Document:

EX-4.C.5

 Exhibit 4(C).5 
 Dated 28 February 2014 
 NATIONAL GRID ELECTRICITY TRANSMISSION PLC

 and 
 JOHN MARK PETTIGREW 
 SERVICE AGREEMENT 

 
 

 
 Linklaters LLP 
 One Silk Street 
 London EC2Y 8HQ 

Telephone (44-20) 7456 2000 
 Facsimile (44-20) 7456 2222 

 This Agreement is made on 28 February 2014 between 

 

	 (1)
	 NATIONAL GRID ELECTRICITY TRANSMISSION PLC incorporated in England and Wales whose registered office is at 1-3 Strand, London WC2N 5EH (the
“Company”); and 

  

	 (2)
	 JOHN MARK PETTIGREW of 41 Binswood Avenue, Leamington Spa, Warwickshire CV32 5SE (the “Executive”).

 This agreement records the terms on which the Executive will serve as an Executive Director of National
Grid plc and an employee of the Company. 
  

	 1
	 Interpretation 

 In this agreement: 
  

	 1.1
	 Definitions 

 “Board” means the board of directors of National Grid plc at any time or any person or committee nominated by the board of directors as its representative for the purposes of this
agreement; 
 “Employment” means the employment governed by this agreement; 

“Group” means National Grid plc, , the Company’s ultimate holding company from time to time, and its
’s associates (as defined in section 435 of the Insolvency Act 1986) from time to time which shall include the Company; 
 “Group Company” means a member of the Group and “Group Companies” will be interpreted accordingly; 

“holding company” has the meaning given in section 1159 of the Companies Act 2006; 

“Listing Rules” means the listing rules made by the Financial Conduct Authority in exercise of its
functions as a competent authority pursuant to Part VI of the Financial Services and Markets Act 2000 

“Parent Company” means National Grid plc; 

“Remuneration Committee” means the remuneration committee of the Board; and 

“Termination Date” means the date on which the Employment terminates. 

 

	 2
	 Commencement of Employment 

  

	 2.1
	 The Employment will start on 1 April 2014 (the “Commencement Date”). The Employment will continue until termination in
accordance with the provisions of this agreement. The Executive’s period of continuous service started on 16 September 1991. 

  

	 2.2
	 The Executive warrants that he is not prevented from taking up the Employment or from performing his duties in accordance with the
terms of this agreement by any obligation or duty owed to any other party, whether contractual or otherwise. 

  
  

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	 3
	 Appointment and Duties of the Executive 

  

	 3.1
	 The Executive will serve as Executive Director of the Parent Company or in any other executive capacity as the Executive and the Company may agree
from time to time. 

  

	 3.2
	 The Executive will: 

  

	 	 3.2.1
	 devote the whole of his time, attention and skill to the Employment; 

 

	 	 3.2.2
	 properly perform his duties and exercise his powers; 

 

	 	 3.2.3
	 accept any offices or directorships as reasonably required by the Board; 

 

	 	 3.2.4
	 comply with all rules and regulations issued by the Parent Company as amended from time to time, including without limitation, the Code of Employee
Conduct and the Standards of Ethical Business Conduct; 

  

	 	 3.2.5
	 obey the directions of the Board; and 

  

	 	 3.2.6
	 use his best endeavours to promote the interests and reputation of every Group Company. 

 

	 3.3
	 The Executive accepts that with his consent (which he will not unreasonably withhold or delay): 

 

	 	 3.3.1
	 the Company may require him to perform duties for any other Group Company whether for the whole or part of his working time. In performing those
duties clause 3.2.4 will apply as if references to the Company are to the appropriate Group Company. The Company will remain responsible for the payments and benefits he is entitled to receive under this agreement; and 

 

	 	 3.3.2
	 the Company may appoint any other person to act jointly with him; and 

 

	 	 3.3.3
	 the Company may transfer the Employment to any other Group Company. 

 

	 3.4
	 The Executive will keep the Board (and, where appropriate the board of directors of any other Group Company) fully informed of his conduct of the
business, finances or affairs of the Company or any other Group Company in a prompt and timely manner. He will provide information to the Board in writing if requested. 

 

	 3.5
	 The Executive will promptly disclose to the Board full details of any wrongdoing by any employee of any Group Company where that wrongdoing is
material to that employee’s employment by the relevant company or to the interests or reputation of any Group Company. 

  

	 3.6
	 At any time during the Employment the Company may require the Executive to undergo a medical examination by a medical practitioner appointed by the
Company. The Executive authorises that medical practitioner to disclose to the Company any report or test results prepared or obtained as a result of that examination and to discuss with it any matters arising out of the examination which are
relevant to the Employment or which might prevent the Executive properly performing the duties of the Employment. 

  

	 3.7
	 The Executive is required to comply with the Parent Company’s policies and procedures which may be amended or introduced from time to time,
these are available on the Parent Company intranet. If there is any conflict between those polices and this agreement, the terms of this agreement shall prevail. 

  
  

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	 4
	 Hours 

  

	 4.1
	 The Executive will comply with the Company’s normal hours of work and will also work any additional hours which may be reasonably necessary to
perform his duties to the satisfaction of the Board. He will not receive any further remuneration for any hours worked in addition to the normal working hours. 

 

	 4.2
	 The Executive and the Company agree that the Executive is a managing executive of the Parent Company for the purposes of the Working Time
Regulations 1998 (the “Regulations”) and is able to determine the duration of his working time himself. As such, the exemptions in Regulation 20 of the Regulations will apply to the Employment. 

 

	 4.3
	 The Executive agrees to keep records of his working hours as reasonably required by the Company from time to time in order to comply with its
obligations under the Regulations. 

  

	 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) whether or not of a
commercial or business nature except his interests in any Group Company. The Executive confirms he has no such interests at the date of this agreement. 

 

	 5.2
	 Subject to clause 5.3, during the Employment the Executive will not be directly or indirectly engaged or concerned in the conduct of any activity
which is similar to or competes with any activity carried on by any Group Company (except as a representative of the Company or with the written consent of the Board). 

