Document:

exv10w56

 

Exhibit 10.56

FIRST AMENDMENT TO SHOPPING CENTER LEASE AGREEMENT

This First Amendment to Shopping Center Lease Agreement (this Amendment) is made and entered into
this ___ day of June, 2007 between Pavillion North, Ltd., a Texas limited partnership (Landlord)
and Dover Saddlery Retail, Inc., a Massachusetts corporation (Tenant).

BACKGROUND:

	A.	 	Landlord and Tenant entered into that certain Shopping Center Lease Agreement dated May 24,
2007 (Lease) with respect to certain Demised Premises located in the Pavillion North Shopping
Center, City of Dallas, State of Texas; all as more particularly described in the Lease.
	 
	B.	 	Tenant wishes to increase the Work Allowance (as defined in the Lease) by $100,000.00 (the
Additional Allowance, as defined in the Lease) per the terms of Exhibit C, Section VII and
Landlord agrees to such request based on the following terms and conditions.
	 
	C.	 	As a result of the increase of the Work Allowance, the Minimum Guaranteed Rental will be
increased by the amount needed to amortize the Additional Allowance over seven (7) years at 9%
per annum.

AGREEMENT:

In consideration of the foregoing, TEN AND NO/100 DOLLARS ($10.00) and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged and confessed, Landlord
and Tenant agree as follows:

	1.	 	Section VII of Exhibit C is deleted in its entirety and replaced with the following:
	 
	 	 	“Landlord will pay Tenant up to $126,890 (the “Work Allowance”) as a reimbursement for
Tenant’s bona fide (and verified) construction expenses paid to parties not related to
Tenant. Landlord shall make up to three (3) progress payments to Tenant as work progresses
withholding the final twenty-five percent (25%) of the Work Allowance (the “Final Payment”).
Tenant’s Final Payment request will be processed only upon (i) completion of all
improvements to Landlord’s satisfaction and specifications, (ii) Tenant’s delivery to
Landlord of a true copy of its Certificate of Occupancy (or similar governmental occupancy
permit), (iii) Landlord’s satisfaction that all bills have been paid to Tenant’s contractor,
subcontractors and professionals, including appropriate lien waivers from said persons, and
(iv) Tenant’s commencement of business in the Demised Premises.”
	 
	2.	 	Section 1(k) of the Lease is deleted in its entirety and replaced with the following:
	 
	 	 	“If Tenant does not exercise its option to renew as provided for in EXHIBIT “I” of
the Lease, the “Minimum Guaranteed Rental” per month, payable in advance shall be as
follows:

	 	 	 	 	 	 	 	 	 
	Month 1:

	 	$1,608.91 plus $2,110.87 totaling:
	 	$	3,719.78	 
	Months 2-24:

	 	$1,608.91 plus $5,378.00 totaling:
	 	$	6,986.91	 
	Months 25-59:

	 	$1,608.91 plus $5,534.86 totaling:
	 	$	7,143.77	 
	Month 60:

	 	$42,361.39	 	 	 	 

	 	 	If Tenant does exercise its option to renew as provided for in EXHIBIT “I” of the
Lease, the Minimum Guaranteed Rental for month 60 shall be $7,143.77 and the remaining
months of the extension shall be as set forth in EXHIBIT “I” attached hereto.”
	 
	3.	 	Section 1(p) of the Lease is deleted in its entirety and replaced with the following:
	 
	 	 	“Prepaid Rental”: $3,719.78, being Tenant’s Minimum Guaranteed Rental, Tenant’s
share of the estimated Common Area maintenance charges, real estate taxes, insurance and
Tenant’s periodic payment of the Additional Allowance for the first (1st) month
of the Lease Term, payable upon execution hereof.
	 
	4.	 	EXHIBIT “I” of the Lease shall be deleted in its entirety and replaced with the
attached EXHIBIT “I”.

 

 

	5.	 	Except as hereby amended, the Lease shall remain unchanged and in full force and effect. If
there is any conflict between the terms and provisions of the Lease and the terms and
provisions of this Amendment, this Amendment shall control.
	 
	6.	 	All terms and definitions used in this Amendment not herein defined are to be given the
definition of the term as provided in the Lease, unless specifically stated otherwise.
	 
	Landlord and Tenant have executed this Amendment as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Pavillion North Ltd.,	 	 	 	Dover Saddlery Retail, Inc.,	 	 
	a Texas limited partnership	 	 	 	a Massachusetts corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Pavillion North Management, L.L.C.,	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	a Texas limited liability company,	 	 	 	 	 	 
	 	 	Its general partner	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Lou B. Cagle, President	 	 	 	 	 	 	 	 

 

 

EXHIBIT “I”

OPTION/S TO RENEW

1. Provided Tenant is not in default of its obligations under this Lease at the date of such
exercise and subject to Section 21 (i), Tenant shall have the option to renew this Lease for
two (2) subsequent period(s) of five (5) year(s), from the expiration of the
Primary Term of this Lease. Landlord may treat any option as having not been exercised if Tenant
is in default of any such obligations at the date of commencement of the renewal period in
question.

2. The option(s) aforesaid must be exercised in writing delivered by Tenant to Landlord not later
than three (3) months prior to the expiration of the Primary Term, or as the case may be, any
subsequent renewal period, and failing which the said option(s) shall be waived by Tenant.

3. The terms and provisions applicable to the above renewal period(s) shall be the same as apply to
the Primary Term of this Lease, except that (i) rent shall be as set forth in Section 4 below, (ii)
Tenant shall have no further right to renew this Lease after the expiration of the renewal
period(s) above, and (iii) Landlord shall not be required to pay any allowance or perform any work
with respect to the renewal period(s).

4. The Minimum Guaranteed Rental payable during the renewal period(s) shall be:

	 	 	 	 	 	 	 
	1st five (5) year option

	 	Years 6 — 7
	 	$1,608.91 plus
	 	$5,870.98 totaling $7,479.89 per month
	 

	 	Year 8
	 	$13.20 psf
	 	$5,870.98 per month
	 

	 	Years 9 — 10
	 	$13.60 psf
	 	$6,095.07 per month
	 
	 	 	 	 	 	 
	2nd five (5) year option

	 	Years 11 — 12
	 	$14.10 psf
	 	$6,319.15 per month
	 

	 	Years 13 — 15
	 	$15.00 psf
	 	$6,722.50 per monthexv10wxggy

 

EXHIBIT 10(gg)

Cheryl A. LaFleur

2 Lilac Circle

Wellesley, MA 02482

August 1, 2007          

Dear Cheryl:

Services Agreement

In recognition of your years of service to National Grid USA (the “Company”) and its
affiliates (together, the “Group”), we are pleased to propose the following arrangements. On your
acceptance, this letter becomes your Services Agreement with the Company.

