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
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