 

	 5.3
	 The Executive may not hold or be interested in investments which amount to more than three per cent of the issued investments of any class of any
one company whether or not those investments are listed or quoted on any recognised Stock Exchange or dealt in on the Alternative Investments Market. 

  

	 5.4
	 The Executive will (and will procure that his spouse and dependent children) comply with all rules of law, including Part V of the Criminal Justice
Act 1993, the Model Code as set out in the annex to Chapter 9 of the Listing Rules as amended from time to time and rules or policies applicable to the Company from time to time in relation to the holding or trading of securities.

  

	 6
	 Location 

  

	 6.1
	 The Executive will work atNational Grid House, Warwick Technology Park, Gallows Hill, Warwick CV34 6DA or anywhere else within the United Kingdom
required by the Board. He may be required to travel and work outside the United Kingdom from time to time but, unless otherwise agreed with the Board, will not be required to live outside the United Kingdom. 

 

	 7
	 Base salary and Benefits 

  

	 7.1
	 From the Commencement Date the Company will pay the Executive a base salary of £475,000 per annum. Base salary will be paid in equal
monthly instalments, partly in arrears and partly in advance, by bank credit transfer on or about the 15th day of each month and will accrue from day to day. Base salary will be reviewed annually. The review

  
  

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will usually take place in June, with the first such review for the Executive being in June 2015. The Company is under no obligation to award an increase following a salary review. There will be
no review of salary after notice has been given by either party to terminate this agreement under clause 11. 

  

	 7.2
	 The base salary referred to in clause 7.1 includes director’s fees from the Group Companies and any other companies in which the Executive is
required to accept a directorship under the terms of this Employment. 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 be applied. 

 

	 7.3
	 The Executive may, at the discretion of the Remuneration Committee, be invited to participate in any bonus plan operated by the Parent Company and
as introduced or amended from time to time. If so invited, the Executive’s participation in such bonus plan and the amount (if any) payable under it will be at the discretion of the Remuneration Committee and/or in accordance with the rules of
any such plan in force from time to time. Participation in a bonus plan for one year does not entitle the Executive to participation in any bonus plan for any other year. 

 

	 7.4
	 The Company will provide a car for the Executive’s use in accordance with the rules of the Company car scheme, as amended, from time to time.

  

	 7.5
	 The Executive is currently a member of the Company’s defined benefit pension scheme, titled the National Grid Electricity Group of the
Electricity Supply Pension Scheme (the “Scheme”) and the National Grid UK Supplementary Benefits Scheme (“the Unfunded Scheme”) subject to the trust deed and the rules of these Schemes as amended from time to time.
 

  

	 	 7.5.1
	 On his appointment to the Board the Executive’s salary for pension purposes will be £475,000 and increases to this salary will be
capped for the purposes of his pension entitlements under the Scheme and the Unfunded Scheme, for past and future service with the Company or any Group Company. The cap to salary increases, for the purposes of the Scheme and the Unfunded Scheme,
will be at a maximum of the lower of the annual increase in RPI (see 7.5.2) and 3% per annum. This will be the Executive’s “Capped Salary”. 

 

	 	 7.5.2
	 The RPI the Company will use to calculate the Executive’s Capped Salary each year will be the figure for the March ‘All Items
Retails Price Index’ published by the Office for National Statistics (“ONS”) in April each year. In the event that RPI is varied or abolished by the ONS, the replacement will be the ONS’s successor formula to RPI or such
alternative as National Grid considers appropriate which is as close as possible to RPI. 

  

	 	 7.5.3
	 Should the Government’s proposals to introduce a new State Pension go ahead, the Executive’s regular contributions to the Scheme will
increase by no more than 2% of the Capped Salary per annum from April 2016. 

  

	 7.6
	 Subject to the arrangements regarding holiday which are set out at clause 7.8 below and which take precedence, the Executive is eligible to
participate in the Company’s flexible benefits scheme as introduced or amended from time to time, currently “Your Flexible Benefits”, which provides access to a range of optional benefits. The Executive should note

  
  

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that some of the benefits provided under the scheme may be taxable benefits. The Executive should note the range of flexible benefits offered and the flexible benefits package itself does not
form part of the Executive’s contract of employment and the Company reserves the right, at any time, to withdraw and/or amend the flexible benefits scheme and the benefits provided under it at its absolute discretion. 

 

	 7.7
	 If the Executive complies with any eligibility requirements or other conditions set by the Company and any insurer appointed by the Company
(“Insurer”), the Executive and his spouse and children under 21 years of age who reside with the Executive or in full time education up to the age of 24 may participate in the Company’s private health insurance arrangements at
the Company’s expense and subject to the terms of those arrangements in force from time to time. The Company reserves the right at any time to withdraw this benefit or to amend the terms upon which it is provided. The Executive understands and
agrees that if the Insurer fails or refuses to provide him with any benefit under the insurance arrangement provided by the Company, the Executive will have no right of action against the Company in respect of such failure or refusal.

  

	 7.8
	 The Executive is entitled to 28 days’ paid holiday each year (in addition to English bank and other public holidays) subject to any election
the Executive may choose to make pursuant to the Company’s flexible benefits scheme. Any election the Executive may choose to make pursuant to the Company’s flexible benefits scheme to increase his holiday entitlement will be subject to
prior Board or Chief Executive of the Parent Company’s approval. All holiday must be taken at times approved in advance by the Board or by the Parent Company’s Chief Executive. The Executive’s holiday year commences in the month of
his birth and ends on the preceding month in the following year. Holidays may not be carried forward from one holiday year to the next without the Board’s prior approval. The Executive agrees the provisions of Regulations
15(1)-(4) inclusive of the Regulations (dates on which leave is taken) do not apply to the Employment. 

 Holiday entitlement will accrue from day to day. For part years, the Executive’s holiday entitlement for the year will be pro-rated to the length of his service in that year. The Executive will be
paid for any accrued holiday not taken at the Termination Date unless the Employment is terminated for gross misconduct or in accordance with clause 11.6. The Company may require the Executive to take any accrued holiday during any notice period. If
on the Termination Date the Executive has exceeded his accrued holiday entitlement, the excess may be deducted from any sums due to him. The formula for calculating the amount of holiday due to the Executive and any payments or repayments to be made
is 1/260 of the Executive’s annual base salary. 
  

