Management Fee System
NAF will pay asset management fees to the Company in accordance with the asset
management agreement entered into with the Company. The remuneration is as follows(Article 36 of the articles of incorporation).
(1)Management Fee 1
The Company shall pay the amount provided for in the asset management agreement. The
maximum amount thereof shall be equivalent to five percent (5%) of (i) rent, (ii) key money,(iii) common-area charges, (iv) parking lot usage charges, (v) incidental earnings, (vi)facilities charges, (vii) facilities establishment charges, (viii) delinquent charges, (ix) exit
penalty or any other similar earnings caused by the cancellation of a lease agreement, and(x) any other amount of earnings resulting from the lease business, all of which are calculated
at every Settlement Date of the Company, and result from the real estate (here andhereinafter, including the leaseholds and surface rights) that is included in the Investment
Assets of the Company or the real estate backing the Investment Assets, during the fiscal
period in which the relevant Settlement Date falls (excluding the earnings from the sale ofreal estate or any other assets included in the Investment Assets; provided, however, that if
the Investment Assets are Equity Interests in Anonymous Partnerships (tokumei kumiai)
relating to Real Estate or Real Estate-Backed Securities, the maximum amount shall beequivalent to five percent (5%) of the amount of dividends on the relevant Investment Assets
and other similar proceeds, which is calculated at every Settlement Date of the Company.).
Management Fee 1 shall be paid after the settlement of accounts without delay.
(2)Management Fee 2
The Company shall pay the amount provided for in the asset management agreement. Themaximum amount thereof shall be equivalent to five percent (5%) of the Amount Available
for Distribution.
The “Amount Available for Distribution” means pre-tax net income (excluding gain on
negative goodwill) before deducting the Management Fees 1 and 2, which is calculated inaccordance with the generally accepted corporate accounting principles.
Management Fee 2 shall be paid after the settlement of accounts without delay.
(3)Management Fee 3
In the case where the Investment Assets are newly acquired, the Company shall pay theamount provided for in the asset management agreement, up to the amount equivalent tothat obtained by multiplying the acquisition price of the relevant Investment Assets (excluding
the consumption tax and local consumption tax thereon and expenses pertaining to theacquisition) by one percent (1%); provided, however, that, with respect to the acquisition of
the Investment Assets from the Sponsor Related Parties, the Company shall pay the amountprovided for in the asset management agreement, up to the amount equivalent to thatobtained by multiplying the acquisition price of the relevant Investment Assets (excluding theconsumption tax and local consumption tax thereon and expenses pertaining to theacquisition) by zero point five percent (0.5%).
In this Article, the “Sponsor Related Parties” means (i) the Interested Persons, etc., asdefined in the Investment Trust Act, (ii) shareholders of the Asset Management Company
and subsidiaries and affiliated companies of shareholders of the Asset Management
Company on a consolidated basis, and (iii) special purpose companies in which shareholdersof the Asset Management Company and subsidiaries and affiliated companies ofshareholders of the Asset Management Company, on a consolidated basis, hold fifteen
percent (15%) or more of shares, equity investments in anonymous partnerships, or preferredshares (including specific purpose companies under the Asset Securitization Act and stockcompanies, etc.).
Management Fee 3 shall be paid by the end of the month immediately following the monthin which the date of acquisition falls.
(4)Management Fee 4
In the case where the Investment Assets are transferred, the Company shall pay the amountprovided for in the asset management agreement, up to the amount equivalent to thatobtained by multiplying the sale price of the relevant Investment Assets (excluding theconsumption tax and local consumption tax thereon) by one percent (1%); provided, however,
that, with respect to the sale of the Investment Assets to the Sponsor Related Parties, theCompany shall pay the amount provided for in the asset management agreement, up to theamount equivalent to that obtained by multiplying the sale price of the relevant Investment
Assets (excluding the consumption tax and local consumption tax thereon) by zero point five
percent (0.5%).
Management Fee 4 shall be paid by the end of the month immediately following the monthin which the date of the sale falls.
(5)Management Fee 5
In a consolidation-type merger or absorption-type merger with other investment corporation(excluding the absorption-type merger in which the Company is to be an investment

corporation surviving the absorption-type merger), if the Asset Management Company
researches and evaluates assets etc. that such other investment corporation owns andconducts other businesses related thereto and such merger comes into effect, the Company
shall pay the amount provided for in the asset management agreement, up to the amountequivalent to that obtained by multiplying the appraised price of Real Estate and Real EstateBacked Securities at the time of the merger that such other investment corporation owns atsuch time by zero point five percent (0.5%).
Management Fee 5 shall be paid within three months from the effective date of the merger.
Amount of Asset Management Fees Paid
Asset management fees paid by NAF to the Company are as follows.
(JPY thousand)35th Period

36th Period(Ended August 31, 2023)(Ended February 29,2024)

981,137

966,128