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London Bus Services Limited (2) Wrightbus

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London Bus Services Limited (2) Wrightbus Dated 27 March 2013 (1) London Bus Services Limited (2) Wrightbus Limited Contract No. 4600002359 / 4600003109 (Tender reference PRO1632) Amended and Restated Design and Supply and Maintenance of Double Decker Bus Vehicles Contract LBSL/253 CONTENTS Page 1 DEFINITIONS AND INTERPRETATION ........................................................ 2 2 COMMENCEMENT ...................................................................................... 14 3 PURPOSE OF CONTRACT ......................................................................... 14 4 DESIGN APPROVAL PROCESS AND DRAWINGS .................................... 19 4A VALUE ENGINEERING........................................................................ ......... 18 5 PRODUCTION OF PROTOTYPE VEHICLE ................................................ 20 6 QUALIFIED ACCEPTANCE ......................................................................... 22 7 SUPPLY OF PRODUCTION VEHICLES ...................................................... 24 7A 2012 PRODUCTION VEHICLE ORDER ....................................................... 25 8 VEHICLE CERTIFICATION .......................................................................... 36 9 SUPPLY OF SPARE PARTS ........................................................................ 36 10 EXTENSIONS TO THE DELIVERY DATE ................................................... 37 11 LIQUIDATED DAMAGES FOR LATE DELIVERY ........................................ 39 12 OPERATING INFORMATION AND TRAINING PROGRAMME ................... 40 13 QUALITY ASSURANCE ............................................................................... 41 14 LIMITED WARRANTIES ............................................................................... 41 15 PROPERTY TO PASS AND TRANSFER OF RISK ...................................... 46 16 MAINTENANCE AND SERVICING ............................................................... 46 17 PAYMENT TERMS AND VALUE ADDED TAX ............................................ 47 18 SET OFF ....................................................................................................... 51 19 FREE ISSUE GOODS OR MATERIALS ....................................................... 51 20 CONTRACT MANAGEMENT ....................................................................... 51 21 SUB-CONTRACTING AND CHANGE OF OWNERSHIP ............................. 53 22 CONFLICT OF INTEREST ........................................................................... 54 23 RIGHTS OF ACCESS ................................................................................... 55 24 ADDITIONAL WARRANTIES AND UNDERTAKINGS .................................. 55 25 COMPLIANCE WITH LAWS AND OTHER RULES ...................................... 56 26 CONFIDENTIALITY AND ANNOUNCEMENTS ........................................... 58 27 FREEDOM OF INFORMATION .................................................................... 61 28 INTELLECTUAL PROPERTY ....................................................................... 64 29 AMBUSH MARKETING ................................................................................ 72 30 RECORDS .................................................................................................... 72 31 BEST VALUE AND RESPONSIBLE PROCUREMENT ................................ 73 32 INDEMNITY, INSURANCE & LIMITATION OF LIABILITY ........................... 73 33 TERMINATION ............................................................................................. 77 34 CONSEQUENCES OF TERMINATION ........................................................ 81 35 VARIATIONS ................................................................................................ 84 36 CORRUPT GIFTS AND PAYMENT OF COMMISSION ............................... 84 LBSL/253 37 WAIVER ........................................................................................................ 84 38 ENTIRE AGREEMENT ................................................................................. 85 39 RELATIONSHIP OF THE PARTIES ............................................................. 86 40 SEVERABILITY ............................................................................................ 86 41 SURVIVAL .................................................................................................... 87 42 NOTICES ...................................................................................................... 87 43 LANGUAGE .................................................................................................. 87 44 THE CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 ................... 