Document:

AFIN 06.30.2015 EX 10.33

Exhibit 10.33

LIMITED RECOURSE GUARANTY
THIS LIMITED RECOURSE GUARANTY (“Guaranty”) is made as of this 7th day of August, 2015, by American Finance Trust, Inc., a Maryland corporation, having an address at 106 York Road, Jenkintown, Pennsylvania 19046 (the “Guarantor”), in favor of BARCLAYS BANK PLC, having an address at 745 Seventh Avenue, New York, New York 10019 (“Barclays”), COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Column”), and UBS REAL ESTATE SECURITIES INC., having an address at 1285 Avenue of the Americas, New York, New York 10019 (“UBS”; together with Barclays, Column and each of their respective successors, transferees and/or assigns, collectively, the “Lender”).
RECITALS:
A.Lender and each of the entities listed on Schedule I attached hereto (individually or collectively, as the context may require, “Borrower”) have entered into a certain Loan Agreement (as it may hereafter be modified, supplemented, extended, or renewed and in effect from time to time, the “Loan Agreement”), which Loan Agreement sets forth the terms and conditions of a loan (said loan, together with all advances which may hereafter be made pursuant to the Loan Agreement, being referred to herein as the “Loan”) to Borrower secured by certain Properties as defined and more particularly described in the Loan Agreement.

B.Guarantor is an Affiliate of Borrower and will receive direct or indirect benefit from Lender’s making of the Loan to Borrower.

C.The Loan is evidenced by those certain promissory notes executed by Borrower and payable to the order of each Lender (collectively, as each may hereafter be renewed, extended, supplemented, increased or modified and in effect from time to time, and all other notes given in substitution therefor, or in modification, renewal, or extension thereof, in whole or in part, the “Note”).

D.Any capitalized term used and not defined in this Guaranty shall have the meaning given to such term in the Loan Agreement.  This Guaranty is one of the Loan Documents described in the Loan Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and as a material inducement to Lender to extend credit to Borrower, Guarantor hereby guarantees to Lender the prompt and full payment and performance of the Guaranteed Recourse Obligations of Borrower (defined below), this Guaranty being upon the following terms and conditions:
1.Guaranteed Recourse Obligations of Borrower.  Guarantor hereby unconditionally and irrevocably guarantees to Lender the punctual payment when due, and not merely the collectability, whether by lapse of time, by acceleration of maturity, or otherwise, the payment of the Guaranteed Recourse Obligations of Borrower (hereinafter defined).  As used herein, the term “Guaranteed Recourse Obligations of Borrower” shall mean all obligations and liabilities of Borrower for which Borrower shall be personally liable under and pursuant to Article 13 of the Loan Agreement.  

2.Certain Agreements and Waivers by Guarantor.  

(a)Guarantor hereby agrees that each of the following shall constitute Events of Default hereunder (i) the occurrence of a default by Guarantor in payment of the Guaranteed Recourse Obligations of Borrower, 

or any part thereof, when such indebtedness becomes due, which default continues for five (5) Business Days following notice thereof to Guarantor and (ii) the dissolution, bankruptcy and/or insolvency of any Guarantor.

(b)Upon the occurrence of any Event of Default hereunder, the Guaranteed Recourse Obligations of Borrower, for purposes of this Guaranty, shall be deemed immediately due and payable at the election of Lender, provided the same are due and payable under the Loan Agreement.  Guarantor shall, on demand, pay the Guaranteed Recourse Obligations of Borrower to Lender as and when they become due.  It shall not be necessary for Lender, in order to enforce such payment, first to (i) institute suit or pursue or exhaust any rights or remedies against Borrower or others liable for the Debt, (ii) enforce any rights against any security that shall ever have been given to secure the Debt, (iii) join Borrower or any others liable for the payment or performance of the Guaranteed Recourse Obligations of Borrower or any part thereof in any action to enforce this Guaranty and/or (iv) resort to any other means of obtaining payment or performance of the Guaranteed Recourse Obligations of Borrower.  

(c)Suit may be brought or demand may be made against all parties who have signed this Guaranty or any other guaranty covering all or any part of the Guaranteed Recourse Obligations of Borrower, or against any one or more of them, separately or together, without impairing the rights of Lender against any party hereto.  

(d)In the event any payment by Borrower or any other Person on account of the Guaranteed Recourse Obligations of Borrower to Lender is held to constitute a preference, fraudulent transfer or other voidable payment under any bankruptcy, insolvency or similar law, or if for any other reason Lender is required to refund such payment or pay the amount thereof to Borrower or such other party, such payment by Borrower or such other party to Lender shall not constitute a release of Guarantor from any liability hereunder and this Guaranty shall continue to be effective or shall be reinstated (notwithstanding any prior release, surrender or discharge by Lender of this Guaranty or of Guarantor), as the case may be, with respect to, and this Guaranty shall apply to, any and all amounts so refunded by Lender or paid by Lender to Borrower or such other Person (which amounts shall constitute part of the Guaranteed Recourse Obligations of Borrower), and any interest paid by Lender and any reasonable attorneys’ fees, costs and expenses paid or incurred by Lender in connection with any such event.  If acceleration of the time for payment of any amount payable by Borrower under any Loan Document is stayed or delayed by any law or tribunal, any amounts due and payable hereunder shall nonetheless be payable by Guarantor on demand by Lender.

3.Subordination.  If, for any reason whatsoever, Borrower is now or hereafter becomes indebted to Guarantor:

(a)such indebtedness and all interest thereon and all liens, security interests and rights now or hereafter existing with respect to property of Borrower securing same shall, at all times, be subordinate in all respects to the Guaranteed Recourse Obligations of Borrower and to all liens, security interests and rights now or hereafter existing to secure the Guaranteed Recourse Obligations of Borrower;

(b)Guarantor shall not be entitled to enforce or receive payment, directly or indirectly, of any such indebtedness of Borrower to Guarantor until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid and performed;

(c)Guarantor hereby assigns and grants to Lender a security interest in all such indebtedness (not including distributions) and security therefor, if any, of Borrower to Guarantor in violation of the Loan Documents now existing or hereafter arising including any payments pursuant to debtor relief or insolvency proceedings referred to below.  In the event of receivership, bankruptcy, reorganization, arrangement or other 

debtor relief or insolvency proceedings involving Borrower as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish its rights hereunder and shall have the right to receive directly from the receiver, trustee or other custodian (whether or not an Event of Default shall have occurred or be continuing under any of the Loan Documents), payments that are payable upon such indebtedness of Borrower to Guarantor now existing or hereafter arising in violation of the Loan Documents, and to have all benefits of any security therefor, until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid and performed.  If, notwithstanding the foregoing provisions, Guarantor should receive any payment that is prohibited as provided above in this Section, Guarantor shall pay the same to Lender immediately, Guarantor hereby agreeing that it shall receive the payment in trust for Lender and shall have absolutely no dominion over the same except to pay it immediately to Lender; and

(d)Guarantor shall promptly upon request of Lender from time to time execute such documents and perform such acts as Lender may reasonably require to evidence and perfect its interest and to permit or facilitate exercise of its rights under this Section.