1 Contemplated Retirement

	 	1.1	 	Retirement Date. Should you enroll in the National Grid 2007 Targeted
Voluntary Early Retirement Offer for Eligible Non-Union Employees and associated
National Grid USA Companies’ Executive Supplemental Retirement Plan VERO (together, the
“VERO”), your “Early Retirement Date” will be established in accordance with the terms
of the VERO. Your Early Retirement Date will be determined by the Chief Executive of
National Grid plc based upon the business needs of the Company as required under the
VERO terms, but will take into consideration your preferences to the extent consistent
with business needs. If the Company determines that its business needs do not require
your services through April 1, 2008, the Company shall, in addition to all other
payments to which you are entitled hereunder, pay you a monthly consulting fee in the
amount of $62,500, payable on the first business day of each month after the Early
Retirement Date and continuing until (but not including) the earlier of (1) April 1,
2008 or (2) the date on which you commence employment with a new employer. The
consulting arrangement may be extended by mutual written agreement of the parties.
	 
	 	1.2	 	Position and Authority. Until your Early Retirement Date or, in the event you
choose not to enroll in the VERO or if the merger completion condition to the VERO is
not satisfied and the Company does not waive such merger condition, the date as of which
your employment with the Group terminates (whichever is applicable, being your
“Termination Date”), you will have the authority and responsibilities that the Company’s
Board of Directors or the President of the Company may reasonably assign to you from

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	 	 	 	time to time, consistent with the authorities and responsibilities of a senior officer
of the Company.
	 
	 	1.3	 	Performance. Until your Termination Date, you will devote substantially all
of your business time, attention and efforts to your responsibilities and will use good
faith and reasonable efforts to discharge your responsibilities to the best of your
ability. However, you may serve on civic or charitable boards and manage personal
investments so long as such activities do not individually or in the aggregate
unreasonably interfere with your responsibilities under this Agreement. In addition, you
are permitted to investigate and pursue other employment or business opportunities, to
commence after the Termination Date, as long such activities do not unreasonably
interfere with the performance of your duties hereunder. During the consulting period
(if any), you agree to be available for special projects and other services reasonably
requested by the Company, and you further agree to use reasonable good faith efforts to
perform such services in a satisfactory manner and at the times reasonably requested by
the Company. The Company may require you to perform duties for any other Group company
whether for the whole or part of your working time and/or the Company may transfer your
employment to any other Group company.
	 
	 	1.4	 	Your Termination and Resignation. Effective on the close of business on your
Termination Date, you resign from all positions you hold with the Company, as well as
from all other positions as an officer, director or employee of the Group. You cannot
revoke this resignation and no other action is required for it to become effective.

2 Your Compensation and Benefits

	 	2.1	 	Salary. Until your Termination Date, you will receive an annual base salary
of $750,000 (your “Salary”). Your Salary will be paid in accordance with the normal
payroll practices of the Company as they exist from time to time. For the avoidance of
doubt, your Salary will be inclusive of any remuneration or fees which you are or become
entitled to as an office holder in the Company or any Group company or any other company
in which you become an office holder as part of or in connection with your duties under
this Agreement.
	 
	 	2.2	 	Bonus. For the Company’s fiscal year ending March 31, 2008, you will be
eligible to participate in the National Grid plc Annual Bonus Plan in accordance with
the terms of the Plan. Your maximum bonus under the Plan for the fiscal year ending
March 31, 2008 (your “2007-08 Bonus”) will be 150% of your Salary subject to the
attainment of the performance criteria previously communicated to you. However, if you
remain in the employ of the Company until the Early Retirement Date, the personal
component of this performance criteria will be deemed satisfied and will be paid out at
the applicable target level (which is an amount equal to 20% of Salary). In addition, if
the Company determines that its business needs do not require your services and
accordingly, terminates your employment prior to March 31, 2008, you shall receive a
full fiscal 2007-2008 Bonus paid out at the applicable target level, within 30 days of
the Termination

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	 	 	 	Date. Subject to the foregoing, your 2007-08 Bonus will be paid in accordance with the
Company’s practice for senior executives.
	 
	 	2.3	 	VERO Benefits. Should you choose to enroll in the VERO and otherwise satisfy
the VERO terms and conditions, you will receive enhanced retirement benefits in
accordance with the terms of the VERO. In that regard, the “Severance Calculation
Comparison Override” shall be calculated in accordance with the compensation and benefit
factors and criteria set forth in attached Exhibit A, incorporated herein by reference.
The minimum VERO benefit to which you are entitled is reflected in the “Severance
Override Calculation” set forth in Exhibit A (i.e., $2,680,988), but the Company’s
ability to deliver the benefit on a tax-qualified basis will be subject to applicable
tax and ERISA laws. Accordingly, the “Qualified Plan VERO Summary” calculations in
Attachment 1 to Exhibit A are not final or binding.
	 
	 	2.4	 	Incentive Plans. Subject to your remaining in the employ of the Company until
your Early Retirement Date, the treatment of your outstanding awards under National Grid
plc’s Executive Share Option Plan, Performance Share Plan and Deferred Share Plan
(collectively, the “Incentive Plans” ) shall be as a “good leaver” (as defined in the
applicable Incentive Plans) and otherwise in accordance with the terms of the applicable
Incentive Plans.
	 
	 	2.5	 	Employee Benefit Plans. Until your Termination Date, you will continue to be
eligible to participate in each of the Company’s employee benefit plans that provide
medical, retirement and/or welfare arrangements in which you currently participate,
subject to the terms of the applicable plans (as may be amended from time to time).
	 
	 	2.6	 	Vacation. Until your Termination Date, you will be eligible for paid annual
vacation in accordance with the Company’s vacation policies as they exist from time to
time.
	 
	 	2.7	 	Business Expenses. The Company will reimburse all reasonable business
expenses, properly incurred by you in performing your duties under this Agreement,
provided that these are incurred in accordance with Company policy from time to time.
The Company will require you to produce receipts or other documents as proof that you
have incurred any expenses you claim. If you are provided with a credit or charge card
by the Company, this must only be used for expenses which you incur in performing the
duties of your employment.
	 
	 	2.8	 	Other Perquisites. Until your Termination Date, you will continue to be
eligible for such other perquisites as you are currently eligible for, subject to
Company policy from time to time.
	 
