holder or other third party as a result of the
 Agent's delay in giving notice under Article 16.2 or Article 18.3, the Agent shall
 not bear any liability for such damage, loss or expense (Including, but not limited to, distributions
 pursuant to Article 16 or other acts of the Agent.) and the Lender or Borrower who failed
 to give such notice shall bear such liability at its own expense and responsibility.

**Article 26 (Resignation and Dismissal of Agents)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 procedures for the resignation of an Agent shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Agent who wishes to resign shall notify all Lenders and Borrowers in writing of its intention
 to resign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 a notice of intended resignation is given, the majority Lender shall appoint a successor
 Agent, subject to the consent of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If,
 within thirty (30) days of the date of the notice of intended resignation, the person appointed
 in accordance with the preceding paragraph does not accept the appointment (Including cases
 where a replacement Agent is not appointed.), the Agent may, with the consent of the Borrower,
 appoint a successor Agent in place of the majority Lender.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 procedures for the dismissal of an Agent shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A
 majority Lender may dismiss an Agent by giving written notice to all other Lenders, Borrowers
 and Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 notice is given to dismiss an Agent, the majority Lender shall appoint a successor Agent,
 subject to the consent of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 the person appointed as the successor Agent accepts the appointment, the predecessor Agent
 shall deliver to the successor Agent all documents in his/her custody as Agent under this
 Agreement and shall cooperate with the successor Agent in any and all ways necessary for
 the successor Agent to fulfill its responsibilities as an Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. Upon
 assuming office, the successor Agent shall succeed from the predecessor Agent on an indemnity
 basis to his/her status as Agent and all rights and obligations under this Agreement. However,
 each provision of this Agreement shall continue in effect against the predecessor Agent with
 respect to any action taken by the predecessor Agent during his/her service (including inactions).

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Agent shall have the rights and assume the obligations of an Agent, with or without notice
 of a desire to resign, until the person appointed as successor Agent accepts the appointment.

&nbsp;&nbsp;&nbsp;&nbsp;6. Notwithstanding
 the provisions of the preceding five (5) paragraphs, the Agent may resign from the office
 of Agent by agreement with the Borrower if any of the following items is applicable to the
 Agent. In the event of the resignation of the Agent as provided in this paragraph, the resigned
 Agent shall promptly notify the Borrower thereof, and the Borrower shall not object to such
 resignation. In such event, this Agreement may be amended by the written consent of the Majority
 Lenders and the Agent (or the Majority Lenders, if already appointed by the Agent), and any
 person who has amended this Agreement in accordance with the provisions of this paragraph
 shall notify the other parties to this Agreement in writing of such amendment without delay,
 to the extent reasonably necessary to enable each of the Lenders to exercise its rights individually.
 The resignation of the Agent in accordance with the provisions of this paragraph shall not
 relieve the Borrower of its obligation to pay the Agent's Fee already incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) When
 a petition for commencement of bankruptcy proceedings, commencement of rehabilitation proceedings,
 commencement of reorganization proceedings, commencement of special liquidation or other
 similar legal liquidation proceedings is filed against the Borrower (including similar claims
 outside of Japan.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 the Borrower fails to pay the Agent fee and does not pay it within a reasonable period of
 time after having been notified of such failure.

**Article 27. (Rallying of Lenders' Intentions)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 the Agent determines on its own that an event has occurred that requires decision-making
 by all or a majority of the Lenders, the Agent may decide by notifying all Lenders of the
 Lender's intention to decide in accordance with the following procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Agent will notify all Lenders of the Lender's decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Upon
 receipt of the Agent's notification, the Lender makes its own decision on the event
 requiring decision-making and notifies the Agent of such decision by the deadline specified
 by the Agent (In principle, within 10 business days). In addition, upon receipt of notice
 from the Agent, the Lender will not unreasonably withhold or delay a response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) When
 a Lender's decision is made in accordance with the preceding two items, the Agent shall
 notify the Borrower and all Lenders of such decision promptly after the decision is made.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the Lender determines that an event has occurred that requires decision-making by all or
 a majority of the Lenders set forth herein, the Lender may request that the Agent make the
 Lender's decision by notifying the Agent that the Lender's decision is requested.