4.Other Liability of Guarantor or Borrower.  If Guarantor is or becomes liable, by endorsement or otherwise, for any indebtedness owing by Borrower to Lender other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby, and the rights of Lender hereunder shall be cumulative of any and all other rights that Lender may have against Guarantor.  

5.Assignment by Lender.  This Guaranty is for the benefit of Lender and Lender’s successors and assigns, and in the event of an assignment by Lender of the Guaranteed Recourse Obligations of Borrower, or any part thereof, the rights and benefits hereunder, to the extent applicable to the Guaranteed Recourse Obligations of Borrower so assigned, may be transferred with such Guaranteed Recourse Obligations of Borrower.  Guarantor waives notice of any transfer or assignment of the Guaranteed Recourse Obligations of Borrower, or any part thereof, and agrees that failure to give notice will not affect the liabilities of Guarantor hereunder.

6.Binding Effect.  This Guaranty is binding not only on Guarantor, but also on Guarantor’s heirs, personal representatives, successors and assigns.  Upon the death of Guarantor, if Guarantor is a natural person, this Guaranty shall continue against Guarantor’s estate as to all of the Guaranteed Recourse Obligations of Borrower, including that portion incurred or arising after the death of Guarantor and shall be provable in full against Guarantor’s estate, whether or not the Guaranteed Recourse Obligations of Borrower are then due and payable.  If this Guaranty is signed by more than one Person, then all of the obligations of Guarantor arising hereunder shall be jointly and severally binding on each of the undersigned, and their respective heirs, personal representatives, successors and assigns, and the term “Guarantor” shall mean all of such Persons and each of them individually.  Without limitation of any other term, provision or waiver contained herein, Guarantor hereby acknowledges and agrees that it has been furnished true, complete and correct copies of the Loan Documents and has reviewed the terms and provisions thereof (including, without limitation, the Guaranteed Recourse Obligations of Borrower).

7.Nature of Guaranty.  Guarantor hereby acknowledges and agrees that this Guaranty (a) is a guaranty of payment and not only of collection and that Guarantor is liable hereunder as a primary obligor, (b) subject to Section 27 hereof, shall only be deemed discharged after the indefeasible satisfaction in full of the Guaranteed Recourse Obligations of Borrower and the Debt, (c) shall not, except in accordance with Section 27 hereof, be reduced, released, discharged, satisfied or otherwise impacted in connection with (i) any act or occurrence that might, but for the provisions hereof, be deemed a legal or equitable reduction, satisfaction, discharge or release (unless Lender agrees in writing with Borrower and/or Guarantor to any such reduction, satisfaction, discharge or release) and/or (ii) Lender’s enforcement of remedies under the 

Loan Documents and (d) shall survive the foregoing and shall not merge with any resulting foreclosure deed, deed in lieu or similar instrument (if any) but shall be subject to Section 27 hereof.

8.Governing Law.  The governing law and related provisions set forth in Section 17.2 of the Loan Agreement (including, without limitation, any authorized agent provisions thereof) are hereby incorporated by reference as if fully set forth herein (with Guarantor substituted in all places where Borrower appears thereunder) and shall be deemed fully applicable to Guarantor hereunder.  Guarantor hereby certifies that it has received and reviewed the Loan Agreement (including, without limitation, Section 17.2 thereof).  In the event of any conflict or inconsistency between the terms and conditions hereof and this Section 8, this Section 8 shall control.  

9.Invalidity of Certain Provisions. If any provision of this Guaranty or the application thereof to any Person or circumstance shall, for any reason and to any extent, be declared to be invalid or unenforceable, neither the remaining provisions of this Guaranty nor the application of such provision to any other Person or circumstance shall be affected thereby, and the remaining provisions of this Guaranty, or the applicability of such provision to other Persons or circumstances, as applicable, shall remain in effect and be enforceable to the maximum extent permitted by applicable Legal Requirements.

10.Attorneys’ Fees, Costs and Expenses of Collection.  Guarantor shall pay on demand all reasonable attorneys’ fees and all other costs and expenses incurred by Lender in the enforcement of or preservation of Lender’s rights under this Guaranty including, without limitation, all reasonable attorneys’ fees, costs and expenses, investigation costs, and all court costs, whether or not suit is filed herein, or whether at maturity or by acceleration, or whether before or after maturity, or whether in connection with bankruptcy, insolvency or appeal, or whether in connection with the collection and enforcement of this Guaranty against any other Guarantor, if there be more than one.  Guarantor agrees to pay interest on any expenses or other sums due to Lender under this Section 10 that are not paid when due, at a rate per annum equal to the interest rate provided for in the Note.  Guarantor’s obligations and liabilities under this Section 10 shall survive any payment or discharge in full of the Guaranteed Recourse Obligations of Borrower.

11.Payments.  All sums payable under this Guaranty shall be paid in lawful money of the United States of America that at the time of payment is legal tender for the payment of public and private debts.

12.Controlling Agreement.  It is not the intention of Lender or Guarantor to obligate Guarantor to pay interest in excess of that lawfully permitted to be paid by Guarantor under applicable Legal Requirements.  Should it be determined that any portion of the Guaranteed Recourse Obligations of Borrower or any other amount payable by Guarantor under this Guaranty constitutes interest in excess of the maximum amount of interest that Guarantor, in Guarantor’s capacity as guarantor, may lawfully be required to pay under applicable Legal Requirements, the obligation of Guarantor to pay such interest shall automatically be limited to the payment thereof in the maximum amount so permitted under applicable Legal Requirements.  The provisions of this Section shall override and control all other provisions of this Guaranty and of any other agreement between Guarantor and Lender.