	 	2.9	 	Other Benefits. You continue to remain eligible for benefits under the terms
of the Company’s Retiree Health and Life Insurance Plan to the extent you do not
otherwise qualify for retiree health care benefits in accordance with the terms of the
VERO. You also remain eligible for life insurance coverage in accordance with the terms
of the Life Insurance Program for Executives. Further, you will be eligible to receive
outplacement assistance up to a maximum of $30,000 through a vendor mutually agreeable
to you and the Company (in addition to any outplacement assistance amount available
under

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	 	 	 	the VERO) should you wish to pursue new employment after your Termination Date. In
addition, the Company will provide you with reimbursement for full executive financial
services up to a maximum of $8000 per year in accordance with the Senior Executive
AYCO package offered by the Company for two years following your Termination Date.
Your expenses for such financial services shall be reimbursed within 45 days after
submission by you, provided that such expenses are actually incurred and properly
submitted for reimbursement by you within 90 days following the calendar year in which
they were incurred. You shall also receive reimbursement of reasonable legal fees in
connection with negotiating this Agreement up to a maximum of $20,000 (grossed up for
applicable taxes) payable within ten business days of your execution of this
Agreement.

3 Conditions to Payments and Benefits

	 	3.1	 	Release Required. The Company will not be required to make any payment or
provide any benefit not otherwise required outside the terms of this Agreement unless
the Company (for itself and the other members of the Group) receives an effective
release from you substantially in the form of Exhibit B.
	 
	 	3.2	 	Return of Property. On or prior to the effective date of termination of your
employment, you agree to return to the Company all Group documents (whether in hard
copy, soft copy or contained in a personal electronic device) and other materials
(including office keys or access cards, company provided credit cards, laptop, etc.)
that you have received or obtained from the Group during the course of your employment
with the Company or that otherwise belong to the Group. You should not retain any hard
or soft copies of any materials or other information that belongs to the Group.

4 Your Interests

	 	4.1	 	During your employment, you will disclose promptly in writing to the Board
all your interests (for example, shareholdings or directorships) in any business whether
or not of a commercial or business nature except your interests in any Group company.
	 
	 	4.2	 	Subject to Section 4.3, during your employment you 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).
	 
	 	4.3	 	You 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 recognized Stock Exchange or dealt in on
the Alternative Investments Market.

5 Confidentiality

	 	5.1	 	Without prejudice to the common law duties which you owe to the Group, you
agree that you will not, except in the proper performance of your duties, copy, use or
disclose to any person any of the Group’s trade secrets or confidential information.
This restriction

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	 	 	 	will continue to apply after the date on which your employment terminates without
limit in time but will not apply to trade secrets or confidential information which
become public other than through unauthorized disclosure by you. You will use your
best efforts to prevent the unauthorized copying, use or disclosure of such
information.
	 
	 	5.2	 	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 Group, customer lists, pricing information,
information relating to the Group’s marketing and financial strategies, marketing
materials, financial information and any other information concerning the affairs of the
Group or the personnel of the Group which is for the time being confidential, which you
are 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.
	 
	 	5.3	 	In the course of your employment you have obtained and are likely to obtain
trade secrets and confidential information belonging or relating to other Group
companies and other persons. You will treat such information as if it falls within the
terms of Section 5.1 and Section 5.1 will apply with any necessary amendments to such
information. If requested to do so by the Company you will enter into an agreement with
other Group companies on the same terms as Section 5.1 with any amendments necessary to
give effect to this provision.
	 
	 	5.4	 	Nothing in this Agreement should or will prevent you from raising any
concerns in accordance with the provisions of the National Grid Standards of Ethical
Business Conduct and the Requirement for Written Codes of Ethics for Employees
(incorporating Whistleblowing Protection). In addition, to the extent that you have
personal knowledge or information, you will promptly disclose to the Company’s Board of
Directors 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 Group company or to
the interests or reputation of any Group company.

6 Intellectual Property

	 	6.1	 	You must disclose immediately to the Company any discovery or invention,
secret process or improvement in procedure made or discovered by you during your
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 organization
as the Company may require.
	 
	 	6.2	 	If requested by the Board (whether during or after the Termination Date) you
will at the expense of the Company apply or join in applying for letters patent or other
similar protection in the United States, the United Kingdom or any other part of the
world for all Inventions and will do everything reasonably necessary (including
executing documents) for vesting letters patent or other similar protection when
obtained and all right and title

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	 	 	 	to and interest in all Inventions in the Company absolutely and as sole beneficial
owner or in such other person, firm, company or organization as the Company may
require.
	 
	 	6.3	 	You will (both during and after the termination of your employment) at the
Company’s expense anywhere in the world and at any time promptly do everything
(including executing documents) that may be reasonably 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.
	 
	 	6.4	 	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 you in the
course of or in connection with your 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.
	 
	 	6.5	 	You will (both during and after the termination of your employment) at the
Company’s request and expense anywhere in the world and at any time promptly do
everything (including executing documents) that may reasonably be required by the Board
to assure, define or protect the rights of the Company in all Works.
	 
	 	6.6	 	You will not make copies of any computer files belonging to any Group company
or their service providers and will not introduce any of your own computer files into
any computer used by any Group company in breach of any Group company policy, unless you
have obtained the consent of the Board.
	 
	 	6.7	 	By entering into this Agreement you irrevocably appoint the Company to act on
your behalf to execute any document and do anything in your name for the purpose of
giving the Company (or its nominee) the full benefit of the provision of Section 6 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
Section 6.7, 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.

7 Your Continuing Obligations to the Group

	 	7.1	 	In this Section:
	 
	 	 	 	“Prohibited Area” means the United States;
	 
	 	 	 	“Relevant Date” means the Termination Date;
	 
	 	 	 	“Restricted Period” means the later of August 1, 2008 or nine months following the
Termination Date; and
	 
	 	 	 	“Significant Customer” means any party with respect to whom the Company or any Group
company derives, or expects to derive, revenue which represents 1% or more of the
revenue of the Group for the applicable fiscal year.

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	 	7.2	 	You have obtained and are 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 your employment. To protect these interests
of the Company, you agree with the Company that you will be bound by the following
covenants:

	 	7.2.1	 	during the Restricted Period and within the Prohibited Area you will
not be employed in, or carry on for your 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 you were concerned or
involved with that business to a material extent at any time during the twelve
months prior to the Relevant Date;
	 
	 	7.2.2	 	during the Restricted Period you will not (either on your own behalf
or for or with any other person, whether directly or indirectly) canvass or
solicit in competition with the Company or any other Group company or deal with
or otherwise accept in competition with the Company or any Group company the
business of any customer which is or is about to become a Significant Customer at
the Relevant Date; and
	 
	 	7.2.3	 	during the Restricted Period you will not (either on your 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 you had worked
closely at any time during that period.

