Dated 2015 (1) The Secretary of State for Transport (2) [FRANCHISEE] FRANCHISE AGREEMENT – NORTHERN Eversheds LLP Tel 0845 497 9797 One Wood Street Fax 0845 497 4919 London Int +44 20 7919 4500 EC2V 7WS DX 154280 Cheapside 8 www.eversheds.com lon_lib1\11928095\6 CONTENTS Clause Page 1 INTERPRETATION ........................................................................... 6 2 DEFINITIONS ............................................................................... 10 3 COMMENCEMENT ........................................................................ 105 4 TERM ........................................................................................ 106 5 GENERAL OBLIGATIONS .............................................................. 106 6 COMPLIANCE WITH LAWS ............................................................ 106 7 ENTIRE AGREEMENT ................................................................... 106 8 GOVERNING LAW ....................................................................... 107 Schedules 1 Passenger Service Obligations ...................................................... 109 SCHEDULE 1.1 ........................................................................... 110 Service Development .................................................................. 110 SCHEDULE 1.2 ........................................................................... 124 Operating Obligations .................................................................. 124 SCHEDULE 1.3 ........................................................................... 133 Not Used ................................................................................... 133 SCHEDULE 1.4 ........................................................................... 134 Passenger Facing Obligations ....................................................... 134 SCHEDULE 1.5 ........................................................................... 143 Information about Passengers ...................................................... 143 SCHEDULE 1.6 ........................................................................... 153 Franchise Services ...................................................................... 153 SCHEDULE 1.7 ........................................................................... 161 The Train Fleet ........................................................................... 161 2 Assets, Leases, Third Parties, Other Franchise Operations and Schemes ................................................................................... 164 SCHEDULE 2.1 ........................................................................... 165 Asset Vesting and Transfer .......................................................... 165 SCHEDULE 2.2 ........................................................................... 167 Security of Access Agreements, Rolling Stock Leases, Station and Depot Leases ....................................................................................... 167 SCHEDULE 2.3 ........................................................................... 174 Third Party Delivery of Passenger Services and Other Franchisees .... 174 SCHEDULE 2.4 ........................................................................... 176 Other Franchise Operations .......................................................... 176 SCHEDULE 2.5 ........................................................................... 178 Transport, Travel and Other Schemes ........................................... 178 APPENDIX TO SCHEDULE 2.5 ....................................................... 182 List of Transport, Travel and Other Schemes .................................. 182 3 Not Used ................................................................................... 184 4 Persons with Disabilities and Disability Discrimination ..................... 185 APPENDIX 1 TO SCHEDULE 4 ....................................................... 192 Minor Works ............................................................................... 192 lon_lib1\11928095\6 1 APPENDIX 2 TO SCHEDULE 4 ....................................................... 193 Alternative Transport .................................................................. 193 5 Fares ........................................................................................ 194 SCHEDULE 5.1 ........................................................................... 195 Purpose, Structure and Construction ............................................. 195 SCHEDULE 5.2 ........................................................................... 199 Franchisee's Obligation to Create Fares ......................................... 199 SCHEDULE 5.3 ........................................................................... 200 Allocation of Fares to Fares Baskets .............................................. 200 SCHEDULE 5.4 ........................................................................... 202 Regulation of Fares Basket Values ................................................ 202 SCHEDULE 5.5 ........................................................................... 205 Regulation of Individual Fares and T&WPTE Fares ........................... 205 SCHEDULE 5.6 ........................................................................... 209 Exceeding the Regulated Value, Regulated Price or Regulated Child Price ......................................................................................... 209 SCHEDULE 5.7 ........................................................................... 212 Changes to Fares and Fares Regulation ......................................... 212 SCHEDULE 5.8 ........................................................................... 217 Fares Regulation Information and Monitoring ................................. 217 SCHEDULE 5.9 ........................................................................... 219 Smart Ticketing .......................................................................... 219 6 Committed Obligations and Franchise Specific Obligations ............... 221 PART 1 TO SCHEDULE 6.1............................................................ 222 List of Committed Obligations ....................................................... 222 PART 2 TO SCHEDULE 6.1............................................................ 227 Miscellaneous Provisions .............................................................. 227 SCHEDULE 6.2 ........................................................................... 232 Northern Franchise Specific Provisions ........................................... 232 7 Performance Benchmarks ............................................................ 263 SCHEDULE 7.1 ........................................................................... 264 Performance Benchmarks ............................................................ 264 APPENDIX 1 TO SCHEDULE 7.1 .................................................... 293 Cancellations Benchmarks and Annual Cancellations Benchmarks ..... 293 Part 1 – Cancellations Benchmark Table ........................................ 293 Part 2 – Annual Cancellations Benchmark Table .............................. 297 Part 3 – Annual Cancellations Payment Table ................................. 298 APPENDIX 2 TO SCHEDULE 7.1 .................................................... 299 TOC Minute Delay Benchmarks and Annual TOC Minute Delay Benchmarks ................................................................................................ 299 Part 1 – TOC Minute Delay Benchmark Table .................................. 299 Part 2 – Annual TOC Minute Delay Benchmark Table ....................... 303 Part 3 – Annual TOC Minute Delay Payment Table ........................... 304 APPENDIX 3 TO SCHEDULE 7.1 .................................................... 305 Short Formation Benchmark and Annual Short Formation Benchmark Table ........................................................................................ 305 lon_lib1\11928095\6 2 Part 1 – Short Formation Benchmark Table .................................... 305 Part 2 – Annual Short Formation Benchmark Table ......................... 309 Part 3 – Annual Short Formation Payment Table ............................. 310 SCHEDULE 7.2 ........................................................................... 311 National Rail Passenger Surveys and Customer and Communities Improvement Fund ..................................................................... 311 APPENDIX 1 TO SCHEDULE 7.2 .................................................... 319 NRPS Benchmark Table ............................................................... 319 SCHEDULE 7.3 ........................................................................... 320 Northern Franchise Service Quality Regime .................................... 320 APPENDIX 1 TO SCHEDULE 7.3 .................................................... 337 Service Quality Areas /SQS Benchmarks/Service Quality Indicators/Weightings ................................................................. 337 APPENDIX 2 TO SCHEDULE 7.3 .................................................... 340 Service Quality Schedules ............................................................ 340 8 Payments .................................................................................. 347 SCHEDULE 8.1 ........................................................................... 348 Franchise Payments ...................................................................