EXECUTION VERSION Dated 2015 (1) The Secretary of State for Transport (2) First/Keolis TransPennine Limited FRANCHISE AGREEMENT (INTERIM) – TRANSPENNINE EXPRESS 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 CONTENTS Clause Page 1 INTERPRETATION ........................................................................... 1 2 DEFINITIONS ................................................................................. 4 3 COMMENCEMENT .......................................................................... 71 4 TERM .......................................................................................... 72 5 GENERAL OBLIGATIONS ................................................................ 72 6 RELATIONSHIP WITH PREVIOUS FRANCHISE AGREEMENT ................. 73 7 COMPLIANCE WITH LAWS .............................................................. 73 8 ENTIRE AGREEMENT/WARRANTY .................................................... 73 9 GOVERNING LAW ......................................................................... 74 Schedules 1 Passenger Service Obligations ........................................................ 76 SCHEDULE 1.1 ............................................................................. 77 Service Development .................................................................... 77 SCHEDULE 1.2 ............................................................................. 90 Operating Obligations .................................................................... 90 SCHEDULE 1.3 ............................................................................. 98 Not Used ..................................................................................... 98 SCHEDULE 1.4 ............................................................................. 99 Passenger Facing Obligations ......................................................... 99 SCHEDULE 1.5 ........................................................................... 106 Information about Passengers ...................................................... 106 SCHEDULE 1.6 ........................................................................... 112 Franchise Services ...................................................................... 112 SCHEDULE 1.7 ........................................................................... 119 The Train Fleet ........................................................................... 119 2 Assets, Leases, Third Parties, Other Franchise Operations and Schemes ................................................................................... 121 SCHEDULE 2.1 ........................................................................... 122 Asset Vesting and Transfer .......................................................... 122 SCHEDULE 2.2 ........................................................................... 123 Security of Access Agreements, Rolling Stock Leases, Station and Depot Leases ....................................................................................... 123 SCHEDULE 2.3 ........................................................................... 130 Third Party Delivery of Passenger Services and Other Franchisees .... 130 SCHEDULE 2.4 ........................................................................... 132 Other Franchise Operations .......................................................... 132 SCHEDULE 2.5 ........................................................................... 134 Transport, Travel and Other Schemes ........................................... 134 APPENDIX 1 ............................................................................... 137 Concessionary Travel Schemes ..................................................... 137 3 Not used .................................................................................... 139 4 Persons with Disabilities and Disability Discrimination ..................... 140 APPENDIX 1 TO SCHEDULE 4 ....................................................... 147 Minor Works ............................................................................... 147 lon_lib1\10320478\30 1 APPENDIX 2 TO SCHEDULE 4 ....................................................... 148 Alternative Transport .................................................................. 148 5 Fares ........................................................................................ 149 SCHEDULE 5.1 ........................................................................... 150 Purpose, Structure and Construction ............................................. 150 SCHEDULE 5.2 ........................................................................... 153 Franchisee's Obligation to Create Fares ......................................... 153 SCHEDULE 5.3 ........................................................................... 154 Allocation of Fares to the Protected Fares Basket ............................ 154 SCHEDULE 5.4 ........................................................................... 155 Regulation of Protected Fares Basket Values .................................. 155 SCHEDULE 5.5 ........................................................................... 157 Regulation of Individual Fares ...................................................... 157 SCHEDULE 5.6 ........................................................................... 159 Exceeding the Regulated Value, Regulated Price or Regulated Child Price ......................................................................................... 159 SCHEDULE 5.7 ........................................................................... 161 Changes to Fares and Fares Regulation ......................................... 161 SCHEDULE 5.8 ........................................................................... 165 Fares Regulation Information and Monitoring ................................. 165 SCHEDULE 5.9 ........................................................................... 166 Smart Ticketing .......................................................................... 166 6 Committed Obligations and Franchise Specific Obligations ............... 168 SCHEDULE 6.1 ........................................................................... 169 Committed Obligations and Related Provisions ............................... 169 Part 1 to Schedule 6.1 ................................................................. 170 List of Committed Obligations ....................................................... 170 Part 2 to Schedule 6.1 ................................................................. 184 Miscellaneous Provisions .............................................................. 184 SCHEDULE 6.2 ........................................................................... 187 TransPennine Express Franchise Specific Provisions ........................ 187 7 Performance Benchmarks ............................................................ 196 SCHEDULE 7.1 ........................................................................... 197 Performance Benchmarks ............................................................ 197 APPENDIX 1 TO SCHEDULE 7.1 .................................................... 204 Cancellations Benchmark Table .................................................... 204 APPENDIX 2 TO SCHEDULE 7.1 .................................................... 205 Capacity Benchmark Table ........................................................... 205 APPENDIX 2 TO SCHEDULE 7.1 .................................................... 206 TOC Minute Delay Benchmark Table .............................................. 206 SCHEDULE 7.2 ........................................................................... 207 Service Quality Management ........................................................ 207 8 Payments .................................................................................. 212 SCHEDULE 8.1 ........................................................................... 213 Franchise Payments .................................................................... 213 APPENDIX 1 TO SCHEDULE 8.1 .................................................... 223 lon_lib1\10320478\30 2 Profit Share Thresholds ............................................................... 223 APPENDIX 2 TO SCHEDULE 8.1 .................................................... 224 Components of AFA and DFR ........................................................ 224 SCHEDULE 8.2 ........................................................................... 225 Annual Franchise Payments ......................................................... 225 APPENDIX TO SCHEDULE 8.2 ....................................................... 226 Figures for Calculation of Annual Franchise PaymentsError! Bookmark not defined. SCHEDULE 8.3 ........................................................................... 227 Miscellaneous Payment Provisions ................................................. 227 SCHEDULE 8.4 ........................................................................... 228 Track Access Adjustments and Station Charge Adjustments ............. 228 9 Changes and Variations ............................................................... 231 SCHEDULE 9.1 ........................................................................... 232 Financial and Other Consequences of Change ................................. 232 APPENDIX