	 7.9
	 The rules governing sickness absence are set out in the Company’s Sickness Absence Policy which is available on the intranet. The Executive
must comply with these rules. Without prejudice to any right of the Company to terminate the Employment at any time pursuant to clause 11, if the Executive is absent from work as a result of sickness or injury then provided that the rules are
complied with, the Executive shall be entitled to sick pay in accordance with the rules of the Company sick pay scheme as detailed below: 

  

	 	 7.9.1
	 As the Executive has at least twelve months’ continuous service: 

 

	 	 (i)
	 an allowance equal to base salary will be paid for the first six months of such absence; 

 

	 	 (ii)
	 after the expiration of the six month period, an allowance equal to half of base salary will be paid for a further period of up to six months.

  
  

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	 	 7.9.2
	 The amount of any benefit which the Executive is entitled to claim during that period of absence under any Social Security or National Insurance
Scheme in England and Wales and/or any scheme of which the Executive is a non-contributory member by virtue of the Employment will be deducted from any base salary paid to him. The Company will pay the Executive statutory sick pay under the Social
Security Contributions and Benefits Act 1992 (as amended) (“SSP”) and any base salary paid to him will be deemed to include statutory sick pay. The Company reserves the right to offset the amount of these benefits against base
salary paid to the Executive even if the Executive has not recovered them. 

  

	 	 7.9.3
	 Any sick pay or allowances in excess of SSP paid after the end of the periods referred to above is entirely at the Company’s discretion.

  

	 7.10
	 If the Executive is absent from work due to sickness or injury which is caused by the fault of another person, and as a consequence recovers
from that person or another person any sum representing compensation for loss of base salary under this agreement, the Executive will repay to the Company any money it has paid to him as base salary in respect of the same period of absence. 

  

	 7.11
	 Notwithstanding any other provision in this agreement, any payments to be made, and benefits to be provided under this agreement or otherwise
in relation to the Employment, may be subject to shareholder approval and will be subject to compliance with the Parent Company’s remuneration policy as approved by shareholders from to time. To the extent that any such shareholder approval is
needed, the Company will seek it at the next scheduled Annual General Meeting and any deadline in relation to the delivery of such payments or benefits will be delayed accordingly 

 

	 8
	 Expenses 

  

	 8.1
	 The Company will refund to the Executive all reasonable expenses properly incurred by him in performing his duties under this agreement,
provided that these are incurred in accordance with Company policy in force from time to time. The Company will require the Executive to produce receipts or other documents as proof that he has incurred any expenses he claims.

  

	 8.2
	 If the Executive is provided with a credit or charge card by the Company this must normally be used for expenses which he incurs in
performing the duties of the Employment. It may be used for personal expenses only in exceptional circumstances. 

  

	 9
	 Confidentiality 

  

	 9.1
	 Without prejudice to the common law duties which he owes to the Company the Executive agrees that he will not, except in the proper performance of
his duties, copy, use or disclose to any person any of the Company’s trade secrets or confidential information. This restriction will continue to apply after the termination of the Employment without limit in time but will not apply to trade
secrets or confidential information which become public other than through unauthorised disclosure by the Executive. The Executive will use his best endeavours to prevent the unauthorised copying use or disclosure of such information.

  
  

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 For the purposes of this agreement, “trade secrets” and
“confidential information” include but will not be limited to technical data, know-how, information technology and know-how relating to the Company, customer lists, pricing information, information relating to the Company’s marketing
and financial strategies, marketing materials, financial information and any other information concerning the affairs of the Company which is for the time being confidential, which the Executive is told is confidential or which by its nature is
obviously confidential and whether such information is in written, oral, visual, electronic or any other form. 
  

	 9.2
	 In the course of the Employment the Executive is likely to obtain trade secrets and confidential information belonging or relating to other
Group Companies, in particular the Parent Company, and other persons. He will treat such information as if it falls within the terms of clause 9.1 and clause 9.1 will apply with any necessary amendments to such information. If requested to do so by
the Company the Executive will enter into an agreement with other Group Companies and any other persons in the same terms as clause 9.1 with any amendments necessary to give effect to this provision. 

 

	 9.3
	 Nothing in this agreement will prevent the Executive from making a “protected disclosure” in accordance with the provisions of the
Employment Rights Act 1996. 

  

	 10
	 Intellectual Property Rights 

 For the purposes of this clause, “Intellectual Property” means patents, trade marks, service marks, registered designs (including applications for and rights to apply for any of them),
inventions, unregistered design rights, logos, trade or business names, copyrights, database rights, confidential information, knowhow and any similar rights in any country. 

 

	 10.1
	 The Executive acknowledges that (i) it is part of his normal duties to develop the products and services of the Company; and (ii) because
of the nature of his position he has a special obligation to further the interests of the Company. All Intellectual Property which the Executive develops or produces in the course of his employment duties, or outside such duties but relating to the
business of the Company, will be owned by the Company to the fullest extent permitted by law. The Executive agrees, at the Company’s expense, to sign all documents and carry out all such acts as will be necessary to vest such Intellectual
Property in the Company, and to obtain protection and enforce the Company’s rights anywhere in the world. The Executive also hereby waives all moral rights in all Intellectual Property which is owned by the Company, or will be owned by the
Company, further to this clause. The Executive will not copy, disclose or make use of any Intellectual Property belonging to the Company (whether or not subject to this clause) except to the extent necessary for the proper performance of his duties.
Rights and obligations under this clause will continue after the termination of this agreement in respect of all Intellectual Property arising during the Employment. 

 

	 10.2
	 The Executive must disclose immediately to the Company any discovery or invention, secret process or improvement in procedure made or discovered by
the Executive during his employment in connection with or in any way affecting or relating to the business of the Company or any Group Company or capable of being used or adapted for use in or in connection with any such company
(“Inventions”) which Inventions will belong to and be the absolute property of the Company or such other person, firm, company or organisation as the Company may require. 

