This **Employment Agreement**(this “Agreement”) is made on this 11 day of July, 2007 among:**(1)** National Grid plc incorporated in the UK with registered number 04031152 whose registeredoffice is at 1-3 The Strand, London WC2N 5EH (the “**Parent**”); **(2)** National Grid USA, a wholly-owned subsidiary of the Parent (the “**Company**”), and **(3)** Thomas King (the “**Executive**”).This Agreement records the terms on which the Executive will serve the Parent and the Company.**1** **Interpretation**   In this Agreement (and any schedules to it): **1.1** **Definitions**   “**Board**” means the board of directors of the Parent from time to time or any person orcommittee nominated by the board of directors as its representative for the purposes of thisAgreement;   “**Employment**” means the employment governed by this Agreement;   “**Group**” means the Parent, its ultimate holding company from time to time and the Parent’sassociates (as defined in section 435 of the Insolvency Act 1986) from time to time;   “**Group Company**” means a member of the Group and “**Group Companies**” will be interpretedaccordingly;   “**holding company**” has the meaning given in section 736 of the Companies Act 1985; and   “**Listing Rules**” means the listing rules made by the Financial Services Authority in exerciseof its functions as competent authority pursuant to Part VI of the Financial Services andMarkets Act 2000. **2** **Commencement of Employment** **2.1** The Employment will start on July 23, 2007 (the “**Commencement Date**”). The Employment willcontinue until termination in accordance with the provisions of this Agreement. **2.2** The Executive represents and warrants to the Company that he is not prevented from taking upthe Employment or from performing his duties in
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  accordance with the terms of this Agreement by any obligation orduty owed to any other party, whether contractual or otherwise. **3** **Appointment and Duties of the Executive** **3.1** The Executive will serve the Company as **Executive Director, Electricity Distribution andPresident of National Grid USA**from the Commencement Date or in any other executive capacityas the Executive and the Company may agree from time to time. **3.2** As soon as practicable following the Commencement Date, the Parent shall appoint theExecutive as, and Executive agrees to serve as, an **Executive Director**of the Parent (it beingunderstood that the Executive’s continuing service as an Executive Director is subject to thevote of the Parent’s shareholders at the applicable annual general meeting). **3.3** The Executive will: **3.3.1** devote the whole of his time, attention and skill to the Employment;  **3.3.2** properly perform his duties and exercise his powers;  **3.3.3** accept any offices or directorships as reasonably required by the Board;  **3.3.4** comply with all rules and regulations issued by the Company;  **3.3.5** obey the directions of the Board; and  **3.3.6** use his best endeavors to promote the interests and reputation of every GroupCompany.**3.4** The Executive accepts that with his consent (which he will not unreasonably withhold ordelay): **3.4.1** the Company or the Parent may require him to perform duties for any otherGroup Company whether for the whole or part of his working time. In performing thoseduties clause 3.3.4 will apply as if references to the Company are to the appropriateGroup Company. The Company will remain responsible for the payments and benefits he isentitled to receive under this Agreement (however, the actual payments and benefits maybe delivered by any Group Company) and;  **3.4.2** the Company may transfer the Employment to any other Group Company.**3.5** The Executive will keep the Board (and, where appropriate, the board of directors of anyother Group Company) fully informed of his conduct of the
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  business, finances or affairs of the Company or any other Group Company in a prompt andtimely manner. He will provide information to the Board in writing if requested.**3.6** The Executive will promptly disclose to the Board full details of any wrongdoing by anyemployee of any Group Company where that wrongdoing is material to that employee’s employmentby the relevant Group Company or to the interests or reputation of any Group Company.**3.7** Subject to applicable law, at any time during the Employment the Company may require theExecutive to undergo a medical examination by a medical practitioner appointed by the Company.The Executive authorizes that medical practitioner to disclose to the Company any report ortest results prepared or obtained as a result of that examination and to discuss with it anymatters arising out of the examination which are relevant to the Employment or which mightprevent the Executive properly performing the duties of the Employment. **4** **Hours** **4.1** The Executive will comply with the Company’s normal hours of work and will also work anyadditional hours which may be reasonably necessary to perform his duties to the satisfactionof the Board. He will not receive any further remuneration for any hours worked in addition tothe normal working hours. **5** **Interests of the Executive** **5.1** The Executive will disclose promptly in writing to the Board all his interests (for example,shareholdings or directorships) in any businesses whether or not of a commercial or businessnature except his interests in any Group Company. **5.2** Subject to clause 5.3, during the Employment the Executive will not be directly or indirectlyengaged or concerned in the conduct of any activity which is similar to or competes with anyactivity carried on by any Group Company (except as a representative of the Company or withthe written consent of the Board). **5.3** The Executive may not hold or be interested in investments which amount to more than threeper cent of the issued investments of any class of any one company, whether or not thoseinvestments are listed or quoted on any recognized Stock Exchange or dealt in on theAlternative Investments Market.
