THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

CentraCore Properties Trust (CPV)

4/4/2006 Proxy Information

Richard R. Wackenhut is considered a non-independent outside trustee because of his previous relationships with The GEO Group and affiliates of The GEO Group with whom we do a substantial amount of our business.

In connection with our organization and the completion of our initial public offering on April 28, 1998, we entered into a series of contractual arrangements with The GEO Group, Inc. Dr. George C. Zoley, who resigned from our Board of Trustees in September 2002, is the Chairman and Chief Executive Officer of The GEO Group. George R. Wackenhut was the former Chairman of The GEO Group, and Richard R. Wackenhut was a member of the Board of Directors of The GEO Group. George R. Wackenhut resigned as Chairman of The GEO Group, and Richard R. Wackenhut resigned as a member of the Board of Directors of The GEO Group in May 2002. In addition, Charles R. Jones, our President and Chief Executive Officer, was previously employed by The GEO Group. Mr. Jones resigned his position with The GEO Group upon completion of our initial public offering in April 1998. Mr. George R. Wackenhut resigned from our Board of Trustees in September 2004.

Initial Facilities

We and The GEO Group entered into a Purchase Agreement dated April 28, 1998 under the terms of which we acquired, directly or as assignee of The GEO Group’s contract rights, eight correctional and detention facilities operated by The GEO Group for an aggregate cash purchase price of approximately $113.0 million.

Right To Purchase

Around the time of our formation, we also entered into a Right to Purchase Agreement with The GEO Group. Under this agreement, we have the right, during the 15 years following our initial public offering, to acquire and lease back to The GEO Group any correctional or detention facilities which The GEO Group acquires or has the right to acquire. These facilities are referred to as the “Future Facilities”. The rights set forth in the agreement are effective so long as there are any leases in force between us and The GEO Group and are subject to time restraints on each specific property and subject to exceptions where the sale or transfer of ownership of a facility is restricted under a facility operating agreement or governmentally assisted financing arrangement.

Under the terms of the Right to Purchase Agreement, we may purchase a particular Future Facility at any time until the earlier of:

(i) (a) in the case of a newly developed Future Facility, four years from the receipt of a certificate of occupancy for the Future Facility or (b) in the case of an already operating Future Facility, four years from the date the Future Facility is acquired by The GEO Group or the party from which The GEO Group has the right to acquire the Future Facility; or

(ii) six months after the Future Facility attains an occupancy level of 75% of the number of beds authorized under the certificate of occupancy for the Future Facility, subject to certain limited exceptions.

The purchase price for each Future Facility will equal 105% (or other lower percentage as may be agreed to by The GEO Group) of the Total Facility Cost of that Future Facility, which may differ from the fair market value of that facility at the time we acquire it. The “Total Facility Cost” equals the aggregate costs related to the acquisition, development, design, construction, equipment and start-up of the respective Future Facility. The GEO Group has agreed that, with respect to goods or services provided by The GEO Group, these costs will not exceed the costs which would be paid if these goods and services had been purchased from a third party in an arm’s length transaction.

Under the terms of any lease between us and The GEO Group relating to a Future Facility, The GEO Group has a thirty-day right of first refusal on the proposed sale by us of any such Future Facility.

Pursuant to our Charter and Bylaws, the Independent Committee, which consists solely of independent trustees from our Board of Trustees, is required to approve the entering into or the consummation of any agreement or transaction with The GEO Group or its affiliates including enforcement and negotiation of the terms of any lease of any of our facilities.

Leases

At the same time we acquired the initial facilities, we leased those facilities to The GEO Group or its affiliate. The facilities are leased to The GEO Group, and The GEO Group will continue to operate the facilities, under the terms of leases for an initial term of 10 years. Subject to specified limited exceptions, the term of each of these leases may be extended by The GEO Group for three additional five-year terms at a fair market rental rate as mutually agreed upon by us and The GEO Group or, in the absence of an agreement, as determined by binding arbitration. In addition, the term of any of these leases will be automatically extended upon expiration of the term on the same terms (including the then applicable base rent and base rent escalation as reflected in the applicable lease) if there is at that time an unexpired sublease with respect to the respective facility. Under the terms of the leases with The GEO Group, The GEO Group has a 30-day right of first refusal on the proposed sale by us of any of the facilities leased to it.

