Document:

Exhibit
      4A.6

    
 

    I.G./

    Register
      No.
      4,199

    

    

    COMMERCIAL
      PLEDGE AGREEMENT ON SHARES

    

    COMMERCIAL
      PLEDGE AGREEMENT ON SHARES OF

    

    ADMINISTRADOR
      FINANCIERO DE TRANSANTIAGO, S.A.

    

    PLEDGED
      TO

    

    INVERSIONES
      ALSACIA S.A. ET AL

    

    

    In
      Santiago de Chile, on this 5th day of February
      in
      the year 2007, before me, RAÚL IVÁN PERRY PEFAUR, a local
      Notary Public with offices located at Calle Ahumada 312, suite 36, incumbent
      Notary of the 21st Notarial
      Office of
      Santiago, appeared JOSÉ MANUEL
      MENA VALENCIA, a Chilean citizen, married, industrial civil engineer by
      profession, holder of national identification card No. 6,196,849-0, verifiably
      representing the BANCO DEL ESTADO DE CHILE, an autonomous
      entity of the Chilean government, tax identification No. 97,030,000-7, both
      domiciled in this city of Santiago at Avenida del Libertador Bernardo O’Higgins
      No. 1111; JULIO GUZMAN HERRERA, a Chilean citizen, married,
      commercial engineer by profession, holder of

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    national
      identification card No. 3,673,092-9, verifiably representing the BANCO
      DE CHILE, a corporation engaged in the banking business, tax
      identification No. 97,004,000-5, both domiciled in this city of Santiago at
      Calle Ahumada No. 251; OSCAR VON CHRISMAR CARVAJAL, a Chilean
      citizen, married, an engineer by profession, holder of national identification
      card No. 6,926,511-1, verifiably representing the BANCO
      SANTANDER-CHILE, a corporation engaged in the banking business, tax
      identification No. 97,036,000-K, both domiciled in this city of Santiago at
      Calle Bandera No. 140; MARIO GOMEZ DUBRAVCIC, a Chilean
      citizen, married, commercial engineer by profession, holder of national
      identification card No. 5,865,947-9, verifiably representing the BANCO
      DE CREDITO E INVERSIONES, a corporation engaged in the banking
      business, tax identification No. 97,006,000-6, both domiciled in this city
      of
      Santiago at Calle Huérfanos No. 1134; RAUL LUPERCIO VÉJAR OLEA,
      a Chilean citizen, married, civil engineer by profession, holder of national
      identification card No. 6,580,740-8, verifiably representing SONDA
      S.A., a corporation engaged in data processing services, tax
      identification No. 83,620,000-4, both domiciled in this city of Santiago at
      Calle Teatinos No. 500, and CLAUDIO CISTERNAS DUQUE, a Chilean
      citizen, married, commercial engineer by profession, holder of national
      identification card No. 10,174,449-3 and MARIA ANGELICA SILVA
      ARRUE, a Chilean citizen, married, accountant by profession, holder of
      national identification card No. 6,651,290-8,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    both
      verifiably
      representing PROMOTORA CMR FALABELLA S.A., a corporation
      engaged in lending, tax identification No. 96,743,000-6, all domiciled in this
      city of Santiago at Calle Ahumada No. 236, 7th floor, all
      jointly
      for purposes of this agreement being called the “Shareholders” or the “Pledge
      Debtors”, parties of the first part, and as parties of the second part,
RICARDO JOSE BARTEL JEFFERY, a Chilean citizen, holder of
      national identification card No. 8,741,336-5, verifiably representing
INVERSIONES ALSACIA S.A., tax identification No. 99,577,400-3,
      a corporation legally organized and existing under Chilean law, both domiciled
      at Calle Marchant Pereira No. 10, 20th floor, suite
      2001,
      Town of Providencia; ANDRES OCAMPO BORRERO, a Colombian
      citizen, holder of alien identification card No. 21,917,402-0, and
HECTOR DEL TRANSITO MOYA MARTIN, a Chilean citizen, holder of
      national identification card No. 6,076,632, both verifiably representing
SU BUS CHILE, S.A., taxpayer identification No. 21,918,402-0, a
      corporation organized and existing under the laws of Chile, all domiciled in
      the
      city of Santiago at Calle Santa Lucia No. 324, suites 41 and 42; MANUEL
      ULISES NAVARRETE MUÑOZ, a Chilean citizen, holder of national
      identification card No. 4,462,201-7, verifiably representing BUSES GRAN
      SANTIAGO, S.A., taxpayer identification No.
      99,557,450-0,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    a
      corporation
      organized and existing under the laws of Chile, both domiciled in the city
      of
      Santiago at Calle Catedral No. 1712, 3rd floor, suite
      4;
RICARDO JOSE BARTEL JEFFREY, a Chilean
      citizen, holder of national identification card No. 8,741,336-5, verifiably
      representing EXPRESS DE SANTIAGO,
      S.A., taxpayer identification No. 99,577,390-2, a
      corporation organized and existing under the laws of Chile, both domiciled
      in
      the Town of Providence at Calle Marchant Pereira No. 10, floor 20, suite 2001;
      MANUEL ULISES NAVARRETE MUÑOZ, a Chilean citizen, holder of
      national identification card No. 4,462,201-7, verifiably representing
BUSES METROPOLITANA, S.A., taxpayer
      identification No. 99,557,440-3, a corporation organized and existing under
      the
      laws of Chile, both domiciled in the city of Santiago at Calle Catedral No.
      1712, 3rd floor,
      suite 4; Mr. RAMON YAVAR BASCUÑAN, a Chilean citizen, married,
      civil engineer by profession, holder of national identification card No.
      6,758,105-9 and Mr. MARCOS RETAMAL MUÑOZ, a Chilean citizen,
      married, commercial engineer by profession, holder of national identification
      card No. 14,268,425-K, both verifiably representing REDBUS URBANO
      S.A., tax identification number 99,578,170-0, a corporation organized
      and existing under the laws of Chile, all domiciled at Avenida Panamericana
      Norte No. 9800