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**5.4** The Executive will (and will ensure that his spouse and dependent children) comply with allrules of law, including Part V of the Criminal Justice Act 1993, the Model Code as set out inthe annex to Chapter 9 of the Listing Rules as amended from time to time and rules or policiesapplicable to the Group from time to time in relation to the holding or trading of securities. **6** **Location** **6.1** The Executive will work at the Boston area office of the Company or anywhere else within theUnited States or the United Kingdom required by the Board. He will be required to travel andwork outside the United States from time to time but unless otherwise agreed with the Boardwill not be required to live outside the United States. **7** **Base Salary and Benefits** **7.1** The Company will pay the Executive an annual base salary of $1,000,000. Base salary willaccrue from day to day and will be paid in accordance with the Company’s payroll practices asthey exist from time to time. Salary will be reviewed annually, normally commencing in June ofeach year. The first review will take place in June 2008. **7.2** The salary referred to in clause 7.1 will be inclusive of any remuneration or fees which theExecutive is or becomes entitled to as an office holder in the Company or any Group Company orany other company in which the Executive becomes an office holder as part of or in connectionwith his duties under this Agreement. To achieve this: **7.2.1** the Executive will repay any fees he receives to the Company; or  **7.2.2** his base salary will be reduced by the amount of those fees; or  **7.2.3** a combination of the methods set out in clauses 7.2.1 and 7.2.2 will beapplied.**7.3** The Executive may, at the discretion of the Remuneration Committee of the Board, be invitedto participate in any bonus plan operated by the Company from time to time. If so invited, theExecutive’s participation in such bonus plan and the amount (if any) payable under it will beat the discretion of the Remuneration Committee and/or in accordance with the rules of thatplan from time to time in force. Participation in a bonus plan for one year does not entitlethe Executive to participation in any bonus plan for any other year.**7.4** The Executive shall be eligible to participate in the Company’s Executive SupplementalRetirement Plan (the “**ESRP**”) in accordance with the terms
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  and conditions thereof, subject to the following modifications: The Executive shallparticipate in the ESRP as a Level B participant and vest in his ESRP benefit six (6) monthsfollowing the Commencement Date, be credited under the ESRP with years of service andeligible pay used in the calculation of the Executive’s vested benefit under the terms ofthe PG&E Corporation Supplemental Executive Retirement Plan (the “**PGE SERP**”) *but*the ESRPaccrued benefit shall be offset by the total accrued benefit payable at age 55 under the PGESERP and the PG&E Company Retirement Plan, with such offset value determined as of theCommencement Date; be credited with an additional five (5) years of service under the ESRPas of June 1, 2011 (if the Executive remains employed within the Group up through thatdate); and shall become a Level A participant if the Executive remains employed within theGroup through the date he attains age 55. For the avoidance of doubt, the years of serviceand eligible pay used in the calculation of the PGE SERP, as well as the total accruedbenefit payable to the Executive at age 55 under the PGE SERP, shall be based upondocumentation the Executive obtains from PG&E following his termination of employment withPG&E, and which particulars will not be affected by any amendments to the PGE SERP followingthe Commencement Date.**7.5** The Executive is entitled to paid vacation each year in accordance with the Company’svacation policy for similarly situated senior executives (but in no event less than 25 daysannually). **7.6** The Executive shall be eligible to participate in employee benefit and welfare plans,including plans providing retirement benefits, medical, dental, hospitalization, life ordisability insurance, on the same basis as provided to similarly situated senior executives ofthe Parent (except as determined by the Remuneration Committee of the Board). For purposes ofthis Agreement, “employee benefit and welfare plans” do not include any severance, terminationor redundancy plan, program or arrangement operated by any member of the Group. **8** **Expenses** **8.1** The Company will refund to the Executive all reasonable expenses properly incurred by him inperforming his duties under this Agreement, provided that these are incurred in accordancewith Company policy from time to time. The Company will require the Executive to producereceipts or other documents as proof that he has incurred any expenses he claims.
