Document:

Exhibit 4.12

Exhibit 4.12

 

	National Grid Transco	1-3 Strand	 T +44
        (0) 20 7004 3000
	London WC2N 5EH	F +44 (0) 20 7004
        3004
	  	www.ngtgroup.com

12 January 2004

Sir John Parker

“Kemendine”

Court Wood

Newton Ferrers

Plymouth

PL8 1 BW

Dear Sir John

I am writing to confirm the amended
    terms of your appointment as Non-Executive Director and Chairman of National
    Grid Transco plc (the “Company”) a role which you took on from
    21 October 2002 (the Merger effective date). It is agreed that this is a
    contract for services and is not a  contract of employment. The terms contained
    within this letter replace those contained within your Contract of Service,
    dated 13 June 2002, which it is agreed are superseded in entirety by the
    terms of this letter and which take effect from 1 October 2003.

Appointment

You were appointed by the Board of the Company (the “Board”) as Non-Executive
Director and Chairman from 21 October 2002. As a Non-Executive Director your
appointment will continue for a period of three years ending at the Company’s
Annual General Meeting (AGM) in 2006  unless otherwise terminated earlier in
accordance with the Company’s Articles of Association, or by and at the
discretion of either party upon six month’s written notice. Continuation
of your appointment is contingent upon satisfactory performance and re-election
at AGMs. In the  unlikely event that shareholders do not support your appointment
or other shareholder action terminates your appointment, you will not be entitled
to receive damages for breach of contract other than any payment in respect of
notice.

During your period of appointment you will comply with all relevant policies, rules and regulations issued by the Company.

	 	National Grid Transco
        plc
	Registered Office: 1–3 Strand,
        London WC2N 5EH
	Registered in England and Wales,
        No 4031152

 

	National Grid Transco  

Time Commitment

We have agreed a time commitment of 21⁄2 days per week.

The agreement of the Board should be sought before accepting additional commitments that might affect the time you are able to devote to your role as a Non-Executive Director and Chairman of the Company.

You should also have regard
    to your duties as a Director in light of the UKLA Listing Rules and Combined
    Code and obligations arising as a result of the Company’s shares being listed on the New York Stock Exchange, as set out in the relevant section in the Directors’ Information Pack
 which is attached. You will also be subject to the Company’s Share Dealing
 Code as set out in the Directors Information Pack.

Role

  Non-Executive Directors have the same general legal responsibilities to the
      Company as any other Director. The Board as a whole is collectively responsible
      for promoting the success of the Company by directing and supervising the
Company’s affairs.

Your responsibilities as Chairman are required by the new Combined Code to be set out in writing and agreed by the Board. These responsibilities are now being discussed with you prior to such approval.

Committees

This letter refers to your appointment as a Non-Executive Director and Chairman of the Company. You will also continue to chair the Nominations Committee.

Fees and other Remuneration and Benefits

  You will be paid an annual fee of £300,000 gross per annum which will
  be paid monthly in arrears. You will not receive any additional fees for attendance
  at any Board meeting, for membership of any Board Committee or attendance at
  any Board Committee meetings. The Company will reimburse you for all reasonable
  and properly documented expenses you incur in performing the duties of your
  office. The Board shall review the above fees from time to time and they are
  therefore subject to change. All fees and payments will be made in sterling
  subject to any
 deductions required to be made by the Company.

At the Company’s discretion you will have the opportunity of participating in the Company’s
    personal accident and private medical insurance schemes on the terms agreed
    by the Board for the Executive Directors. The Company may amend, suspend
    or terminate these schemes, or any part thereof, at any time in its absolute
    discretion and you shall have no continuing right to any continued participation
    in the same. Membership is subject to and in accordance with the rules of
 the relevant schemes as amended from time to time.

 

	National Grid Transco  

Life assurance cover will be provided to you of an amount and on terms that would have been available had you been, throughout the period of your appointment as Chairman, a member of the Lattice Group Pension Scheme. The level of cover will be equivalent to four times your
 prevailing level of fees. In this connection, you will be required to have an initial medical assessment to establish the cost of cover, following which you may, from time to time, be requested to undergo further medical examinations.

The Company will provide you with a chauffeur, car and fuel expenses for all private and business use under the terms and conditions agreed by the Board, from time to time, to apply to Executive Directors. Provision of this benefit is discretionary and does not form part of your
 contractual terms and conditions.

Any income tax assessed on these benefits will be for your account.

The Company reserves the right to deduct from your fees any overpayment of fees or other payments, made by mistake or through misrepresentation or for any other reason. Upon termination of your appointment, the Company may deduct from your final payment, or any other
 termination payments due, an amount equal to any sums you owe to the Company and you hereby agree to any such deductions.

Outside Interests

It is accepted and acknowledged that you have business interests other than those of the Company and have declared any conflicts that are apparent at present. In the event that you become aware of any potential conflicts of interest, these should be disclosed to the Group Company
 Secretary and General Counsel as soon as apparent.