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    in
      the Town of
      Quilicura; Mr. LUIS BARAHONA MORAGA, a Chilean citizen, holder
      of national identification card No. 8,711,413-9 and Mr. JORGE ROLANDO
      GÓMEZ PÉREZ, a Chilean citizen, holder of national identification card
      No. 6,051,829-7, both verifiably representing SERVICIOS DE TRANSPORTE DE
      PERSONAS SANTIAGO S.A., tax identification number 99,559,010-7, a
      corporation organized and existing under the laws of Chile, all domiciled at
      Calle Abdón Cifuentes No. 51 in the city of Santiago; ROBERTO HERNAN
      RODRIGUEZ SILVA, holder of national identification card No.
      10,577,000-6, verifiably representing UNION DEL TRANSPORTE
      S.A., tax identification number 99,577,940-4, a corporation organized
      and existing under the laws of Chile, both domiciled at Calle Compañía No. 1390,
      suite 414, in the city of Santiago; SIMON ABELARDO DOSQUE SAN
      MARTIN, holder of national identification card No. 5,800,674-2,
      verifiably representing COMERCIAL NUEVO MILENIO S.A., tax
      identification number 99,546,310-5, a corporation organized and existing under
      the laws of Chile, both domiciled at Avenida Libertador Bernardo O’Higgins No.
      1948, in the city of Santiago; and JOSE GABRIEL MARTINEZ MUÑOZ,
      a Chilean citizen, holder of national identification card No. 5,550,804-6 and
      ADRIANA DEL CARMEN TRONCOSCO LIZANA, a Chilean citizen, holder
      of national identification card No.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5,799,135-6,
      both
      verifiably representing TRANS ARAUCARISAS S.A., tax
      identification number 99,578,170-0, a corporation organized and existing under
      the laws of Chile, all domiciled at Los Nogales No. 2845 in the Town of La
      Pintana, also hereinafter referred to as the “Pledge Creditors”. The appearing
      parties named are all of legal age, have accredited their identities by
      exhibiting the aforementioned identification cards, and state that they have
      agreed to make, as they do in fact make the following commercial pledge
      agreement, in accordance with Articles 813 and following of the Commercial
      Code.
Clause One. Background – 1) The Shareholders are currently
      shareholders of the closed corporation known as ADMINISTRADOR FINANCIERO
      DE TRANSANTIAGO S.A., subject to the laws of open
      or publicly-held corporations that support the banking industry, hereinafter
      referred to indistinctly as the “Corporation” or “AFT”, founded and established
      by a public instrument dated June 8, 2005, executed before Raúl Iván Perry
      Pefaur, Notary in Santiago, an extract of which is recorded on page 20,009,
      number 14,486 of the Registry of Trade of the Custodian of Real Estate of
      Santiago for the year 2005, and was also published in the Official Gazette
      of
      June 14th of
      that same year. 2) José Manuel Mena Valencia declares that the
      BANCO DEL ESTADO DE CHILE is currently sole owner, among others, of 210,000
      shares issued by AFT, as officially shown in stock certificate number 001 of
      June 8, 2005; Ignacio Ruiz-Tagle Vergara declares that the BANCO SANTANDER-CHILE
      is currently sole owner, among others, of 200,000 shares issued by AFT, as
      officially shown in stock certificate number 002 of June 8, 2005; Julio Guzmán
      Herrera declares

