Document:

exv10wxiy

 

EXHIBIT 10(i)

Summary of Non-employee Directors’ Compensation

Each non-employee Director will receive an annual retainer fee
equivalent to $18,000 per year, plus $1,800 for each Board or committee
meeting attended in person and $500 for each telephonic meeting
attended. In addition, the chairpersons of each committee will receive
$1,000 per quarter. In addition, each non-employee Director who is a
member of the Compensation Committee and/or the Finance and Audit
Committee will receive $250 per quarter for each committee on which
such non-employee director serves.<PAGE>

                                                                   EXHIBIT 10(i)

                                    AMENDMENT
                                       TO
                         SEVERANCE PROTECTION AGREEMENT

      The Agreement dated March 1, 1998, between New England Electric System, a
Massachusetts business trust (the Company), and John G. Cochrane (the Executive)
is hereby amended by amending Section 6.2 to read as follows:

            6.2 Notwithstanding any other provisions of this Agreement, in the
      event that any payment or benefit received or to be received by the
      Executive in connection with a Change in Control or a Major Transaction,
      or the termination of the Executive's employment (whether pursuant to the
      terms of this Agreement or any other plan, arrangement or agreement with
      the System, any Person whose actions result in a Change in Control or a
      Major Transaction or any Person affiliated with the System or such Person)
      (all such payments and benefits, including the Severance Payments, being
      hereinafter called Total Payments) would be subject (in whole or part), to
      the Excise Tax, then the Severance Payments shall be reduced to the extent
      necessary so that no portion of the Total Payments is subject to the
      Excise Tax (after taking into account any reduction in the Total Payments
      provided by reason of section 280G of the Code in such other plan,
      arrangement or agreement) if (A) the net amount of such Total Payments, as
      so reduced, (and after deduction of the net amount of federal, state and
      local income tax on such reduced Total Payments) is greater than (B) the
      excess of (i) the net amount of such Total Payments, without reduction
      (but after deduction of the net amount of federal, state and local income
      tax on such Total Payments), over (ii) the amount of Excise Tax to which
      the Executive would be subject in respect of such Total Payments. For
      purposes of determining whether and the extent to which the Total Payments
      will be subject to the Excise Tax, (i) no portion of the Total Payments
      the receipt or enjoyment of which the Executive shall have effectively
      waived in writing prior to the Date of Termination shall be taken in to
      account, (ii) no portion of the Total Payments shall be taken into account
      which in the opinion of tax counsel selected by the Company does not
      constitutes a "parachute payment" within the meaning of section 280G(b)(2)
      of the Code, (including by reason of section 280G(b)(4)(A) of the Code)
      and, in calculating the Excise Tax, no portion of such Total Payments
      shall be taken into account which constitutes reasonable compensation for
      services actually rendered, within the meaning of section 280G(b)(4)(B) of
      the Code, in excess of the Base Amount allocable to such reasonable
      compensation, and (iii) the value of any noncash benefit or any deferred
      payment or benefit included in the Total Payments shall be determined by
      the Company in accordance with the principles of sections 280G(d)(3) and
      (4) of the Code. Prior to the payment date set forth in Section 6.3
      hereof, the Company shall provide the Executive with its calculation of
      the amounts referred to in this Section and such supporting materials as
      are reasonably necessary for the Executive to evaluate the Company's
      calculations. If the Executive objects to the Company's calculations, the
      Company shall pay to the Executive such portion of the Severance Payments
      (up to 100% thereof) as the Executive determines is necessary to result in
      the Executive receiving the greater of clauses (A) and (B) of this
      Section.

<PAGE>

Dated: 12/9/98

                                                       /s/ George M. Sage
                                                --------------------------------
                                                Chairman, Compensation Committee

                                                       /s/ John G. Cochrane
                                                --------------------------------
                                                Executive

<PAGE>

                   Amendment to Severance Protection Agreement

      This Amendment is made and entered into by and between National Grid USA,
on behalf of itself, its affiliates and subsidiaries (the Company) and John G.
Cochrane (the Executive).

      WHEREAS, National Grid Group, plc the predecessor of National Grid
Transco, plc, and New England Electric System merged on March 22, 2000 (Merger).