&nbsp;&nbsp;&nbsp;&nbsp;3. If
 the Agent receives a request for the Lender's declaration of intent, the Agent must
 follow the procedures in paragraph 1.

**Article 28. (Assignment of Status)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Borrower may not assign its position or rights and obligations under this Agreement to any
 third party without the prior written consent of all Lenders and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;2. Until
 the execution of an individual loan, a Lender may assign its status as a Lender and all or
 part of its rights and obligations in connection therewith by such Lender and the assignee
 of the status of Lender from such Lender immediately notifying the Agent of the fact of such
 assignment of status, only if all of the conditions set forth in the following items are
 met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 assignee of the Lender's status as a Lender shall succeed to the Lender's status
 as a Lender and all of its rights and obligations under the Agreement (In the case of a partial
 transfer, both the assignor and the assignee shall be subject to the respective provisions
 of this Agreement as Lenders under this Agreement.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Each
 provision of this Agreement shall apply to the assignee of the Lender's position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 assignee of the Lender status must be a corporation residing in Japan (Corporation having
 its head office, branch office or business office registered in Japan under Japanese law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 assignee of the Lender status must be a financial institution or a special purpose company
 established for liquidation (securitization) of assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) In
 cases where a part of the Lender's status is assigned, the amount of individual loans
 made by the assignor and the assignee after the assignment must both be 100 million yen or
 more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 assignment of the Lender's status as a Lender shall not result in the accrual of withholding
 taxes or any other increase in the amount of interest paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The
 Borrower and the Agent shall agree in writing (However, neither the Borrower nor the Agent
 may refuse such consent without reasonable cause.).

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 assignor and assignee of the Lender status shall jointly and severally bear the costs associated
 with the assignment of the Lender status, and shall pay to the Agent 500,000 yen (Consumption
 tax not included) per assignment of status as compensation for the administrative procedures,
 etc. related to such assignment by the date of execution of such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;4. If
 the Agent receives notice of an assignment of Lender status, the Agent shall, immediately
 upon receipt of such notice, take all necessary administrative steps to treat the assignee
 of such assignment as a Lender.

**Article 29. (Assignment of Loan Receivables)**

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Lender may assign the Loan Receivables and other receivables under this Agreement only if
 all of the conditions set forth in the following items are satisfied, provided that the assignor
 and assignee of the receivables immediately notify the Agent of the fact of such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) That
 each relevant provision of this Agreement shall apply to the claim assigned by the assignee
 of the claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 assignee of the claim must be a corporation residing in Japan (A corporation having its head
 office, branch office or business office registered in Japan under Japanese law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 assignee of the claim must be a financial institution or a special purpose company established
 for liquidation (securitization) of assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) When
 a portion of a loan receivable is assigned, the amount of the transferred loan receivable
 held by both the assignor and the assignee after the assignment must be 100 million yen or
 more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The
 amount of withholding or other interest expense shall not increase as a result of the assignment
 of receivables.

&nbsp;&nbsp;&nbsp;&nbsp;2. On
 the effective date of the assignment, the assignor and the obligor of the claim shall satisfy
 the third party and obligor perfection requirements for the claim, and the Borrower shall
 cooperate with the procedures for obtaining such perfection requirements.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 assignor and assignee of a claim shall jointly and severally bear the costs associated with
 the assignment of the claim, and shall pay to the Agent 500,000 yen (Consumption tax not
 included) per assignment of a claim as compensation for the administrative procedures, etc.
 related to such assignment by the execution date of such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;4. Upon
 receipt of a notice of assignment of a loan receivable by the Agent, the Agent shall, immediately
 upon receipt of such notice, take all necessary administrative steps to treat the assignee
 of such assignment as a creditor with respect to such loan receivable.

