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EXHIBIT 10.3
LEASE AGREEMENT
THIS LEASE AGREEMENT ("Lease") dated as of the ______ day of
____________________________________, 1997, by and between CCA PRISON REALTY
TRUST, a Maryland real estate investment trust ("Landlord") and CORRECTIONS
CORPORATION OF AMERICA, a Delaware corporation ("Tenant").
RECITALS
WHEREAS, Tenant (or one of Tenant's affiliates) has concurrently
conveyed to Landlord the property described in Exhibit A hereto, and Landlord
and Tenant desire that Landlord lease such property back to Tenant; and
WHEREAS, Landlord and Tenant have entered into a Master Agreement to
Lease of even date herewith (the "Master Agreement") which sets forth certain
agreements of the parties with respect to the lease of various properties
including the property that is the subject of this Lease;
NOW, THEREFORE, in consideration of the premises and of their
respective agreements and undertakings herein, Landlord and Tenant agree as
follows:
ARTICLE I
PREMISES AND TERM
1.1 Leased Property. Landlord hereby leases to Tenant and Tenant
leases from Landlord the Land located in _______________, described in Exhibit
A hereto, and all Improvements, Fixtures, and Personal Property thereon or
thereto (each as defined in the Master Agreement, and, together with said
Land, the "Leased Property"); such Leased Property collectively known and
described at the date hereof as [Name of Correctional or Detention Facility];
SUBJECT, HOWEVER, to the lien of the mortgage debt described in
Exhibit B hereto, if any, and to all easements, liens, encumbrances,
restrictions, agreements, and other title matters existing as of the date
hereof and listed in Exhibit C hereto (collectively "Permitted Exceptions").
1.2 Term. The initial term (the "Fixed Term") of the Lease shall
be for a fixed term of _______________________ (______) years commencing on
__________________________, 1997 (the "Commencement Date") and expiring on
_______________________, 20____ (the "Expiration Date"). The Term of this
Lease may be renewed on the mutual agreement of Landlord and Tenant as follows:
(i) provided that Tenant gives Landlord notice on or before the date which is
six (6) months prior to the Expiration Date, upon the mutual agreement of
Landlord and Tenant, the Lease shall be renewed for one (1) additional five (5)
year term (the "Extended Term") on the same terms and provisions (other than
with respect to renewal) as the Fixed Term, as set forth in the Lease; (ii)
provided that Tenant gives Landlord notice on or before the date which is six
(6) months prior to the expiration of the Extended Term, upon the mutual
agreement of Landlord and Tenant, the Lease
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shall be renewed for one (1) additional five (5) year term (the "Second
Extended Term") on the same terms and provisions (other than with respect to
renewal) as the Fixed Term, as set forth in the Lease; and (iii) provided that
Tenant gives Landlord notice on or before the date which is six (6) months
prior to the expiration of the Second Extended Term, upon the mutual agreement
of Landlord and Tenant, the Lease shall be renewed for one (1) additional five
(5) year term (the "Third Extended Term") on the same terms and provisions
(other than with respect to renewal) as the Fixed Term, as set forth in the
Lease. Tenant's right to so extend the Term of the Lease is conditioned on
Landlord's prior approval of the Extended Term, Second Extended Term, or
Third Extended Term, as the case may be. The term "Term" used in this
Agreement means the Fixed Term, Extended Term, Second Extended Term and Third
Extended Term, as appropriate. The term "Lease Year" means each twelve (12)
month period during the Term commencing on January 1 and ending on December 31,
except the first Lease Year of each Lease shall be the period from the
Commencement Date through the following December 31, and the last Lease Year
shall end on the date of termination of the Lease if a day other than December
31. Landlord may terminate this Lease prior to the expiration of the Term
hereof, at any time following the date which is five (5) years from the date
hereof, upon written notice to Tenant not less than eighteen (18) months prior
to the effective date of such termination.
ARTICLE II
RENT
2.1 Base Rent. Tenant shall pay Landlord Base Rent for the Term
in advance in consecutive monthly installments payable on the first day of each
month during the Term, the Extended Term, Second Extended Term and the Third
Extended Term, commencing on the Commencement Date provided for in Section 1.03
of the Master Agreement, in accordance with the Base Rent Schedule attached
hereto as Exhibit B.
2.2 Additional Rent. The Base Rent shall be subject to such
increases over the Term as determined pursuant to Section 2.02 of the Master
Agreement.
2.3 Other Additional Rent. Tenant shall also pay all Other
Additional Rent with respect to the Leased Property, as set forth in the Master
Agreement.
ARTICLE III
OTHER TERMS AND CONDITIONS
3.1 Master Agreement Incorporated Herein. All provisions of the
Master Agreement (except any provisions expressly therein not to be a part of
an individual lease of leased property) are hereby incorporated in and are a
part of this Lease of the Leased Property.
3.2 Recordation. At the request of Landlord or Tenant, a short
form memorandum of this Lease may be recorded in the real estate records of any
county which Landlord or Tenant deems appropriate in order to provide legal
notice of the existence hereof.
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IN WITNESS WHEREOF, the Landlord and the Tenant have executed this
Lease or caused the same to be executed by their respective duly authorized
officers as of the date first set forth above.
CCA PRISON REALTY TRUST
By:
--------------------------------
Title:
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CORRECTIONS CORPORATION OF AMERICA
By:
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Title:
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EXHIBIT A
[Legal Description of Leased Property]
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EXHIBIT B
Base Rent Schedule
(Property:____________________________________________________________________)
Tenant will pay to Landlord annual Base Rent of______________________
payable in equal monthly instalments beginning on the Commencement Date of:
_________________________
_________________________
_________________________
Base Rent for the Extended Term, Second Extended Term and Third
Extended Term shall be equal to the fair market rental value of the Leased
Property as of the respective commencement dates thereof.
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EXHIBIT C
Mortgage Debt
(Property:__________________________________________________________________)
This property is subject to the following Mortgage Debt: (or
subsequent Mortgage Debt)
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EXHIBIT D
Permitted Exceptions
(Property:__________________________________________________________________)