13.Notices.  Any and all notices, elections, demands, requests and responses thereto permitted or required to be given under this Guaranty shall be given in accordance with the applicable terms and conditions of the Loan Agreement.  Notices to Guarantor shall be addressed as follows:

	
		
	If to Guarantor:
	American Finance Trust, Inc.
c/o American Finance Advisors, LLC
405 Park Avenue, 7th Floor
New York, NY 10022
Attn:  Asset Management
E-Mail:  AFINAssetManagement@arlcap.com

	With a copy to:
	American Finance Trust, Inc.
c/o American Finance Advisors, LLC
405 Park Avenue, 14th Floor
New York, NY 10022
Attn:  Marc A. Tolchin, Esq. 
E-Mail:  mtolchin@arlcap.com

	With a copy to:
	Arnold & Porter LLP
555 Twelfth Street, NW
Washington, District of Columbia 20004
Attention:  John J. Busillo, Esq.
Facsimile No.:  (202) 942-5999

	If to Lender:
	Barclays Bank PLC
745 Seventh Avenue
New York, New York 10019
Attention:  Michael S. Birajiclian
Facsimile No.:  (646) 531-5391

	And to:
	Column Financial, Inc.
Eleven Madison Avenue
New York, New York  10010
Attention:  Legal and Compliance Department/FID Securitized Product
Facsimile No.: (212) 322-1730

	And to:
	UBS Real Estate Securities Inc.
1285 Avenue of the Americas
New York, New York 10019
Attention:  Transaction Management
Facsimile No.: (212) 322-1730

	With a copy to:
	Dechert LLP
Cira Centre
2929 Arch Street 
Philadelphia, Pennsylvania 19104-2808
Attention:  David W. Forti, Esq.
Facsimile No.:  (215) 655-2647

14.Cumulative Rights.  The exercise by Lender of any right or remedy hereunder or under any other Loan Document, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other right or remedy.  Lender shall have all rights, remedies and recourses afforded to Lender by reason of this Guaranty or any other Loan Document or by law or equity or otherwise, and the same (a) shall be cumulative and concurrent, (b) may be pursued separately, successively or concurrently against Guarantor or others obligated for the Guaranteed Recourse Obligations of Borrower, or any part thereof, or against any one or more of them, or against any security or otherwise, at the sole discretion of Lender, (c) may be exercised as often as occasion therefor shall arise, it being agreed by Guarantor that the exercise of, discontinuance of the exercise of or failure to exercise any of such rights, remedies, or recourses shall in no event be construed 

as a waiver or release thereof or of any other right, remedy, or recourse, and (d) are intended to be, and shall be, nonexclusive.  No waiver of any default on the part of Guarantor or of any breach of any of the provisions of this Guaranty or of any other document shall be considered a waiver of any other or subsequent default or breach, and no delay or omission in exercising or enforcing the rights and powers granted herein or in any other document shall be construed as a waiver of such rights and powers, and no exercise or enforcement of any rights or powers hereunder or under any other document shall be held to exhaust such rights and powers, and every such right and power may be exercised from time to time.  The granting of any consent, approval or waiver by Lender shall be limited to the specific instance and purpose therefor and shall not constitute consent or approval in any other instance or for any other purpose.  No notice to or demand on Guarantor in any case shall of itself entitle Guarantor to any other or further notice or demand in similar or other circumstances.  No provision of this Guaranty or any right, remedy or recourse of Lender with respect hereto, or any default or breach, can be waived, nor can this Guaranty or Guarantor be released or discharged in any way or to any extent, except specifically in each case by a writing intended for that purpose (and which refers specifically to this Guaranty) executed, and delivered to Guarantor, by Lender, or where otherwise specifically provided herein.

15.Subrogation.  Notwithstanding anything to the contrary contained herein, (a) Guarantor shall not have any right of subrogation in or under any of the Loan Documents or to participate in any way therein, or in any right, title or interest in and to any security or right of recourse for the Guaranteed Recourse Obligations of Borrower, until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid, and (b) if Guarantor is or becomes an “insider” (as defined in Section 101 of the Bankruptcy Code) with respect to Borrower, then Guarantor hereby irrevocably and absolutely waives any and all rights of contribution, indemnification, reimbursement or any similar rights against Borrower with respect to this Guaranty (including any right of subrogation, except to the extent of collateral held by Lender), whether such rights arise under an express or implied contract or by operation of law, until the Guaranteed Recourse Obligations of Borrower have been fully and finally paid.  It is the intention of the parties that Guarantor shall not be deemed to be a “creditor” (as defined in Section 101 of the Bankruptcy Code) of Borrower by reason of the existence of this Guaranty in the event that Borrower or Guarantor becomes a debtor in any proceeding under the Bankruptcy Code.  This waiver is given to induce Lender to make the Loan as evidenced by the Note to Borrower.

16.Further Assurances.  Guarantor at Guarantor’s expense will promptly execute and deliver to Lender upon Lender’s reasonable request all such other and further documents, agreements, and instruments in accomplishment of the agreements of Guarantor under this Guaranty.

17.No Fiduciary Relationship.  The relationship between Lender and Guarantor is solely that of lender and guarantor.  Lender has no fiduciary or other special relationship with or duty to Guarantor and none is created hereby or may be inferred from any course of dealing or act or omission of Lender.

18.Interpretation.  If this Guaranty is signed by more than one Person as “Guarantor”, then the term “Guarantor” as used in this Guaranty shall refer to all such Persons jointly and severally, and all promises, agreements, covenants, waivers, consents, representations, warranties and other provisions in this Guaranty are made by and shall be binding upon each and every such undersigned Person, jointly and severally and Lender may pursue any Guarantor hereunder without being required (i) to pursue any other Guarantor hereunder or (ii) pursue rights and remedies under any Security Instrument and/or applicable Legal Requirements with respect to any Individual Property or any other Loan Documents.

19.Time of Essence.  Time shall be of the essence in this Guaranty with respect to all of Guarantor’s obligations hereunder.

20.Execution.  This Guaranty may be executed in multiple counterparts, each of which, for all purposes, shall be deemed an original, and all of which together shall constitute one and the same agreement.

21.Entire Agreement.  This Guaranty embodies the entire agreement between Lender and Guarantor with respect to the guaranty by Guarantor of the Guaranteed Recourse Obligations of Borrower.  This Guaranty supersedes all prior agreements and understandings, if any, with respect to guaranty by Guarantor of the Guaranteed Recourse Obligations of Borrower.  No condition or conditions precedent to the effectiveness of this Guaranty exist.  This Guaranty shall be effective upon execution by Guarantor and delivery to Lender.  This Guaranty may not be modified, amended or superseded except in a writing signed by Lender and Guarantor referencing this Guaranty by its date and specifically identifying the portions hereof that are to be modified, amended or superseded.  The Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.