Confidentiality

You will, naturally, during your appointment and following its termination not disclose or communicate to any person (except as required by law or in the course of the proper performance of your duties, or with the consent of the Board of Directors) nor use for your own account or
 advantage any confidential information relating to the Company or any of its subsidiaries or associate companies which you obtained during your appointment or otherwise.

You will be required to return all papers containing confidential information on termination of the appointment.

Your attention is also drawn to the requirements under both legislation and regulation as to the disclosure of price sensitive information. Consequently you should avoid making any statements that might risk a breach of these requirements without prior clearance from the Group
 Company Secretary and General Counsel.

 

	National Grid Transco  

Review Process

The performance of individual Directors, the whole Board and its Committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your role you should discuss them with the Chief Executive, the Deputy Chairman or the Group Company
 Secretary and General Counsel as soon as is appropriate.

Insurance

  The Company has directors’ and officers’ liability insurance and it is intended to maintain such cover for the full term of your appointment. A summary of the cover is included in your Directors’ Information
Pack.

Independent Professional Advice

Occasions
    may arise when you consider that you need professional advice in the furtherance
    of your duties as a Director. Circumstances may occur when it will be appropriate
    for you to seek advice from independent advisors at the Company’s expense.
    Please advise the Group Company Secretary and General Counsel should you
    seek such advice. The Company will reimburse the full cost of expenditure
incurred in respect of such advice.

Indemnity

In the event that you are made a party or are threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that you are or were a Director of the Company, the Company shall
 indemnify you against expenses (including legal fees) actually and reasonably incurred by you in connection with such action, suit or proceeding and against judgements, fines and amounts paid in settlement in connection with such action, suit or proceeding to the fullest extent permitted
 by the Companies Act 1985 as amended and any other applicable law or regulation, as from time to time in effect. Such right of indemnification shall be without prejudice to any other rights to which you may be entitled.

Governinq Law

The agreement contained in this letter shall be governed by, and construed in accordance with, English law and shall be subject to the exclusive jurisdiction of the English courts.

 

	National Grid Transco  

Entire Aqreement

This appointment letter represents the entire understanding, and constitutes the whole agreement, in relation to the Appointment.

Yours sincerely

James Ross

    Deputy Chairman

Agreed and Accepted by

Sir John ParkerExhibit 4.13

 	Exhibit 4.13

 

 

	National Grid Transco	1-3 Strand	
T +44 (0) 20 7004 3000
	London WC2N 5EH	F +44 (0) 20 7004
    3004
	  	www.ngtgroup.com

 

	5thJune 2003	 
	 	Sir John Parker FREng
Chairman
	 	 
	 	D: +44 (0) 20
    7004 3010
	Mr Stephen Pettit	F: +44 (0) 20
    7004 3012
	"The Red House"	M: +44 (0) 7831
    496201
	37 The Hill
Wheathampstead
Hertfordshire
AL4 8PW	john.parker@ngtgroup.com
	 	 
	 	 
	 	 

	Dear	
	With reference to the letter of appointment
        from National Grid Group plc dated 11th June 2002, I am writing
        to confirm the terms of your appointment as a Non-Executive Director
        of National Grid Transco plc (the "Company") with effect from
        1 April 2003. It is agreed that this is a contract for services and is
    not a contract of employment.

Appointment

Your appointment, which commenced on 21 October 2002, will be for an initial term of three years, ending at the Company's AGM in 2006, unless otherwise terminated earlier in accordance with the Company's Articles of Association or by and at the discretion of either party upon one month's written notice. Continuation of your contract of appointment is contingent on satisfactory performance and re-election at forthcoming AGMs. In the unlikely event that shareholders do not support your appointment or other shareholder action terminates your appointment before the 2006 AGM, you will not be entitled to receive damages for breach of contract. As you know, it is Board policy that Non-Executive Directors are typically expected to serve two three-year
terms; any extension to this is subject to review by the Nominations Committee (prior to making recommendations to the Board) in the light of good corporate governance policy at the time.

Time Commitment

Overall we anticipate a time commitment of approximately 2-21⁄2 days
on average per month, after the induction phase, taking account reading and preparation
time for Board and Committee meetings. This will include attendance at Board
meetings (estimated 9 scheduled meetings per annum of which 2-3 per annum will
be in the USA) plus ad hoc and emergency meetings, the AGM, any extraordinary
general meetings, 2 Board strategy sessions and at least one site visit per year.
It is planned that certain Board meetings will be held out of London at the Company's
operations (in the UK and USA).

By confirming this appointment,
    you have agreed that you are able to allocate sufficient time to meet the
    expectations of your role including appropriate

	 	National Grid Transco
    plc
	Registered Office: 1-3 Strand,
        London WC2N 5EH
	Registered in England and Wales,
        No 4031152

 

preparation time. The agreement of the Chairman should be sought before accepting additional commitments that might affect the time you are able to devote to your role as a Non-Executive Director of the Company. You should also have regard to your duties as a director in light of the UK Listing Rules and Combined Code and obligations arising as a result of the Company's shares being listed on the New York Stock Exchange, as set out in the relevant section in the Directors' Information Pack. You will also be subject to the Company's Share Dealing Code as set out in the Directors Information Pack.