      WHEREAS, as a result of the Merger, the Executive became an employee of a
subsidiary of National Grid Group plc's subsidiary, National Grid USA;

      WHEREAS, New England Electric System and the Executive entered into a
Severance Protection Agreement dated March 1, 1998 and amended on December 9,
1998 (Agreement) to which National Grid USA became the successor.

      WHEREAS, as a result of the Merger, a Change in Control occurred under the
Agreement which would cause the Agreement to terminate on March 22, 2003.

      WHEREAS, the parties would like to extend the term of the Agreement and
amend the Agreement, in part, to reflect these events.

      NOW, THEREFORE, National Grid USA and the Executive hereby agree to amend
the Agreement as follows:

  1.  The Company and the Executive agree that all references to a Change in
      Control, a Potential Change in Control, a Major Transaction, or a
      Potential Major Transaction in the Agreement shall mean a Change in
      Control, Potential Change in Control, Major Transaction or a Potential
      Major Transaction that occurs after the effective date of this Amendment;
      and that in order for the Executive to be eligible for benefits under the
      Agreement a Potential Change in Control, Change in Control, a Potential
      Major Transaction or a Major Transaction must occur after the effective
      date of this Amendment.

  2.  Section 2. Term of Agreement shall be amended to read as follows:

      This Amendment shall commence on March 15, 2003 and shall continue in
      effect through March 30, 2005; provided, however, commencing on March 1,
      2004 and each March 1st thereafter, the term of this Agreement shall
      automatically be extended for one additional year unless, not later than
      December 31st of the preceding year, the Company or the Executive shall
      have given notice not to extend this Agreement or a Change in Control or a
      Major Transaction shall have occurred prior to such March 1st; provided,
      however, if a Change in Control or a Major Transaction shall have occurred
      during the term of this Agreement, this Agreement shall continue in effect
      for a period of thirty-six months beyond the month in which such Change in
      Control or Major Transaction occurred.

<PAGE>

  3.  Section 5.3 shall be amended to read as follows:

      If the Executive's employment shall be terminated for any reason following
      a Change in Control or a Major Transaction and during the term of this
      Agreement, the Company shall pay to the Executive the normal
      post-termination compensation and benefits due the Executive as such
      payments become due. Such post-termination compensation and benefits shall
      be determined under, and paid in accordance with, the System's applicable
      retirement, insurance and other compensation or benefit plans, programs
      and arrangements. Provided that the benefits payable to the Executive
      pursuant to the National Grid USA Companies Basic Severance Plan for
      Non-Union Employees or its successor and/or the National Grid USA
      Companies' Executive Severance Plan or its successor (the Severance Plans)
      do not exceed benefits payable to the Executive under this Agreement, the
      Executive hereby waives all rights to benefits pursuant to said Severance
      Plans.

  4.  Section 6.1 (A) shall be amended to read as follows:

        (A) In lieu of any further salary payments to the Executive for periods
            subsequent to the Date of Termination, the Company shall pay to the
            Executive a lump sum severance payment, in cash, equal to three
            times the sum of (i) the higher of the Executive's annual base
            salary in effect as of the Date of Termination or in effect
            immediately prior to the Change in Control or Major Transaction, and
            (ii) the higher of the average amount paid to the Executive pursuant
            to National Grid USA Companies' Incentive Compensation Plan and
            National Grid USA Companies' Incentive Share Plan or successors of
            any such plans, with respect to the three years preceding the year
            in which the Date of Termination occurs or the average amount paid
            with respect to the three years preceding the year in which the
            Change in Control or Major Transaction occurs.

  5.  In Section 6.1, in the tenth line after the word "Company" add "or
      National Grid Transco, plc".

  6.  In Sections 6.1 B, C, and D all references to "twenty-four (24) months"
      shall be replaced with "thirty six (36) months".

  7.  Section 7.1. The last sentence of this Section shall be deleted and
      replaced with the following: "Further, a Notice of Termination for Cause
      is required to include a statement from the Chief Executive Officer of
      National Grid USA and the Chief Executive Officer of National Grid
      Transco, plc or his designee that, in the good faith opinion of the two
      (after reasonable notice to the Executive and an opportunity for the
      Executive, together with the Executive's counsel, to be heard) that the
      Executive was guilty of conduct set forth in clause (i) or (ii) of the
      definition of Cause set forth in Section 15D of the Agreement. Said
      statement shall specify the particulars thereof in detail.