22.WAIVER OF JURY TRIAL.  EACH OF GUARANTOR AND LENDER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH GUARANTOR AND LENDER MAY BE PARTIES ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO, THIS GUARANTY AND ANY OTHER LOAN DOCUMENT.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS GUARANTY.  THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR AND LENDER, AND EACH OF GUARANTOR AND LENDER HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  EACH OF GUARANTOR AND LENDER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OR ACCEPTANCE, RESPECTIVELY OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT EACH OF GUARANTOR AND LENDER HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

23.Governing Law.  THIS GUARANTY WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT TO THE LOAN AGREEMENT WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED 

ACCORDING TO THE LAW OF THE STATE, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER.  TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5‐1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE OTHER LOAN DOCUMENTS WILL BE INSTITUTED IN (OR, IF PREVIOUSLY INSTITUTED, MOVED TO) ANY FEDERAL OR STATE COURT DESIGNATED BY LENDER IN THE CITY OF NEW YORK, COUNTY OF NEW YORK.  GUARANTOR HEREBY (I) WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING AND (II) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.  GUARANTOR AND LENDER HEREBY ACKNOWLEDGE AND AGREE THAT THE FOREGOING AGREEMENT, WAIVER AND SUBMISSION ARE MADE PURSUANT TO SECTION 5‐1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
24.Waivers.  

(a)Guarantor hereby agrees that neither Lender’s rights or remedies nor Guarantor’s obligations under the terms of this Guaranty shall be released, diminished, impaired, reduced or affected by any one or more of the following events, actions, facts, or circumstances, and the liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of (and Guarantor hereby waives any rights or protections related to):  (i) any limitation of liability or recourse in any other Loan Document or arising under any law;  (ii) any claim or defense that this Guaranty was made without consideration or is not supported by adequate consideration;  (iii) the taking or accepting of any other security or guaranty for, or right of recourse with respect to, any or all of the Guaranteed Recourse Obligations of Borrower;  (iv) any homestead exemption or any other similar exemption under applicable Legal Requirements and Guarantor hereby waives the benefit of any such exemption as to the Guaranteed Recourse Obligations of Borrower;  (v) any release, surrender, abandonment, exchange, alteration, sale or other disposition, subordination, deterioration, waste, failure to protect or preserve, impairment, or loss of, or any failure to create or perfect any lien or security interest with respect to, or any other dealings with, any collateral or security at any time existing or purported, believed or expected to exist in connection with any or all of the Guaranteed Recourse Obligations of Borrower, including any impairment of Guarantor’s recourse against any Person or collateral;  (vi) unless agreed to in writing by Lender or as otherwise expressly set forth in the Loan Documents, whether express or by operation of law, any partial release of the liability of Guarantor hereunder, or if one or more other guaranties are now or hereafter obtained by Lender covering all or any part of the Guaranteed Recourse Obligations of Borrower, any complete or partial release of any one or more of such guarantors under any such other guaranty, or any complete or partial release or settlement of Borrower or any other party liable, directly or indirectly, for the payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower;  (vii) the death, insolvency, bankruptcy, disability, dissolution, liquidation, termination, receivership, reorganization, merger, consolidation, change of form, structure or ownership, sale of all assets, or lack of corporate, partnership or 

other power of Borrower or any other party at any time liable for the payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower;  (viii) either with or without notice to or consent of Guarantor: any renewal, extension, modification or rearrangement of the terms of any or all of the Guaranteed Recourse Obligations of Borrower and/or any of the Loan Documents;  (ix) any neglect, lack of diligence, delay, omission, failure, or refusal of Lender to take or prosecute (or in taking or prosecuting) any action for the collection or enforcement of any of the Guaranteed Recourse Obligations of Borrower, or to foreclose or take or prosecute any action to foreclose (or in foreclosing or taking or prosecuting any action to foreclose) upon any security therefor, or to exercise (or in exercising) any other right or power with respect to any security therefor, or to take or prosecute (or in taking or prosecuting) any action in connection with any Loan Document, or any failure to sell or otherwise dispose of in a commercially reasonable manner any collateral securing any or all of the Guaranteed Recourse Obligations of Borrower;  (x) any failure of Lender to notify Guarantor of any creation, renewal, extension, rearrangement, modification, supplement, subordination, or assignment of the Guaranteed Recourse Obligations of Borrower or any part thereof, or of any Loan Document, or of any release of or change in any security, or of any other action taken or refrained from being taken by Lender against Borrower or any security or other recourse, or of any new agreement between Lender and Borrower, it being understood that, except as expressly provided herein, Lender shall not be required to give Guarantor any notice of any kind under any circumstances with respect to or in connection with the Guaranteed Recourse Obligations of Borrower, any and all rights to notice Guarantor may have otherwise had being hereby waived by Guarantor, and Guarantor shall be responsible for obtaining for itself information regarding Borrower, including, but not limited to, any changes in the business or financial condition of Borrower, and Guarantor acknowledges and agrees that Lender shall have no duty to notify Guarantor of any information which Lender may have concerning Borrower;  (xi) if for any reason that Lender is required to refund any payment by Borrower to any other party liable for the payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower or pay the amount thereof to someone else;  (xii) the making of advances by Lender to protect its interest in any Individual Property or the Properties, preserve the value of any Individual Property or the Properties or for the purpose of performing any term or covenant contained in any of the Loan Documents;  (xiii) the existence of any claim, counterclaim, set off, recoupment, reduction or defense based upon any claim or other right that Guarantor may at any time have against Borrower, Lender, or any other Person, whether or not arising in connection with this Guaranty, the Note, the Loan Agreement, or any other Loan Document, other than a claim that the Guaranteed Recourse Obligations of Borrower have been fully paid and performed;  (xiv) the unenforceability of all or any part of the Guaranteed Recourse Obligations of Borrower against Borrower, whether because the Guaranteed Recourse Obligations of Borrower exceed the amount permitted by law or violate any usury law, or because the act of creating the Guaranteed Recourse Obligations of Borrower, or any part thereof, is ultra vires, or because the officers or Persons creating same acted in excess of their authority, or because of a lack of validity or enforceability of or defect or deficiency in any of the Loan Documents, or because Borrower has any valid defense, claim or offset with respect thereto, or because Borrower’s obligation ceases to exist by operation of law, or because of any other reason or circumstance, it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be found not liable on the Guaranteed Recourse Obligations of Borrower, or any part thereof, for any reason (and regardless of any joinder of Borrower or any other party in any action to obtain payment or performance of any or all of the Guaranteed Recourse Obligations of Borrower);  (xv) any order, ruling or plan of reorganization emanating from proceedings under any bankruptcy or similar insolvency laws with respect to Borrower or any other Person, including any extension, reduction, composition, or other alteration of the Guaranteed Recourse Obligations of Borrower, whether or not consented to by Lender; and/or (xvi) except as otherwise provided in Section 27 hereof, any partial or total transfer, pledge and/or reconstitution of Borrower and/or any direct or indirect owner of Borrower (regardless of whether the same is permitted under the Loan Documents).