3/31/2005 Proxy Information

In connection with our organization and the completion of our initial public offering on April 28, 1998, we entered into a series of contractual arrangements with The Geo Group, Inc. Dr. George C. Zoley, who resigned from our Board of Trustees in September 2002, is the Chairman and Chief Executive Officer of The Geo Group. George R. Wackenhut was the former Chairman of The Geo Group, and Richard R. Wackenhut was a member of the Board of Directors of The Geo Group. George R. Wackenhut resigned as Chairman of The Geo Group, and Richard R. Wackenhut resigned as a member of the Board of Directors of The Geo Group in May 2002. In addition, Charles R. Jones, the President and Chief Executive Officer of the Trust, was previously employed by The Geo Group. Mr. Jones resigned his position with The Geo Group upon completion of our initial public offering in April 1998. Mr. George R. Wackenhut resigned from our Board of Trustees in September 2004.

Initial Facilities

We and The Geo Group entered into a Purchase Agreement dated April 28, 1998 under the terms of which we acquired, directly or as assignee of The Geo Group’s contract rights, eight correctional and detention facilities operated by The Geo Group for an aggregate cash purchase price of approximately $113.0 million.

Right To Purchase

Around the time of our formation, we also entered into a Right to Purchase Agreement with The Geo Group. Under this agreement, we have the right, during the 15 years following our initial public offering, to acquire and lease back to The Geo Group any correctional or detention facilities which The Geo Group acquires or has the right to acquire. These facilities are referred to as the “Future Facilities”. The rights set forth in the agreement are effective so long as there are any leases in force between us and The Geo Group and are subject to specified limited exceptions where the sale or transfer of ownership of a facility is restricted under a facility operating agreement or governmentally assisted financing arrangement.

Under the terms of the Right to Purchase Agreement, we may purchase a particular Future Facility at any time until the earlier of:

(i) (a) in the case of a newly developed Future Facility, four years from the receipt of a certificate of occupancy for the Future Facility or (b) in the case of an already operating Future Facility, four years from the date the Future Facility is acquired by The Geo Group or the party from which The Geo Group has the right to acquire the Future Facility; or

(ii) six months after the Future Facility attains an occupancy level of 75% of the number of beds authorized under the certificate of occupancy for the Future Facility, subject to certain limited exceptions.

The purchase price for each Future Facility will equal 105% (or other lower percentage as may be agreed to by The Geo Group) of the Total Facility Cost of that Future Facility, which may differ from the fair market value of that facility at the time we acquire it. The “Total Facility Cost” equals the aggregate costs related to the acquisition, development, design, construction, equipment and start-up of the respective Future Facility. The Geo Group has agreed that, with respect to goods or services provided by The Geo Group, these costs will not exceed the costs which would be paid if these goods and services had been purchased from a third party in an arm’s length transaction.

Under the terms of any lease between us and The Geo Group relating to a Future Facility, The Geo Group has a thirty-day right of first refusal on the proposed sale by us of any such Future Facility.

Pursuant to our Charter and Bylaws, the Independent Committee, which consists solely of independent trustees from our Board of Trustees, is required to approve the entering into or the consummation of any agreement or transaction with The Geo Group or its affiliates including, but not limited to, enforcement and negotiation of the terms of any lease of any of our facilities.

Leases

At the same time we acquired the initial facilities, we leased those facilities to The Geo Group or its affiliate. The facilities are leased to The Geo Group, and The Geo Group will continue to operate the facilities, under the terms of leases for an initial term of 10 years. Subject to specified limited exceptions, the term of each of these leases may be extended by The Geo Group for three additional five-year terms at a fair market rental rate as mutually agreed upon by us and The Geo Group or, in the absence of an agreement, as determined by binding arbitration. In addition, the term of any of these leases will be automatically extended upon expiration of the term on the same terms (including the then applicable base rent and base rent escalation as reflected in the applicable lease) if there is at that time an unexpired sublease with respect to the respective facility. Under the terms of the leases with The Geo Group, The Geo Group has a 30-day right of first refusal on the proposed sale by us of any of the facilities leased to it.