CoreCivic Lease Agreements and ESG Strategy
Certification and End of Lease Procedures
Appropriation Certification Process
It shall be considered a Non-Appropriation Event if, by June 30 of any
Fiscal Year the State Legislature fails to appropriate or otherwise
provide lawfully available funds sufficient to permit Lessee to satisfy its
obligations under the Lease to make the full amount of all Lease
Payments reasonably anticipated to be payable in that fiscal year
The Lessee covenants to promptly deliver to the Lessor a written
certification, no later than June 30, that the State Legislature has
appropriated sufficient funds to satisfy their obligations under the
Lease
<
> Upon the occurrence of a Non-Appropriation Event, the Lessee
shall promptly undertake best efforts to cause the State legislature
to make sufficient appropriations
➤ If the Non-Appropriation Event has not been cured and an
Appropriation Certification has not been accepted by the Lessee by
October 1 of the Fiscal Year following the Non-Appropriation Event,
it shall constitute a Pre-Payment Event and Lessee shall commence
the process of vacating the Facility
If the Lessee cures such Non-Appropriation Event by causing the
State Legislature to appropriate sufficient funds and provides an
Appropriation Certification for such Fiscal Year, as well as the
succeeding Fiscal Year by March 30, the vacation process shall
cease
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Transition Plan
No Later than 30 days after the Effective Date the Lessor and
Lessee must meet and confer for the purpose of developing a
transition plan
➤ The plan will detail the orderly transfer of Inmates, Lessee's
vacation of the Facility and surrender of the Premises,
demobilization of any improvement work, and transfer of
maintenance services
➤ The time allowed for Lessee's complete vacation of the
Facility shall begin 90 days prior to the end of the Term and
end at the expiration of the Term in the event of a scheduled
expiration of the term
➤ The time allowed for Lessee's complete vacation of the
Facility under a triggered event will begin on the day of the
occurrence of the event and end within 180 days of such
event
➤ If despite its best efforts, the Lessee is not able to complete
the transition process and vacate the Premises in accordance
with the transition plan, the Lessee may continue to make
month-to-month Lease Payments and continue to occupy the
facility provided such period does not last longer than 90
days following the expiration of the Term or the termination of
the Lessee's leasehold interest
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