(b)This Guaranty shall be effective as a waiver of, and Guarantor hereby expressly waives 

(i)any and all rights to which Guarantor may otherwise have been entitled under any suretyship laws in effect from time to time, including any right or privilege, whether existing under statute, at law or in equity, to require Lender to take prior recourse or proceedings against any collateral, security or Person whatsoever; 

(ii)any rights of sovereign immunity and any other similar and/or related rights; 

(iii)any other circumstance that may constitute a defense of Borrower or Guarantor hereunder and/or under the other Loan Documents other than a defense that the Guaranteed Recourse Obligations of Borrower have been fully paid and performed; and

(iv)any right and/or requirement of or related to notice, presentment, protest, notice of protest, further notice of nonpayment, notice of dishonor, default, nonperformance, intent to accelerate, acceleration, existence of the Debt and/or any amendment or modification of the Debt.

25.Representations, Warranties and Covenants of Guarantor.  Guarantor hereby makes the following representations, warranties and covenants (each of which shall remain materially true and correct during the term hereof):  (a) Guarantor is duly organized, validly existing and in good standing under the laws of its state of formation, and Guarantor has all requisite right and power to execute and deliver this Guaranty and to perform the Guaranteed Recourse Obligations of Borrower;  (b) the execution, delivery and performance of this Guaranty and the incurrence of the Guaranteed Recourse Obligations of Borrower, now or hereafter owing, (i) are within the powers of Guarantor and (ii) do not require any approval or consent of, or filing with, any governmental authority or other Person (or such approvals and consents have been obtained and delivered to the Lender) and are not in contravention of any provision of law applicable to Guarantor;  (c) this Guaranty and the other Loan Documents to which Guarantor is a party constitutes when delivered, valid and binding obligations of Guarantor, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights and equitable considerations;  (d) Guarantor is not in default under any indenture, loan or credit agreement, or any lease or other agreement or instrument to which it is a party, or in violation of any restriction to which it is subject, as of the date hereof which, to Guarantor’s knowledge, is likely to have a Material Adverse Effect if there were such a default or violation; (e) Guarantor has filed all tax returns which are required to be filed (or obtained proper extensions of time for the filing thereof) and has paid, or made adequate provision for the payment of, all taxes which have or may become due pursuant to said returns or to assessments received;  (f) the financial statements and other information pertaining to Guarantor submitted to Lender are true, complete and correct in all material respects and do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading;  (g) there is no litigation, at law or in equity, or any proceeding before any federal, state, provincial or municipal board or other governmental or administrative agency pending or, to the knowledge of Guarantor, threatened, or any basis therefor, which involves a risk of any material judgment or liability not fully covered by insurance (other than any deductible) which is likely to be adversely determined and if so, would have a Material Adverse Effect, and no judgment, decree, or order of any federal, state, provincial or municipal court, board or other governmental or administrative agency has been issued against Guarantor which has a Material Adverse Effect;  (h) the making of the Loan to Borrower will result in material benefits to Guarantor;  (i) Guarantor (i) has not entered into this Guaranty or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (ii) has received reasonably equivalent value in exchange for the Guaranteed Recourse Obligations of Borrower hereunder and under the Loan Documents.; and (j) Guarantor is not a “foreign person” within the meaning of Section 1445(1)(3) of the Internal Revenue Code.  Each of the representations and covenants of and/or relating to Guarantor set forth in the other Loan Documents, if any, are hereby re-made by Guarantor and incorporated herein by reference as if fully set forth herein.  This 

Guaranty is not subject to any right of rescission, setoff, counterclaim or defense by Guarantor, nor would the operation of any of the terms of this Guaranty, or the exercise of any right hereunder, render the Loan Documents unenforceable.  Guarantor has not asserted any right of rescission, setoff, counterclaim or defense with respect to the Loan Documents.

26.Financial Covenants of Guarantor

(a)Guarantor (i) shall keep and maintain complete and accurate books and records and (ii) in the event of the occurrence and continuance of an Event of Default, shall permit Lender and any authorized representatives of Lender to have access to and to inspect, examine and make copies of the books and records, any and all accounts, data and other documents of Guarantor, at all reasonable times, during normal business hours, at Guarantor’s address for notices as set forth herein upon the giving of reasonable notice of such intent.  Guarantor shall also provide to Lender, upon Lender’s reasonable request, such proofs of payment, costs, expenses, revenues and earnings, and such other documentation as Lender may reasonably request, from time to time, in such detail as may reasonably be required by Lender which (in each case) are available or reasonably obtainable using systems of Guarantor that are currently in place.

(b)Without limiting the provisions of Section 26(a), Lender shall have the right, at any time and from time to time, during reasonable business hours and upon the giving of reasonable notice of such intent, upon the occurrence and continuance of an “Event of Default” hereunder or under the other Loan Documents, to audit the books and records of Guarantor. 

(c)During the term hereunder, Guarantor will furnish or cause to be furnished to Lender, as soon as available, and in any event within sixty (60) days after the end of each calendar quarter, the quarterly consolidated financial statements of Guarantor, which financial statements shall be prepared on an unaudited basis, in form substantially similar to those previously delivered by Guarantor to Lender and which shall include Guarantor’s balance sheet and statements of net worth and liquidity.  Such quarterly financial statements shall be certified by Guarantor to Lender as true and correct in all material respects.  In addition, during the term hereunder, Guarantor will furnish or cause to be furnished to Lender, as soon as available, and in any event within one hundred and fifteen (115) days after the end of each fiscal year, the annual consolidated financial statements of Guarantor, which financial statements shall be in form substantially similar to those previously delivered by Guarantor to Lender and which shall include Guarantor’s balance sheet, statements of net worth and liquidity and, if available, cash flows for all Individual Properties and entities constituting Borrower.  All such annual financial statements shall (A) be prepared and audited by Guarantor’s independent certified public accountants (which accountants shall be reasonably acceptable to Lender), (B) be certified by Guarantor to Lender as true and correct in all material respects and (C) contain such backup and/or supporting information as may be reasonably requested by Lender.  In addition, Guarantor shall promptly furnish to Lender any other financial information reasonably requested by Lender from time to time in respect of Guarantor.

