CoreCivic Lease Agreements and ESG Strategy
Defaults and Remedies
Select Lessor Default Events
Default Event
Failure to Commence
Construction Work
Substantial Completion
Non-Payment
Insurance and
Performance Security
Assignment and Change
in Equity Ownership
Material Nonperformance
or Breach
Description
Failure to commence construction work
within thirty (30) days after the issuance of
the notice to proceed
Failure to achieve the Substantial
Completion by the Long Stop Date
Failure to make payments due and owing
to Lessee
Failure to obtain, provide, and maintain
any insurance bonds, guarantees, letters
of credit, or other performance security as
required under the Lease
Violation of restrictions on transfer of the
Lease, including restrictions on change in
control
The accumulation of a certain number of
Noncompliance Events
Failure to deliver to Lessee a
Remediation Plan within 45 days of
Persistent Lessor Breach receiving notice or a failure to fully comply
Insolvency & Involuntary
Bankruptcy
with the schedule; or specific elements of
and actions required under the approved
Remediation Plan
Insolvency and involuntary bankruptcy of
the Lessor
Cure Period
5 Business Days if Lessor fails to
deliver to Lessee a Remediation Plan
30 days for failure to comply with the
Remediation Plan
5 Business Days if Lessor fails to
deliver to Lessee a Remediation Plan
30 days for failure to comply with the
Remediation Plan
10 Business Days
30 Days
15 Days
30 Days
5 Business Days if Lessor fails to
deliver to Lessee a Remediation Plan
30 days for failure to comply with the
Remediation Plan
60 Days
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Lessee Remedies
Subject to the Lenders' Direct Agreement, in the event on
any Lessor Default that is or becomes a Pre-Payment
Event, Lessee may declare a Pre-Payment Event and
proceed accordingly
Upon the occurrence of a Lessor Default, without waiving or
releasing Lessor from any obligations, Lessee shall be
entitled to demand and enforce any payment or
performance bond, and demand, draw on, and collect any
letter of credit or other payment or performance security
available to Lessee under this Lease with respect to Lessor
Default in question
Lessee may direct Lessor to replace, at Lessor's expense,
the Lead Services Provider in the event of a Persistent
Lessor Breach or Lessor Default, in each case relating to
the performance of the Services
Subject to the Lenders' Direct Agreement, upon the
occurrence of a Lessor Default after the Occupancy Date, or
a Persistent Lessor Breach Lessee may, without waiving or
releasing Lessor from any obligations, pay and perform all
or any portion of Lessor's obligations and the Services that
are the subject of such Lessor Default or Persistent Lessor
Breach and of any other then-existing breaches or failures to
perform
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