CoreCivic Lease Agreements and ESG Strategy
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Termination and Pre-Payment Events
Pre-Payment Events
Each of the following constitute Pre-Payment Events (For a full list
of Per-Payment Events see section 18.1 of the Lease
Agreements)
➤ A Lessee Default or Persistent Lessee Default
➤ A Non-Appropriation Event
➤ The issuance of a final, non-appealable order by a court of
competent jurisdiction to the effect that the Lease is void or
unenforceable
➤ A complete or substantial taking of the premises, and if taken
by the State, Lessor has provided Lessee with notice that
Lessor has elected to treat such occurrence as a Pre-Payment
Event
> An Extended Relief Event and Lessor has provided Lessee
notice that Lessor has elected to treat such occurrence as a
Pre-Payment Event
➤ A Lessor Default and Lessee has provided Lessor with notice
that Lessee has elected to treat such occurrence as a Pre-
Payment Event, except in the situation where Substantial
Completion is not achieved by the Long Stop Date. Under such
a scenario, the Collateral Agent is directed to call a Pre-
Payment Event
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Effect of Pre-Payment Events
Upon the occurrence of a Pre-Payment Event, and subject to
Lenders' rights under the Lenders' Direct Agreement, the Parties
have the following rights and obligations
➤ Lessee shall pay to the Lessor an amount to satisfy all
outstanding debt, taking into account cash funds Lessor has on
hand are at least sufficient and subject to appropriation by the
Alabama Legislature
➤ In the event of a Pre-Payment Event prior to the Occupancy
Date, the Parties shall enter into a Ground Lease pursuant to
which the Lessee will assume all obligations to provide the
Services going forward and Lessor shall be relieved of its
service obligations
> In the case of a Non-Appropriation Event either party may
terminate the Lessee's leasehold interest in the premises
➤ In the event the Lessee fails to make payment, the Lessor may
terminate the Lessee's interest in the premises
➤ Lessee may require Lessor to enter into a new agreement with
a replacement Lead Services Provider for performance of the
Maintenance Services
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