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    that
      the BANCO DE
      CHILE is currently sole owner, among others, of 200,000 shares issued by AFT,
      as
      officially shown in stock certificate number 003 of June 8, 2005; Mario Gómez
      Dubravcic declares that the BANCO DE CREDITO E INVERSIONES is currently sole
      owner, among others, of 200,000 shares issued by AFT, as officially shown in
      stock certificate number 004 of June 8, 2005; Raúl Lupercio Véjar Olea declares
      that SONDA S.A. is currently sole owner, among others, of 95,000 shares issued
      by AFT, as officially shown in stock certificate number 005 of June 8, 2005,
      and
      Claudio Cisternas Duque and María Angélica Silva Arrúe declare that PROMOTORA
      CMR FALABELLA S.A. is currently sole owner, among others, of 95,000 shares
      issued by AFT, as officially shown in stock certificate number 006 of June
      8,
      2005. The shares of the Shareholders in the Corporation, hereinafter referred
      to
      all together as the “Shares”, are validly recorded in the names of each of the
      corporations in the pertinent Registry of Shareholders of the Corporation;
      said
      shares are registered, common, without nominal value, of equal value and all
      of
      one same and sole series. 3) Per resolution number 15 of 2004
      issued by the Ministry of Transportation & Telecommunications, hereinafter
      referred to as the “Ministry”, the Basic Conditions and Specifications of the
      Public Bid respecting the Supplementary Financial Administration Services
      Contract for the funds of the public passenger transportation system of
      Santiago, hereinafter referred to as the “AFT Bid Specifications 2004”, were
      approved. 4) Per resolution number 897 of April 18, 2005, of
      the Ministry, the awarding of AFT Bid Specifications 2004 was approved, said
      award having been made to the Banco del Estado de Chile. 5) On
      July 28, 2005, the Corporation and the Ministry entered into
      the