&nbsp;&nbsp;&nbsp;&nbsp;5. In
 the event of an assignment of a loan receivable or other claim hereunder that does not meet
 the requirements set forth herein (hereinafter referred to as "unauthorized assignment,"
 the assignee in an unauthorized assignment is referred to as the "unauthorized assignor,"
 the assignee is referred to as the "unauthorized assignee," and the claim subject
 to assignment is referred to as the "unauthorized assigned claim"), it shall
 be sufficient for the Borrower, Agent and other Lenders to treat the assignment as set forth
 below and otherwise on the assumption that no unauthorized assignment has been made and that
 the unauthorized assignee remains a creditor on the unauthorized assigned claim, Borrower,
 Agent and the other Lenders shall not be liable for any damages, losses or expenses arising
 therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Agent shall not be required to perform the administrative procedures set forth in Paragraph
 4 if such assignment is an unauthorized assignment, even if the Agent has been notified of
 the fact of such assignment of a loan claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To
 the extent that the unauthorized assignor has the authority to receive payment of the unauthorized
 assigned claims under Article 466, Paragraph 3 of the civil code, payment on the unauthorized
 assigned claims shall be received by the Agent to whom the exercise of such authority is
 delegated by the unauthorized assignor under this Agreement and, except as otherwise provided
 in this Agreement, directly to the unauthorized assignor or Payments shall not be deemed
 to be performance of obligations under this Agreement and the provisions of Article 14, Paragraphs
 3 and 6 shall apply. Distributions by the Agent pursuant to Article 16 regarding repayment
 on unauthorized assignee claims shall be made to the unauthorized assignor. The Lender may
 not waive its right to terminate the delegation of the exercise of authority provided for
 in this item, nor may it assign its right to claim distribution against the Agent. If the
 Borrower receives a demand from the unauthorized assignee for performance of the unauthorized
 assignment claim, the Borrower shall immediately notify the Agent of such fact. However,
 if the Agent determines that the unauthorized assignment may not have the authority to receive
 payment of the unauthorized assigned claim under Article 466.3 of the civil code, the Agent
 may treat the claim other than as provided in this item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 definition of majority Lender applies as if the unauthorized assignee has an unauthorized
 assigned claim, and the unauthorized assignee is bound by the determination made by such
 majority Lender. The unauthorized assignee may also, by agreement of the unauthorized assignor,
 modify this Agreement in accordance with Article 32.3, and the unauthorized assignee shall
 be bound by the terms of such modification of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;6. Notwithstanding
 the provisions of Article 21, Paragraphs 1 and 2, neither the unauthorized assignee nor the
 Borrower may make a setoff or an allocation of payment with respect to the unauthorized assigned
 claim. In addition, the unauthorized assignee may not perform any of the acts stipulated
 in Article 23, Paragraph 2 with respect to the unauthorized assigned claim. The unauthorized
 assignor and the unauthorized assignee shall handle disputes arising out of the unauthorized
 assignment at their own expense and responsibility, and the unauthorized assignee shall indemnify
 the Borrower, Agent and other Lenders for any damages, losses or expenses incurred as a result
 of the unauthorized assignment.

&nbsp;&nbsp;&nbsp;&nbsp;7. Neither
 the Agent nor any other Lender shall lose the benefit provided in the preceding two paragraphs
 if the Borrower consents to an unauthorized assignment, unless it consents to such unauthorized
 assignment itself.

**Article 30. (Collection from Third Parties, etc.)**

&nbsp;&nbsp;&nbsp;&nbsp;1. No
 repayment by any third party other than the Borrower shall be permitted with respect to the
 Borrower's obligations under this Agreement unless approved in advance in writing by
 the Agent and all Lenders (excluding the guarantor of a revolving guarantee (including third-party
 pledge)).

