Operating Lease Agreement in relation to a fleet of class 350 electric multiple units and associated equipment

Northern Trains Limited has been awarded a 16-year operating lease of 37 Class 350/2 electric multiple units from Porterbrook Leasing Company Limited for £222 million, with the fleet replacing the current Class 323 units primarily on the Northern Network in Greater Manchester. The lease includes a break clause after 8 years if performance targets are not met, provisions for sub-leasing and transfer to other public sector operators, and allows for rolling stock modifications as needed. The lessor has agreed to early termination of the existing Class 323 lease to enable the substitution without additional subsidy requirements.