	 	7.3	 	Each of the paragraphs contained in Section 7.2 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.
	 
	 	7.4	 	Following the Termination Date, you will not represent yourself as being an
employee, representative or agent of the Company or of any other Group company (except
to the extent agreed by such a company).
	 
	 	7.5	 	Any benefit given or deemed to be given by you to any Group company under the
terms of Section 7 is received and held on trust by the Company for the relevant Group
company. You will enter into substantially similar restrictive covenants directly with
other Group companies if asked to do so by the Company.
	 
	 	7.6	 	Any termination of your employment or of this Agreement (or breach of this
Agreement by you or the Company) shall have no effect on the continuing operation of
this Section 7.

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	 	7.7	 	The parties hereto acknowledge that the potential restrictions on your future
employment imposed by this Section 7 are reasonable in both duration and geographic
scope and in all other respects. If for any reason any court of competent jurisdiction
shall find any provisions of this Section 7 unreasonable in duration or geographic scope
or otherwise, you and the Company agree that the restrictions and prohibitions contained
herein shall be effective to the fullest extent allowed under applicable law in such
jurisdiction.
	 
	 	7.8	 	The parties acknowledge that this Agreement would not have been entered into
and the benefits described in Section 2 would not have been promised in the absence of
your promises under this Section 7.
	 
	 	7.9	 	In the event that you materially breach Section 7.2.1, 7.2.2 or 7.2.3, the
Company’s obligation to make or provide incremental payments or benefits under Section 2
shall cease. Prior to such cessation, however, the Company agrees to provide written
notice to you, specifying the specific Section and the facts and circumstances forming
the basis for such assertion of material breach, and providing you no less than 14 days
to cease and desist from and/or cure such conduct.
	 
	 	7.10	 	Before you accept employment with any other person or entity while any of
Section 7.2.1, 7.2.2 or 7.2.3 is in effect, you will provide the prospective employer
with written notice of the provisions of this Section 7 and will deliver a copy of the
notice to the Company.
	 
	 	7.11	 	You agree not to take any action that is intended to harm the Group or its
reputation or which leads to unwanted or unfavorable publicity to the Group or make any
public statement that disparages any member of the Group or any of their respective past
or present officers or directors. Similarly, the Company shall not authorize the making
of, and the Company shall use all reasonable efforts to cause the members of its Board
and senior executives not to make, any public statement that would lead to unwanted or
unfavorable publicity for you or make any public statement that would disparage you.
Notwithstanding the foregoing, nothing in this Agreement shall preclude you or the
Company from making truthful statements that are required by applicable law, regulation
or legal process. The Company further agrees that it will not, without first giving you
a reasonable opportunity for review and comment, issue a press release regarding your
departure until after the Termination Date and that the terms of such press release will
not contain statements that are intended to damage your business or personal reputation.
	 
	 	7.12	 	Until the later of your Termination Date or the end of any consulting
arrangement which you have with the Company, you will take all actions the Group may
reasonably request to maintain for the Group the business, goodwill and business
relationships with any clients. In addition, at all times after the date of this
Agreement (1) you will make yourself reasonably available and cooperate with reasonable
requests from the Group for information concerning any business or legal matters
involving facts or events relating to the Group that may be within your knowledge and
(2) you will cooperate with reasonable requests by the Group in connection with any
litigation, regulatory

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	 	 	 	proceeding or investigation that may be brought by or against any member of the Group.
The Company will pay or reimburse any reasonable expenses you incur as a result of
complying with this Section 7.12.
	 
	 	7.13	 	To the extent a third party (which is not a Group company) institutes any
action, suit or proceeding against you in your capacity as an employee, consultant or
independent contractor of the Company, the Company agrees to indemnify and defend you
and hold you harmless to the fullest extent permitted by law against and in respect to
any and all judgments, costs, expenses (including reasonable attorneys’ fees), losses,
and damages resulting from your good faith performance of your duties and obligations to
the Company before and after the Termination Date in accordance with this Agreement.
However, you must promptly notify the Company of any such action, suit or proceeding,
and submit to and cooperate with any reasonable procedures that the Company establishes
in connection with the defense of such action, suit or proceeding and/or to avoid
duplication of expenses or costs in connection with such defense. Notwithstanding the
foregoing, you shall not be indemnified for actions arising from or relating to your bad
faith, gross negligence or gross misconduct. The Company shall cover you under directors
and officers liability insurance both during and, while potential liability exists,
after the Termination Date in substantially the same amount and on substantially the
same terms as the Company covers other similarly situated officers and directors.
	 
	 	7.14	 	Executive Supplemental Retirement Plan. The parties agree that the National
Grid USA Companies’ Executive Supplemental Retirement Plan (“ESRP”) shall be amended by
the Company in good-faith and only to the extent necessary to bring your pre-409A
grandfathered benefit under the ESRP into compliance with Section 409A of the Code and
eliminate the non-compete covenant set forth in Section 6.01 of the ESRP with respect to
you. You fully understand that such amendment shall include the elimination of any
current or future right you may have or would ever have to receive a lump sum
distribution pursuant to Section 5.02 of the ESRP, and any additional amendments that
are required to bring your pre-409A grandfathered benefit into compliance with Section
409A which are disclosed and agreed upon by you in advance of such amendment. You
acknowledge that the Company has not had an opportunity to consider the extent or impact
of the changes required in order to make the ESRP compliant with Section 409A and that
no representations have been made by the Company in that regard. You agree that if the
parties are not able to come to an agreement on the ESRP amendments in their totality on
or prior to December 31, 2007, none of the changes contemplated by this Section 7.14
will go forward. (For the avoidance of doubt, the restrictive covenants in Section 7.2
of this Agreement are separate and independent of the ESRP and continue in full force
and effect in accordance with the terms thereof.)

8 Successors.

	 	8.1	 	Payments on Your Death. Any amounts that become payable under this Agreement
after you die will be paid to your estate. For the avoidance of doubt, any amounts that
become payable under any other plan, program or arrangement after you die will be

9

 

	 	 	 	paid in accordance with your valid beneficiary designation instructions under such
plan, program or arrangement.
	 
	 	8.2	 	Assignment by You. You may not assign this Agreement without the Company’s
consent. Also, except as required by law, your right to receive payments or benefits
under this Agreement may not be subject to execution, attachment, levy or similar
process. Any attempt to effect any of the preceding in violation of this Section 8.2,
whether voluntary or involuntary, will be void.