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Borrower shall not, after the date of execution of this Agreement and without the prior written
 consent of the Agent and all Lenders, engage any third party to guarantee the Borrower's
 obligations under this Agreement as a guaranteed obligation (including third-party pledge,
 but excluding revolving guarantees (including third-party pledge.) where the Borrower's
 obligations under the Agreement are part of the guaranteed obligations), nor shall it cause
 any third party to assume the Borrower's obligations under this Agreement. However,
 this excludes the case where the guarantor re-entrusts the guarantee, which will have substantially
 the same terms and conditions as the previous guarantee, to a guarantor that has already
 been executed as of the date of execution of this Agreement and is still in effect after
 the date of execution of this Agreement (not including third-party pledger), for the purpose
 of switching from a comprehensive revolving guarantee to a limited revolving guarantee or
 re-entrusting the guarantee upon expiration of the term of the guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Lender may not enter into a guarantee (including third-party pledge but excluding revolving
 guarantees (including third-party pledge.) where the Borrower's obligations under the
 Agreement are part of the guaranteed obligations) or assumption of debt agreement with a
 third party with respect to the Borrower's obligations under this Agreement, unless
 all of the conditions set forth in the following items are satisfied. However, this excludes
 the case where the guarantor re-entrusts the guarantee, which will have substantially the
 same terms and conditions as the previous guarantee, to a guarantor that has already been
 executed as of the date of execution of this Agreement and is still in effect after the date
 of execution of this Agreement (not including third-party pledger), for the purpose of switching
 from a comprehensive revolving guarantee to a limited revolving guarantee or re-entrusting
 the guarantee upon expiration of the term of the guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In
 exercising a right of indemnity acquired by a third party through the performance of a guarantee
 obligation or a claim under the Agreement that is acquired by subrogation, to assume an obligation
 equivalent to the obligation borne by the performing Lender under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 third party is bound by the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 third party is a corporation residing in Japan (Corporation with head office, branch office
 or business office registered under Japanese law in Japan)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 third party must be a financial institution or a special purpose company established for
 asset liquidation (securitization).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The
 third party is not a subsidiary or affiliate of the Borrower and the Borrower is not a subsidiary
 or affiliate of the third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 amount of loan claims for which the third party acquires subrogation must be 100 million
 yen or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Subrogation
 shall not result in withholding or otherwise increase the amount of interest paid.

&nbsp;&nbsp;&nbsp;&nbsp;4. In
 the event that repayment is received from the relevant third party based on a guarantee agreement
 or debt assumption agreement pursuant to the preceding paragraph, no adjustment shall be
 made among Lenders pursuant to Article 23.

&nbsp;&nbsp;&nbsp;&nbsp;5. Where
 a third party subrogates a loan claim pursuant to the provisions of paragraph (2) or (3),
 the provisions of Article 29 shall apply by deeming such subrogation to be an assignment
 of the loan claim under Article 29.

**Article 31. (Changes in Laws and Regulations, etc.)**

&nbsp;&nbsp;&nbsp;&nbsp;1. If
 the Lender's loan costs related to this Agreement increase significantly as a result
 of the enactment or amendment of any law or regulation, or any change in the interpretation
 or application thereof (excluding any increase attributable to a change in the tax rate on
 the relevant Lender's taxable income), or the establishment or increase of any reserve
 fund, such Lender may, by written notice to the Borrower through the Agent, demand that the
 Borrower either assume the increased loan (Based on the amount reasonably calculated by the
 relevant Lender.) costs or repay its obligations in relation to such Lender and terminate
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. If
 the execution and performance of this Agreement and the transactions contemplated thereunder
 are contrary to any law or regulation binding on any Lender, such Lender shall consult with
 the Borrower and all other Lenders through the Agent to determine how to respond. However,
 neither the Borrower nor any other Lender may refuse without reasonable cause to pay its
 obligations solely with respect to such Lender and to terminate this Agreement.