87 45 ASSIGNMENT AND NOVATION .................................................................. 88 46 GOVERNING LAW ....................................................................................... 89 47 DISPUTE RESOLUTION .............................................................................. 89 48 COUNTERPARTS ........................................................................................ 90 Schedules 1 SPECIFICATION FOR DOUBLE DECKER BUS VEHICLES ....................... 92 2 PROJECT MILESTONES ........................................................................... 151 3 VEHICLE INSPECTION REPORT .............................................................. 153 4 PRICE SUMMARY AND PAYMENT SCHEDULE ...................................... 160 5 VEHICLE OPERATORS ............................................................................. 164 6 TERMS OF SUPPLY OF PRODUCTION VEHICLES TO THE COMPANY .................................................................................................. 165 7 VEHICLE WARRANTY AND SPARE PARTS WARRANTY ....................... 168 8 SPARE PARTS ORDERING AND DELIVERY PROCEDURE ................... 171 9 STANDARD TERMS OF SALE FOR SPARE PARTS ................................ 174 10 WORKPLACE HARASSMENT POLICY ..................................................... 175 11 BACKGROUND INTELLECTUAL PROPERTY .......................................... 187 12 PROCEDURE COVERING VARIATIONS FROM CONTRACT .................. 188 13 RESPONSIBLE PROCUREMENT AND STRATEGIC LABOUR NEEDS AND TRAINING ............................................................................. 199 14 MAINTENANCE AND SUPPORT SERVICES ............................................ 208 15 ANTICIPATED CHANGES IN LAW ............................................................ 212 16 FORM OF PARENT COMPANY GUARANTEE ......................................... 213 17 2012 ORDER PRODUCTION PROGRAMME ............................................ 218 18 OPERATIONAL PERFORMANCE TARGETS ............................................ 219 19 INFORMATION REPORTING..................................................................... 220 20 LETTER TO COMPANY PURSUANT TO CLAUSE 7A.9 .......................... 221 21 DEED OF PRIORTY ................................................................................... 223 22 FINAL VEHICLE DESIGNS ........................................................................ 225 LBSL/253 THIS DESIGN AND SUPPLY AND MAINTENANCE OF DOUBLE DECKER BUS VEHICLES CONTRACT (this “Contract”) is made the 27th Day of March 2013 BETWEEN (1) LONDON BUS SERVICES LIMITED a company registered in England and Wales under the number 03914787 and having a registered office at Windsor House, 42-50 Victoria Street, London SW1H 0TL (the “Company”); and (2) WRIGHTBUS LIMITED a company registered in Northern Ireland under the number NI006119 whose registered office is at Galgorm Industrial Estate, Fenaghy Road, Galgorm, Ballymena, County Antrim BT42 1PY (the “Contractor”). BACKGROUND (A) The Company wishes to facilitate the introduction of new double decker buses to be operated on bus routes in London. (B) The Company has conducted a tender process to identify a supplier who is able to: (i) design such vehicles to meet the Company’s requirements; and (ii) supply those vehicles to the Company and bus operators operating in London; and (iii) to maintain those vehicles for the Company and those operators. (C) As a result of the tendering process and on the basis of the Contractor’s responses submitted during the tendering process, the Company has agreed to enter into this Contract with the Contractor and the Contractor agrees to supply the Vehicles and provide maintenance services for such Vehicles and other services on and subject to the terms and conditions of this Contract. (D) The Contractor acknowledges that the Company has relied upon the expertise and skills set out in the Contractor’s responses submitted during the tendering process in selecting the Contractor. (E) On 20 September 2012, the Company secured the approval of its Board to purchase up to 600 Vehicles and this Contract has been amended accordingly. Eight of those 600 Vehicles have already been produced and LBSL/253 1 purchased by the Company in accordance with the terms of a letter dated 1 March 2013. IT IS AGREED as follows: DEFINITIONS AND INTERPRETATION 1.1 In this Contract the following expressions shall have the following meanings unless the context otherwise requires: “Anticipated Change in means (a) any regulatory and/or legislative Law” changes reasonably anticipated to become a legal requirement within 24 months of the Effective Date (including those notified by the Contractor to the Company in accordance with Schedule 15), or (b) any proposed change in Law which the Contractor should reasonably be aware of at the date of this
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