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**8.2** If the Executive is provided with a credit or charge card by the Company this must only beused for expenses which he incurs in performing the duties of the Employment. **9** **Confidentiality** **9.1** Without prejudice to the common law duties which he owes to the Group the Executive agreesthat he will not, except in the proper performance of his duties, copy, use or disclose to anyperson any of the Group’s trade secrets or confidential information. This restriction willcontinue to apply after the termination of the Employment without limit in time but will notapply to trade secrets or confidential information which become public other than throughunauthorized disclosure by the Executive. The Executive will use his best endeavors to preventthe unauthorized copying, use or disclosure of such information.For the purposes of this Agreement, trade secrets and confidential informationinclude but will not be limited to technical data, know-how, information technologyand know-how relating to the Group, customer lists, pricing information, informationrelating to the Group’s marketing and financial strategies, marketing materials,financial information and any other information concerning the affairs of the Groupor the personnel of the Group which is for the time being confidential, which theExecutive is told is confidential or which by its nature is obviously confidentialand whether such information is in written, oral, visual, electronic or any otherform.**9.2** In the course of the Employment the Executive is likely to obtain trade secrets andconfidential information belonging or relating to other Group Companies and other persons. Hewill treat such information as if it falls within the terms of clause 9.1 and clause 9.1 willapply with any necessary amendments to such information. If requested to do so by the Companythe Executive will enter into an agreement with other Group Companies and any other persons inthe same terms as clause 9.1 with any amendments necessary to give effect to this provision. **9.3** Nothing in this Agreement should or will prevent the Executive from raising any concerns inaccordance with the provisions of the National Grid Standards of Ethical Business Conduct andthe Requirement for Written Codes of Ethics for Employees (incorporating WhistleblowingProtection). **10** **Intellectual Property** **10.1** The Executive must disclose immediately to the Company any discovery or invention, secretprocess or improvement in procedure made or discovered
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  by the Executive during his employment in connection with or in any way affecting orrelating to the business of the Company or any Group Company or capable of being used oradapted for use in or in connection with any such company (“**Inventions**”) which Inventionswill belong to and be the absolute property of the Company or such other person, firm,company or organization as the Company may require. **10.2** If requested by the Board (whether during or after the termination of his employment) theExecutive will at the expense of the Company apply or join in applying for letters patent orother similar protection in the United States, the United Kingdom or any other part of theworld for all Inventions and will do everything necessary (including executing documents) forvesting letters patent or other similar protection when obtained and all right and title toand interest in all Inventions in the Company absolutely and as sole beneficial owner or insuch other person, firm, company or organization as the Company may require. **10.3** The Executive will (both during and after the termination of his employment) at the Company’sexpense anywhere in the world and at any time promptly do everything (including executingdocuments) that may be required by the Board to defend or protect for the benefit of theCompany all Inventions and the right and title of the Company to them. **10.4** The entire copyright and all similar rights (including future copyright, the right toregister trade marks or service marks and the right to register designs and design rights)throughout the world in works of any description produced by the Executive in the course of orin connection with his employment (“**Works**”) will vest in and belong to the Company absolutelythroughout the world for the full periods of protection available in law including allrenewals and extensions. **10.5** The Executive will (both during and after the termination of his employment) at the Company’srequest and expense anywhere in the world and at any time promptly do everything (includingexecuting documents) that may be required by the Board to assure, define or protect the rightsof the Company in all Works. **10.6** The Executive will not make copies of any computer files belonging to any Group Company ortheir service providers and will not introduce any of his own computer files into any computerused by any Group Company in breach of any Group Company policy, unless he has obtained theconsent of the Board. **10.7** By entering into this Agreement the Executive irrevocably appoints the Company to act on hisbehalf to execute any document and do anything in
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  his name for the purpose of giving the Company (orits nominee) the full benefit of the provision ofclause 10 or the Company’s entitlement understatute. If there is any doubt as to whether such adocument (or other thing) has been carried outwithin the authority conferred by this clause 10.7,a certificate in writing (signed by any director orthe secretary of the Company) will be sufficient toprove that the act or thing falls within thatauthority. **11** **Termination and Suspension** **11.1** The Employment will continue until terminated by either party giving written notice as setout in clause 11.2. **11.2** Either party may terminate the Employment by giving not less than 12 months’ written noticeto the other. **11.3** Except as otherwise agreed by the Executive and the Company, notwithstanding the otherprovisions of this Agreement and in particular clause 11.2, this Agreement will automaticallyterminate at the end of the Company’s fiscal year in which the Executive’s 65th birthdayoccurs. **11.4** The Company may at its sole and absolute discretion pay base salary alone (as referred to inclause 7.1, at the rate in force at the time such payment is made) in lieu of any unexpiredperiod of notice (less any deductions the Company is required by law to make). Any payment bythe Company in lieu of any unexpired period of notice will be made as soon as practicable and,in any event, completed within 2.5 months following the later of the end of the calendar yearor the Company fiscal year that occurs immediately following initial notice under clause 11.2.The Executive is not entitled to participate in or benefit from any severance, termination orredundancy plan, program or arrangement maintained by any Group Company; for the avoidance ofdoubt, this is notwithstanding anything to the contrary that may be contained in suchseverance, termination or redundancy plan, program or arrangement. **11.5** The Company may terminate the Employment by giving written notice to take immediate effectwhether or not the Executive’s entitlement to sick pay, contractual or otherwise, has beenexhausted if the Executive does not perform the duties of the Employment for a period of 364days (whether or not consecutive) in any period of 2 years. This notice can be given whilstthe Executive continues not to perform his duties or on expiration of the 364 day period. Inthis clause, ‘days’ includes Saturdays, Sundays and public holidays.