**Article 32. (General Provisions)**

&nbsp;&nbsp;&nbsp;&nbsp;1. Duty
 of confidentiality

The Borrower does not object to the disclosure of information relating to any of the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Disclose
 to each other, to the extent reasonably necessary, information concerning the Borrower and
 the Borrower's transactions with the Agent and the Lenders obtained by the Agent and
 the Lenders in connection with agreements other than this Agreement, if any, as provided
 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When
 there is a notice of loan default based on Article 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When
 a cause for forfeiture of the benefit of time has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) When
 the Lender's rallying of intentions under Article 27 is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) When
 the Lender's rallying of intentions under Article 27 is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In
 the event of an assignment of status or loan receivables under this Agreement or the execution
 of a guarantee or debt undertaking agreement without the Borrower's entrustment (including
 third-party pledge) with respect to obligations incurred by the Borrower under this Agreement,
 provided that the Lender will cause the other party to assume a confidentiality obligation,
 the Lender will not disclose any information regarding this Agreement to the assignee, guarantor
 or debt undertaker or to any person who is considering the assignment (including persons
 who act as intermediaries in connection with such transactions), guarantee or Disclosure
 of information regarding this agreement to any party considering an assignment, guarantee
 or assumption of debt. Information relating to the Agreement as used herein shall mean information
 relating to the credit of the Borrower obtained in connection with the Agreement, the details
 of the Agreement and information incidental thereto, and the details of the Loan Receivables
 that are the subject of the transaction and information incidental thereto, and shall not
 include information relating to the credit of the Borrower obtained in connection with agreements
 other than the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 Lender discloses information relating to this Agreement to the extent reasonably required
 by applicable laws and regulations, administrative, judicial, or other relevant government
 agencies outside Japan, or by order, guidance, or request of a central bank or self-regulatory
 organization, or to an attorney, judicial scrivener, certified public accountant, auditing
 firm, certified tax accountant, rating agency or other professional who is required to disclose
 such confidential information in the course of his/her duties. In addition, the Lender shall
 disclose information regarding this Agreement to its parent company, subsidiaries, and affiliates
 to the extent necessary and appropriate for internal administrative purposes.

&nbsp;&nbsp;&nbsp;&nbsp;2. Burden
 of risk, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 any document furnished by the Borrower to the Agent or any Lender is lost, destroyed, or
 damaged due to an event, disaster, or other unavoidable circumstances, the Borrower shall,
 after consultation with the Agent, perform its obligations under this Agreement in accordance
 with the books, slips, and other records of the Agent or such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 requested by the Agent or the Lender through the Agent, the Borrower shall promptly prepare
 and submit to such Lender, through the Agent or the Agent, replacement documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In
 the event of any forgery, alteration, or theft of the seal, or any other accidental damage,
 loss, or expense arising therefrom, in connection with any transaction in which the Lender
 or Agent has checked with due care the seals of the Borrower's representative and Agent
 used for transactions under this Agreement and found them to be identical with the seal previously
 reported by the Borrower, and the Lender or Agent has notified the Borrower in advance that
 such seal has been forged, altered, or stolen, the Borrower shall bear any damages, losses,
 or expenses incurred as a result of such forgery, alteration, or theft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 Borrower shall be responsible for any damages, losses, and expenses incurred by the Lender
 or the Agent due to the Borrower's breach of any provision of this Agreement or the
 Lender's failure to indemnify the Agent pursuant to Article 25.3.

&nbsp;&nbsp;&nbsp;&nbsp;3. Agreement
 Modification

This Agreement may not be modified without the written agreement of the Borrower, all Lenders and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;4. Separability
 of Agreement

If any provision of this Agreement is held invalid, illegal or unenforceable, the validity, legality and enforceability of any other provision shall in no way be impaired or affected.

&nbsp;&nbsp;&nbsp;&nbsp;5. Bank
 Transaction Agreements, etc.

No Banking or Financial Transaction Agreements separately furnished by the Borrower to the Lender or separately executed between the Borrower and the Lender shall apply to this Agreement or to any transaction hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;6. Notification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All
 notices under this Agreement shall be in writing, clearly indicating that they are given
 in accordance with this Agreement and shall be addressed to the parties at the contact information
 for the parties listed in Appendix 1 to this Agreement, and shall be given by one of the
 following methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bring-your-own-delivery

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Registered
 mail or courier service

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Facsimile
 communication

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exchange
 mail (Only for notices between Lenders and Agents.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 effective time of the notice set forth in the preceding item shall be the time when the receipt
 of the notice is confirmed in the case of facsimile communication, or the time when the notice
 is actually received in the case of other methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Each
 party to this Agreement may change its contact information by giving notice of the change
 of contact information to the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;7. Changes
 in notified items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Lender and the Borrower shall promptly notify the Agent in writing of any change in their
 trade name, representative, Agent, signature, seal, location, or any other information reported
 to the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 any notice given under this Agreement is delayed or not received due to failure to file the
 notification in the preceding item, it shall be deemed to have been received at the time
 when it should normally have been received.