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Supplementary
      Financial Administration Services Contract for the funds of the public passenger
      transportation system of Santiago, hereinafter referred to as the “AFT
      Agreement”, which was approved by Special Resolution number 1853 of 2005 of the
      Ministry. Clause Two. PURPOSE OF THE AGREEMENT. By this
      agreement, the Shareholders, duly represented as described above, constitute
      a
      commercial pledge in favor of the Pledge Creditors, in accordance with Articles
      813 et seq. of the Commercial Code, and pursuant to the terms and conditions
      set
      forth above, on the Shares owned by them, as itemized and described in Clause
      One of this instrument, for the purpose of guaranteeing the full, effective,
      faithful and timely performance of each and every one of the obligations
      contracted by the Corporation under the AFT Agreement and the mandates conferred
      by the Pledge Creditors in their capacities as providers of transportation
      services, conforming with what is stipulated in the aforementioned AFT
      Agreement, and likewise by virtue of any other document that may supplement
      the
      subject agreement in the future; the subject pledge also covers the
      reimbursement, if any, of all costs and expenses, legal and extra-legal,
      including attorneys’ fees, if any, that may be incurred in connection with any
      proceedings or transfer of this pledge. Clause Three. NON-EXISTENCE OF
      LIENS AND/OR ENCUMBRANCES ON THE PLEDGED SHARES. The Shareholders
      likewise undertake not to constitute or permit any lien or encumbrance on,
      or
      otherwise engage in any act or make any contract respect the Shares pledged
      by
      this instrument, whether such lien, encumbrance, act or contract pertains to
      all
      of the Shares or a part thereof, without the prior express and written approval
      of the Pledge Creditors, and pursuant to the terms of the within Agreement.
      The
      parties appearing declare that the term “lien” means any real guarantees or any
      obligation, encumbrance, prohibition, condition, rights granted to
      third-parties, attachments, impediments or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    restrictions
      that
      may affect or impede or limit the free use, enjoyment and disposal of the
      Shares. Clause Four. DELIVERY OF SHARES AND ACCEPTANCE. The
      parties appearing declare in this agreement that the Pledge Debtors shall
      deliver to the full satisfaction of the Pledge Creditors through their
      representatives designated in the introduction of this instrument, certificates
      Nos. 001, 002, 003, 004, 005 and 006 to the Banco del Estado de Chile, the
      Banco
      Santander-Chile, the Banco de Chile, the Banco de Crédito e Inversiones, and the
      corporations known as Sonda S.A. and Promotora CMR Falabella S.A., respectively,
      issued by the Corporation to whom the shares pledged in the present instrument
      belong. Likewise, Ricardo José Bartel Jeffery, Andrés Ocampo Borrero, Héctor del
      Tránsito Moya Martín, Manuel Ulises Navarrete Muñoz, Ramón Yávar Bascuñan,
      Marcos Retamal Muñoz, Luis Barahona Moraga, Jorge Rolando Gómez Pérez, Roberto
      Hernán Rodríguez Silva, Simón Abelardo Dosque San Martín, José Gabriel Martínez
      Muñoz and Adriana del Carmen Troncoso Lizana, in the name and on behalf of the
      Pledge Creditors, accept the pledge of shares described herein and prohibition
      of establishing any liens and/or encumbrances thereon, and acquire for their
      respective principals the real right of pledge. Clause Five. EXTENT OF
      THE PLEDGE. The pledge and the restrictions and prohibitions made in
      this instrument include and extend ipso jure to any appreciation the
      shares might undergo, and include but are not limited to paid shares,
      preferential rights or options of any kind, whether of preferential subscription
      to shares, stock-convertible bonds or any other securities that confer future
      rights on the Corporation or on any successor or substitute corporation or
      entity. Likewise, in the case of issuance of new paid shares, any new securities
      that may be issued with respect to the pledge

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    presently
      made are
      understood to be affected. The Pledge Debtors irrevocably authorize the Pledge
      Creditors, on behalf of whom the named representatives accept, to request from
      the Corporation or its successor corporation or substitute entity, and for
      withdrawing and receiving from such corporation, any new stock certificates
      or
      other securities that may be issued as a consequence of an issuance of paid
      shares or exchange of shares for the issuance of new shares for any reason,
      without having to be delivered by the Corporation or any successor or substitute
      corporation or entity to the Pledge Debtors, with the Pledge Creditors being
      obligated to immediately request a Notary Public to give notice of the pledge
      agreement to record said encumbrance on these new shares in the Registry of
      Shareholders of the Corporation or any successor or substitute corporation.
      With
      respect to the ownership rights pertaining to the Shares, these rights will
      belong to the Pledge Debtors, who may collect any distributions on the pledged
      Shares that relate to dividends declared on the net earnings for the last
      business year. Without prejudice to what is stated above, in the event of any
      non-performance of any of the obligations guaranteed under Clause Two hereof,
      the Pledge Creditors may immediately demand the enforcement of the pledge made
      in this instrument. Any non-performance by the Corporation will not require
      verification to the corporation issuing the Shares or any successor or
      replacement corporation, rather, a written notice of non-performance issued
      by
      the Notary of the corporation issuing the Shares or any successor or replacement
      corporation, with a copy to the Pledge Debtors will therefore suffice. This
      latter circumstance will not require verification to the corporation issuing
      the
      Shares or any successor or replacement corporation. Commencing from the date
      of
      said notice and on the merits of it alone, the Pledge Creditors
      may