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**11.6** The Company may terminate the Employment by giving written notice to take immediate effect ifthe Executive: **11.6.1** has not performed his duties under this Agreement to the standard required by theBoard; or  **11.6.2** commits any serious or persistent breach of his obligations under this Agreement; or  **11.6.3** does not comply with any term of this Agreement; or  **11.6.4** does not comply with any lawful order or direction given to him by the Board; or  **11.6.5** is guilty of any gross misconduct or conducts himself (whether in connection with theEmployment or not) in a way which is harmful to any Group Company; or  **11.6.6** is guilty of dishonesty or is convicted of an offense (other than a motoring offencewhich does not result in imprisonment) whether in connection with the Employment ornot; or  **11.6.7** commits (or is reasonably believed by the Board to have committed) a breach of anylegislation in force which may affect or relate to the business of any Group Company;or  **11.6.8** becomes of unsound mind, is bankrupted or has a receiving order made against him ormakes any general composition with his creditors or takes advantage of any statuteaffording relief for insolvent debtors; or  **11.6.9** becomes disqualified from being a director of a company or the Executive’sdirectorship of the Parent terminates without the consent or concurrence of the Parent;or  **11.6.10** fails to maintain or becomes disqualified from maintaining registration with anyregulatory body, membership of which is reasonably required by the Company for theExecutive to carry out his duties.**11.7** Where the Company terminates the Employment by giving written notice to take immediate effectin accordance with either clause 11.5 or 11.6 (or in the case of the Executive’s death), forthe avoidance of doubt there is no obligation to give notice as set out in clause 11.1 or anyother period of notice or to make any payment in lieu of notice. **11.8** The Executive will have no claim for damages or any other remedy against the Company if theEmployment is terminated for any of the reasons set out in clause 11.5 or 11.6.
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**11.9** When the Employment terminates the Company may deduct from any money due to the Executive(including remuneration) any amount which he owes to any Group Company. **11.10** The Company may suspend the Executive from the Employment on full base salary at any time,and for any reason for a reasonable period to investigate any matter in which the Executive isimplicated or involved (whether directly or indirectly) and to conduct any relateddisciplinary proceedings and such suspension shall not entitle the Executive to claim that hehas been constructively dismissed. **11.11** As a condition to making the payments and providing the benefits stated in this clause 11,the Company may require the Executive to execute and deliver a general release in which he (i)releases all claims that he may have in respect of his employment against any Group Companyand any of their respective past or present officers, directors or employees other than hisrights under this Agreement or another agreement into which he and the Company subsequentlyenter and (ii) covenants that he has not filed and will not file any civil action, suit,arbitration, administrative charge, or legal proceeding against any of the released parties inrespect of the released claims. **11.12** Unless the Group waives this requirement, the termination of the Employment for any reasonwill constitute the Executive’s resignation from (1) any director, officer or employeeposition he then has with any Group Company and (2) all fiduciary positions (including astrustee) he holds with respect to any pension plans or trusts established by any GroupCompany. The Executive agrees that this Agreement will serve as his written notice ofresignation in this circumstance. **12** **Garden Leave** **12.1** Neither the Company nor any Group Company is under any obligation to provide the Executivewith any work. At any time after notice to terminate the Employment is given by either partyunder clause 11 above, or if the Executive resigns without giving due notice and the Companydoes not accept his resignation, the Company may, at its absolute discretion, require theExecutive to take a period of absence called “garden leave” for a maximum period of 6 months(the “**Garden Leave Period**”). The provisions of this clause shall apply to any Garden LeavePeriod. **12.2** The Company may require that the Executive will not, without prior written consent of theBoard, be employed or otherwise engaged in the conduct of
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  any activity, whether or not of a business nature during the Garden Leave Period. Further,if so requested by the Company, the Executive will not: **12.2.1** enter or attend the premises of the Company or any other Group Company; or  **12.2.2** contact or have any communication with any customer or client of the Company or anyother Group Company in relation to the business of the Company or any other GroupCompany (other than purely social contract); or  **12.2.3** contact or have any communication with any employee, officer, director, agent orconsultant of the Parent or any other Group Company in relation to the business of theParent or any other Group Company; or  **12.2.4** remain or become involved in any aspect of the business of the Parent or any otherGroup Company except as required by such companies.**12.3** The Company may require the Executive: **12.3.1** to comply with the provisions of clause 15; and  **12.3.2** to immediately resign from any directorship, trusteeships or other offices which heholds in the Parent, any other Group Company or any other company where suchdirectorship or other office is held as a consequence or requirement of the Employment,unless he is required to perform duties to which any such directorship, trusteeship orother office relates in which case he may retain such directorships, trusteeships orother offices while those duties are ongoing. The Executive hereby irrevocably appointsthe Company to be his attorney to execute any instrument and do anything in his nameand on his behalf to effect his resignation if he fails to do so in accordance withthis clause 12.3.2.**12.4** During the Garden Leave Period, the Executive will be entitled to receive his base salary andall contractual benefits (excluding bonuses) in accordance with the terms of this Agreement.Any unused vacation accrued at the commencement of the Garden Leave Period and any vacationaccrued during any such period will be deemed to be taken by the Executive during the GardenLeave Period. **12.5** At the end of or at any time during the Garden Leave Period, the Company may, at it sole andabsolute discretion, pay the Executive base salary alone (as defined in clause 7.1) in lieu ofthe balance of any period of notice given by the Company or the Executive (less any deductionsthe Company is