&nbsp;&nbsp;&nbsp;&nbsp;8. Holiday
 procedures

If the due date for payment or any other payment due under this Agreement falls on a non-business day, such payment shall be due on the next business day, or if such next business day falls in the next calendar month, the business day preceding such due date.

&nbsp;&nbsp;&nbsp;&nbsp;9. Calculation

Unless otherwise expressly stipulated, calculations in this Agreement shall be made on a pro-rata basis, with both ends and one year being 365 days, and division shall be made at the end and rounded down to the nearest yen.

&nbsp;&nbsp;&nbsp;&nbsp;10. Funds
 settlement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In
 principle, funds settlement between the Agent and the Lender shall be conducted through the
 "National Bank Data Communication System (Zengin System)", and if the Lender
 wishes to use the "Bank of Japan Financial Network System (Nichigin System)",
 the Lender concerned shall consult with the Agent in advance. However, if the Lender is not
 a member of the Zengin System, funds shall be settled at a bank account in the Lender's
 name at a Zengin System-affiliated bank designated by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fees
 for the settlement of funds under the preceding item shall be borne by the person remitting
 the funds.

&nbsp;&nbsp;&nbsp;&nbsp;11. Creation
 of notarized documents

Upon request of the Agent or the Majority Lenders, the Borrower shall commission a notary public to take the necessary steps to acknowledge the obligations of this Indenture and to prepare a notarial deed with the language of approval of compulsory execution for the obligations under this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;12. Duration
 of rights

The failure of the Agent and the Lenders to exercise or delay in exercising any or all of the rights provided for herein shall not be construed as a waiver by the Agent or the Lenders of any such right or as a waiver or lessening of any obligation of the Borrower, and the Agent's and the Lenders' shall in no way affect the rights of the Agent and the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;13. Governing
 law

This Agreement shall be governed by and construed in accordance with the laws of Japan.

&nbsp;&nbsp;&nbsp;&nbsp;14. Concurrent
 jurisdiction

The Tokyo District Court and the Yokohama District Court shall have non-exclusive jurisdiction over any disputes arising in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;15. Agenda
 items for discussion

If any question arises between the parties with respect to any matter not provided for in this Agreement or the interpretation of this Agreement, the Borrower and the Lender shall confer through the Agent to determine how to respond to such question.

IN WITNESS WHEREOF, one (1) original of this Agreement has been prepared and signed or stamped with the name and seal of the Borrower, Lender and Agent, and shall be kept by the Agent. Borrower and Lender shall receive a certified copy with original custody thereof from Agent.

September 22, 2021

Borrower: 236-0004 1-13-3, Fukuura, Kanazawa-ku, Yokohama-City <br> Koei Shoji Co., Ltd. <br> Representative Director Mamoru Iwamoto

(Loan agreement dated September 22, 2021 for Koei Shoji Co., Ltd.(Term Loan Agreement))

Lender and Agent: 2-2-1, Bingo-machi, Chuo-ku, Osaka-City <br> Resona Bank, Limited <br> Representative Director Tetsu Asai

(Loan agreement dated September 22, 2021 for Koei Shoji Co., Ltd.(Term Loan Agreement))

Lender: 3-1-1, Minatomirai, Nishi-ku, Yokohama-City <br> The Bank of Yokohama, Ltd. <br> Representative Director Yasuyoshi Oya

Appendix 1

Contact information for contracting parties, etc.