(d)Guarantor shall, at all times while the Debt remains unsatisfied, maintain a net worth of not less $475,000,000 and a liquidity of not less than $30,000,000.  For the purposes hereof, Guarantor’s net worth and liquidity shall be determined by Lender in its reasonable discretion, at any time and from time to time, and Guarantor’s net worth shall exclude any equity attributable to the Properties.

27.Release of Guaranty.  

(a)Notwithstanding anything to the contrary contained herein, upon the consummation of any enforcement action by (i) the holder of the Loan resulting in the Guarantor no longer controlling the Borrower 

or any Individual Property or (ii) the holder of any mezzanine loan (a “Mezzanine Loan”) that exists pursuant to Section 11.6 of the Loan Agreement resulting in the Guarantor no longer controlling the Borrower or any Individual Property, or the assignment to the lender under such Mezzanine Loan (the “Mezzanine Lender”) (or its designee(s)) of said interests in lieu thereof in accordance with the loan documents evidencing such Mezzanine Loan) (such date, the “Vesting Date”), Guarantor shall be released with respect to matters arising out of or in connection with actions, events or conditions first taking place following the Vesting Date solely with respect to those Borrowers and/or any Individual Properties which are no longer controlled by Guarantor and solely with respect to actions, events or conditions which are not caused by Guarantor or any of its Affiliates.  In addition, after foreclosure of the lien of the Loan Documents or deed-in-lieu of such foreclosure, or Lender exercising any remedy which results in Lender or its successors or assigns or their respective agents or appointees controlling the Individual Properties (or any Individual Property, if applicable), Guarantor shall be released with respect to matters arising out of or in connection with actions, events or conditions first taking place following such foreclosure or deed in lieu thereof or exercise of such remedy solely with respect to those Individual Properties which are no longer controlled by Guarantor and solely with respect to actions, events or conditions which are not caused by Guarantor or any of its Affiliates.  In addition, if the Mezzanine Lender exercises its remedies pursuant to any pledge and security agreement in connection with the Mezzanine Loan to exercise the voting rights of Borrower (or any other remedy which gives the Mezzanine Lender the right to control the Borrower), Guarantor shall not have any liability arising from the exercise of such voting rights (or any other remedy which gives the Mezzanine Lender the right to control the Borrower) solely with respect to such Borrowers where Mezzanine Lender has exercised its voting rights (or Mezzanine Lender has otherwise exercised control) and solely with respect to matters not caused by Guarantor or any of its Affiliates (the date of such Mezzanine Lender’s exercise of such voting rights, the “Control Vesting Date”).  For the avoidance of doubt, in no event shall Guarantor be released from any obligations or liabilities with respect to any obligations or liabilities that result from facts and circumstances (known or unknown) in existence prior to the Vesting Date or the Control Vesting Date or caused by Guarantor or any of its Affiliates, and such Guaranteed Recourse Obligations of Borrower shall remain in full force and effect in accordance with and subject to the terms and provisions of this Guaranty.

(b)In addition, Lender acknowledges and agrees that in connection with a transfer in accordance with the terms and conditions of Section 6.3(b) of the Loan Agreement and the assumption of all of the obligations and liabilities hereunder by a replacement guarantor in accordance with Section 6.3(b) of the Loan Agreement, Guarantor shall not have any liability with respect to any Guaranteed Recourse Obligations of Borrower arising out of or in connection with actions, events or conditions first taking place following the date that Guarantor’s obligations under this Guaranty are assumed in accordance with Section 6.3(b) of the Loan Agreement, unless such actions, events or conditions were caused by actions or omissions of Guarantor or any of its Affiliates.

28.Special State Provisions.  In the event of any inconsistencies between the other terms and conditions of this Guaranty and this Section 28, the terms and conditions of this Section 28 shall control and be binding:

(a)With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Colorado:

(i) Guarantor hereby waives any rights which might otherwise exist under C.R.S. §§ 13-50-102 or 13-50-103 (or under any corresponding or similar statute, future statute or rule of law) by reason of any release of fewer than all of the guarantors if there are multiple guarantors.

(b) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Georgia:

(i) Guarantor hereby waives any rights which might otherwise exist under the provisions of Section 10-7-24 of O.C.G.A. or 11-3-601 O.C.G.A.

(c) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Idaho:

(i)The representations, warranties and covenants of Guarantor set forth in this Guaranty are not secured by the Deed of Trust or any other security documents securing the Loan and shall not be discharged or satisfied by foreclosure of the liens created by the Deed of Trust or other security documents, except as otherwise provided herein.

(ii)Except as prohibited by applicable law, Guarantor also waives any and all rights or defenses arising by reason of any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale.  Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences, that Guarantor has had an opportunity to consult with its attorney regarding this Guaranty and the waivers contained herein, and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law.  If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy.

(d)With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Illinois:

(i)Guarantor is acting solely as a guarantor and not as a surety and Guarantor hereby specifically waives to the fullest extent permitted by Illinois law and agrees not to assert any defense, counterclaim, set-off, benefit or right that Guarantor may now or hereafter have arising under the Illinois Sureties Act, 740 ILCS 155/1, to the extent applicable.

(ii)Guarantor hereby expressly waives to the fullest extent permitted by Illinois law and agrees not to assert any defense, counterclaim, set-off, benefit or right that Guarantor may now or hereafter have arising out of Lender’s breach of the covenant of good faith and fair dealing.

(iii)THE FOREGOING PROVISIONS ARE MATERIAL INDUCEMENTS FOR THE LENDER GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

(e)With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Minnesota:

(i)Guarantor hereby expressly agrees that the Guarantor shall be and remain liable for any deficiency relating to the Guaranteed Recourse Obligations of Borrower for which Guarantor would otherwise be liable hereunder remaining after foreclosure of any mortgage or security interest securing the Note, notwithstanding provisions of law that may prevent Lender from enforcing such deficiency against the Borrower.

(f) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of North Carolina:

(i) Guarantor waives, to the fullest extent permitted by law, all rights granted by N.C. Gen. Stat. §§ 26-7 through 26-9, inclusive, including, without limitation, all rights to require Lender to proceed against or exhaust any collateral held by Lender to secure the Loan.

(g) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Oklahoma:

(i) Guarantor hereby specifically waives and agrees not to assert any defense, counterclaim, set-off, benefit or right that Guarantor may now or hereafter have pursuant to the provisions of okla. stat. tit. 12 § 686 (2011), okla. stat. tit. 12A § 3-605 (2011) and okla. stat. tit. 15 §§ 323, 334, 335, 337, 338 and 344 (2011).