9 Disputes

	 	9.1	 	Mandatory Arbitration. Subject to the provisions of this Section 9, any
controversy or claim between you and the Company arising out of or relating to or
concerning this Agreement (including the covenants contained in Section 5 and 7) or any
aspect of your employment with the Company or the termination of that employment
(together, an “Employment Matter”) will be finally settled by arbitration in the
Commonwealth of Massachusetts administered by the American Arbitration Association (the
“AAA”) under its Employment Arbitration Rules then in effect. However, the AAA’s
Employment Arbitration Rules will be modified in the following ways: (i) the award must
not be a compromise but must be the adoption of the submission by one of the parties,
(ii) each arbitrator will agree to treat as confidential evidence and other information
presented to them to the same extent as the information is required to be kept
confidential under Section 6, (iii) there will be no authority to award punitive damages
(and you and the Company agree not to request any such award), (iv) the optional Rules
for Emergency Measures of Protections will apply, (v) there will be no authority to
amend or modify the terms of this Agreement except as provided in Section 10.8 (and you
and the Company agree not to request any such amendment or modification), (vi) an award
must be rendered within ten business days of the parties’ closing statements or
submission of post-hearing briefs and (vii) the arbitration will be conducted before a
panel of three arbitrators, one selected by you within 10 days of the commencement of
the notice of arbitration, one selected by the Company in the same period and the third
selected jointly by these arbitrators (or, if they are unable to agree on an arbitrator
within 30 days of the commencement of arbitration, the third arbitrator will be
appointed by the American Arbitration Association; provided that the arbitrator shall be
experienced in employment matters).
	 
	 	9.2	 	Injunctions and Enforcement of Arbitration Awards. You or the Company may
bring an action or special proceeding in a state or federal court of competent
jurisdiction sitting in the Commonwealth of Massachusetts to enforce any arbitration
award under Section 9.1. Also, the Company may bring such an action or proceeding, in
addition to its rights under Sections 5 or 7 and whether or not an arbitration
proceeding has been or is ever initiated, to temporarily, preliminarily or permanently
enforce any part of Sections 5 or 7. You agree that (i) violating any part of Sections 5
or 7 would cause damage to the Group that cannot be measured or repaired, (ii) the Group
therefore is entitled to an injunction, restraining order or other equitable relief
restraining any actual or threatened violation of Sections 5 or 7, (iii) no bond will
need to be posted for the Company to

10

 

	 	 	 	receive such an injunction, order or other relief and (iv) no proof will be required
that monetary damages for violations of Sections 5 or 7 would be difficult to
calculate and that remedies at law would be inadequate.
	 
	 	9.3	 	Jurisdiction and Choice of Forum. You and the Company irrevocably submit to
the exclusive jurisdiction of any state or federal court located in the Commonwealth of
Massachusetts over any Employment Matter that is not otherwise arbitrated or resolved
according to Section 9.1. This includes any action or proceeding to compel arbitration
or to enforce an arbitration award. Both you and the Company (i) acknowledge that the
forum stated in this Section 9.3 has a reasonable relation to this Agreement and to the
relationship between you and the Company and that the submission to the forum will apply
even if the forum chooses to apply non-forum law, (ii) waive, to the extent permitted by
law, any objection to personal jurisdiction or to the laying of venue of any action or
proceeding covered by this Section 9.3 in the forum stated in this Section 9.3, (iii)
agree not to commence any such action or proceeding in any forum other than the stated
in this Section 9.3 and (iv) agree that, to the extent permitted by law, a final and
non-appealable judgment in any such action or proceeding in any such court will be
conclusive and binding on you and the Company. However, nothing in this Agreement
precludes you or the Company from bringing any action or proceeding in any court for the
purpose of enforcing the provisions of Section 9.1 and this Section 9.3.
	 
	 	9.4	 	Waiver of Jury Trial. To the extent permitted by law, you and the Company
waive any and all rights to a jury trial with respect to any Employment Matter.
	 
	 	9.5	 	This Agreement is governed by and will be interpreted in accordance with the
laws of the Commonwealth of Massachusetts applicable to contracts made and performed in
Massachusetts, excluding application of its conflict of laws principles.

10 General Provisions.

	 	10.1	 	Construction.

	 	10.1.1	 	References to (A) Sections are to Sections of this Agreement unless
otherwise stated and (B) any contract (including this Agreement) are to the
contract as amended, modified, supplemented or replaced from time to time,
	 
	 	10.1.2	 	The various headings in this Agreement are for convenience of
reference only and in no way define, limit or describe the scope or intent of any
provisions or Sections of this Agreement.
	 
	 	10.1.3	 	Unless the context requires otherwise, (A) words describing the
singular number include the plural and vice versa, (B) words denoting any gender
include all genders and (C) the words “include”, “includes” and “including” will
be deemed to be followed by the words “without limitation.”
	 
	 	10.1.4	 	It is your and the Group’s intention that this Agreement not be
construed more strictly with regard to you or the Group.

11

 

	 	10.2	 	Taxes, Withholding and Section 409A. Subject to Section 10.3, you and the
Group will treat all payments to you under this Agreement as compensation for services.
Accordingly, the Group may withhold from any payment any taxes that are required to be
withheld under any law, rule or regulation. If the Company reasonably determines that
you are a “specified employee” within the meaning of Section 409A of the Internal
Revenue Code and that, as a result of such status, any portion of the payments under
this Agreement (without regard to any other plan of deferred compensation) would be
subject to additional or accelerated taxation, the Company will delay paying such
portion of the payment until the earliest permissible date on which payments may
commence without triggering such additional taxation (with such delay not to exceed six
months), with the first such payment to include the amounts that would have been paid
earlier but for the above delay. If it is reasonably determined that any amount payable
hereunder or the manner of administration of this Agreement would fail to satisfy a
material requirement of Section 409A and thereby trigger the additional tax and/or
penalties or interest imposed by Section 409A, this Agreement shall be administered,
modified, and/or amended (to the extent permitted by Section 409A to bring it into
compliance with Section 409A and avoid such additional tax and/or penalties or
interest).
	 
	 	10.3	 	Independent Contractor Status during any Consulting Period. During any
consulting period, you agree that you are performing the consulting services as an
independent contractor and not as an employee of any member of the Group. You will be
responsible for all taxes and other non-reimbursable expenses attributable to the
rendition of your consulting services. During any consulting period, the Company
anticipates that the level of your services that would be required under this Agreement
will not exceed 20% of the average level of services performed by you during the
immediately preceding 36-month period.
	 