1. Borrower

<u>Company Name/Department</u> <u>Address</u> <u>Phone/FAX</u> <br> Koei Shoji Co., Ltd. Accounting Department 〒236-0004 1-13-3, Fukuura, Kanazawa-ku, Yokohama-City, Kanagawa 045-785-1133 045-785-1134

2. Agent

<u>Company Name/Department</u> <u>Address</u> <u>Phone/FAX</u> <br> Resona Bank, Limited Agent Group 〒135-8581 1-5-65, Kiba, Koto-ku, Tokyo Fukagawa Gatharia W2 03-6704-3082 03-5632-5052

3. Lender

---

| | | | |
|:---|:---|:---|:---|
| Company Name/Department | Amount of individual loans made | Address | Phone/FAX |
| Resona Bank, Limited<br> Shin-Yokohama Branch | ¥840 million | 〒222-0033<br> 3-8-12, Shin-Yokohama, Kohoku-ku, Yokohama-City, Kanagawa | 045-475-2562<br> 045-475-1597 |
| The Bank of Yokohama, Ltd.<br> Nakayama Branch | ¥560 million | 〒226-0019<br> 4-31-25, Nakayama, Midori-ku, Yokohama-City, Kanagawa | 045-933-2341<br> 045-934-6628 |
| Total | ¥1.4 billion |  |  |

---

Appendix 2

Principal Repayment Date and Interest Payment Date

The principal repayment date, principal repayment amount, and interest payment date in the event that an individual loan is executed shall be as follows. However, if the principal repayment date or interest payment date described below falls on a non-business day, the next business day shall be the principal repayment date or interest payment date, respectively, but if such next business day falls in the calendar month following the principal repayment date or interest payment date or interest payment date described below, then the business day immediately preceding the principal repayment date or interest payment date, respectively.

Repayment Schedule

---

| | | |
|:---|:---|:---|
| Principal Repayment Date | Interest Payment Date | Principal Repayment Amount |
| December 20, 2021 | (Same as principal repayment date) | Total amount equivalent to 2.5% of the individual loan amount |
| March 20, 2022 |  | same as above |
| June 20, 2022 |  |  |
| September 20, 2022 |  | same as above |
| December 20, 2022 |  | same as above |
| March 20, 2023 |  | same as above |
| June 20, 2023 |  | same as above |
| September 20, 2023 |  | same as above |
| December 20, 2023 |  | same as above |
| March 20, 2024 |  | same as above |
| June 20, 2024 |  | same as above |
| September 20, 2024 |  | same as above |
| December 20, 2024 |  | same as above |
| March 20, 2025 |  | same as above |
| June 20, 2025 |  | same as above |
| September 20, 2025 |  | same as above |
| December 20, 2025 |  | same as above |
| March 20, 2026 |  | same as above |
| June 20, 2026 |  | same as above |
| September 20, 2026 |  | same as above |
| December 20, 2026 |  | same as above |
| March 20, 2027 |  | same as above |
| June 20, 2027 |  | same as above |
| September 20, 2027 |  | same as above |
| December 20, 2027 |  | same as above |
| March 20, 2028 |  | same as above |
| June 20, 2028 |  | same as above |
| September 20, 2028 |  | same as above |
| December 20, 2028 |  | same as above |
| March 20, 2029 |  | same as above |
| June 20, 2029 |  | same as above |
| September 20, 2029 |  | same as above |
| December 20, 2029 |  | same as above |
| March 20, 2030 |  | same as above |
| June 20, 2030 |  | same as above |
| September 20, 2030 |  | same as above |
| December 20, 2030 |  | same as above |
| March 20, 2031 |  | same as above |
| June 20, 2031 |  | same as above |
| &nbsp;&nbsp;&nbsp;Maturity Date |  | Remaining gross loans outstanding |

---

Appendix 3

List of Properties

(Lot)

Location: 1, Fukuura, Kanazawa-ku, Yokohama-City, Kanagawa

Lot number: 13-3

Lot Name: Residential land

Lot size: 9,900.00 ㎡

(Building)