(ii) To the extent that the laws of the State of Oklahoma apply to this Guaranty, in addition to all other provisions contained herein, Guarantor further agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated, affected or impaired by reason of Lender’s election to foreclose any lien created by the Loan Documents, in which case Lender is authorized to purchase for the account of Lender all or any part of the collateral covered by such lien at public or private sale and to credit the actual amount recovered first against that portion of the obligations for which Guarantor is not liable with any balance remaining to be applied in reduction of the liability of Guarantor hereunder.  Guarantor hereby waives any and all claims for set-off of the collateral’s fair market value under 12 O.S. Section 686.

(h) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of South Carolina:

(i) GUARANTOR HEREBY WAIVES AND RELINQUISHES ANY AND ALL STATUTORY APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUED OF THE INDIVIDUAL PROPERTY AND/OR PROPERTIES.

(ii) GUARANTOR ACKNOWLEDGES AND AFFIRMS THAT IT RECEIVED WRITTEN NOTIFICATION BEFORE THE TRANSACTION THAT A WAIVER OF STATUTORY APPRAISAL RIGHTS WAS REQUIRED IN ACCORDANCE WITH THE PROVISIONS OF S.C. CODE ANN. SECTION 29-3-680.

(i) With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the State of Texas:

(i) Guarantor hereby expressly waives any rights or defenses Guarantor may or might otherwise become entitled to with respect to the provisions of Section 17.001 and Sections 43.002 and 43.003 of the Texas Civil Practice and Remedies Code, as amended, and the provisions of Sections 51.003, 51.004, and 51.005 of the Texas Property Code, as amended from time to time, and agrees that the rights of Guarantor pursuant to the provisions of Section 43.004 of the Texas Civil Practice and Remedies Code, as amended, shall be subject to, secondary, subordinate and inferior in all respects to the rights of Lender pursuant to this Guaranty.

(ii) Usury Disclaimer.  No provision herein or in the Note or the Loan Documents shall be construed to be or to create a contract by Guarantor to pay, as consideration for the use, forbearance, or detention of money, interest in excess of the rate or amount allowed by law.  If any excess of interest in such respect is provided for herein or in any such promissory note, security instrument, or any other loan agreement, the provisions of this Section shall govern, and neither Borrower nor Guarantor shall be obligated to pay the amount of such interest to the extent that it is in excess of the amount permitted by applicable law.  The intention of the parties is to conform strictly to the usury laws now in force.  This Guaranty, the Note and the Loan Documents shall be held subject to reduction to the amount allowed under said usury laws as now or hereafter construed by the courts having jurisdiction.

(j)With respect to the foregoing provisions contained in this Guaranty, the following shall apply with respect to the Commonwealth of Virginia:

(i)The Guarantor hereby waives, to the extent permitted by law, (i) the benefits of Va. Code §§ 49‐25, and §49‐26, et seq. and any amendments thereto, and any similar statutes or rules of law, (ii) the benefit of any homestead or similar exemption, state or federal, with respect to its obligations hereunder, (iii) notice of any of the matters referred to in this Guaranty, (iv) presentment, demand, protest and notice of dishonor, and (v) any demand (except as expressly specified herein), proof or notice of nonpayment, or failure to comply with, any of the Guarantor’s obligations herein.

[NO FURTHER TEXT ON THIS PAGE]

IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty under as of the date first written above.
American Finance Trust, Inc.
By:________________________________
Name:
Title:

SCHEDULE I
Borrower
		
	1.
	ARC AAANGIN001, LLC

2.ARC AABNLFL001, LLC
3.ARC AATNTMA001, LLC
4.ARC AAWSNGA001, LLC
5.ARC ABHNDMS001, LLC
6.ARC AMWNRKY001, LLC
7.ARC ARERIPA001, LLC
8.ARC ARVIRMN001, LLC
9.ARC ASCGRMO001, LLC
10.ARC AZCROMI001, LLC
11.ARC AZCTOLA001, LLC
12.ARC AZTMPGA001, LLC
13.ARC BFFTMFL001, LLC
14.ARC BKMST41001, LLC
15.ARC CBDTNPA001, LLC
16.ARC CBLDLPA001, LLC
17.ARC CBLMAPA001, LLC
18.ARC CBPHLPA001, LLC
19.ARC CBPHLPA002, LLC
20.ARC CBPHLPA003, LLC
21.ARC CBPHLPA004, LLC
22.ARC CBRBRPA001, LLC
23.ARC CBWNEPA001, LLC
24.ARC CHLKJTX001, LLC
25.ARC CHVCTTX001, LLC
26.ARC CKMST19001, LLC
27.ARC CVANSAL001, LLC
28.ARC CVDETMI001, LLC
29.ARC CVHYKMA001, LLC
30.ARC DB5PROP001, LLC
31.ARC DGATHMI001, LLC
32.ARC DGBGLLA001, LLC
33.ARC DGBKHMS001, LLC
34.ARC DGBNBGA001, LLC
35.ARC DGCHEOK001, LLC
36.ARC DGCMBMS001, LLC
37.ARC DGDNDLA001, LLC
38.ARC DGDVLLA001, LLC
39.ARC DGFHLLA001, LLC
40.ARC DGFLRMI001, LLC
41.ARC DGFRTMS001, LLC
42.ARC DGFTSAR001, LLC
43.ARC DGGNWLA001, LLC
44.ARC DGGSBVA001, LLC
45.ARC DGGVLMS002, LLC

46.ARC DGHBKLA001, LLC
47.ARC DGHDNMI001, LLC
48.ARC DGHTGWV001, LLC
49.ARC DGHTSAR001, LLC
50.ARC DGLAFTN001, LLC
51.ARC DGLCRMN002, LLC
52.ARC DGMBLAR001, LLC
53.ARC DGMKNMI001, LLC
54.ARC DGMRALA001, LLC
55.ARC DGMSNTX002, LLC
56.ARC DGNTALA001, LLC
57.ARC DGRLFMS001, LLC
58.ARC DGRSEMI001, LLC
59.ARC DGRYLAR001, LLC
60.ARC DGSRBMO001, LLC
61.ARC DGSTNVA001, LLC
62.ARC DGSVNMO001, LLC
63.ARC DGTLSLA001, LLC
64.ARC DGVDRTX001, LLC
65.ARC DGVNLTN001, LLC
66.ARC DGWPTMS001, LLC
67.ARC DGWRNIN001, LLC
68.ARC DGWSNNY001, LLC
69.ARC FDBRNLA001, LLC
70.ARC FDBTLKY001, LLC
71.ARC FDCHLID001, LLC
72.ARC FDCRLMO001, LLC
73.ARC FDDNVAR001, LLC
74.ARC FDDXRNM001, LLC
75.ARC FDFNTPA001, LLC
76.ARC FDHCRTX001, LLC
77.ARC FDKRMCO001, LLC
78.ARC FDOCYLA001, LLC
79.ARC FDPLSTX001, LLC
80.ARC FDWLDCO001, LLC
81.ARC FEBSMND001, LLC
82.ARC FECNBIA001, LLC
83.ARC FELELMS001, LLC
84.ARC FEWTNSD001, LLC
85.ARC FLCLTNC001, LLC
86.ARC FMMTCNJ001, LLC
87.ARC FMMTVAL001, LLC
88.ARC FMSNHPA001, LLC
89.ARC HR5BEIL001, LLC
90.ARC HR5BIAL001, LLC
91.ARC HR5BPMN001, LLC
92.ARC HR5CSAL001, LLC
93.ARC HR5CURI001, LLC
94.ARC HR5CVGA001, LLC

