Notice regarding Issuance of Stock-Compensation-Type Stock Options (Stock Acquisition Rights)

June 28, 2023

Company name: Internet Initiative Japan Inc.
Company representative: Eijiro Katsu, President and Representative Director
(Stock Code Number: 3774, The Prime Market of the Tokyo Stock Exchange)
Contact: Akihisa Watai, Senior Managing Director and CFO
TEL: [phone]

TOKYO, June 28, 2023 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. (“IIJ”, the “Company”, TSE Prime: 3774) announced that IIJ’s Board of Directors today resolved that stock-compensation-type stock options (Stock Acquisition Rights) be issued to Directors (excluding Part-time and Outside Directors) and Executive Officers of IIJ, in accordance with the provisions of Articles 236 Paragraph 1, Article 238 Paragraph 1 and 2 and Article 240 Paragraph 1 of the Corporation Law of Japan, as follows.

1. The reason for issuing the Stock Acquisition Rights as Stock Options
The purposes of issuing the Stock Acquisition Rights as Stock Options for Directors (excluding Part-time and Outside Directors) and Executive Officers of IIJ are to further promote their motivation and incentives to contribute to the enhancement of the mid- to long-term continuous business performance and corporate value. IIJ introduced this Stock-Compensation-Type Stock Options in June 2011 as a substitution for the retirement benefits plan for them, and has issued stock acquisition rights since then.

2. Details of Issuance of Stock Acquisition Right
(1) Name of the stock acquisition rights
Internet Initiative Japan Inc. Stock Acquisition Rights (13th series)

(2) Maximum number of stock acquisition rights: 27,700
The maximum number as described above is the number of planned allotments. If the maximum number of the stock acquisition rights to be allotted is decreased due to no subscription for some of the rights, etc, then the maximum number of the stock acquisition rights to be issued shall be equal to the maximum number of the stock acquisition right to be allotted.

(3) Class and number of shares to be issued upon exercise of stock acquisition rights
The class of shares to be issued upon exercise of stock acquisition rights shall be common stock of IIJ. The number of shares to be issued upon exercise of each stock acquisition right (hereinafter referred as “Number of Shares Granted”) shall be two (2). However, in case the Company carries out a share split or share consolidation after the date of allotment of the stock acquisition rights (hereinafter referred to as the “Allotment Date”) as defined in (13), the Number of Shares Granted shall be adjusted according to the following formula, with the resulting fractions of less than one (1) share occurring upon such adjustment rounded down.