  
  

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	 10.3
	 If requested by the Board (whether during or after the termination of his employment) the Executive will, at the expense of the Company, apply or
join in applying for letters patent or other similar protection in the United Kingdom or any other part of the world for all Inventions and will do everything necessary (including executing documents) for vesting letters patent or other similar
protection when obtained; and all rights and title to and interest in all Inventions in the Company absolutely and as sole beneficial owner or in such other person, firm, company or organisation as the Company may require.

  

	 10.4
	 The Executive will (both during and after the termination of his employment) at the Company’s expense anywhere in the world and at any time
promptly do everything (including executing documents) that may be required by the Board to defend or protect for the benefit of the Company all Inventions and the right and title of the Company to them. 

 

	 10.5
	 The provisions of clause 10.1 to 10.4 (inclusive) are without prejudice to the provisions of the Patents Act 1977. 

 

	 10.6
	 The entire copyright and all similar rights (including future copyright, the right to register 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 or in connection with his employment (“Works”) will vest in and belong to the Company absolutely
throughout the world for the full periods of protection available in law including all renewals and extensions. 

  

	 10.7
	 The Executive will (both during and after the termination of his employment) at the Company’s request and expense anywhere in the world and at
any time promptly do everything (including executing documents) that may be required by the Board to assure, defined or protect the rights of the Company in all Works. 

 

	 10.8
	 For the purposes of this clause 10 the Executive hereby irrevocably and unconditionally waives in favour of the Company the moral rights conferred
on the Executive by Chapter IV Part 1 of the Copyright Designs and Patents Act 1988 in respect of any Inventions or Works in which the copyright is vested in the Company under this clause 10 or otherwise. 

 

	 10.9
	 The Executive will not make copies of any computer files belonging to any Group Company or their service providers and will not introduce any of his
own computer files into any computer used by any Group Company in breach of any Group Company policy, unless he has obtained the consent of the Board. 

  

	 10.10
	 By entering into this agreement the Executive irrevocably appoints the Company to act on his behalf to execute any document and do anything in his
name for the purpose of giving the Company (or its nominee) the full benefit of the provision of clause 10 or the Company’s entitlement under statute. If there is any doubt as to whether such a document (or other thing) has been carried out
within the authority conferred by this clause 10.10, a certificate in writing (signed by any director or the secretary of the Company) will be sufficient to prove that the act or thing falls within that authority. 

 

	 11
	 Termination and Suspension 

  

	 11.1
	 The Employment will continue until terminated by either party giving written notice as set out in clause 11.2. 

 

	 11.2
	 Either party may terminate the Employment by giving not less than 12 months’ written notice to the other. 

  
  

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	 11.3
	 Notwithstanding the other provisions of this agreement and in particular clause 11.2, the Employment will terminate automatically on the
Executive’s 65th birthday, subject always to the Executive’s rights under the Employment Equality (Age) Regulations 2006. 

  

	 11.4
	 The Company may at its sole and absolute discretion pay base salary alone (as referred to in clause 7.1, at the rate in force at the time
such payment is made) in lieu of any unexpired period of notice (less any deductions the Company is required by law to make). For the avoidance of doubt, the Executive is not entitled to participate in or benefit from any severance, termination or
redundancy plan operated by any member of the Group. The Company may pay any sums to you under this clause in equal monthly instalments until the date on which the notice period under clause11.2 would have expired if full notice had been given. The
Executive shall be under an obligation to seek alternative income during such period and notify the Company of any income received during this period. Any monthly instalments shall be reduced by the amount of any such alternative income which the
Executive receives during or in relation to such part. 

  

	 11.5
	 The Company may terminate the Employment by giving written notice to take immediate effect whether or not the Executive’s entitlement to sick
pay, contractual or otherwise, has been exhausted if the Executive does not perform the duties of the Employment for a period of 364 days (whether or not consecutive) in any period of 2 years. This notice can be given whilst the Executive continues
not to perform his duties or on expiry of the 364 day period. In this clause, ‘days’ includes Saturdays, Sundays and public holidays. 

  

	 11.6
	 The Company may terminate the Employment by giving written notice to take immediate effect if the Executive: 

 

	 	 11.6.1
	 has not performed his duties under this agreement to the standard required by the Board; 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 the Employment or not) in a way which is harmful to any Group
Company; or 

  

	 	 11.6.6
	 is guilty of or confesses to dishonesty or is convicted of or confesses to an offence (other than a motoring offence which does not result in
imprisonment) whether in connection with the Employment or not; or 

  

	 	 11.6.7
	 commits (or is reasonably believed by the Board to have committed) a breach of any legislation in force which may affect or relate to the business
of any Group Company; or 

  

	 	 11.6.8
	 becomes of unsound mind, bankrupt or has a receiving order made against him or makes any general composition with his creditors or takes advantage
of any statute affording relief for insolvent debtors; or 

  

	 	 11.6.9
	 becomes disqualified from being a director of a company or the Executive’s directorship of the Parent Company terminates without the consent or
concurrence of the Company; or 

  
  

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	 	 11.6.10
	 fails to maintain or becomes disqualified from maintaining registration with any regulatory body, membership of which is reasonably required
by the Company for the Executive to carry out his duties. 

  

	 11.7
	 Where the Company terminates the Employment by giving written notice to take immediate effect in accordance with either clause 11.5 or 11.6,
for the avoidance of doubt there is no obligation to give notice as set out in clause 11.1 or any other 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 Parent Company or Company if the Employment is terminated for
any of the reasons set out in clause 11.5 or 11.6. 

  

	 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 is implicated or involved (whether directly or indirectly) and to conduct any related disciplinary proceedings. 

 

	 12
	 Garden Leave 

  

	 12.1
	 Neither the Company nor any Group Company is under any obligation to provide the Executive with any work. At any time after notice to
terminate the Employment is given by either party under clause 11 above, or if the Executive resigns without giving due notice and the Company does not accept his resignation, the Company may, at its absolute discretion, require the Executive 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 Leave Period. 

 

	 12.2
	 The Company may require that the Executive will not, without prior written consent of the Board, be employed or otherwise engaged in the
conduct of 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 any other Group Company in relation to the business of the
Company or any other Group Company (other than purely social contact); or 

  

	 	 12.2.3
	 contact or have any communication with any employee, officer, director, agent or consultant of the Company or any other Group Company in
relation to the business of the Company or any other Group Company (other than purely social contact); or 

  

	 	 12.2.4
	 remain or become involved in any aspect of the business of the Company or any other Group Company except as required by such companies; or

  

	 	 12.2.5
	 access the Company’s or any Group Company’s information technology systems. 