Role

Non-Executive Directors have the same general legal responsibilities to the Company as any other director. The Board as a whole is collectively responsible for promoting the success of the Company by directing and supervising the Company's affairs. The Board:

	•	
provides effective business leadership of the Company within a framework of prudent and effective controls which enable risk to be assessed and managed;

	•	
sets the Company's strategic aims, ensures that the necessary financial and human resources are in place for the Company to meet its objectives, and reviews management performance; and

	•	
sets the Company's values and standards and ensures that its obligations to its shareholders and others are understood and met.
	 	 

	In addition to these requirements of all
    directors, the role of the non-executive has the following key elements:
	•	
Strategy: Non-Executive Directors should constructively challenge and contribute to the development of strategy;

	•	
Performance: Non-Executive Directors should scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance;

	•	
Risk: Non-Executive Directors should satisfy themselves that the financial function of the Company is professionally managed and that financial controls and systems of risk management are robust and defensible; and

	•	
People: Non-Executive Directors are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning.

Committees

This letter refers to your appointment as a Non-Executive Director of the Company. You have also been requested to serve on the Finance and Risk and Responsibility Committees.

Fees

You
    will be paid an annual retainer fee of £30,000 gross per annum which will be paid monthly in arrears. You will also be entitled to attendance fees of £1,500 for each Board meeting held in your country of residence and £3,000
    for each overseas meeting. This attendance fee is intended to cover your
attendance at any Committee meetings. You will not receive any additional

 

	fees for membership of, or attendance at, any Board Committee meetings. The Company will reimburse you for all reasonable and properly documented expenses you incur in performing the duties of your office. The Board shall review the above fees from time to time and they are therefore subject to change. All fees and payments will be made subject to any deductions required to be made by the Company.
	 

	Outside Interests

	It is accepted and acknowledged that you have business interests other than those of the Company and have declared any conflicts that are apparent at present. In the event that you become aware of any potential conflicts of interest, these should be disclosed to the Chairman and/or Company Secretary as soon as apparent.

	 
	The Board of the Company have determined you to be independent according to the provision of the Combined Code.

	 
	Confidentiality

	You will, naturally, during your appointment and following its termination not disclose or communicate to any person (except as required by law or in the course of the proper performance of your duties, or with the consent of the Board of Directors) nor use for your own account or advantage any confidential information relating to the Company or any of its subsidiaries or associate companies which you obtained during your appointment or otherwise.

	 
	You will be required to return all papers containing confidential information on termination of the appointment.

	 
	Your attention is also drawn to the requirements under both legislation and regulation as to the disclosure of price sensitive information. Consequently you should avoid making any statements that might risk a breach of these requirements without prior clearance from the Chairman or Company Secretary.

	 
	Induction

	You have already been provided
    with an introduction to the Company and its businesses and detailed information
    on a variety of areas plus a directors' information pack. We have also arranged
    for various site visits and meetings with senior and middle management and
    the Company's advisors. We will also arrange for you to meet major investors
    as appropriate.

	 

	Review Process

	The performance of individual directors and the whole Board and its Committees is evaluated annually. If, in the interim, there are any matters which cause you concern about your role you should discuss them with the Chairman as soon as is appropriate.

 

	Insurance

	The Company has directors' and officers' liability insurance and it is intended to maintain such cover for the full term of your appointment. A summary of the cover is included in your directors' information pack.

	 
	Independent Professional Advice

	Occasions may arise when you consider that you need professional advice in the furtherance of your duties as a director. Circumstances may occur when it will be appropriate for you to seek advice from independent advisors at the Company's expense. Please advise either the Chairman or the Company Secretary should you seek such advice. The Company will reimburse the full cost of expenditure incurred in accordance in respect of such advice.

	 
	Indemnity

	In the event that you are made a party or are threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that you are or were a director of the Company, the Company shall indemnify you against expenses (including legal fees) actually and reasonably incurred by you in connection with such action, suit or proceeding and against judgments, fines and amounts paid in settlement in connection with such action, suit or proceeding to the fullest extent permitted by the Companies Act 1985 as amended and any other applicable law or regulation, as from time to time in effect. Such right of indemnification
shall be without prejudice to any other rights to which you may be entitled.

	 
	Governing Law

	The agreement contained in this letter shall be governed by, and construed in accordance with, English law and shall be subject to the exclusive jurisdiction of the English courts.

	 
	Entire Agreement

	This appointment letter represents the entire understanding, and constitutes the whole agreement, in relation to the Appointment and supersedes any previous agreement between yourself and the Company with respect thereto.

	 
	On a personal level, I am delighted that you are continuing to serve on the Board of National Grid Transco plc and I look forward to our continuing working relationship.

	 
	Yours sincerely

	
	Sir John Parker

    Chairman 
	 
	Agreed and Accepted by
	
	Stephen Pettit

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