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THE SECRETARY of STATE for TRANSPORT and FIRST MTR SOUTH WESTERN TRAINS LIMITED

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THE SECRETARY of STATE for TRANSPORT and FIRST MTR SOUTH WESTERN TRAINS LIMITED VERSION 1.0X ERMA FOIA 2000 PUBLIC REGISTER COPY RAIL PUBLIC REGISTER COPY REDACTED IN ACCORDANCE WITH FOIA 2000 Dated 19 September 2020 THE SECRETARY OF STATE FOR TRANSPORT and FIRST MTR SOUTH WESTERN TRAINS LIMITED EMERGENCY RECOVERY MEASURES AGREEMENT ("ERMA") South West Rail ERMA Page 0 of 363 VERSION 1.0X ERMA FOIA 2000 PUBLIC REGISTER COPY Table of Contents Contents Page 1 Interpretation and Construction .......................................................................................... 1 2 Purpose of this ERMA and survival of EMA provisions .................................................... 3 3 Commencement and Term ................................................................................................... 4 4 Termination of the Franchise Agreement ........................................................................... 6 5 Amendments to the Franchise Agreement ......................................................................... 6 6 Co-operation .......................................................................................................................... 6 7 Additional Services ............................................................................................................... 7 8 Meetings ................................................................................................................................. 7 9 Remedial Plans, Action Plans and NRPS Action Plans ..................................................... 7 10 Fares ....................................................................................................................................... 9 11 Funding Deed ...................................................................................................................... 10 12 Change ................................................................................................................................. 10 13 Early ERMA Termination ..................................................................................................... 11 14 Committed Obligations ....................................................................................................... 11 15 Covid-19 Related Support .................................................................................................. 12 16 State Aid and Procurement ................................................................................................ 12 17 Warranties ............................................................................................................................ 13 18 Long Term Arrangements ................................................................................................... 13 19 Confidentiality and Disclosure .......................................................................................... 13 20 Entire Agreement ................................................................................................................ 14 21 Counterparts ........................................................................................................................ 14 22 Costs .................................................................................................................................... 14 23 Governing Law .................................................................................................................... 15 24 Rights of Third Parties ........................................................................................................ 15 Schedule 1 Amendments to the Franchise Agreement ............................................................. 17 Schedule 2 Termination of the Franchise Agreement ............................................................. 330 South West Rail ERMA Page i of 363 VERSION 1.0X ERMA FOIA 2000 PUBLIC REGISTER COPY Schedule 3 Early ERMA Termination ......................................................................................... 346 Schedule 4 Funding Deed, PCS Bonds and Performance Bond ............................................ 357 South West Rail ERMA Page ii of 363 VERSION 1.0X ERMA FOIA 2000 PUBLIC REGISTER COPY This Agreement is made on the 19 September 2020 between: (1) SECRETARY OF STATE FOR TRANSPORT, whose principal place of business is at Great Minster House, 33 Horseferry Road, London SW1P 4DR (the "Secretary of State"); and (2) FIRST MTR SOUTH WESTERN TRAINS LIMITED (company number: 07900320), whose registered office is at 4th Floor, Capital House, 25 Chapel Street, London NW1 5DH (the "Franchisee"), each a "Party" and, together, the "Parties". Recitals: (A) The Secretary of State and the Franchisee entered into a franchise agreement dated 7 April 2017 in respect of certain railway passenger services designated by the Secretary of State as eligible for provision under franchise agreements (the "Franchise Agreement"). (B) On 11 March 2020 the World Health Organisation declared the coronavirus disease 2019 ("COVID-19") a pandemic. COVID-19 has had (and it is anticipated that COVID-19 will continue to have) a significant impact on the operation of rail services in the United Kingdom. (C) The Secretary of State and the Franchisee amended the Franchise Agreement to address the impact of the COVID-19 outbreak on Train Operators by suspending or amending the operation of specific provisions, and introducing additional requirements, under the terms of the Franchise Agreement in accordance with the terms of, and for the duration of the term of, an emergency measures agreement which was entered into on 31 March 2020 and took effect on 1 April 2020 (the "EMA Start Date") between the Secretary of State and the Franchisee (the "EMA"). (D) The Parties now wish to record their agreement regarding further amendments to the Franchise Agreement by further suspending, supplementing and/or amending certain provisions of the Franchise Agreement (including certain amendments to protect taxpayers' interests and to reflect the ongoing reduction in rail travel as a result of COVID-19) to address the ongoing direct and indirect impacts of COVID-19 during the term of this Agreement by entering into this Emergency Recovery Measures Agreement (the "ERMA") to replace the EMA following its expiry at 01:59 on 20 September 2020. (E) The Franchisee acknowledges that this ERMA is entered into pursuant to article 5(5) of Regulation (EC) 1370/2007. The parties agree as follows: 1 Interpretation and Construction 1.1 Interpretation In this ERMA (unless the context otherwise requires): 1.1.1 words and expressions defined under the Franchise Agreement and the Act shall have the same meanings when used in this ERMA provided that, except to the extent expressly stated, "railway" shall not have the wider meaning attributed to it by section 81(2) of the Act; 1.1.2 words and expressions defined in the Interpretation Act 1978 shall have the same meanings when used in this ERMA; South West Rail ERMA Page 1 of 363 VERSION 1.0X ERMA FOIA 2000 PUBLIC REGISTER COPY 1.1.3 the words "including", "include" and "in particular" are to be construed without limitation; 1.1.4 references to a person include its successors, transferees and assignees; 1.1.5 references in this ERMA to Clauses and Schedules are to Clauses and Schedules of this ERMA unless expressly specified to the contrary; 1.1.6 headings and references to headings shall be disregarded in construing this ERMA; 1.1.7 references to an agreement or other document shall be construed as referring to that agreement or document as from time to time supplemented, varied, replaced, amended, assigned or novated; 1.1.8 words importing the masculine gender include the feminine gender and vice versa and words in singular include the plural and vice versa; 1.1.9 wherever provision is made for the giving or issuing of any notice, endorsement, consent, approval, waiver, certificate, direction, guidance or determination by any person, unless otherwise specified, such notice, endorsement, consent, approval, waiver, certificate or determination shall be in writing and the words "notify", "endorse", "consent", "approve", "waive", "certify", "direct", "guide" or "determine" and other cognate expressions shall be construed accordingly; 1.1.10 references to sums of money being expended by the Franchisee shall be to such sums exclusive of Value Added Tax; and 1.1.11 wherever provision is made for the Franchisee to "procure" or "ensure" the delivery of an obligation under the Franchise Agreement, unless otherwise specified, that provision shall be construed as a primary obligation on the Franchisee to deliver that obligation. 1.2 Construction 1.2.1 This ERMA shall succeed the EMA immediately upon the expiry of the EMA in accordance with its terms on 20 September 2020. 1.2.2 This ERMA is supplemental to and shall be read and construed together with the Franchise Agreement and this ERMA and the Franchise Agreement shall together constitute one and the same document. 1.2.3 In the event of conflict between: (i) the terms of this ERMA and the terms of the Franchise Agreement, subject to Clause 2.1.2, the terms of this ERMA shall prevail; and (ii) the terms of the Passenger Survey Methodology and the terms of the Franchise Agreement (as amended pursuant to the terms of this ERMA), the terms of the Franchise Agreement (as amended pursuant to the terms of this ERMA) shall prevail. 1.2.4 Save as expressly provided for in this ERMA, the Franchise Agreement shall continue in full force and effect. 1.2.5 Any reference to the "term" or "duration" of this
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