 

	 12.3
	 The Company may require the Executive: 

  

	 	 12.3.1
	 to comply with the provisions of clause 15, save that he will not be required to return any Company car during any Garden Leave Period; and

  
  

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	 	 12.3.2
	 to immediately resign from any directorship, trusteeships or other offices which he holds in the Company, any other Group Company or any
other company where such directorship 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 or other office relates in which case he may retain
such directorships, trusteeships or other offices while those duties are ongoing. The Executive hereby irrevocably appoints the Company to be his attorney to execute any instrument and do anything in his name and on his behalf to effect his
resignation if he fails to do so in accordance with this clause 12.3.2. 

  

	 12.4
	 During the Garden Leave Period, the Executive will be entitled to receive his base salary and all contractual benefits in accordance with the
terms of this agreement, save that he will not accrue any bonuses or be entitled to receive any new grants or awards under any long term incentive arrangements. Any unused holiday accrued at the commencement of the Garden Leave Period and any
holiday accrued during any such period will be deemed to be taken by the Executive during the Garden Leave Period. 

  

	 12.5
	 At the end of or at any time during the Garden Leave Period, the Company may, at its sole and absolute discretion, pay the Executive base
salary alone (as defined in clause 7.1) in lieu of the balance of any period of notice given by the Company or the Executive (less any deductions the Company is required by law to make). 

 

	 12.6
	 During the Garden Leave Period: 

  

	 	 12.6.1
	 the Executive shall provide such assistance as the Company or any Group Company may require to effect an orderly handover of his
responsibilities to any individual or individuals appointed by the Company or any Group Company to take over his role or responsibilities; 

  

	 	 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 that 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 for the Executive. 

 

	 12.7
	 All duties of the Employment (whether express or implied), including without limitation the Executive’s duties of fidelity, good faith
and exclusive service, shall continue throughout the Garden Leave Period save as expressly varied by this clause 12. 

  

	 12.8
	 The Executive agrees that the exercise by the Company of its rights pursuant to this clause 12 shall 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 Kingdom, New York State, Rhode Island, Massachusetts and any other country in the world or US State in which the Company or any Group Company has
material business interests in the period of 12 months ending on the Relevant Date; 

  
  

A17804832 28 Feb 2014 
 xi 

 “Relevant Date” means the Termination Date or, if earlier,
the date on which the Executive commences any Garden Leave Period; and 
 “Restricted Period”
means the period of 12 months less any Garden Leave Period commencing on the Termination Date. 
  

	 13.2
	 The Executive is likely to obtain trade secrets and confidential information and personal knowledge of and influence over customers clients
and employees of the Group during the course of the Employment. To protect these interests of the Company, the Executive agrees with the 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 engaged in, employed in, act as a consultant to or agent for or
carry on for his own account or for any other person, whether directly or indirectly, (or be a director of any company engaged in) any business which, by virtue of its location or otherwise, is or is about to be in competition with any business of
the Company or any other Group Company being carried on by such company at the Relevant Date provided he was concerned or involved with that business to a material extent at any time during the 12 months prior to the Relevant Date; and

  

	 	 13.2.2
	 during the Restricted Period he will not (either on his own behalf or for or with any other person, whether directly or indirectly), entice
or try to entice away from the Company or any other Group Company any person who was senior employee, director, officer, agent, senior consultant or senior associate of such a company at the Termination Date and who had been senior employee,
director, officer, agent, senior consultant or senior associate at any time during the six months prior to the Relevant Date 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 and independent covenant. If any covenant is found to be
invalid this will not affect the validity or enforceability of any of the other covenants. 

  

	 13.4
	 Following the Termination Date, the Executive will not represent himself as being in any way connected with the businesses of the Company or
of any other Group Company (except to the extent agreed by such a company). 

  

	 13.5
	 Any benefit given or deemed to be given by the Executive to any Group Company under the terms of clause 13 is received and held on trust by
the Company for the relevant Group Company. The Executive will enter into appropriate restrictive covenants directly with other Group Companies if asked to do so by the Company. 

 

	 14
	 Offers on Liquidation 

 The Executive will have no claim against the Parent Company or the Company if the Employment is terminated by reason of liquidation in order to reconstruct or amalgamate the Company or by reason of any
reorganisation of the Company and the Executive is offered employment with the company succeeding to the Company upon such liquidation or reorganisation and the new terms of employment offered to the Executive are no less favourable to him than the
terms of this agreement. 

  
  

A17804832 28 Feb 2014 
 xii 

	 15
	 Return of Company Property 

  

	 15.1
	 At any time during the Employment (at the request of the Company) and in any event when the Employment terminates, the Executive will
immediately return to the Company: 

  

	 	 15.1.1
	 all documents and other materials (whether originals or copies) made or compiled by or delivered to the Executive during the Employment and
concerning all the Group Companies. The Executive will not retain any copies of any materials or other information; 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 car provided 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 to comply with the provisions of clause 15.1.

  

	 16
	 Directorships 

  

	 16.1
	 The Executive’s office as a director of the Parent Company or any other Group Company is subject to the Articles of Association of the
relevant company (as amended from time to time). If the provisions of this agreement conflict with the provisions of the Articles of Association, the Articles of Association will prevail. 

 

	 16.2
	 The Executive must promptly resign from any office held in any Group Company if he is asked to do so by the Company.

  

	 16.3
	 If the Executive does not resign as an officer of a Group Company, having been requested to do so in accordance with clause 16.2, the Company
will be appointed as his attorney to effect his resignation. By entering into this agreement, the Executive irrevocably appoints the Company as his attorney to act on his behalf to execute any document or do anything in his name necessary to effect
his resignation in accordance with clause 16.2. If there is any doubt as to whether such a document (or other thing) has been carried out within the authority conferred by this clause 16.3, a certificate in writing (signed by any director or the
secretary of the Company) will be 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 terminate the 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 be disqualified 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 the agreement of the Company.