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  required by law to make). In any event, and inaccordance with clause 11.4, the Company’s payment inlieu of the unexpired period of notice will be completedwithin 2.5 months following the later of the end of thecalendar year or the Company fiscal year that occursimmediately following initial notice under clause 11.2.**12.6** During the Garden Leave Period: **12.6.1** the Executive shall provide such assistance as the Company or any Group Company mayrequire to effect an orderly handover of his responsibilities to any individual orindividuals appointed by the Company or any Group Company to take over his role orresponsibilities;  **12.6.2** the Executive shall make himself available to deal with requests for information,provide assistance, be available for meetings and to advise on matters relating to work(unless the Company has agreed the Executive may be unavailable for a period); and  **12.6.3** the Company may appoint another person to carry out his duties in substitution forthe Executive.**12.7** All duties of the Employment (whether express or implied), including without limitation theExecutive’s duties of fidelity, good faith and exclusive service, shall continue throughoutthe Garden Leave Period save as expressly varied by this clause 12. **12.8** The Executive agrees the exercise by the Company of its rights pursuant to this clause 12shall not entitle the Executive to claim that he has been constructively dismissed. **13** **Restrictions after Termination of Employment** **13.1** In this clause:   “**Prohibited Area**” means the United States and any other country in the world in which theCompany or any Group Company has material business interests in the period of 12 monthsending on the Relevant Date;   “**Relevant Date**” means the Termination Date or, if earlier, the date on which the Executivecommences any Garden Leave Period;   “**Restricted Period**” means the period of 12 months (less any Garden Leave Period) commencingon the Termination Date;   “**Significant Customer**” means any party with respect to whom the Company or any Group Companyderives, or expects to derive, revenue
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  which represents 1% or more of the revenue of the Group for the applicable fiscal year; and   “**Termination Date**” means the Executive’s last date of employment with the Group.**13.2** The Executive is likely to obtain trade secrets and confidential information and personalknowledge of and influence over customers, clients and employees of the Group during thecourse of the Employment. To protect these interests of the Company, the Executive agrees withthe Company that he will be bound by the following covenants: **13.2.1** during the Restricted Period and within the Prohibited Area he will not be employedin, or carry on for his own account or for any other person, whether directly orindirectly, (or be a director of any company engaged in) any business which, by virtueof its location or otherwise, is or is about to be in competition with any business ofthe Company or any other Group Company being carried on by such company at the RelevantDate provided he was concerned or involved with that business to a material extent atany time during the 12 months prior to the Relevant Date;  **13.2.2** during the Restricted Period he will not (either on his own behalf or for or with anyother person, whether directly or indirectly) canvass or solicit in competition withthe Company or any other Group Company or deal with or otherwise accept in competitionwith the Company or any Group Company the business of any customer which is or is aboutto become a Significant Customer at the Relevant Date; and  **13.2.3** during the Restricted Period he will not (either on his own behalf or for or with anyother person, whether directly or indirectly), entice or try to entice away from theCompany or any other Group Company any person who was senior employee, director,officer, agent, senior consultant or senior associate of such a company at theTermination Date and who had been senior employee, director, officer, agent, seniorconsultant or senior associate at any time during the six months prior to the RelevantDate and with whom he had worked closely at any time during that period.**13.3** Each of the paragraphs contained in clause 13.2 constitutes an entirely separate andindependent covenant. If any covenant is found to be invalid this will not affect the validityor enforceability of any of the other covenants.
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**13.4** Following the Termination Date, the Executive will not represent himself as being in any wayconnected with the businesses of the Company or of any other Group Company (except to theextent agreed by such a company). **13.5** Any benefit given or deemed to be given by the Executive to any Group Company under the termsof clause 13 is received and held on trust by the Company for the relevant Group Company. TheExecutive will enter into appropriate restrictive covenants directly with other GroupCompanies if asked to do so by the Company. **13.6** Any termination of the Employment or of this Agreement (or breach of this Agreement by theExecutive, the Company or the Parent) shall have no effect on the continuing operation of thisclause 13. **13.7** The parties hereto acknowledge that the potential restrictions on the Executive’s futureemployment imposed by this clause 13 are reasonable in both duration and geographic scope andin all other respects. If for any reason any court of competent jurisdiction shall find anyprovisions of this clause 13 unreasonable in duration or geographic scope or otherwise, theExecutive and the Company agree that the restrictions and prohibitions contained herein shallbe effective to the fullest extent allowed under applicable law in such jurisdiction. **13.8** The parties acknowledge that this Agreement would not have been entered into and the benefitsdescribed in clause 7 would not have been promised in the absence of the Executive’s promisesunder this clause 13. **13.9** In the event that the Executive breaches clause 13.2.1, 13.2.2, or 13.2.3, the Company’sobligation to make or provide payments or benefits under clause 7 and 12 shall cease. **13.10** Before the Executive either applies for or accepts employment with any other person orentity while any of clause 13.2.1, 13.2.2, or 13.2.3 is in effect, the Executive will providethe prospective employer with written notice of the provisions of this clause 13 and willdeliver a copy of the notice to the Company. **13.11** The Executive agrees not to take any action that is intended to harm the Group or itsreputation or which leads to unwanted or unfavorable publicity to the Group or make any publicstatement that disparages any member of the Group or any of their respective past or presentexecutive officers or directors.
