Dated 20[•] (1) The Secretary of State for Transport (2) [FRANCHISEE ] FRANCHISE AGREEMENT – INTERCITY WEST COAST 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\6455072\7 1 19 January 2012 kokoa CONTENTS Clause Page 1 INTERPRETATION ...................................................................................... 6 2 DEFINITIONS ............................................................................................ 9 3 COMMENCEMENT......................................................................................81 4 TERM ......................................................................................................82 5 GENERAL OBLIGATIONS ............................................................................82 6 COMPLIANCE WITH LAWS..........................................................................82 7 ENTIRE AGREEMENT .................................................................................82 8 GOVERNING LAW .....................................................................................83 Schedules 1 Passenger Service Obligations ....................................................................85 SCHEDULE 1.1 .........................................................................................86 Service Development ................................................................................86 SCHEDULE 1.2 .........................................................................................98 Operating Obligations................................................................................98 SCHEDULE 1.3 ....................................................................................... 105 Not Used ............................................................................................... 105 SCHEDULE 1.4 ....................................................................................... 106 Passenger Facing Obligations ................................................................... 106 SCHEDULE 1.5 ....................................................................................... 112 Information about Passengers .................................................................. 112 SCHEDULE 1.6 ....................................................................................... 117 Franchise Services .................................................................................. 117 SCHEDULE 1.7 ....................................................................................... 122 The Train Fleet ....................................................................................... 122 2 Assets, Leases, Third Parties, Other Franchise Operations and Schemes ........ 124 SCHEDULE 2.1 ....................................................................................... 125 Asset Vesting and Transfer ...................................................................... 125 PART 1 .................................................................................................. 125 PART 2 .................................................................................................. 126 SCHEDULE 2.2 ....................................................................................... 127 Security of Access Agreements, Rolling Stock Leases, Station and Depot Leases................................................................................................... 127 SCHEDULE 2.3 ....................................................................................... 131 Third Party Delivery of Passenger Services and Other Franchisees ................ 131 SCHEDULE 2.4 ....................................................................................... 133 Other Franchise Operations...................................................................... 133 SCHEDULE 2.5 ....................................................................................... 135 Transport, Travel and Other Schemes ....................................................... 135 3 Priced Options ........................................................................................ 137 4 Persons with Disabilities and Disability Discrimination ................................. 144 APPENDIX 1 TO SCHEDULE 4 ................................................................... 150 Minor Works........................................................................................... 150 APPENDIX 2 TO SCHEDULE 4 ................................................................... 152 lon_lib1\6455072\7 2 19 January 2012 kokoa Alternative Transport .............................................................................. 152 5 Fares .................................................................................................... 153 SCHEDULE 5.1 ....................................................................................... 154 Purpose, Structure and Construction ......................................................... 154 SCHEDULE 5.2 ....................................................................................... 157 Franchisee's Obligation to Create Fares ..................................................... 157 SCHEDULE 5.3 ....................................................................................... 158 Allocation of Fares to Fares Baskets .......................................................... 158 SCHEDULE 5.4 ....................................................................................... 160 Regulation of Fares Basket Values ............................................................ 160 SCHEDULE 5.5 ....................................................................................... 162 Regulation of Individual Fares .................................................................. 162 SCHEDULE 5.6 ....................................................................................... 164 Exceeding the Regulated Value, Regulated Price or Regulated Child Price....... 164 SCHEDULE 5.7 ....................................................................................... 166 Changes to Fares and Fares Regulation ..................................................... 166 SCHEDULE 5.8 ....................................................................................... 170 Fares Regulation Information and Monitoring ............................................. 170 6 Committed Obligations and Franchise Specific Obligations ........................... 171 SCHEDULE 6.1 ....................................................................................... 172 Committed Obligations and Related Provisions ........................................... 172 SCHEDULE 6.2 ....................................................................................... 177 Intercity West Coast Franchise Specific Provisions....................................... 177 7 Performance Benchmarks ........................................................................ 177 SCHEDULE 7.1 ....................................................................................... 177 Performance Benchmarks ........................................................................ 177 APPENDIX 1 TO SCHEDULE 7.1 ................................................................ 177 Cancellations Benchmark Table ................................................................ 177 APPENDIX 2 TO SCHEDULE 7.1 ................................................................ 177 TOC Minute Delay Benchmark Table.......................................................... 177 SCHEDULE 7.2 ....................................................................................... 177 National Passenger Surveys ..................................................................... 177 APPENDIX 1 TO SCHEDULE 7.2 ................................................................ 177 NPS Benchmark Table ............................................................................. 177 8 Payments .............................................................................................. 177 SCHEDULE 8.1 ....................................................................................... 177 Franchise Payments ................................................................................ 177 SCHEDULE 8.2 ....................................................................................... 177 Annual Franchise Payments ..................................................................... 177 SCHEDULE 8.3 ....................................................................................... 177 Miscellaneous Payment Provisions............................................................. 177 SCHEDULE 8.4 ....................................................................................... 177 Track Access Adjustments and Station Charge Adjustments ......................... 177 SCHEDULE 8.5 ....................................................................................... 177 GDP Adjustment Payments ...................................................................... 177 9 Changes ................................................................................................ 177 lon_lib1\6455072\7 3 19 January 2012 kokoa SCHEDULE 9.1 ....................................................................................... 177 Financial and Other Consequences of Change............................................. 177 APPENDIX 2 TO SCHEDULE 9.1 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