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    demand
      that the
      corporation, or any successor or replacement corporation, collect dividends
      and
      earnings that the holder or owner of the Shares is due, and for such purposes,
      the corporation or any successor or replacement corporation shall be empowered
      to pay said amounts to the Pledge Creditors, thereby releasing the Pledge
      Debtors from any liability to the Corporation, or its successor or replacement,
      as the entity issuing the shares that have been pledged in this instrument,
      with
      respect to those payments. Clause Six. PRESERVATION OF THE RIGHTS OF THE
      PLEDGE DEBTORS. The Pledge Debtors shall maintain full exercise of the
      right to participate in the General Meetings of Shareholders of the Corporation
      or any successor or replacement corporation, as a full member, and shall also
      maintain full exercise of any other rights corresponding to them that are
      different from those mentioned in Clause Five above. However, for approving
      any
      amendment to the by-laws of the Corporation the Pledge Debtors or any successor
      or replacement corporation that may affect the pledge and prohibitions
      constituted hereunder, in terms of reducing in a relevant manner the value
      of
      the guarantee, the prior written authorization of the Pledge Creditors shall
      be
      required, and the Pledge Creditors may not deny or delay such authorization
      without reasonable and due cause. Clause Seven. TRANSFORMATION OF THE
      CORPORATION. In the event of any break-up, merger or transformation of
      the corporation issuing the Shares previously authorized in writing by the
      Pledge Creditors in the manner stipulated in the preceding clause, the pledge
      and the restrictions and the prohibitions established hereunder shall extend
      to
      all of the shares of any new corporation or corporations that might be formed
      as
      a result of a break-up or merger, or of the surviving companies existing after
      the break-up or merger, pertinent to the rights or investment, as the case
      may
      be, in the transformed corporation. The Pledge Creditors are exclusively
      authorized to withdraw directly 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    through
      any of their
      authorized representatives or through a Notary Public who is petitioned in
      their
      name, the corresponding stock certificates in all of the preceding cases, and
      to
      request the recording of this pledge and prohibition(s) in the appropriate
      registries of shareholders, with the Pledge Debtors consequently waiving its
      right to request such delivery to itself or to another party. Clause
      Eight. COMMERCIAL PLEDGE. The commercial pledge made in this instrument
      is constituted in accordance with the provisions embodied in Articles 813 et
      seq. of the Commercial Code, and in accordance with Article Two hereof, and
      further in accordance with Articles 2384 et seq. of the Civil Code.
Clause Nine. DECLARATION OF OWNERSHIP. Each of the Pledge
      Debtors declare that it is the sole and exclusive owner of the pledged shares;
      that these shares are duly recorded in its name in the Registry of Shareholders
      of the Corporation and that all of them are duly paid, and that the Pledge
      Debtors have the corresponding authorizations and approvals required by law.
      Likewise, the Pledge Debtors declare that the pledged shares are free and clear
      of any and all liens, encumbrances, obligations, judgments, restrictions,
      limitations, attachments, injunctions, resolutory actions or preferential
      third-party rights, save for the pledge that is made hereunder to the Pledge
      Creditors, and that the pledge shares are not affected by any options, promises
      of sale, conditional or term sales, or any other act or contract that has or
      might have as its purpose the transfer of ownership of said shares, and that
      no
      impediment exists that might affect their free disposal or the making of this
      pledge and prohibition on liens and sales. Legal Status. The
      legal status of Manuel Ulises Navarrete Muñoz to act in representation of Buses
      Gran Santiago S.A. is embodied in the public instrument of June 2,
      2006,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    executed
      before
      Osvaldo Pereira González, Notary in Santiago. The legal status of Simon Alberto
      Dosque San Martín to act in representation of Comercial Nuevo Milenio S.A. is
      embodied in the public instrument of May 4, 2006, executed before Alberto
      González Caamaño, Notary in Santiago. The legal status of Manuel Ulises
      Navarrete Muñoz to act in representation of Buses Metropolitana S.A. is embodied
      in public instrument of June 2, 2006, executed before Osvaldo Pereira González,
      Notary in Santiago. The legal status of Mr. Andrés Ocampo Borrero and Mr. Héctor
      del Tránsito Martín to act in representation of Su Bus Chile S.A. is embodied in
      the public instrument of September 26, 2005, executed before Notary Patricio
      Raby Benavente. The legal status of Ricardo José Bartel to act in representation
      of Express de Santiago Uno S.A. is embodied in the public instrument of June
      2,
      2006, executed before Osvaldo Pereira González, Notary in Santiago. The legal
      status of Manuel Ricardo José Bartel Jeffery to act in representation of Alsacia
      S.A. is contained in the public instrument of February 22, 2006, executed before
      Antonieta Mendoza Escalas, Notary in Santiago. The legal status of Mr. Luis
      Barahona Moraga and Mr. Jorge Rolando Gómez Pérez to act in representation of
      Servicio de Transporte de Personas Santiago S.A. is embodied in the public
      instrument of July 15, 2004, executed before Notary Pamela Hernández Machuca.
      The legal status of Roberto Hernán Rodríguez Silva to act in representation of
      Unión del Transporte S.A. is contained in the public instrument of February 22,
      2005, executed before Notary Félix Jara Cadot. The legal status of José Gabriel
      Martínez Muñoz and Adriana del Carmen Troncoso Lizana to act in representation
      of