                                       2
<PAGE>

  8.  Section 10. Notices. The Company address shall read:

            To the Company:
            National Grid USA Service Company, Inc.
            25 Research Drive
            Westborough, MA 01582-0099
            Attn: Sr. Vice President Human Resources

  9.  Section 15. Definitions. The following definitions shall be amended as
      follows:

            (B)   "Beneficial Owner" - deleted.

            (C)   "Board" or "Board of Directors of the Company" - All
                  references to "Board" or "Board of Directors" shall be
                  replaced with Chief Executive Officer of National Grid USA and
                  Chief Executive Officer of National Grid Transco, plc, or his
                  designee unless otherwise specified in this Amendment.

            (E)   A Change in Control shall be deemed to have occurred if the
                  conditions set forth in any of the following sections have
                  been satisfied:

            (a)   any person or persons in concert obtains Control (as defined
                  in Section 840 of the United Kingdom's Income and Corporation
                  Taxes Act 1988) of National Grid Transco, plc as a result of
                  making a general offer to acquire shares in National Grid
                  Transco, plc or having obtained Control, makes such an offer;
                  or

            (b)   the consummation of the sale or disposition by National Grid
                  Transco, plc of all or substantially all of the assets of
                  National Grid USA to a non-affiliated entity; or

            (c)   the complete liquidation, dissolution or winding up of
                  National Grid Transco, plc and/or of National Grid USA; or

            (d)   the acquisition by National Grid Transco, plc or National Grid
                  USA or their successors of all or substantially all of the
                  assets of or ownership of all or substantially all of the
                  outstanding shares of a U.S. electric and/or gas utility
                  company which would increase the size or revenues of National
                  Grid USA by 25% or more.

                        A Change in Control shall not be deemed to have occurred
                  if the events referred to above are part of an arrangement ("a
                  Reorganization") which will mean that National Grid Transco,
                  plc and/or National grid USA will be under the Control of
                  another company or the business of National Grid Transco, plc
                  is carried on by another company, and the persons who owned
                  the shares in National Grid Transco, plc immediately before
                  the

                                       3
<PAGE>

                  Change in Control will immediately afterwards own more than
                  50% of the shares in that other company.

            (G)   "Company" shall mean National Grid USA and any successor to
                  its business and/or assets which assumes and agrees to perform
                  this Agreement by operation of law, or otherwise.

            (O)   "Good Reason" - delete (I) "the assignment to the Executive of
                  duties substantially inconsistent with the Executive's status
                  as an executive officer of the system" and all references
                  thereto.

            (P)   A Major Transaction shall be deemed to have occurred if the
                  conditions set forth in any one of the following sections
                  shall have been satisfied:

                  (a)   any person becomes bound or entitled to acquire shares
                        in National Grid Transco, plc under Sections 428 to 430F
                        of the United Kingdom's Companies Act 1985, or a scheme
                        of arrangement or compromise under Section 425 of the
                        United Kingdom's Companies Act 1985 is proposed for
                        National Grid Transco, plc, or

                  (b)   National Grid Transco, plc shareholders approve the sale
                        or disposition of all or substantially all of the assets
                        of National Grid USA to a non-affiliated entity, or

                  (c)   National Grid Transco, plc passes a resolution for
                        voluntary winding up, or an order is made for the
                        compulsory winding up of National Grid Transco, plc
                        and/or National Grid USA, or

                  (d)   the shareholders of National Grid Transco, plc, approve
                        an event the consummation of which would result in the
                        occurrence of a Change in Control, or

                  (e)   the Board of Directors of National Grid Transco, plc
                        adopts a resolution that, for purposes of this
                        Agreement, a Major Transaction has occurred.

                              A Major Transaction shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco, plc and/or National Grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco, plc is carried on by another
                        company, and the persons who owned the shares in
                        National Grid Transco, plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

                                       4
<PAGE>

                  (Q)   "NEES Companies" - All references to "NEES Companies"
                        shall be replaced with "National Grid USA Companies,
                        collectively".

                  (R)   "NEES Company" - All references to "NEES Company" shall
                        be replaced with "National Grid USA company".

