Notice Concerning Partial Revision of Performance-Linked Stock Compensation Plan for Directors

At a meeting held today, the Adastria Co., Ltd. ("Adastria" or “Company”) Board of Directors resolved to partially revise the Company’s performance-linked stock compensation plan (“Plan”) for directors (excluding outside directors and non-residents of Japan). The Company adopted the Plan originally in 2016.

As separately disclosed in Notice Concerning Transition to a Company with an Audit and Supervisory Committee, published February 16, 2024, Adastria decided to transition to a company with an Audit and Supervisory Committee, subject to approval at the 74th annual general meeting of shareholders scheduled to be held on May 23, 2024 ("Shareholders' Meeting"). Accordingly, the Company intends to replace the existing compensation framework under the Plan with a proposal related to directors (excluding directors who are members of the Audit and Supervisory Committee and non-residents of Japan) post-transition ("Eligible Directors"), to be submitted at the Shareholders' Meeting.