||A long-term lease contract is one with an agreement period of 10 years or longer, and where additionally premature termination is disallowed for five years or longer.
||The fixed rent is a monthly fee stipulated in the lease contract for the individual facility.
||GOP is the sum remaining after deducting from the sales of the individual facility its labor costs, general operating costs, and other expenditure arising directly from the operation of the individual facility.
||The variable rent is a figure calculated by multiplying the adjusted GOP of the individual facility (defined in Note 5 below) by the variable rent ratio, which is stipulated as a percentage to the total adjusted GOP and divided by 12 to produce the monthly fee. The figure is calculated over a one-year period known as the adjusted GOP calculation period based on the most recent one-year period. (For the six months from December of each year (hereinafter, the first half-year) this is the one-year period from March of the current year to February of the following year; for the six-month period from June of each year (referred to hereinafter as the second half-year), this is the period from September of the previous year to August of the current year.
||Adjusted GOP is a sum calculated by deducting from the individual facility’s GOP arising during the adjusted GOP calculation period the property-related costs borne by the tenant (including, but not limited to, taxes and public charges, insurance premiums, and land rent; however, the sum corresponding to the secondary rent is not included).
||A sum calculated by multiplying the adjusted GOP, which is based on the period from September of the previous year to August of the current year for the first half-year and the period from March of the previous year to February of the current year for the second half-year, respectively, of the individual facility by the variable rent ratio and divided by 12 to produce the monthly amount paid provisionally each month. However, where the threshold for variable rent application for the adjusted GOP calculation period is equal to or less than a sum corresponding to one year’s fixed rent, the value applied is zero. (Hereinafter this sum is referred to as the provisional variable rent amount.) The monthly amount is paid provisionally each month, and in the last month of the first and second half-years, the difference between the provisional variable rent amount and the actual variable rent amount for the respective half-year is settled.