Exhibit 4.4
THE NATIONAL GRID GROUP PLC and NATIONAL GRID
COMPANY PLC
And
Steven Holliday
Dated 6th March 2001
SERVICE AGREEMENT
INDEX TO CLAUSES
THIS SERVICE AGREEMENT DATED 6th March 2001 IS BETWEEN:–
THE NATIONAL GRID GROUP plc (the "Company") and THE NATIONAL GRID COMPANY plc whose registered offices are at 15 Marylebone Road, London NW1 5JD and National Grid House, Kirby Corner Road, Coventry, CV4 8JY respectively (the "Companies") and Steven Holliday.
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15.3 | If you are incapacitated by sickness (including mental disorder) or injury from carrying out your duties under this Contract for a continuous period of 180 days or for an aggregate of 130 working days in any 12 consecutive months, the Company will be entitled, notwithstanding Clause 10.2 or your entitlement at that time to sick pay or benefits under the Company's permanent health insurance scheme, to terminate this Contract by not less than 6 months' written notice given within 6 months after the end of the 180 or (as the case may be) 130 working days. | |
15.4 | When requested to do so during the currency of any notice to terminate your employment given or received by you and, in any event, on the Date of Termination you will promptly:– | |
(a) | resign (if you have not already done so) from all offices held by you in the Company and its Subsidiaries and Associates; | |
(b) | deliver up (if you have not already done so) to the Company all lists of customers, correspondence, documents, discs, tapes, data listing, codes, designs, drawings and all other materials and property belonging to the Company or any of its Subsidiaries or Associates which may be in your possession or under your control, including any copies; | |
(c) | confirm in writing that you no longer have in your possession, custody or power any property of or relating to the business of the Company and that you have not retained or made any unauthorised copy (whether in documentary or electronic form) of any data which contains or refers to any Confidential information; and | |
(d) | deliver up to the Company forthwith any car provided under this Contract; and you hereby irrevocably authorise the Company to appoint someone as your attorney to act in your name and on your behalf to execute all documents and do all things necessary to effect the resignations referred to above, in the event of your failure to do so within 7 days of your being so requested or of the Termination Date (as the case may be). | |
15.5 | On serving or receiving notice to terminate this Contract or at any time thereafter during the currency of such notice the Company reserves the right in its absolute discretion to pay to you your salary (at the rate then payable under Clause 3.1 hereof) in lieu of your entitlement to notice. | |
15.6 | Any termination of your employment will be without prejudice to your continuing obligations under this Agreement. |
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Signed for and on behalf of
The National Grid Group plc and The National Grid Company plc
Signed | ||
Date | 6.3.01 | |
I accept employment with the National Grid Group plc and The National Grid Company plc on the terms and conditions contained in this Service Agreement.
Signed | ||
Date | 13.3.01 | |
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SCHEDULE 1
THE NATIONAL GRID GROUP plc and THE NATIONAL GRID COMPANY plc
SUMMARY OF ENHANCED PENSION AND LIFE ASSURANCE
ARRANGEMENTS
Steven Holliday
This summary, which should be read in conjunction with the National Grid Company plc ("the Company") section of the ESPS booklet, notifies you of your entitlement to additional benefits to those provided by the ESPS. The additions are as follows:
1. | Your Normal Pension Age is age 60. | |
2. | Your pension will accrue at a rate of 1/30th of your Pensionable Salary for each year of Pensionable Service from 30th March 2001 (complete days will count) or such higher amount as may be advised by the Actuary to the Scheme, subject to pension payable, including any retained benefits, not exceeding Inland Revenue limits (but see 12 below). You will be able to exchange part of your pension for a tax free lump sum up to the maximum permitted by the Inland Revenue. | |
3. | You may retire early and opt for payment of an immediate pension, subject to the consent of the Companies, at any time after age 55 in which case you will be entitled to an immediate pension calculated on your Pensionable Service and your Pensionable Salary at the date of termination. | |
4. | Should your employment be terminated as a result of redundancy, and the termination is with the consent of the Companies, you will be entitled to the greater of: | |
(a) | the severance terms of The National Grid Group, as amended from time to time, which currently include payment of a pension under standard ESPS terms only, (ie not a pension based on the enhanced accrual rate set out in this summary) at age 50, or immediately if aged over 50, or; |
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(b) | a deferred pension (and lump sum) payable at your request from age 50, or such later date as you may choose but no later than 60. The pension (and lump sum) will be calculated on your Pensionable Service and your Pensionable Salary at the date of termination. Should such a termination. occur after your 50th birthday you will be entitled to an immediate pension (and lump sum) calculated on your Pensionable Service and your Pensionable Salary at the date of termination. | |
5. | In the event that it is agreed with the Companies that you should continue in service beyond age 60, there will be an appropriate adjustment to your benefits. The exact terms of the adjustment will be determined by the Companies and notified to you, upon advice received from the Actuary, when you reach age 60. | |
6. | On death in service before the Normal Pension Age a lump sum is available for your beneficiaries equal to four times your annual rate of basic salary at death, plus the total amount of contributions with interest paid by you into the National Grid Company plc Section of the ESPS. | |
7. | The pension payable to a spouse on death in service before Normal Pension Age is calculated as 2/3 of the pension you would have received at Normal Pension Age based on your Pensionable Salary at death. | |
8. | The pension payable to a spouse on death after retirement is calculated as 2/3 of your pension. The calculation will assume you chose to exchange no pension for cash at retirement and will be increased at the same rate as your pension has increased between retirement and death. | |
9. | In the event of a transfer in of accrued pension benefits from another pension provider, any Back Service Credit will be calculated on standard ESPS benefits. | |
10. | Your contributions will be normally be 6% of your Salary. However, this may be reduced from time to time based on actuarial advice. In this respect, you will benefit from a reduction in your contribution to 3% of your salary until March 2002 or such later time as notified. | |
11. | In this schedule "Salary" means the annual amount of salary payable by the Companies as stipulated in your Agreement as increased from time to time but excluding any bonus, allowance or emoluments in kind appertaining to your employment, unless otherwise determined by the Companies. | |
"Pensionable Salary" means the greater of | ||
(a) | the Salary paid or payable in the highest paid year in the, last five years of Pensionable Service, or if Pensionable Service is for a shorter period than five years in respect of such shorter period, or; |
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(b) | the average annual Salary paid in the three highest paid consecutive years in the last ten of Pensionable Service, or if your Pensionable Service is for a shorter period, in respect of such shorter period. | |
Where a year other than the last one is used, such Salary to be increased in line with RPI. | ||
"Pensionable Service" means service whilst a contributing member of the ESPS. It is calculated in complete years but with each day completed in excess of a complete year calculated as 1/365 of a year and may include a Back Service Credit or Added year. | ||
11. | You should note that the Inland Revenue have placed a restriction (the "earnings cap") on the amount of pay on which benefits may be calculated in an approved arrangement (£91,800 for the 2000/2001 Tax Year). Your pension at Normal Pension Age will be augmented under the National Grid Company plc Section of the ESPS, if necessary, up to the maximum allowable. If your full pension promise cannot be met from the National Grid Company plc Section of the ESPS, you will be provided with additional benefits of appropriate value under a separate agreement. With the exception of the earnings cap restriction, all other limits imposed by the Inland Revenue on approved arrangements will apply to the benefits referred to in this summary. | |
13. | In all other respects the provisions of ESPS will apply to you. |
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