Location: 1, Fukuura, Kanazawa-ku, Yokohama-City, Kanagawa

House No.: 13-3

Type: Factories & Offices

Structure: Steel-framed, alloy-plated steel sheet roofing, 2 stories

Floor area: 1<sup>st</sup> floor 2924.00㎡ <br> 2<sup>nd</sup> floor 2924.00㎡

## Exhibit 21.1

**Exhibit 21.1**

**List of Subsidiaries of**

**Koei Group Co., Ltd.**

---

| | |
|:---|:---|
| Entity Name | Place of Organization |
| KOEI JAPAN CO., LTD.\* | Japan |
| Koei US, Inc. \*\* | Texas |
| EPJ CO., LTD.\* | Japan |
| KOEISING PTE. LTD \*\*\* | Singapore |
| Hidaka Koei (Thailand) Co., Ltd. \*\*\*\* | Thailand |

---

\* 100% owned subsidiary of Koei Group Co., Ltd.

\*\*51% owned subsidiary of Koei Group Co., Ltd.

\*\*\* 100% owned subsidiary of KOEI JAPAN CO., LTD.

\*\*\*\*49% owned subsidiary of KOEI JAPAN CO., LTD.

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the inclusion in this Registration Statement on Form F-1 of our report dated June 29, 2026 with respect to the audited consolidated financial statements of Koei Group Co., Ltd. for the years ended February 28, 2026 and February 28, 2025.

We also consent to the references to us under the heading "Experts" in such Registration Statement.

---

| |
|:---|
| */s/ MaloneBailey, LLP* |
| www.malonebailey.com |
| Tokyo, Japan |
| June 29, 2026 |

---

## Exhibit 99.1

**Exhibit 99.1**

**Consent to be Named as a Director Nominee**

In connection with the filing by Koei Group Co., Ltd. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of Koei Group Co., Ltd. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

---

| | | |
|:---|:---|:---|
| Dated: June 29, 2026 | Full Name: | Ferdinand Groenewald |
|  | Signature: | */s/ Ferdinand Groenewald* |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Koei Group Co., Ltd.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common shares, no par value, as represented by American Depositary Shares | 457(o) | $19406250.00 | 0.0001381 | $2680.00 |
| Fees to be Paid | 2 | Equity | Representative's Warrant to purchase common shares, as represented by American Depositary Shares | Other |  | 0.0001381 | $0.00 |
| Fees to be Paid | 3 | Equity | Common shares underlying the American Depositary Shares issuable upon exercise of the Representative's Warrant | Other | $1067344.00 | 0.0001381 | $147.40 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $20473594.00  |  | $2827.40  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $2827.40  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Pursuant to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, the common shares registered hereby also include an indeterminate number of additional common shares as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions. Estimated solely for purposes of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act. Includes the offering price of common shares that the underwriters have the option to purchase to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> Pursuant to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, the common shares registered hereby also include an indeterminate number of additional common shares as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions. Estimated solely for purposes of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act. Includes the offering price of common shares that the underwriters have the option to purchase to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price. In accordance with Rule 457(g) under the Securities Act, because the common shares of the registrant underlying the Representative's Warrant is registered hereby, no separate registration fee is required with respect to the Representative's Warrant registered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> Pursuant to Rule 416 under the Securities Act of 1933, as amended, or the Securities Act, the common shares registered hereby also include an indeterminate number of additional common shares as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions. Estimated solely for purposes of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act. Includes the offering price of common shares that the underwriters have the option to purchase to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price. Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act. The Representative's Warrant is exercisable at a per share exercise price equal to 110% of the public offering price. As estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act, the proposed maximum aggregate offering price of the Representative's Warrants is $1,067,344 which is equal to 110% of $970,313 (5% of the proposed maximum aggregate offering price for the common shares of $19,406,250). Pursuant to Rule 416, the registrant is also registering an indeterminate number of additional common shares that are issuable by reason of the anti-dilution provisions of the Representative's Warrants.

---

| |
|:---|
| |
| **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims |
| Fee Offset Sources |
| **Rule 457(p)** |
| Fee Offset Claims |
| Fee Offset Sources |

---