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**14** **Offers on Liquidation** **14.1** The Executive will have no claim against the Company if the Employment is terminated byreason of liquidation in order to reconstruct or amalgamate the Company or by reason of anyreorganization of the Company and the Executive is offered employment with the companysucceeding to the Company upon such liquidation or reorganization and the new terms ofemployment offered to the Executive are no less favorable to him than the terms of thisAgreement. **15** **Return of Company Property** **15.1** At any time during the Employment (at the request of the Company) and in any event when theEmployment terminates, the Executive will immediately return to the Company: **15.1.1** all documents and other materials (whether originals or copies) made or compiled byor delivered to the Executive during the Employment and concerning all the GroupCompanies. The Executive will not retain any copies of any materials or otherinformation; and  **15.1.2** all other property belonging or relating to any of the Group Companies.**15.2** When the Employment terminates the Executive will immediately return to the Company any carprovided to the Executive which is in the possession or under the control of the Executive.The Company car must be returned in good condition (allowing for fair wear and tear). **15.3** If the Executive commences Garden Leave in accordance with clause 12 he may be required tocomply with the provisions of clause 15.1. **16** **Directorships** **16.1** The Executive’s office as a director of the Parent or any other Group Company is subject tothe Articles of Association or Certificate of Incorporation of the relevant company (asamended from time to time). If the provisions of this Agreement conflict with the provisionsof the Articles of Association or Certificate of Incorporation, the Articles of Association orCertificate of Incorporation will prevail. **16.2** The Executive must resign from any office held in any Group Company if he is asked to do soby the Company. **16.3** If the Executive does not resign as an officer of a Group Company, having been requested todo so in accordance with clause 16.2, the Company will be appointed as his attorney to effecthis resignation. By entering into this
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  Agreement, the Executive irrevocably appoints the Company as his attorney to act on hisbehalf to execute any document or do anything in his name necessary to effect hisresignation in accordance with clause 16.2. If there is any doubt as to whether such adocument (or other thing) has been carried out within the authority conferred by this clause16.3, a certificate in writing (signed by any director or the secretary of the Company) willbe sufficient to prove the act or thing falls within that authority.**16.4** The termination of any directorship or other office held by the Executive will not terminatethe Executive’s employment or amount to a breach of terms of this Agreement by the Company. **16.5** During the Employment the Executive will not do anything which could cause him to bedisqualified from continuing to act as a director of any Group Company. **16.6** The Executive must not resign his office as a director of any Group Company without theagreement of the Parent. **17** **Notices** **17.1** Any notices given under this Agreement must be given by letter or fax. Notice to either theParent or the Company must be addressed to its respective registered office at the time thenotice is given. Notice to the Executive must be given to him personally or sent to his lastknown address. **17.2** Except for notices given by hand, notices given by post will be deemed to have been given onthe next working day after the day of posting and notices given by fax will be deemed to havebeen given in the ordinary course of transmission. **18** **Data Protection Act 1998** **18.1** For the purposes of the Data Protection Act 1998 (the “**Act**”) the Executive gives his consentto the holding, processing and disclosure of personal data (including sensitive data withinthe meaning of the Act) provided by the Executive to the Company for all purposes relating tothe performance of this Agreement including, but not limited to: **18.1.1** administering and maintaining personnel records;  **18.1.2** paying and reviewing base salary and other remuneration and benefits;  **18.1.3** providing and administering benefits (including if relevant, pension, life assurance,permanent health insurance and medical insurance);
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 **18.1.4** undertaking performance appraisals and reviews;  **18.1.5** maintaining sickness and other absence records;  **18.1.6** taking decisions as to the Executive’s fitness for work;  **18.1.7** providing references and information to future employers, and if necessary,governmental and quasi-governmental bodies for social security and other purposes, theInland Revenue and the Contributions Agency;  **18.1.8** providing information to future purchasers of the Company or of the business in whichthe Executive works; and  **18.1.9** transferring information concerning the Executive to a country or territory outsidethe European Economic Area.