  
  

A17804832 28 Feb 2014 
 xiii 

	 17
	 Notices 

  

	 17.1
	 Any notices given under this agreement must be given by letter or fax. Notice to the Company must be addressed to its registered office at
the time the notice is given. Notice to the Executive must be given to him personally or sent to his last known address. 

  

	 17.2
	 Except for notices given by hand, notices given by post will be deemed to have been given on the next working day after the day of posting
and notices given by fax will be deemed to have been given in the ordinary course of transmission. 

  

	 18
	 Statutory Particulars 

  

	 18.1
	 The written particulars of employment which the Executive is entitled to receive under the provisions of Part I of the Employment Rights Act
1996 are set out below, insofar as they are not set out elsewhere in this agreement. 

  

	 	 18.1.1
	 The Company’s disciplinary rules and dismissal, disciplinary and grievance procedures as set out in the Staff Handbook and as amended
from time to time are applicable to the Executive. The disciplinary rules are contractual. The dismissal, disciplinary and grievance procedures are non-contractual. 

 

	 	 18.1.2
	 The Company’s normal hours of work are 9.00am to 5.00pm Monday to Friday. 

 

	 	 18.1.3
	 There are no terms and conditions relating to collective agreements or to the requirement to work outside the United Kingdom.

  

	 19
	 Data Protection Act 1998 

  

	 19.1
	 For the purposes of the Data Protection Act 1998 (the “Act”) the Executive gives his consent to the holding, processing and
disclosure of personal data (including sensitive data within the meaning of the Act) provided by the Executive to the Company for all purposes relating to the performance of this agreement including, but not limited to: 

 

	 	 19.1.1
	 administering and maintaining personnel records; 

 

	 	 19.1.2
	 paying and reviewing base salary and other remuneration and benefits; 

 

	 	 19.1.3
	 providing and administering benefits (including if relevant, pension, life assurance, permanent health insurance and medical insurance);

  

	 	 19.1.4
	 undertaking performance appraisals and reviews; 

 

	 	 19.1.5
	 maintaining sickness and other absence records; 

 

	 	 19.1.6
	 taking decisions as to the Executive’s fitness for work; 

 

	 	 19.1.7
	 providing references and information to future employers, and if necessary, governmental and quasi-governmental bodies for social security
and other purposes, the Inland Revenue and the Contributions Agency; 

  

	 	 19.1.8
	 providing information to future purchasers of the Parent Company or of the business in which the Executive works; and

  

	 	 19.1.9
	 transferring information concerning the Executive to a country or territory outside the EEA. 

  
  

A17804832 28 Feb 2014 
 xiv 

	 19.2
	 The Executive acknowledges that during his Employment he will have access to and process, or authorise the processing of, personal data and
sensitive personal data relating to employees, customers and other individuals held and controlled by the Parent Company or the Company. The Executive agrees to comply with the terms of the Act in relation to such data and to abide by the Parent
Company’s data protection policy issued and updated from time to time. 

  

	 20
	 Contracts (Rights of Third Parties) Act 1999 

 

	 20.1
	 To the extent permitted by law, no person other than the parties to this agreement and the Group Companies shall have the right to enforce
any term of this agreement under the Contracts (Rights of Third Parties) Act 1999. For the avoidance of doubt, save as expressly provided in this clause the application of the Contracts (Rights of Third Parties) Act 1999 is specifically excluded
from this agreement, although this does not affect any other right or remedy of any third party which exists or is available other than under this Act. 

 

	 21
	 Miscellaneous 

  

	 21.1
	 This agreement may be entered into in any number of counterparts, all of which taken together shall constitute one and the same instrument.
Any party may enter into this agreement by executing any such counterpart. 

  

	 21.2
	 This agreement may only be modified by the written agreement of the parties. 

 

	 21.3
	 The Executive cannot assign this agreement to anyone else. 

 

	 21.4
	 References in this agreement to rules, regulations, policies, handbooks or other similar documents which supplement it, are referred to in it
or describe any pensions or other benefits arrangement are references to the versions or forms of the relevant documents as amended or updated from time to time. 

 

	 21.5
	 This agreement supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in it. It
(together with the Parent Company rules and policies) contains the whole agreement between the parties relating to the Employment at the 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 undertaking not expressly incorporated into it. The Executive agrees and acknowledges that his only
rights and remedies in relation to any representation, warranty or undertaking made or given in connection with this agreement (unless such representation, warranty or undertaking was made fraudulently) will be for breach of the terms of this
agreement, to the exclusion of all other rights and remedies (including those in tort or arising under statute). 

  

	 21.6
	 Neither party’s rights or powers under this agreement will be affected if: 

 

	 	 21.6.1
	 one party delays in enforcing any provision of this agreement; or 

 

	 	 21.6.2
	 one party grants time to the other party. 

  

	 21.7
	 The Interpretation Act 1978 shall apply to this agreement in the same way as it applies to an enactment. 

  
  

A17804832 28 Feb 2014 
 xv 

	 21.8
	 References to any statutory provisions include any modifications or re-enactments of those provisions. 

 

	 21.9
	 Headings will be ignored in construing this agreement. 

 

	 21.10
	 If either party agrees to waive his rights under a provision of this agreement, that waiver will only be effective if it is in writing and it
is signed by him. A party’s agreement to waive any breach of any term or condition of this agreement will not be regarded as a waiver of any subsequent breach of the same term or condition or a different term or condition.

  

	 21.11
	 This agreement is governed by and will be interpreted in accordance with the laws of England and Wales. Each of the parties submits to the
exclusive jurisdiction of the English Courts as regards any claim or matter arising under this agreement. 