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Trans
      Araucaia S.A.
      is embodied in the public instrument of January 27, 2006, executed before Juan
      Ricardo San Martín Urrejola, Notary in Santiago. The legal status of Ramón Yávar
      Bascuñan and Marcos Retamal Muñoz to act in representation of Redbus Urbano S.A.
      is embodied in the public instrument of December 1, 2005, executed before
      Patricio Zaldívar Mackenna, Notary in Santiago. The legal status of Raúl
      Lupercio Véjar Olea
      to act in representation of Sonda S.A. is contained in the public instrument
      of
      June 3, 2004, executed before Notary René Benavente Cash. The legal status of
      José Manuel Mena Valencia Muñoz to act in representation of the Banco del Estado
      de Chile is embodied in Treasury Department Supreme Decree No. 754 of 1995,
      published in the Official Gazette of August 4, 1995. The legal status of Julio
      Guzmán Herrera to act in representation of the Banco de Chile is embodied in the
      public instrument of March 4, 2002, executed before René Benavente Cash, Notary
      in Santiago. The legal status of Oscar Von Chrismar Carvajal to act in
      representation of the Banco Santander-Chile is embodied in the public
      instruments of July 25, 2002, and July 23, 2003, both executed before Nancy
      de
      la Fuente Hernández, Notary in Santiago. The legal status of Mario Gómez
      Dubravcic to act in representation of the Banco de Crédito e Inversiones is
      contained in the public instruments of May 30, 2005, and August 1, 2006, both
      executed before Alberto Mozó Aguilar, Notary in Santiago. The legal status of
      Claudio Cisternas Duque and María Angélica Silva Arrué to act in representation
      of Promotora CMR Falabella S.A. is embodied in the public instrument of October
      8, 2004, executed before Notary Alberto Mozó Aguilar.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the instrument was signed
      after having been read. This instrument will be recorded in the Register of
      Public Instruments for the current month under the number indicated. A copy
      is
      being issued. I so attest.

     

    
       

      
        	 	
                By:

              	
                /s/
                  Oscar von Chrismar             

              
	 	 	
                Name:

              	
                Oscar
                  von Chrismar

              
	 	 	 	
                Chief
                  Executive OfficerEX-4.C.2

 

EXHIBIT 4(c).2

Dated   Friday 23rd January 2007

NATIONAL GRID PLC

and

MARK FAIRBAIRN

SERVICE AGREEMENT

 

 

This
Agreement is made on      between

	(1)	 	National Grid plc incorporated in the UK with registered number 04031152 whose registered
office is at 1-3 The Strand, London WC2N 5EH (the “Company”); and

	(2)	 	Mark Fairbairn of The Old Forge, Church Lane, Bearley, Stratford Upon Avon, Warwickshire,
CV37 0SL (the “Executive”).