                  (U)   "Person" - Shall have the meaning set forth in
                        Definition 15 (E) (a) of this Amendment.

                  (V)   "Potential Change in Control" shall be deemed to have
                        occurred if the conditions set forth in any one of the
                        following paragraphs shall have been satisfied:

                        (I)   The Company or National Grid Transco, plc enters
                              into an agreement, the consummation of which would
                              result in the occurrence of a Change in Control;

                        (II)  The Company, National Grid Transco, plc or any
                              Person publicly announces an intention to take or
                              to consider taking actions which, if consummated,
                              would constitute a Change in Control;

                        (III) any Person who, directly or indirectly has or
                              obtains an ownership interest in securities of
                              National Grid Transco, plc or its successor
                              representing 10% or more of the combined voting
                              power of National Grid Transco, plc's then
                              outstanding securities, increases such ownership
                              of such securities, including options exercisable
                              within 60 days thereof, by 5% or more over the
                              percentage so owned by such Person on the date
                              hereof.

                              A Potential Change in Control shall not be deemed
                              to have occurred if the events referred to above
                              are part of an arrangement ("a Reorganization")
                              which will mean that National Grid Transco, plc
                              and/or National Grid USA will be under the control
                              of another company or the business of National
                              Grid Transco, plc is carried on by another
                              company, and the persons who owned the shares in
                              National Grid Transco, plc immediately before the
                              series of transactions are consummated will
                              immediately after consummation own more than 50%
                              of the shares in that other company.

                                       5
<PAGE>

                  (W)   "Potential Major Transaction" shall be deemed to have
                        occurred if the conditions set forth in any one of the
                        following paragraphs shall have been satisfied:

                        (i)   the Company enters into an agreement, the
                              consummation of which would result in the
                              occurrence of a Major Transaction;

                        (ii)  The Company or any Person publicly announces an
                              intention to take or consider taking actions
                              which, if consummated, would constitute a Major
                              Transaction; or

                        (iii) the Board of Directors of National Grid Transco,
                              plc adopts a resolution to the effect that, for
                              purposes of this Agreement, a Potential Major
                              Transaction has occurred.

                  (Z)   "System" shall mean the "Company" and the "National Grid
                        USA Companies", collectively.

This Amendment supersedes the Agreement in so far as it conflicts with any terms
and conditions of the Agreement. All other terms and conditions of the Agreement
remain unchanged.

                                              National Grid USA

                                              By:      /s/ Richard P. Sergel
                                                  ------------------------------
                                                  Chief Executive Officer

                                              Date:

                                              By:      /s/ John G. Cochrane
                                                  ------------------------------
                                                      John G. Cochrane

                                              Date:

                                       6
<PAGE>

                   Amendment to Severance Protection Agreement

      The Severance Protection Agreement dated March 1, 1998 and amended on
December 9, 1998 between John G. Cochrane (the Executive) and New England
Electric System (the Agreement), amended effective as of March 15, 2003 by
National Grid USA and the Executive, is hereby amended effective September 1,
2003 as follows:

      1.    Section 7.1. The last sentence of this Section shall be deleted and
            replaced with the following: "Further, a Notice of Termination for
            Cause is required to include a statement from the Chief Executive
            Officer of National Grid USA and the Chief Executive Officer of
            National Grid Transco plc or his designee, that, in the good faith
            opinion of the two (after reasonable notice to the Executive and an
            opportunity for the Executive, together with the Executive's
            counsel, to be heard) that the Executive was guilty of conduct set
            forth in clause (i) or (ii) of the definition of Cause set forth in
            Section 15 (D) of this Amendment. Said statement shall specify the
            particulars thereof in detail.

      2.    Section 15. Definitions. The Definitions shall read as follows:

            (A)   "Beneficial Owner" - delete.

            (B)   "Base Amount" shall have the meaning defined in Section 280 G
                  (b) (3) of the Code.

            (C)   "Board" or "Board of Directors of the Company" - all
                  references to "Board" or "Board of Directors" shall be
                  replaced with Chief Executive Officer of National Grid USA and
                  Chief Executive Officer of National Grid Transco plc, or his
                  designee, unless otherwise specified in this Amendment.

