CoreCivic Lease Agreements and ESG Strategy

Payment Mechanism Total Maximum Annual Lease Payment CPI MALPY = (80% × MALP;) + 20% × MALPyx CPI₁ Variable Definition y MALP Maximum Annual Lease Payment CPly CPI₁ Numbered Lease Year during which a Maximum Annual Lease Payment is determined The first or initial numbered Lease Year during which a Maximum Annual Lease Payment is determined and owing in accordance with the Leases Maximum Annual Lease Payment The CPI as of the anniversary of the Occupancy Date in the Lease Year "y" The initial year CPI Total Maximum Monthly Lease Payment Variable y m MALP = Maximum Annual Lease Payment MALPmMALPyx 12 Definition Numbered Lease Year during which a Maximum Annual Lease Payment is determined Calendar Month during which a Monthly Lease Payment is determined and paid Maximum Annual Lease Payment • . • . . Payment Mechanism • . Beginning on the Occupancy Date and for the remainder of the Term, Lessee shall make Lease Payments to Lessor in accordance with the Lease for each full or partial month Monthly Lease Payments will be calculated according to the Payment Mechanism detailed to the left The Lease Payment will also be subject to deductions following Noncompliance Events, detailed in the next slide The Lessee shall make best efforts to cause the State Legislature to appropriate all amounts sufficient to enable Lessee to pay amounts owed by Lessee to Lessor under the Lease Lessee covenants that it shall perform all actions lawfully within its power to obtain and maintain funds from which to make all payments owed by Lessee to Lessor, and will prioritize payments to the Lessor over all other payments to the extant permissible by law To the fullest extent permitted by law, Lessee will not procure, construct, purchase, acquire, lease, or otherwise utilize any other correctional facility if doing so would result in the effective replacement of the Facility, or a material reduction in, or substantial modification of, Lessee's need to utilize the Facility In addition, ADOC will reimburse the Lessors for certain pass- through expenses such as property taxes 27

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