	 	10.4	 	Prior Agreement. If you enroll in the VERO and the VERO becomes operational,
this Agreement will supersede your Agreement with New England Electric System, dated
March 1, 1998, as amended (your “Prior Employment Agreement”) and any other severance
plan or similar rights you may have with the Group. For the avoidance of doubt, under
such circumstance your Prior Employment Agreement will automatically terminate and no
party will have any further liability under it. However, in the event (1) you do not
enroll in the VERO or (2) you enroll in the VERO but the VERO terms do not become
operable relative to your participation either because the KeySpan merger completion
condition is not met, or the said condition is not waived in a manner that makes you
eligible for VERO benefits, the terms of the Prior Employment Agreement will survive
unless and until it terminates or expires in accordance with its provisions. In the
event the Prior Employment Agreement survives and your employment terminates under
circumstances that entitle you to payment under Prior Employment Agreement terms, this
Agreement will not provide any payments or benefits that are duplicative to those
provided under the Prior Employment Agreement.
	 
	 	10.5	 	Entire Agreement. This Agreement is the entire agreement between you, on the
one hand, and the Company, on the other hand, with respect to the relationship
contemplated by this Agreement and supersedes any earlier agreement, written or oral,

12

 

	 	 	 	with respect to the subject matter of this Agreement. In entering into this Agreement,
no party has relied on or made any representation, warranty, inducement, promise or
understanding that is not in this Agreement.
	 
	 	10.6	 	Severability. If any provision of this Agreement is found by any court of
competent jurisdiction (or legally empowered agency) to be illegal, invalid or
unenforceable for any reason, then (1) the provision will be amended automatically to
the minimum extent necessary to cure the illegality or invalidity and permit enforcement
and (2) the remainder of this Agreement will not be affected. In particular, if any
provision of Section(s) 5, 6, or 7 is so found to violate law or be unenforceable
because it applies for longer than a maximum permitted period or to greater than a
maximum permitted area, it will be automatically amended to apply for the maximum
permitted period and maximum permitted area.
	 
	 	10.7	 	Notices. All notices, requests, demands, waivers and other communications
under this Agreement must be in writing and will be deemed given (1) on the business day
sent, when delivered by hand or facsimile transmission (with confirmation) during normal
business hours, (2) on the business day after the business day sent, if delivered by a
nationally recognized overnight courier or (3) on the third business day after the
business day sent if delivered by registered or certified mail, return receipt
requested, in each case to the following address or number (or to such other addresses
or numbers as may be specified by notice that conforms to this Section 10.7):
	 
	 	 	 	If to you, to the address on the first page of this Agreement with a copy to:

H. James Hartley, Esq.

Shilepsky O’Connell Casey Hartley Michon Yelen LLP

225 Franklin Street

Boston, MA 02210

Fax:            617 447 2800

	 	 	 	If to the Company or any other member of the Group, to:

National Grid plc

1-3 Strand

London WC2N 5EH

Attention:     Group HR Director

Fax:            011 44 20 7004 3153

	 	10.8	 	Consideration. This Agreement is in consideration of the mutual covenants
contained in it. You and the Group acknowledge the receipt and sufficiency of the
consideration to this Agreement and intend this Agreement to be legally binding.
	 
	 	10.9	 	Amendments and Waivers. Any provision of this Agreement may be amended or
waived but only if the amendment or waiver is in writing and signed, in the case of an
amendment, by you and the Company or, in the case of a waiver, by the party that would
have benefited from the provision waived. Except as this Agreement otherwise provides,
no failure or delay by you or the Group to exercise any right or remedy under this
Agreement will operate as a waiver, and no partial exercise of any right or remedy will
preclude any further exercise.

13

 

	 	10.10	 	Third Party Beneficiaries. Subject to Section 9, this Agreement will be
binding on, inure to the benefit of and be enforceable by the parties and their
respective heirs, personal representatives, successors and assigns. This Agreement does
not confer any rights, remedies, obligations or liabilities to any entity or person
other than you, the Company and your and the Company’s permitted successors and assigns.

14

 

US IRS
Circular 230 Disclosure:

To ensure compliance with requirements imposed by the IRS, we inform you that any US tax advice
contained in the foregoing Services Agreement (including any attachments) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the US
Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction
or matter addressed therein.

If this Agreement properly sets forth our understanding, please sign both copies of this Agreement,
keep one copy for your records and return one to us.

Very truly yours,

NATIONAL GRID USA

	 	 	 	 	 	 	 
	By

	 	/S/ Colin Buck
	Date:  	           August 1, 2007	 	 
	 

	 	 

	 	 

	 	 
	 

	 	Name: Colin Buck	 	 	 	 
	 

	 	Title: CFO	 	 	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 
	Accepted and Agreed:
	 	 	 	 
	 
	 	 	 	 
	/S/ Cheryl A. LaFleur

	Date:  	           August 1, 2007	 	 
	 

Cheryl A. LaFleur

	 	 

	 	 

 

 

EXHIBIT A

Severance Override Calculation

	 	 	 	 	 
	Assumptions:	 	 	 	 
	Base Pay
	 	$	750,000	 
	 
	 	 	 	 
	Bonus at 75%
	 	 	562,500	 
	 
	 	 	 	 
	Total Pay
	 	$	1,312,500	 
	 
	 	 	 	 
	Two Times Total Pay
	 	$	2,625,000	 
	 
	 	 	 	 
	Outplacement allowance
	 	 	30,000	 
	 
	 	 	 	 
	Health Care continuation
	 	 	25,988	 
	 
	 	 	 	 
	Grand Total
	 	$	2,680,988	 

Attachment 1 — Non-Qualified VERO Lump Sum Calculation Insert For Cheryl A. LaFleur dated 8/01/2007

	 	 	 	 	 	 	 
	8/1/2007

	 	Non-Qualified VERO Lump Sum

Calculation Insert prepared for:

Additional Benefit as of 10/1/2007
	 	CHERYL A LAFLEUR
	 	Revised to reflect inclusion of adder in pension calcs

Revised to reflect updated severance pay calculation -

2 x base @ $750k plus bonus at 75% of base pay

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Qualified/Non-Qualified	 	 	Qualified	 	 	Non-Qualified	 
	 	 	Total	 	 	Plan	 	 	Incremental	 
	 	 	VERO Summary	 	 	VERO Summary	 	 	Lump Sum Amount	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Enhancement A
	 	 	 	 	 	 	 	 	 	 	 	 