**18.2** The Executive acknowledges that during his Employment he will have access to and process, orauthorize the processing of, personal data and sensitive personal data relating to employees,customers and other individuals held and controlled by the Company. The Executive agrees tocomply with the terms of the Act in relation to such data and to abide by the Company’s dataprotection policy issued from time to time. **19** **Disputes** **19.1** Mandatory Arbitration. Subject to the provisions of this clause 19, any controversy or claimbetween the Executive and the Company arising out of or relating to or concerning thisAgreement (including the covenants contained in clause 13) or any aspect of his employmentwith the Company or the termination of that employment (together, an “**Employment Matter**”) willbe finally settled by arbitration in Massachusetts administered by the American ArbitrationAssociation (the “**AAA**”) under its Employment Arbitration Rules then in effect. However, theAAA’s Employment Arbitration Rules will be modified in the following ways: (i) the award mustnot be a compromise but must be the adoption of the submission by one of the parties, (ii)each arbitrator will agree to treat as confidential evidence and other information presentedto them to the same extent as the information is required to be kept confidential under clause9, (iii) there will be no authority to award punitive damages (and the Executive and theCompany agree not to request any such award), (iv) the optional Rules for Emergency Measuresof Protections will apply, (v) there will be no authority to amend or modify the terms of thisAgreement except as provided in clause 20.2 (and the Executive and the Company agree not torequest any such amendment or modification), (vi) an award must be rendered within tenbusiness days of the parties’ closing statements or submission of post-
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  hearing briefs, and (vii) the arbitration will be conducted before a panel of threearbitrators, one selected by the Executive within 10 days of the commencement of the noticeof arbitration, one selected by the Company in the same period and the third selectedjointly by these arbitrators (or, if they are unable to agree on an arbitrator within 30days of the commencement of arbitration, the third arbitrator will be appointed by theAmerican Arbitration Association; provided that the arbitrator shall be a partner or formerpartner at a nationally recognized law firm who is experienced in employment matters). **19.2** Injunctions and Enforcement of Arbitration Awards. The Executive or the Company may bring anaction or special proceeding in a state or federal court of competent jurisdiction sitting inMassachusetts to enforce any arbitration award under clause 19.1. Also, the Company may bringsuch an action or proceeding, in addition to its rights under clause 9 or 13 and whether ornot an arbitration proceeding has been or is ever initiated, to temporarily, preliminarily orpermanently enforce any part of clause 9 or 13. The Executive agrees that (i) violating anypart of clause 9 or 13 would cause damage to the Group that cannot be measured or repaired,(ii) the Company therefore is entitled to an injunction, restraining order or other equitablerelief restraining any actual or threatened violation of clause 9 or 13, (iii) no bond willneed to be posted for the Company to receive such an injunction, order or other relief and(iv) no proof will be required that monetary damages for violations of clause 9 or 13 would bedifficult to calculate and that remedies at law would be inadequate. **19.3** Jurisdiction and Choice of Forum. The Executive and the Company irrevocably submit to theexclusive jurisdiction of any state or federal court located in Massachusetts over anyEmployment Matter that is not otherwise arbitrated or resolved according to clause 19.1. Thisincludes any action or proceeding to compel arbitration or to enforce an arbitration award.Both the Executive and the Company (i) acknowledge that the forum stated in this clause 19.3has a reasonable relation to this Agreement and to the relationship between the Executive andthe Company and that the submission to the forum will apply even if the forum chooses to applynon-forum law, (ii) waive, to the extent permitted by law, any objection to personaljurisdiction or to the laying of venue of any action or proceeding covered by this clause 19.3in the forum stated in this clause 19.3, (iii) agree not to commence any such action orproceeding in any forum other than the stated in this clause 19.3 and (iv) agree that, to theextent permitted by law, a final and non-appealable judgment in any such action or proceedingin any such court will be conclusive and binding on the Executive and the Company. However,nothing in this Agreement precludes
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  the Executive or the Company from bringing any action or proceeding in any court for thepurpose of enforcing the provisions of clause 19.1 and this clause 19.3.**19.4** **Waiver of Jury Trial. To the extent permitted by law, the Executive and the Company waive anyand all rights to a jury trial with respect to any Employment Matter.** **19.5** **This Agreement is governed by and will be interpreted in accordance with the laws of theState of Massachusetts applicable to contracts made and performed in Massachusetts, excludingapplication of its conflict of laws principles.** **19.6** This Agreement will be binding on, inure to the benefit of and be enforceable by the partiesand their respective heirs, personal representatives, successors and assigns. This Agreementdoes not confer any rights, remedies, obligations or liabilities to any entity or person otherthan the parties hereto and their permitted successors and assigns. **20** **Miscellaneous** **20.1** This Agreement may be entered into in any number of counterparts, all of which taken togethershall constitute one and the same instrument. Any party may enter into this Agreement byexecuting any such counterpart. **20.2** This Agreement may only be modified by the written agreement of the parties. **20.3** The Executive cannot assign this Agreement to anyone else. **20.4** References in this Agreement to rules, regulations, policies, handbooks or other similardocuments which supplement it, are referred to in it or describe any pensions or otherbenefits arrangement are references to the versions or forms of the relevant documents asamended or updated from time to time. **20.5** The invalidity or unenforceability of any provision of this Agreement shall not affect thevalidity or enforceability of any other provision of this Agreement. **20.6** The Company may withhold from any amounts payable under this Agreement any applicablewithholding in respect of federal, state, local or foreign taxes. **20.7** This Agreement supersedes any previous written or oral agreement between the parties inrelation to the matters dealt with in it. It contains the whole agreement between the partiesrelating to the Employment at the
