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DEED to CONFIRM the CONSOLIDATED CONCESSION AGREEMENT Relating to the Services for the Carriage of Passengers by Railway to Be Provided By

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DEED TO CONFIRM THE CONSOLIDATED CONCESSION AGREEMENT relating to the services for the carriage of passengers by railway to be provided by MERSEYRAIL ELECTRICS 2002 LIMITED Merseytravel (1) and Merseyrail Electrics 2002 Limited (2) Ref: LAD/STD/ConcessionAgreement/LO/SL* THIS DEED is made on 9 April 2014 BETWEEN: (1) Merseytravel whose office is at No.1 Mann Island, Liverpool, L3 1BP (the "Awarding Authority"); and (2) Merseyrail Electrics 2002 Limited whose registered number is 4356933 and registered office is at Rail House, Lord Nelson Street, Liverpool, Merseyside, L1 1JF (the "Operator"), hereafter collectively referred to as the "Parties". BACKGROUND (A) The Awarding Authority and Merseyrail Services Holding Company Limited (the "Concessionaire") entered into a Concession Agreement dated 23 May 2003 relating to the services for the carriage of passengers by railway (the "Original Concession Agreement"). (B) The Operator was joined as a party to the Original Concession Agreement by a Deed of Adherence dated 18 July 2003. (C) The Parties have entered into the following agreements to amend the Original Concession Agreement: (i) an unsigned Deed of Variation following the opening of Liverpool South Parkway Multi Modal Interchange in May 2006 (the "Deed of Variation 2006"); (ii) a Deed of Variation following the first Efficient Operator Review carried out in April 2009 (the "Deed of Variation 2009"); (iii) a letter of 21 November 2008 regarding the Chester Service alterations; (iv) a letter of 20 February 2013 setting out timetable changes agreed at the Quarterly Review Meetings of 15 April 2011 and 8 November 2012; and (v) a letter of 19 April 2013 setting out MEL understanding of changes agreed either by correspondence or through the four weekly meetings. (D) The Parties have agreed to amend and restate the Original Concession Agreement on the terms annexed to this deed at Schedule 1 to incorporate the changes agreed between the Parties in the various agreements set out in recital (C), to update any historic references and reflect any changes to the legal entities referred to in the Original Concession Agreement. AGREED TERMS 1. Terms Defined in this Deed In this deed expressions defined in the Original Concession Agreement and used in this deed have the meaning set out in the Original Concession Agreement. The rules of interpretation set out in the Original Concession Agreement apply to this deed. 2. Variation With effect from the date of this deed the Parties agree that: (a) the Original Concession Agreement shall be amended and restated in the form attached at Schedule 1 to this deed (the "Consolidated Concession Agreement"); and (b) the Consolidated Concession Agreement shall continue to be binding on the Awarding Authority and the Operator in accordance with its terms as amended and restated. 3. Annual Contract Payments Content deleted for reasons of commercial confidentiality 4. Governing Law This deed and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales. Schedule 1 Dated 2003 (1) MERSEYTRAVEL and (2) MERSEYRAIL SERVICES HOLDING COMPANY LIMITED and (3) MERSEYRAIL ELECTRICS 2002 LIMITED ________________________________________________ Concession Agreement relating to the services for the carriage of passengers by railway to be provided by MERSEYRAIL ELECTRICS 2002 LIMITED ________________________________________________ Merseytravel No 1 Mann Island Liverpool L69 3HN Ref: LAD/STD/ConcessionAgreement/LO/SL* Contents Clause Heading Page Part I Preliminary ------------------------------------------------------------------------------------ 2 1. Definitions and Interpretation ---------------------------------------------------- 2 2. Conditions Precedent ------------------------------------------------------------- 41 3. Warranty ----------------------------------------------------------------------------- 46 Part II — Operation of the Concession ------------------------------------------------------------ 48 4A. The Concessionaire --------------------------------------------------------------- 48 4B The Side Agreement -------------------------------------------------------------- 48 4C. Continuing Consultation with the Secretary of State ---------------------- 48 5. Passenger Service Requirement ---------------------------------------------- 48 6. Provision of Capacity ------------------------------------------------------------- 62 7. The Timetable ---------------------------------------------------------------------- 67 8. Passengers ------------------------------------------------------------------------- 71 9. Fares and