EXECUTED as a DEED on behalf of 
 NATIONAL GRID ELECTRICITY TRANSMISSION 
 PLC 

 

					
	 EXECUTED as a DEED by
 JOHN MARK PETTIGREW in the
 presence
of:
  
 Witness’s
signature
	 	 }
	  	 /s/ J. Pettigrew
  

 
  

/s/ Alexandra Lewis

			
	 Name
	 		  	 Alexandra Lewis

	 Address
	 		  	 38 Victoria Avenue
 Surbiton
 Surrey KT6 SDW

			
	 Occupation
	 		  	 Global Head of Reward

  
  

A17804832 28 Feb 2014 
 xviEX-4.C.14

 Exhibit 4(c).14 

 
 

 
 20 March 2014 
 Therese Esperdy 
 34 Dominick Street, 
 New York, 
 NY 10013 
 Dear Therese 
 Appointment as Non-executive Director 

Subject to final approval by the Board of National Grid plc (the “Company”) on 17 March 2014, I am delighted to advise that your
appointment as a Non-executive Director of the Company will be effective from 18 March 2014. This letter sets out the terms of your appointment. It is agreed that this is a contract for services and not a contract of employment. 

Appointment 
 Your appointment,
commencing on 18 March 2014, will be subject to your election by shareholders at the Company’s Annual General Meeting (“AGM”) in 2014, following which it is expected that you will be subject to annual re-election by shareholders
in accordance with our commitment to best practice, unless your appointment is otherwise terminated earlier in accordance with the Company’s Articles of Association as amended from time to time (the “Articles”) or by and at the
discretion of either the Board or you upon 1 month’s written notice. Continuation of your contract of appointment is therefore contingent on satisfactory performance and re-election by shareholders at forthcoming AGMs. 

In the 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 and will not be entitled to any other compensation (or payment in lieu of notice). 
 Non-executive
Directors are typically expected to serve two three-year terms, subject to the terms of this letter; any extension to this is subject to review by the Nominations Committee (prior to making recommendations to the Board) having regard to corporate
governance best practice from time to time. 
 Time Commitment 

Overall we anticipate a time commitment of approximately 2-21/2 days on average per month, after the induction phase, taking into account reading and preparation time for Board and
Committee meetings. This will include attendance at Board meetings (estimated 10 scheduled meetings per year including Board strategy session(s) - of which currently 3 are held in the US) plus ad hoc and emergency meetings, 

  
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Committee meetings, the AGM, any extraordinary general meetings. It is planned that certain Board meetings will be held at the Company’s operational sites (in the UK and US). 

Post induction, as a Non-executive Director you will also be expected to undertake at least one site visit per year to the business, the location to be
agreed with myself or the Chief Executive. 
 In addition, you will be expected to devote appropriate preparation time ahead of each meeting and
such other time as is reasonably required to discharge your duties as a Director (for example if the Company is involved in increased activity because it is involved in a major transaction). 
 If you are unable to attend a meeting, you should notify the Group General Counsel & Company Secretary and prior to the meeting communicate your opinions and comments on the matters to be
considered to me or the relevant Committee chairman so they can be taken into account at the meeting. 
 By confirming this appointment, you
have agreed that you are able to allocate sufficient time to meet the expectations of your role including appropriate preparation time. My agreement 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. 
 Role 
 All Directors, both Non-executive and Executive, have the same general legal responsibilities to the Company. The Board as a whole is collectively responsible for debating and approving the strategic
direction of the Company and for promoting the success of the Company for the benefit of its members by directing and supervising the Company’s affairs. All Directors must therefore take decisions objectively in the interests of the Company, in
compliance with their statutory and fiduciary duties, and not do anything which is harmful to the Company or its business. 
 All directors are
expected to comply with the Company’s policies, procedures, rules and regulations from time to time in force, including in particular, the Company’s Standards of Ethical Business Conduct and its Share Dealing Code. 

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 Director has the following key elements:

  

	 	•	 	 Strategy: Non-executive Directors should constructively challenge and contribute to the development of strategy; 

  
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	 	•	 	 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 for Executive Directors and have a prime role
in appointing, and where necessary removing, senior management, and in succession planning. 

 You should also have regard to
the Guidance on Board Effectiveness, issued by the Financial Reporting Council in March 2011, of which an extract summarising the role of a Non-executive Director is set out at Schedule 1 to this letter. 

Committees 
 Initially, you have been
invited to serve on the Finance Committee with the expectation that you will take over as chairman of the Finance Committee when Maria Richter steps down from the Board later this year. You have also been invited to attend the Audit Committee
meetings as an attendee. This is subject to change from time to time, as determined by the Board. 
 In addition, all Non-executive Directors
are members of the Nominations Committee, meetings of which are held on an ad hoc basis. No fee is paid for Nominations Committee attendance. 

This letter refers to your appointment as a Non-executive Director of the Company. Terms of reference of all Board Committees are set out in the
Directors’ information pack which will be sent to you shortly. 
 Fees 
 This letter sets out the only payments you will receive for performing your duties in accordance with this letter. Accordingly, no other remuneration or benefits will be provided and, in particular, you
will not participate in any of the Company’s remuneration or benefit programmes, arrangements, schemes or plans. 
 As a non UK-based
Director, you will be paid £72,000 per annum and you will also be entitled to a Committee membership fee of £8,000 per annum, per Committee membership and, as chairman of the Finance Committee, an additional fee of
£12,500 per annum. NB: The Committee membership fee does not apply to the Nominations Committee which meets on an ad hoc basis. 
 These payments will be made monthly on or around 15th day of each month and will be pro-rated from the date of your appointment. You will not receive any further fees for membership of, or attendance at, any ad hoc Board or Committee meetings. If, for a
reason related to illness, disability or injury, you are unable to carry out your duties, payment of any fee(s) during any period of incapacity will be at the discretion of the Board. 
 The Company will reimburse you, in accordance with the Articles and any expenses procedures from time to time in force, for any reasonable expenses properly incurred in performing your duties. All
expenses must be properly documented. Details regarding travel are set out in the Travel Guidelines for Directors document in the Directors information pack, which may change from time to time. 

  
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 The Executive Committee and 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 tax or other deductions required to be made by the Company. 