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  date the agreement was entered into (except for those terms implied by law which cannot be excluded by the agreement of the parties).The Executive acknowledges that he has not been induced to enter into this Agreement by any representation, warranty or undertakingnot expressly incorporated into it. The Executive agrees and acknowledges that his only rights and remedies in relation to anyrepresentation, warranty or undertaking made or given in connection with this Agreement (unless such representation, warranty orundertaking was made fraudulently) will be for breach of the terms of this Agreement, to the exclusion of all other rights andremedies (including those in tort or arising under statute). **20.8** Neither party’s rights or powers under this Agreement will be affected if: **20.8.1** one party delays in enforcing any provision of this Agreement; or  **20.8.2** one party grants time to the other party.**20.9** References to any statutory provisions include any modifications or re-enactments of thoseprovisions. **20.10** Headings will be ignored in construing this Agreement. **20.11** If either party agrees to waive his or its rights under a provision of this Agreement, thatwaiver will only be effective if it is in writing and it is signed by him or it. A party’sagreement to waive any breach of any term or condition of this Agreement will not be regardedas a waiver of any subsequent breach of the same term or condition or a different term orcondition. **20.12** The Executive hereby confirms that the execution of this Agreement and performance of hisobligations under this Agreement do not and will not conflict with, violate the terms of, orconstitute a default under, and will be in compliance with any agreement or instrument towhich he is a party or by which he is bound, or to which he is subject. The Executive furtherconfirms that he is not party to any employment contract, confidentiality agreement or otheragreement that contains any restriction that will affect the performance of his dutieshereunder. Executive represents that (A) his negotiations with the Group have not interferedwith his duties as an employee, partner or member of another entity, (B) he has not and willnot solicit or encourage any employee of another entity to leave such entity’s employment inviolation of any agreement between such entity and the Executive and (C) he has not, and willnot, use, retain or disclose to the Group any confidential information of another entity. **20.13** This Agreement is in consideration of the mutual covenants contained in it. The partieshereto acknowledge the receipt and sufficiency of the
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  consideration to this Agreement and intend this Agreement to be legally binding.**EXECUTED**on July 11, 2007 on behalf of                   /s/ Steve Holliday**...   ...............................**     **NATIONAL GRID PLC**   Director              **..............................................................**     **NATIONAL GRID USA**   Director               /s/ Helen Mahy  **......................................**       Company Secretary/Director, NATIONAL GRID PLC                   **..............................................................**       Company Secretary/Director, NATIONAL GRID USA**BY SIGNING THIS AGREEMENT, I HEREBY CERTIFY THAT I (A) HAVE RECEIVED A COPY OF THIS AGREEMENT FORREVIEW AND STUDY BEFORE SIGNING IT, (B) HAVE READ THIS AGREEMENT CAREFULLY BEFORE SIGNING IT, (C)HAVE HAD SUFFICIENT OPPORTUNITY TO REVIEW THE AGREEMENT WITH ANY ADVISOR I DESIRED TO CONSULT,INCLUDING LEGAL COUNSEL, (D) HAVE HAD SUFFICIENT OPPORTUNITY BEFORE SIGNING IT TO ASK ANY QUESTIONSABOUT THIS AGREEMENT AND HAVE RECEIVED SATISFACTORY ANSWERS TO ALL SUCH QUESTIONS, AND (E)UNDERSTAND MY RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT.**
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     EXECUTED on July ___, 2007 by    } /s/ Thomas B. King**THOMAS KING**   in the presence of:             Witness’s signature } /s/ Soo Ling YoungbloodName Soo Ling Yongblood         Address 655 12th Street    Oakland, CA 94607              Occupation Executive Assistant    
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**Table of Contents**       **Contents** **Page**        1 Interpretation  1        2 Commencement of Employment  1        3 Appointment and Duties of the Executive  2        4 Hours  3        5 Interests of the Executive  3        6 Location  4        7 Base Salary and Benefits  4        8 Expenses  5        9 Confidentiality  6        10 Intellectual Property  6        11 Termination and Suspension  8        12 Garden Leave  10        13 Restrictions after Termination of Employment  12        14 Offers on Liquidation  15        15 Return of Company Property  15        16 Directorships  15        17 Notices  16        18 Data Protection Act 1998  16        19 Disputes  17        20 Miscellaneous  19