            (D)   "Cause" for termination by the Employer of the Executive's
                  employment, after any Change in Control or Major Transaction,
                  shall mean (i) the willful and continued failure by the
                  Executive to substantially perform the Executive's duties with
                  the System (other than any such failure resulting from the
                  Executive's incapacity due to physical or mental illness or
                  any such actual or anticipated failure after the issuance of a
                  Notice of Termination for Good Reason by the Executive
                  pursuant to Section 7.1 of the Agreement and this Amendment)
                  after a written demand for substantial performance is
                  delivered to the Executive by the Board, which demand
                  specifically identifies the manner in which the Board believes
                  that the Executive has not substantially performed the
                  Executive's duties, or (ii) the willful engaging by the
                  Executive in conduct which is demonstrably

<PAGE>

                  and materially injurious to the System, monetarily or
                  otherwise. For purposes of clauses (i) and (ii) of this
                  definition, no act, or failure to act, on the Executive's part
                  shall be deemed "willful" unless done, or omitted to be done,
                  by the Executive not in good faith and without reasonable
                  belief that the Executive's act, or failure to act, was in the
                  best interest of the System.

            (E)   A "Change in Control" shall be deemed to have occurred if the
                  conditions set forth in any of the following paragraphs shall
                  have been satisfied:

                  (I)   any Person or Persons in concert obtains Control (as
                        defined in Section 840 of the United Kingdom's Income
                        and Corporation Taxes Act 1988) of National Grid Transco
                        plc as a result of making a general offer to acquire
                        shares in National Grid Transco plc or having obtained
                        Control, makes such an offer;

                  (II)  the consummation of the sale or disposition by National
                        Grid Transco plc of National Grid USA to a
                        non-affiliated entity (whether by merger, sale of all or
                        substantially all of the capital stock or assets of
                        National Grid USA or otherwise);

                  (III) the complete liquidation, dissolution or winding up of
                        National Grid Transco plc and/or of National Grid USA;
                        or

                  (IV)  the acquisition by National Grid Transco plc or National
                        Grid USA or their successors of all or substantially all
                        of the assets of or ownership of all or substantially
                        all of the outstanding shares of a U.S. electric and/or
                        gas utility company which would increase the size or
                        revenues of National Grid USA by 25% or more.

                              A Change in Control shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the Change
                        in Control will immediately afterwards own more than 50%
                        of the shares in that other company.

            (F)   "Code" shall mean the Internal Revenue Code of 1986, as
                  amended from time to time.

                                       2
<PAGE>

            (G)   "Company" shall mean National Grid USA and any successor to
                  its business and/or assets which assumes and agrees to perform
                  the Agreement by operation of law, or otherwise.

            (H)   "Date of Termination" shall have the meaning stated in Section
                  7.2 of the Agreement.

            (I)   "Disability" shall be deemed the reason for the termination by
                  the Employer of the Executive's employment, if, as a result of
                  the Executive's incapacity due to physical or mental illness,
                  the Executive shall have been absent from the full-time
                  performance of the Executive's duties with the System for a
                  period of six consecutive months, the Company shall have given
                  the Executive a Notice of Termination for Disability, and,
                  within thirty days after such Notice of Termination is given,
                  the Executive shall not have returned to the full-time
                  performance of the Executive's duties.

            (J)   "Disability Insurance Plan" shall mean the Company Disability
                  Insurance Plan or any successor thereto.

            (K)   "Employer" shall mean the National Grid USA company by which
                  the Executive is employed at the time of termination.

            (L)   "Exchange Act" - delete.

            (M)   "Excise Tax" shall mean any excise tax imposed under Section
                  4999 of the Code.

            (N)   "Executive" shall mean the individual named in the first
                  paragraph of this Amendment.

            (O)   "Good Reason" for termination by the Executive of the
                  Executive's employment shall mean the occurrence (without the
                  Executive's express written consent) of any one of the
                  following acts by the System, or failures by the System to
                  act, unless, in the case of any act or failure to act
                  described in paragraph (V), (VI) or (VII) below, such act or
                  failure to act is corrected prior to the Date of Termination
                  specified in the Notice of Termination given in respect
                  thereof:

                  (I)   delete.