Fare Schemes -------------------------------------------------------- 82 10. Stations and Depots --------------------------------------------------------------- 88 11. PSR Changes ---------------------------------------------------------------------- 91 12. Industry Arrangements ----------------------------------------------------------- 95 13. Staff and Pensions -------------------------------------------------------------- 109 14. Other Covenants ----------------------------------------------------------------- 113 15. Monitoring and provision of information ------------------------------------ 115 Part III Financial Provisions -------------------------------------------------------------------- 125 16. Contract Payments ---------------------------------------------------------------- 125 17. Incentive Payments ---------------------------------------------------------------- 126 18. Changes ------------------------------------------------------------------------------ 126 19 Concession Viability --------------------------------------------------------------- 130 Part IV Term and Termination ------------------------------------------------------------------ 132 20. Contract Term ----------------------------------------------------------------------- 132 21. Events Of Default ------------------------------------------------------------------ 134 22. Consequences of Events of Default ------------------------------------------- 139 23. Consequences of Termination -------------------------------------------------- 139 Part V — Obligations associated with change of Operator ------------------------------- 140 24. Reletting of Concession ---------------------------------------------------------- 140 25. Maintenance of Concession ----------------------------------------------------- 140 26. Restrictions on Activities---------------------------------------------------------- 145 27. Key Contracts ----------------------------------------------------------------------- 146 28. Insurances --------------------------------------------------------------------------- 148 29. Concession Employees ---------------------------------------------------------- 149 30. Fares ---------------------------------------------------------------------------------- 150 31. Inter-Operator Schemes ---------------------------------------------------------- 151 32. Concession Assets ---------------------------------------------------------------- 152 33. Spares -------------------------------------------------------------------------------- 159 34. Intellectual Property --------------------------------------------------------------- 161 35. Transfer of Primary Assets ------------------------------------------------------- 165 36. Associated Obligations on Termination --------------------------------------- 171 Part VI General Provisions ---------------------------------------------------------------------- 173 37. Compliance With Laws ----------------------------------------------------------- 173 38. Exclusion of Liability --------------------------------------------------------------- 173 39. Confidentiality ----------------------------------------------------------------------- 174 40. Notices-------------------------------------------------------------------------------- 178 41. Assignment -------------------------------------------------------------------------- 179 42. Delegation --------------------------------------------------------------------------- 179 43. Settlement Of Disputes ----------------------------------------------------------- 179 44. Miscellaneous Provisions -------------------------------------------------------- 180 45. Governing Law --------------------------------------------------------------------- 184 Schedule 1 - Conditions Precedent and Other Documents (Clause 2.2) -------------- 185 Schedule 2 - Contract Services (Clause 26 and others) ----------------------------------- 188 Schedule 3 - Passenger Service Requirement ----------------------------------------------- 194 Schedule 4 - Station Standards (Clause 10.3) ------------------------------------------------ 215 Schedule 5 - Fares (Clause 9.1) ----------------------------------------------------------------- 217 Schedule 6 - Contract Payments (Clause 16) ------------------------------------------------ 223 Schedule 7 - Incentive Regime (Clause 17) -------------------------------------------------- 233 Schedule 8 - Records (Clauses 15.1 and 15.2) ---------------------------------------------- 243 Schedule 9 - Change Assessment Procedures and Accounting (Clauses 6, 7.1, 9.5, 9.6, 9.7, 9.8, 11, 12.14, 12.17, 18.1, 18.2, 25.3, 34.3 and Schedule 5) ----- 249 Schedule 10 - Financial Covenants (Clause 14.2) -------------------------------------------- 262 Schedule 11 - Concession
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