THE SCOTTISH MINISTERS and SERCO CALEDONIAN SLEEPERS LIMITED CALEDONIAN SLEEPER FRANCHISE AGREEMENT [REDACTED FORM FOR PUBLICATION] 6322070v2 (53977-6)6346944-1 TABLE OF CONTENTS 1. Interpretation and Definitions .................................................................................... 1 2. Commencement .......................................................................................................... 2 3. Term ............................................................................................................ 3 4. Franchisee’s Obligations ........................................................................................... 3 5. Unjustified Enrichment ............................................................................................... 4 6. Arm's Length Dealings ............................................................................................... 4 7. Compliance with Laws................................................................................................ 4 8. Entire Agreement ........................................................................................................ 4 9. Governing Law ............................................................................................................ 5 SCHEDULE 1 ............................................................................................................ 6 PASSENGER SERVICE OBLIGATIONS ............................................................................................. 6 SCHEDULE 1.1 ............................................................................................................ 7 SERVICE DEVELOPMENT ............................................................................................................ 7 APPENDIX 1 TO SCHEDULE 1.1 ............................................................................................ 18 INITIAL SERVICE LEVEL COMMITMENT ......................................................................................... 18 APPENDIX 2 TO SCHEDULE 1.1 ............................................................................................ 23 THE TRAIN FLEET .......................................................................................................... 23 APPENDIX 3 TO SCHEDULE 1.1 ............................................................................................ 28 SERVICE DEVELOPMENT ADDITIONAL FACTORS .......................................................................... 28 SCHEDULE 1.2 .......................................................................................................... 30 OPERATING OBLIGATIONS .......................................................................................................... 30 SCHEDULE 1.3 .......................................................................................................... 43 ADDITIONAL SERVICE SPECIFICATIONS ....................................................................................... 43 SCHEDULE 1.4 .......................................................................................................... 47 PASSENGER FACING OBLIGATIONS ............................................................................................. 47 APPENDIX 1 TO SCHEDULE 1.4 ............................................................................................ 62 FORM OF PASSENGER’S CHARTER .............................................................................................. 62 APPENDIX 2 TO SCHEDULE 1.4 .......................................................................................... 63 ALTERNATIVE TRANSPORT AND WEBSITE STATIONS ACCESSIBILITY INFORMATION ....................... 63 SCHEDULE 1.5 .......................................................................................................... 65 INFORMATION ABOUT PASSENGERS ............................................................................................ 65 SCHEDULE 1.6 .......................................................................................................... 70 COMMITTED OBLIGATIONS .......................................................................................................... 70 PART 1 .......................................................................................................... 70 FRANCHISEE’S COMMITTED OBLIGATIONS ................................................................................... 70 PART 2 .......................................................................................................... 98 MISCELLANEOUS PROVISIONS .................................................................................................... 98 6322070v2 (53977-6) 6346944-1 PART 3 ........................................................................................................ 101 LATE/NON-COMPLETION OF COMMITTED OBLIGATIONS ............................................................. 101 APPENDIX 1 TO SCHEDULE 1.6 .......................................................................................... 126 CAPITAL EXPENDITURE TABLE................................................................................................... 126 SCHEDULE 1.7 ........................................................................................................ 127 FRANCHISE SERVICES ........................................................................................................ 127 SCHEDULE 1.8 ........................................................................................................ 131 PART 1 ........................................................................................................ 131 MAJOR PROJECTS ........................................................................................................ 131 PART 2 ........................................................................................................ 133 MAJOR SCOTTISH PROJECTS.................................................................................................... 133 SCHEDULE 2 ........................................................................................................ 134 ASSETS, LEASES, THIRD PARTIES, OTHER FRANCHISE OPERATIONS AND SCHEMES ................... 134 SCHEDULE 2.1 ........................................................................................................ 135 PROPERTY LEASES ........................................................................................................ 135 SCHEDULE 2.2 ........................................................................................................ 136 SECURITY OF ACCESS ASSETS, ROLLING STOCK LEASES, STATION AND DEPOT LEASES ........... 136 SCHEDULE 2.3 ........................................................................................................ 141 THIRD PARTY DELIVERY OF PASSENGER SERVICES AND OTHER FRANCHISEES .......................... 141 SCHEDULE 2.4 ........................................................................................................ 143 OTHER FRANCHISE OPERATIONS .............................................................................................. 143 SCHEDULE 2.5 ........................................................................................................ 145 TRANSPORT, TRAVEL AND OTHER SCHEMES ............................................................................. 145 APPENDIX TO SCHEDULE 2.5 ............................................................................................ 152 LIST OF TRANSPORT, TRAVEL AND OTHER SCHEMES................................................................. 152 SCHEDULE 3 ........................................................................................................ 156 PRICED OPTIONS SCHEDULE 4 ........................................................................................................ 156 MAINTAINING AND ENHANCING STATIONS AREAS, DEPOTS AREAS AND TRAINS......................... 157 SCHEDULE 4.1 ........................................................................................................ 158 FRANCHISE FACILITIES ........................................................................................................ 158 APPENDIX TO SCHEDULE 4.1 ............................................................................................ 164 STATION AREA SURVEYS ........................................................................................................ 164 SCHEDULE 4.2 ........................................................................................................ 165 PERSONS WITH DISABILITIES AND DISABILITY DISCRIMINATION .................................................. 165 APPENDIX TO SCHEDULE 4.2 ............................................................................................ 170 MINOR WORKS ........................................................................................................ 170 SCHEDULE 5 ........................................................................................................ 172 FARES ........................................................................................................ 172 SCHEDULE 5.1 ........................................................................................................ 173 6322070v2 (53977-6) 6346944-1 FARES ON THE FRANCHISE SERVICES ....................................................................................... 173 SCHEDULE 5.2 .......................................................................................................