                  (II)  a reduction in the Executive's annual base salary as in
                        effect on the date hereof or as the same may be
                        increased from time to time;

                                       3
<PAGE>

                  (III) requiring the Executive to be based at a location more
                        than 100 miles from the town of Westborough,
                        Massachusetts, except for required travel on the
                        System's business to an extent substantially consistent
                        with the Executive's present business travel
                        obligations;

                  (IV)  the failure by the Employer, to pay to the Executive any
                        portion of the Executive's compensation within seven
                        days of the date such compensation is due;

                  (V)   the failure by the System to continue in effect any
                        compensation plan in which the Executive participates
                        immediately prior to the Change in Control or the Major
                        Transaction which is material to the Executive's total
                        compensation, including but not limited to National Grid
                        USA Companies' Incentive Compensation Plan, National
                        Grid USA Companies' Incentive Share Plan, National Grid
                        USA Companies' Deferred Compensation Plan and National
                        Grid USA Companies' Executive Supplemental Retirement
                        Plan or any substitute plans adopted prior to the Change
                        in Control or Major Transaction, unless an equitable
                        arrangement (embodied in an ongoing substitute or
                        alternative plan) has been made with respect to such
                        plan, or the failure by the System to continue the
                        Executive's participation therein (or in such substitute
                        or alternative plan) on a basis not substantially less
                        favorable, both in terms of the amount of benefits
                        provided and the level of the Executive's participation
                        relative to other participants, as existed at the time
                        of the Change in Control or Major Transaction;

                  (VI)  the failure by the System to continue to provide the
                        Executive with benefits substantially similar to those
                        enjoyed by the Executive under any of the System's
                        pension, life insurance, medical, health and accident,
                        or disability plans in which the Executive was
                        participating at the time of the Change in Control or
                        the Major Transaction, the taking of any action by the
                        System which would directly or indirectly materially
                        reduce any of such benefits or deprive the Executive of
                        any material fringe benefit enjoyed by the Executive at
                        the time of the Change in Control or Major Transaction,
                        or the failure by the Employer to provide the Executive
                        with the number of paid vacation days to which the
                        Executive is entitled on the basis of years of service
                        with the National Grid USA companies in accordance with
                        the

                                       4
<PAGE>

                        Employer's normal vacation policy in effect at the time
                        of the Change in Control or Major Transaction; or

                  (VII) any purported termination of the Executive's employment
                        which is not effected pursuant to a Notice of
                        Termination satisfying the requirements of Section 7.1
                        of the Agreement and this Amendment; for purposes of the
                        Agreement, no such purported termination shall be
                        effective.

                        The Executive's right to terminate the Executive's
                        employment for Good Reason shall not be affected by the
                        Executive's incapacity due to physical or mental
                        illness. The Executive's continued employment shall not
                        constitute consent to, or a waiver of rights with
                        respect to, any act or failure to act constituting Good
                        Reason hereunder.

            (P)   "A Major Transaction" shall be deemed to have occurred if the
                  conditions set forth in any one of the following paragraphs
                  shall have been satisfied:

                  (I)   any Person becomes bound or entitled to acquire shares
                        in National Grid Transco plc under Sections 428 to 430F
                        of the United Kingdom's Companies Act 1985, or a scheme
                        of arrangement or compromise under Section 425 of the
                        United Kingdom's Companies Act 1985 is proposed for
                        National Grid Transco plc;

                  (II)  National Grid Transco plc shareholders, National Grid
                        USA's shareholders and/or the Board of Directors of
                        National Grid USA approve the sale of National Grid USA
                        to a non-affiliated entity (whether by merger, sale of
                        all or substantially all of the capital stock or assets
                        of National Grid USA, or otherwise);

                  (III) National Grid Transco plc passes a resolution for
                        voluntary winding up, or an order is made for the
                        compulsory winding up of National Grid Transco plc
                        and/or National Grid USA;

                  (IV)  the shareholders of National Grid Transco plc, the
                        shareholders of National Grid USA and/or the Board of
                        Directors of National Grid USA approve an event the
                        consummation of which would result in the occurrence of
                        a Change in Control; or

                                       5
<PAGE>

                  (V)   the Board of Directors of National Grid Transco plc
                        adopts a resolution that, for purposes of this
                        Agreement, a Major Transaction has occurred.

                              A Major Transaction shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National Grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

            (Q)   "NEES Companies" - all references to "NEES Companies" shall be
                  replaced with "National Grid USA companies, collectively".

