CoreCivic Lease Agreements and ESG Strategy slide image

CoreCivic Lease Agreements and ESG Strategy

Description Noncompliance Events & Payment Deductions Event Scheduled Maintenance Failure Life Cycle Maintenance Failure Administrative Service Failure Event Description If at the end of the Lease year, Lessor has not performed at least 95% of the Scheduled Maintenance Activity A Life Cycle Maintenance Failure shall occur when the Lessor has not completed a Lifecycle Project in the month it was scheduled to be completed or performed Failure to complete certain administrative tasks and cure the failure within the allotted time frame within the Lease Any Noncompliance Event A Noncompliance Event occurs if Lessee fails to respond to or rectify a Performance Failure, Vandalism, or Other Demand Maintenance Event. The deduction will be assessed upon expiration of the required response time, unless the Lessor has already responded, and until Lessor has responded to such event, upon the expiration of each successive response time periods thereafter Assessed Annually, weekly after first event Monthly, weekly after expiration of the 30-day cure period Daily Classification Emergency Critical Response Time 1 hour 4 hours Deduction $500 $250 Routine 12 hours $200 Performance Failure A Service Failure that constitutes a failure to satisfy a Performance Indicator Emergency Critical 4 hours $750 Deduction $20,000 weekly until 95% of the Scheduled Maintenance Activity is completed $1000 $250-$1000 depending on the Administrative Performance Failure Payment Deductions are limited to protect Debt Service Payments as outlined in Exhibit 8 Section 4.2 The Lessee is entitled to make monthly and annual Payment Deductions for certain Noncompliance Events and Performance Failures detailed in the table to the left. 6 hours $750 Routine 4 days $250 Emergency 4 hours $750 Vandalism Any damage to, or destruction of, the Facility that requires repair and is caused by the intentional, willful, or careless conduct, or negligent act or omission of a Lessee Party, Inmate, or other Lessee Invitee Critical 6 hours $750 2-4 days (Depending on Routine $250 cost estimate) Emergency 8 hours $1000 Other Demand Maintenance Event (Lessee Cost) Critical 12 hours $750 Routine 8 days $250 An Event other than a Performance Failure or Vandalism that requires Demand Maintenance Emergency 4 hours $750 Other Demand Maintenance Event Critical 6 hours $750 (Lessor Cost) Routine 4 days $250 28
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