This agreement records the terms on which the Executive will serve the Company.

	1	 	Interpretation
	 
	 	 	In this agreement (and any schedules to it):
	 
	1.1	 	Definitions
	 
	 	 	“Board” means the board of directors of the Company from time to 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 the Company, its ultimate holding company from time to time and the Company’s
associates (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 interpreted
accordingly;
	 
	 	 	“holding company” has the meaning given in section 736 of the Companies Act 1985;
	 
	 	 	“Listing Rules” means the listing rules made by the Financial Services Authority in exercise
of its functions as competent authority pursuant to Part VI of the Financial Services and
Markets Act 2000; and
	 
	 	 	“Termination Date” means the date on which the Employment terminates.
	 
	2	 	Commencement of Employment
	 
	2.1	 	The Employment will start on 1 January 2007 (the “Commencement Date”). The
Employment will continue until termination in accordance with the provisions of this
agreement. The Executive’s period of continuous employment began on 25 September
1989.

- 1 -

 

	3	 	Appointment and Duties of the Executive
	 
	3.1	 	The Executive will serve as Director, Gas Distribution from 1 January 2007 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 Company;
	 
	 	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 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 

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	 	 	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.
	 
	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 the Executive is a managing executive 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.
	 
	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
business nature except his interests in any Group Company.
	 
	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.

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	6	 	Location
	 
	6.1	 	The Executive will work at the Warwick office of the Company or anywhere else
within the United Kingdom or the U.S.A. required by the Board. He will 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	 	The Company will pay the Executive a base salary of £400,000 per annum. Base salary
will accrue from day to day and will be paid in equal monthly instalments on or before the
last day of each month. Salary will be reviewed annually, normally commencing in April of each
year. The first review will take place in April 2008.
	 
	7.2	 	The salary referred to in clause 7.1 will be inclusive of any remuneration or fees
which the Executive is or becomes entitled to as an office holder in the Company or any Group
Company or any other company in which the
Executive becomes an office holder as part of or in connection with 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 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 Company 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 that
plan from time to time in force. 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’s pension provisions are set out in the attached Schedule.
	 
	7.6	 	If the Executive complies with any eligibility requirements or other conditions set
by the Company and any insurer appointed by the Company, the Executive and his spouse and
children under 21 years of age who reside with the Executive or children in full time
education up to the age of

- 4 -

 

	 	 	24 may participate in the Company’s private health insurance
arrangements at the Company’s expense and subject to the terms of those arrangements 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.
	 
	7.7	 	The Executive is entitled to 33 days’ paid holiday each year (in addition to
English bank/other public holidays) to be taken at times approved in advance by the Board. 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.
	 
	7.8	 	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	 	Without prejudice to the Company’s right to terminate the Employment at any time in
accordance with clause 11 and provided the Executive complies with the absence notification
requirements of the Company from time to time in force:

	 	7.9.1	 	the Executive will continue to receive full base salary if he is absent
from work as a result of illness or injury for 182 days in any consecutive period of 12
months. Thereafter, the Executive will receive payment at half of his base salary for a
further 182 of absence as a result of illness or injury and thereafter, the payment of
base salary will cease. In this clause ”day” includes Saturdays, Sundays and public
holidays;
	 
	 	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

- 5 -

 

	 	 	 	Company will pay the Executive statutory sick pay under the Social Security
Contributions and Benefits Act 1992 (as amended) 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.

	7.10	 	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.
	 
	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 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.

	 	 	 	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 

- 6 -

 

	 	 	 	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 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
	 
	10.1	 	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.
	 
	10.2	 	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 right 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.
	 
	10.3	 	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.

- 7 -

 

	10.4	 	The provisions of clause 10.1 to 10.3 (inclusive) are without prejudice to the
provisions of the Patents Act 1977.
	 
	10.5	 	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.
	 
	10.6	 	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.
	 
	10.7	 	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 otherwise.
	 
	10.8	 	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.
	 
	10.9	 	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 10.9, 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.