            (R)   "NEES Company" - all references to "NEES Company" shall be
                  replaced with "National Grid USA company".

            (S)   "Notice of Termination" shall have the meaning stated in
                  Section 7.1 of the Agreement and this Amendment.

            (T)   "Pension Plan" shall mean each of the plans and agreements
                  listed in Attachment A to the Agreement.

            (U)   "Person" shall mean any individual, corporation, partnership,
                  trust, unincorporated association, business or other legal
                  entity, and any government or any governmental agency or
                  political subdivision thereof.

            (V)   A "Potential Change in Control" shall be deemed to have
                  occurred if the conditions set forth in any one of the
                  following paragraphs shall have been satisfied:

                  (I)   the Company or National Grid Transco plc enters into an
                        agreement, the consummation of which would result in the
                        occurrence of a Change in Control;

                  (II)  the Company, National Grid Transco plc or any Person
                        publicly announces an intention to take or to consider
                        taking actions which, if consummated, would constitute a
                        Change in Control;

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<PAGE>

                  (III) any Person who is not, as of the date hereof, the owner,
                        directly or indirectly, of securities constituting 10%
                        or more of the combined voting power of all of the
                        outstanding voting securities of National Grid Transco
                        plc or any successor thereof (a "10% Holder") becomes a
                        10% Holder;

                  (IV)  any Person who is, as of the date hereof, a 10% Holder,
                        acquires (whether in a single transaction or a series of
                        transactions), directly or indirectly, additional
                        securities constituting 5% or more of the combined
                        voting power of all of the outstanding voting securities
                        of National Grid Transco plc or any successor thereof
                        (for purposes hereof, a Person who, as of any particular
                        date, holds, directly or indirectly, options to purchase
                        securities that are exercisable within 60 days of such
                        date shall be deemed to own such securities as of such
                        date); or

                  (V)   the Board of Directors of National Grid Transco plc
                        adopts a resolution to the effect, that for purposes of
                        this Agreement, a potential Change in Control has
                        occurred.

                        A Potential Change in Control shall not be deemed to
                        have occurred if the events referred to above are part
                        of an arrangement ("a Reorganization") which will mean
                        that National Grid Transco plc and/or National Grid USA
                        will be under the control of another company or the
                        business of National Grid Transco plc is carried on by
                        another company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

            (W)   A "Potential Major Transaction" shall be deemed to have
                  occurred if the conditions set forth in any one of the
                  following paragraphs shall have been satisfied:

                  (I)   the Company enters into an agreement, the consummation
                        of which would result in the occurrence of a Major
                        Transaction;

                  (II)  the Company or any Person publicly announces an
                        intention to take or consider taking actions which, if
                        consummated, would constitute a Major Transaction; or

                                       7
<PAGE>

                        (III) the Board of Directors of National Grid Transco
                              plc adopts a resolution to the effect that, for
                              purposes of this Agreement, a Potential Major
                              Transaction has occurred.

                  (X)   "Retirement" shall be deemed the reason for the
                        termination by the Employer or the Executive of the
                        Executive's employment if such employment is terminated
                        in accordance with the Employer's written mandatory
                        retirement policy, if any, as in effect immediately
                        prior to the Change in Control or Major Transaction, or
                        in accordance with any retirement arrangement
                        established with the Executive's written consent with
                        respect to the Executive.

                  (Y)   "Severance Payments" shall mean those payments described
                        in Section 6.1 of the Agreement and this Amendment.

                  (Z)   "System" shall mean the Company and the National Grid
                        USA companies, collectively.

                  (AA)  "Total Payments" shall mean those payments described in
                        Section 6.2 of the Agreement.

      This Amendment supersedes the Agreement and the March 15, 2003 Amendment
in so far as it conflicts with any terms and conditions of the Agreement and/or
the March 15, 2003 Amendment. All other terms and conditions of the Agreement
and the March 15, 2003 Amendment remain unchanged.

                                              National Grid USA

                                              By:     /s/ Richard P. Sergel
                                                  ------------------------------
                                                      Chief Executive Officer

                                              By:     /s/ John G. Cochrane
                                                  ------------------------------
                                                      John G. Cochrane

                                       8

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