  
 4 of 9

 Outside interests 
 It is accepted and acknowledged that you have business interests other than those of the Company. As a condition to your appointment commencing you are required to declare any such directorships,
appointments and interests in writing. 
 In the event that you become aware of any potential conflicts of interest, these should be disclosed
to me and/or the Group General Counsel & Company Secretary as soon as apparent. Additionally, if at any time you are considering acquiring any new business interest (including as described in the letter to you regarding initial disclosures
on appointment), you should raise the matter initially with me and/or the Group General Counsel & Company Secretary. Where an interest may give rise to a conflict of interest with the Company or any of its subsidiaries or associate
companies, the interest may need to be disclosed to the Board and its prior consent obtained. 
 Independent status 

The Board has determined you to be independent according to the provisions of the UK Corporate Governance Code. As an independent Director it is important
that you remain independent in character and judgement. If you become aware of anything that may affect, or could appear to affect, this determination of independence, this should be disclosed to me and/or the Group General Counsel &
Company Secretary 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
under this letter, or with the consent of the Board) nor use for your own account or advantage any private or confidential information in any form whatsoever relating to the Company or any of its subsidiaries or associate companies
(“Confidential Information”) which you obtained during your appointment or otherwise. Additionally, you will use your best endeavours to prevent the unauthorised use or disclosure of any such Confidential Information. 

This restriction will continue to apply after your appointment ends without limit in time but will not apply to information which becomes public, unless
through unauthorised disclosure by you. After your appointment ends you will return all documents and information (whether written, visual or electronic) under your control which belong to the Company. 

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

  
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 Induction 
 You will be provided with a comprehensive, formal and tailored induction to the Company and its businesses based on your experience and background and on which Committees you are to serve. You will also
receive a Directors’ information pack comprising information on the Company’s businesses and operations together with matters relating to corporate governance and corporate responsibility. We will also arrange various site visits and
meetings with senior and middle management and the Company’s auditors. We will also arrange for you to meet major shareholders as appropriate. 
 Should you feel you require additional information on any area please contact the Group General Counsel & Company Secretary to arrange this. 

Review Process 
 The performance of
individual Directors, the Board and Board Committees is evaluated annually. If, in the interim, there are any matters which cause you concern in relation to your role you should discuss them with me as soon as is appropriate. I will also regularly
review and agree your training and development needs. 
 Directors’ Indemnity and Liability Insurance 

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 2006 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. The terms and conditions of this indemnity are set out in a separate deed of indemnity entered
into or to be entered into between you and the Company. 
 The Company has Directors’ and Officers’ liability insurance and currently
intends 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
independent professional advice in the furtherance of your duties as a Director. Please advise me or the Group General Counsel and Company Secretary should you wish to seek such advice. The Company will reimburse the full cost of expenditure
incurred in respect of such advice, in accordance with the UK Corporate Governance Code and any relevant Company policy. 
 Disclosure of
interests in transactions and Dealings in Shares 
 Under the Companies Act 2006, where a Director of a company is in any way, directly or
indirectly, interested in a proposed transaction or arrangement with the Company or one that has been entered into by the Company, he must declare the nature and extent of that interest. You may give any such notice at a meeting of the Directors, in
writing or by general notice. 

  
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 During the continuance of your appointments you will be expected to comply (and to procure that your spouse
and dependant children comply) where relevant with any rule of law or regulation of any competent authority or of the Company from time to time in force in relation to dealings in shares, debentures and other securities of the Company and
unpublished price sensitive information affecting the shares, debentures and other securities of the Company. A copy of the Company’s Share Dealing Code is provided in the Directors’ information pack. 

You should also have regard to, and your appointment is subject to, your duties as a Director in light of the Articles, applicable general law, the
Companies Act 2006, the Listing, Prospectus, Disclosure and Transparency Rules of the Financial Services Authority, the UK Corporate Governance Code and obligations arising as a result of the Company’s American Depositary Shares being listed on
the New York Stock Exchange, as set out in the relevant section of the Directors’ information pack. 
 The Company currently has no share
ownership requirements for its non-executive directors. 
 Governing Law 
 The agreement contained in this letter and any non-contractual obligations arising out of or in connection with it 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 your appointment and supersedes any previous agreement between yourself and the Company
with respect thereto. 
 On a personal level, I am delighted that you have agreed to accept this appointment to the Board of the Company and I
look forward to our building a good working relationship. 

  
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 Please acknowledge receipt and acceptance of the above terms by signing and returning the enclosed copy
of this letter. 
 Yours sincerely 

/s/ Peter Gershon 
 Sir Peter Gershon

 Chairman 
 For and on behalf of
National Grid plc 
 I hereby acknowledge receipt of and accept the terms set out in this letter. 

Signed /s/ Therese Marie Esperdy 
 Therese Marie
Esperdy 
 Dated 27 March 2014 

  
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 Schedule 1 
 Guidance for Non-Executive Directors 
 (extracted from the March 2011 FRC
Guidance on Board Effectiveness) 
 A non-executive director should, on appointment, devote time to a comprehensive, formal and tailored
induction which should extend beyond the boardroom. Initiatives such as partnering a non-executive director with an executive board member may speed up the process of him or her acquiring an understanding of the main areas of business activity,
especially areas involving significant risk. The director should expect to visit, and talk with, senior and middle managers in these areas. 

Non-executive directors should devote time to developing and refreshing their knowledge and skills, including those of communication, to ensure that they
continue to make a positive contribution to the board. Being well-informed about the company, and having a strong command of the issues relevant to the business, will generate the respect of the other directors. 

Non-executive directors need to make sufficient time available to discharge their responsibilities effectively. The letter of appointment should state
the minimum time that the non-executive director will be required to spend on the company’s business, and seek the individual’s confirmation that he or she can devote that amount of time to the role, consistent with other commitments. The
letter should also indicate the possibility of additional time commitment when the company is undergoing a period of particularly increased activity, such as an acquisition or takeover, or as a result of some major difficultly with one or more of
its operations. 
 Non-executive directors have a responsibility to uphold high standards of integrity and probity. They should support the
chairman and executive directors in instilling the appropriate culture, values and behaviours in the boardroom and beyond. 
 Non-executive
directors should insist on receiving high-quality information sufficiently in advance so that there can be thorough consideration of the issues prior to, and informed debate and challenge at, board meetings. High-quality information is that which is
appropriate for making decisions on the issue at hand – it should be accurate, clear, comprehensive, up-to-date and timely; contain a summary of the contents of any paper; and inform the director of what is expected of him or her on that issue.

 Non-executive directors should take into account the views of shareholders and other stakeholders, because these views may provide different
perspectives on the company and its performance. 

  
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