	Base Pay
	 	$	750,000.00	 	 	$	225,000.00	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Years of Service
	 	 	22	 	 	 	22	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	a. 7% of Annual Base Pay x Pension Service
	 	$	1,155,000.00	 	 	$	346,500.00	 	 	 	 	 
	b. 2 x Annual Base Pay
	 	$	1,500,000.00	 	 	$	450,000.00	 	 	 	 	 
	c. Lump Sum Benefit ( max. allowable)
	 	$	1,155,000.00	 	 	$	346,500.00	 	 	$	808,500.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Enhancement B
	 	 	 	 	 	 	 	 	 	 	 	 
	Annual Benefit @ Benefit Commencement Date (BCD)
	 	$	296,677.23	 	 	$	80,207.40	 	 	 	 	 
	Monthly Benefit @ Benefit Commencement Date (BCD)
	 	$	24,723.10	 	 	$	6,683.95	 	 	 	 	 
	Normal Early Reduction Factor
	 	 	89.17	%	 	 	33.30	%	 	 	 	 
	Reduced Monthly Benefit @ BCD
	 	$	22,044.77	 	 	$	2,225.76	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Enhanced Early Reduction Factor
	 	 	89.17	%	 	 	79.20	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Enhanced Monthly Benefit @ BCD
	 	$	22,044.77	 	 	$	5,293.69	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Difference
	 	$	—	 	 	$	3,067.93	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Lump Sum Factor
	 	 	184.776	 	 	 	184.776	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Lump Sum Value for Enh. B
	 	$	—	 	 	$	566,880.40	 	 	$	(566,880.40	)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Enhancement C
	 	 	 	 	 	 	 	 	 	 	 	 
	Lump Sum Value for Enh C.
	 	$	88,824.00	 	 	$	88,824.00	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Retirement Plan Values — Pre Section 415 Limits
	 	 	 	 	 	 	 	 	 	 	 	 
	VERO Lump Sum Values
	 	$	1,243,824.00	 	 	$	1,002,204.40	 	 	$	241,619.60	 
	Underlying plan Annuities
	 	$	22,044.77	 	 	$	3,956.44 	*	 	$	18,088.33	 
	Lump Sum Factor
	 	 	184.776	 	 	 	184.776	 	 	 	184.776	 
	Underlying Annuity Lump Sum Value
	 	$	4,073,345.32	 	 	$	731,055.16	 	 	$	3,342,290.16	 
	Total Lump Sum Value
	 	$	5,317,169.32	 	 	$	1,733,259.55	 	 	$	3,583,909.76	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Retirement Plan Values — Post Section 415 Limits
	 	 	 	 	 	 	 	 	 	 	 	 
	VERO Lump Sum Values
	 	$	1,243,824.00	 	 	$	1,002,204.40	 	 	$	241,619.60	 
	Underlying plan Annuities
	 	$	22,044.77	 	 	$	2,316.12 	*	 	$	19,728.65	 
	Lump Sum Factor
	 	 	184.776	 	 	 	184.776	 	 	 	184.776	 
	Underlying Annuity Lump Sum Value
	 	$	4,073,345.32	 	 	$	427,963.39	 	 	$	3,645,381.93	 
	Total Lump Sum Value — Prior to Executive Severance
Adjustment
	 	$	5,317,169.32	 	 	$	1,430,167.79	 	 	$	3,887,001.53	 
	Executive Severance Increment (see below)
	 	 	 	 	 	 	 	 	 	$	1,437,164.00	 
	Grand Total Combined Retirement Income Lump Sum Value
	 	$	6,754,333.32	 	 	$	1,430,167.79	 	 	$	5,324,165.53	 
	 
	 
	 	 	 	ESRP Annuity Calc	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ICP Severance Comparison Override:
	 	 	 	 	 	Regular	 	$	18,088.33	 
	Executive Severance Estimate
	 	$	2,680,988.00	 	 	Adjust for Qual VERO	 	$	(3,067.93	)
	Total VERO Lump Sum Value
	 	$	1,243,824.00	 	 	Adjust for 415 Limit	 	$	1,640.32	 
	Excess of Executive Severance over VERO
	 	$	1,437,164.00	 	 	Net ESRPStraight Life	 	$	16,660.72	 

 

			
	*	 	Difference of $1,640.32 is the equivalent of the $303,091.77 lump
sum shown at the bottom of the Payment Options Display Form
and is payable only as an additional annuity from the Executive
Supplemental Retirement Plan.

 

 

EXHIBIT B

Form of Release

RELEASE AND WAIVER AGREEMENT

Dated as of                     

This Release and Waiver Agreement (hereinafter “Agreement”) between Cheryl A. LaFleur
(“Executive”), and National Grid USA (“National Grid” and, collectively with its affiliates, the
“Group”) is reached in settlement of any and all disputes between Executive and the Group.

NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth herein, the
parties agree as follows:

	1.	 	Executive’s employment with the Group terminated as of [DATE] (the “Termination Date”).
	 
	2.	 	Except as set forth in Section 4 below, Executive knowingly and voluntarily waives,
terminates, cancels, releases and discharges forever any and all actions, causes of action,
claims, allegations or rights (collectively, “Claims”) she (or her heirs, executors,
administrators, successors, assigns and legal representatives) may have or may yet have
against National Grid plc, National Grid USA and their respective affiliates, subsidiaries,
successors, assigns, and its and their current and former officers, directors, trustees,
agents, representatives, attorneys, fiduciaries, managers and employees (the “Released
Parties”), whether known or unknown, based upon any matter, cause or thing occurring at any
time before and including the Effective Date.
	 
	3.	 	Subject to Section 4 below, Section 2 above includes, but is not limited to, (1) all Claims
under federal, state or local law or the national or local law of any other country (statutory
or decisional) for breach of contract, for tort, for wrongful or abusive or unfair discharge
or dismissal, for impairment of economic opportunity or for defamation, for intentional
infliction of emotional distress, or for discrimination based upon race, color, ethnicity,
sex, age, national origin, religion, disability, sexual orientation or any other unlawful
criterion or circumstance; (2) Claims for compensation, bonuses or benefits; (3) Claims under
any service agreement, severance program, compensation or benefit plan or arrangement
maintained by the Group; (4) Claims for sexual harassment; (4) Claims related to
whistleblowing; (5) Claims for punitive or exemplary damages; (6) Claims for violations of any
of the following laws (as amended): the Equal Pay Act, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991 as amended, the Age Discrimination in Employment Act of
1967 as amended by the Older Workers Benefit Protection Act, the Americans with Disabilities
Act of 1991, the Employee Retirement Income Security Act of 1974, the Americans with
Disabilities Act of 1991, the Employee Retirement Income Security Act of 1974, the Worker
Adjustment Retraining and Notification Act, the Family and Medical Leave Act, the
Rehabilitation Act, Executive Order 11246, all claims and damages relating to race, sex,
national origin, disabilities, religion, sexual orientation, age, and all employment
discrimination claims arising under the Massachusetts Civil Rights Act, Mass. Gen. Laws Ch.
12, sections 11H and 11I, the Massachusetts Fair Employment Practices Act, and Mass. Gen. Laws
Ch. 151B, section 1 et. seq., the Massachusetts Equal Rights Act, Mass. Gen.