- 8 -

 

	11.3	 	Notwithstanding the other provisions of this agreement and in particular clause
11.2, the Employment will automatically terminate on the Executive’s 65th birthday, subject
always to the Executive’s right to request to work beyond that date in accordance with 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.
	 
	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 dishonesty or is convicted of 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

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	 	11.6.8	 	becomes of unsound mind, is bankrupted 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 Company terminates without the consent or concurrence of the
Company; or.
	 
	 	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
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 

- 10 -

 

	 	 	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 contract); 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; 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.

	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 his Company car; and
	 
	 	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 (excluding bonuses) in accordance with the terms of this
agreement. 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
it 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

- 11 -

 

	 	 	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 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 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 and any other country in the world in which the
Company or any Group Company has material business interests in the period of 12 months
ending on the Relevant Date;
	 
	 	 	“Relevant Date” means the Termination Date or, if earlier, the date on which the Executive
commences any Garden Leave Period;
	 
	 	 	“Restricted Period” means the period of 12 months less any Garden Leave Period commencing on
the Termination Date; and
	 
	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:

- 12 -

 

	 	13.2.1	 	during the Restricted Period and within the Prohibited Area he will not be
employed in, 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 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.

- 13 -

 

	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 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 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.

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	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.
	 
	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 Executive’s period of continuous employment began on 25 September 1989 and does not include any previous employment with any other
employer.
	 
	 	18.1.2	 	The Company’s disciplinary rules and dismissal, disciplinary and grievance
procedures as set out in the Staff Handbook from time to time are applicable to the
Executive. The disciplinary rules are contractual. The dismissal, disciplinary and
grievance procedures are non-contractual.
	 
	 	18.1.3	 	The Company’s normal hours of work are 09:00 to 17:00 Monday to Friday.
	 
	 	18.1.4	 	There are no terms and conditions relating to collective agreements.

	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 

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	 	 	    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 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.

	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 Company. The Executive
agrees to comply with the terms of the Act in relation to such data and to abide by the
Company’s data protection policy issued 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.

- 16 -

 

	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 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.
	 
	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 waives 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

- 17 -

 

	 	 	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

	 	Steve Holliday
	 	 
	NATIONAL GRID PLC
	 	Director	 	 

	 	 	 	 	 
	EXECUTED as a DEED by

	 	}
	 	/s/ MARK FAIRBAIRN
	MARK FAIRBAIRN
	 	 	 	 
	in the presence of:
	 	 	 	 
	 
	 	 	 	 
	 

	 	/s/ L Innes	 	 
	Witness’s signature
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name
	 	L Innes	 	 
	Address

	 	18 Heron Lane	 	 
	 

	 	Stratford Upon Avon	 	 
	 

	 	Cv37 9EG	 	 
	 
	 	 	 	 
	Occupation   PA
	 	 	 	 
	 
	 	 	 	 
	/s/ HELEN MAHY   
	 	 	 
	Company Secretary
	 	 	 	 

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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
	 	 	6	 
	 	 	 
	 	 	 	 
	9	 	Confidentiality
	 	 	6	 
	 	 	 
	 	 	 	 
	10	 	Intellectual Property
	 	 	7	 
	 	 	 
	 	 	 	 
	11	 	Termination and Suspension
	 	 	8	 
	 	 	 
	 	 	 	 
	12	 	Garden Leave
	 	 	10	 
	 	 	 
	 	 	 	 
	13	 	Restrictions after Termination of Employment
	 	 	12	 
	 	 	 
	 	 	 	 
	14	 	Offers on Liquidation
	 	 	13	 
	 	 	 
	 	 	 	 
	15	 	Return of Company Property
	 	 	14	 
	 	 	 
	 	 	 	 
	16	 	Directorships
	 	 	14	 
	 	 	 
	 	 	 	 
	17	 	Notices
	 	 	15	 
	 	 	 
	 	 	 	 
	18	 	Statutory Particulars
	 	 	15	 
	 	 	 
	 	 	 	 
	19	 	Data Protection Act 1998
	 	 	15	 
	 	 	 
	 	 	 	 
	20	 	Contracts (Rights of Third Parties) Act 1999
	 	 	16	 
	 	 	 
	 	 	 	 
	21	 	Miscellaneous
	 	 	17

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