 

 

	 	 	Laws Ch. 93, section 102 and Mass. Gen. Laws Ch. 214, section 1C, the Law Against
Discrimination, N.H. Rev. Stat. Ann. 31-354-A: 1 et. seq., the Fair Employment Practices Act,
R.I. Gen. Laws section 28-5-1 et. seq., the Civil Rights of Individuals with Disabilities
Act, R.I. Gen. Laws section 42-87-1 et. seq., the New York Labor Law, the New York Human
Rights Law and similar state statutes (7) Claims for violations of any other applicable
employment statute or law. In addition, the Executive waives any and all rights under the
laws of any jurisdiction in the United States, England and Wales, the European Union or any
other country, that limit a general release to those Claims that are known or suspected to
exist in her favor as of the date of this Agreement.
	 
	4.	 	Executive does not release the following Claims: Claims that arise after the Effective Date
of this Agreement (but any Claims for acts or omissions that occurred before the Effective
Date are released); Claims to enforce National Grid’s obligations under the Services Agreement
dated August 1, 2007; Claims to outstanding awards in accordance with the terms of the
Incentive Plans; Claims to vested benefits in accordance with the terms of the VERO (as
defined under the Services Agreement); and Claims to vested benefits in accordance with the
terms of National Grid’s retirement and welfare and benefit plans.
	 
	5.	 	Executive represents and warrants that as of the date of her execution of this Agreement she
has no actual knowledge of any violation by herself or the Group of any applicable law or
regulation or threatened litigation against the Group, that in either case (whether
individually or in the aggregate) would be reasonably likely to have a material adverse effect
upon the business or reputation of the Group and that is not known by a member of the board of
directors, senior executive or in-house legal counsel of the Group. Executive represents and
warrants that she has not filed any civil action, suit, arbitration, administrative charge, or
legal proceeding against any Released Party, that she has not assigned, pledged, or
hypothecated any Claim to any person and that no other person has an interest in the Claims
that she is releasing in this Agreement. Executive agrees that if any person or entity files
or causes to be filed any civil action, suit, arbitration or other legal proceeding seeking
equitable or monetary relief concerning any Claim released in this Agreement, she will not
seek or accept any personal relief from or as a result of the action, suit, arbitration or
proceeding. For the avoidance of doubt, this Agreement is not intended to restrict Executive’s
right to participate in an Equal Employment Opportunity Commission investigation or
proceeding, but Executive hereby waives any and all rights to monetary damages in connection
with any such investigation or proceeding.
	 
	6.	 	This Agreement shall be construed in accordance with the laws of the Commonwealth of
Massachusetts applicable to contracts between Massachusetts residents made and to be performed
in Massachusetts.
	 
	7.	 	The provisions of Section 9 of the Services Agreement shall apply to any and all disputes,
Claims, or controversies relating to or arising out of this Agreement.
	 
	8.	 	Executive represents and warrants that: (i) she has read and, following consultation with
counsel, fully understands the terms of this Agreement and that the payments, benefits, and
covenants described in the Services Agreement constitute sufficient consideration for this
Agreement; (ii) she has the requisite power and authority to enter into this Agreement; (iii)
her signature is binding on her and on her successors, assigns, and any other person claiming

 

 

	 	 	rights on her behalf; and (iv) that she was given a period of not fewer than 21 days to
consider the terms of the Agreement and to consult with an attorney of her choice with
respect thereto. Her signature below indicates that she entered into the Agreement freely,
knowingly and voluntarily with a full understanding of its terms and the resultant waiver and
release of all Claims she may have against National Grid, and that the waiver and release
creates a total and unlimited release of all Claims, whether known or unknown, that she may
have against National Grid existing as of the date of the Agreement, except as set forth in
Section 4, of the Agreement. Executive further acknowledges that she has not relied on any
representations or statements not set forth in the Agreement.
	 
	9.	 	It is understood and agreed that this Agreement does not constitute and is not to be inferred
or construed as an admission (express or implied) by National Grid of any violation of any
legal, equitable or contractual obligation owed to Executive.
	 
	10.	 	Executive and National Grid agree that neither of them shall disclose the existence or terms
of this Agreement to any person or entity other than the parties’ counsel, auditors,
accountants, insurers, financial advisors, family members; or as required by law, the
applicable rules (including listing rules) of any stock exchange on which the Group’s shares
are traded, if necessary or appropriate in the context of the Group’s investor relations or
the applicable rules of any governmental authority or regulatory body; or as necessary to
administer or enforce this Agreement. It is Executive and National Grid’s intention that this
Agreement not be construed more strictly with regard to either party. This Agreement may be
executed in counterparts, each of which will constitute an original and all of which, when
taken together, will constitute one agreement.
	 
	11.	 	This Agreement may be revoked by Executive within the 7-day period commencing on the date
that she signs this Agreement (the “Revocation Period”). In the event of such revocation by
Executive, all obligations of the parties under this Agreement shall terminate and be other no
further effect as of the date of such revocation. No such revocation by Executive shall be
effective unless it is signed and in writing and received by National Grid prior to the
expiration of the Revocation Period. The “Effective Date” shall be the next business day
following the expiration of the Revocation Period.

[Signature Page Follows]

 

 

US IRS
Circular 230 Disclosure:

To ensure compliance with requirements imposed by the IRS, we inform you that any US tax advice
contained in the foregoing Services Agreement (including any attachments) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the US
Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction
or matter addressed therein.

By signing the Agreement below, the parties indicated hereunder agree to and accept the provisions
contained herein.

Dated:
________ ___, 200___

	 	 	 	 	 
	 

	 

Cheryl A. LaFleur
	 	 
	 
	 	 	 	 
	 

	NATIONAL GRID USA	 	 
	 
	 	 	 	 
	 

	By:  	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	Name:	 	 
	 

	Title:

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