95.ARC HR5DOGA001, LLC
96.ARC HR5GAGA001, LLC
97.ARC HR5GANC001, LLC
98.ARC HR5GASC001, LLC
99.ARC HR5GAVA001, LLC
100.ARC HR5GBNC001, LLC
101.ARC HR5GRSC001, LLC
102.ARC HR5HASC001, LLC
103.ARC HR5HOTX001, LP
104.ARC HR5HOWI001, LLC
105.ARC HR5HPNY001, LLC
106.ARC HR5MSSE001, LLC
107.ARC HR5NCTN001, LLC
108.ARC HR5PEGA001, LLC
109.ARC HR5PISC001, LLC
110.ARC HR5SINJ001, LLC
111.ARC HR5SLUT001, LLC
112.ARC HR5SOCT001, LLC
113.ARC HR5VAGA001, LLC
114.ARC HR5ZUMN001, LLC
115.ARC JCHUSTX001, LLC
116.ARC JCWSTCO001, LLC
117.ARC LWAKNSC001, LLC
118.ARC LWFYTNC001, LLC
119.ARC LWMCNGA001, LLC
120.ARC LWNBNNC001, LLC
121.ARC LWRMTNC001, LLC
122.ARC MFAKNSC001, LLC
123.ARC MFFNCAL001, LLC
124.ARC MFHLDMI001, LLC
125.ARC MFKXVTN002, LLC
126.ARC MFMCDGA001, LLC
127.ARC MFMDNID001, LLC
128.ARC MFSGWMI001, LLC
129.ARC MFTSEFL002, LLC
130.ARC MFVALGA001, LLC
131.ARC NTMNDIL001, LLC
132.ARC NTSNTTX001, LLC
133.ARC ORMNTWI001, LLC
134.ARC TKLWSFL001, LLC
135.ARC TPEGPTX001, LLC
136.ARC TSHRLKY001, LLC
137.ARC TSHTNMI001, LLC
138.ARC TSVRNCT001, LLC
139.ARC WGBEATX001, LLC
140.ARC WGBTDIA001, LLC
141.ARC WGGLTWY001, LLC
142.ARC WGLNSMI001, LLC
143.ARC WGOKCOK001, LLC

144.ARC WGPNBAR001, LLC
145.ARC WGTKRGA001, LLC
146.ARC WGWFDMI001, LLCEX-4.6

 Exhibit 4.6 

Dated [ l ]

 DIAGEO PLC (1) 

[ l ] (2)

  
  

SERVICE AGREEMENT 

 CONTENTS 
  

							
	Clause	 	 	  	Page	 
			
	 1.
	 	DEFINITIONS AND INTERPRETATION	  	 	3	  
			
	 2.
	 	APPOINTMENT	  	 	4	  
			
	 3.
	 	DURATION OF THE EMPLOYMENT	  	 	4	  
			
	 4.
	 	SCOPE OF THE EMPLOYMENT	  	 	7	  
			
	 5.
	 	HOURS OF WORK	  	 	9	  
			
	 6.
	 	PLACE OF WORK	  	 	9	  
			
	 7.
	 	REMUNERATION	  	 	9	  
			
	 8.
	 	EXPENSES	  	 	11	  
			
	 9.
	 	HOLIDAYS	  	 	12	  
			
	 10.
	 	SICKNESS BENEFITS	  	 	12	  
			
	 11.
	 	PENSION	  	 	13	  
			
	 12.
	 	OTHER BENEFITS	  	 	13	  
			
	 13.
	 	RESTRICTIONS DURING THE EMPLOYMENT	  	 	15	  
			
	 14.
	 	CONFIDENTIAL INFORMATION AND COMPANY DOCUMENTS	  	 	16	  
			
	 15.
	 	INVENTIONS AND OTHER INTELLECTUAL PROPERTY	  	 	17	  
			
	 16.
	 	TERMINATION	  	 	18	  
			
	 17.
	 	RESTRICTIVE COVENANTS	  	 	20	  
			
	 18.
	 	DISCIPLINARY AND GRIEVANCE PROCEDURES	  	 	23	  
			
	 19.
	 	DATA PROTECTION	  	 	23	  
			
	 20.
	 	NOTICES	  	 	24	  
			
	 21.
	 	FORMER CONTRACTS OF EMPLOYMENT	  	 	24	  
			
	 22.
	 	CHOICE OF LAW AND SUBMISSION TO JURISDICTION	  	 	24	  
			
	 23.
	 	GENERAL	  	 	25	  

  
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 This Agreement is made on
[ l ] 

Between 
  

	(1)	Diageo PLC (registered in England and Wales under number 23307) whose registered office is at Lakeside Drive, London, NW10 7HQ (the “Company”); and 

 

	(2)	[ l ] of [ l ] (the “Executive”).

 It is agreed 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this Agreement unless the context otherwise requires the following expressions have the following meanings: 

Board means the board of directors for the time being of the Company, any authorised director or any committee of directors for the time
being 
 Chairman means the Chairman of the Board 

Commencement Date means [ l ] 
 Confidential information means details of suppliers and their terms of business,
details of customers and their requirements the prices charged to and terms of business with customers, marketing plans and sales forecasts, financial information, results and forecasts (save to the extent that these are included in published
audited accounts), any proposals relating to the acquisition or disposal of a company or business or any part thereof or to any proposed expansion or contraction of activities, details of employees and officers and of the remuneration and other
benefits paid to them, trade secrets, information relating to research activities, inventions, secret processes, designs, formulae and product lines, any information which is treated as confidential or which the Executive is told or ought reasonably
to know is confidential and any information which has been given to the Company or any Group Company in confidence by customers, suppliers or other persons 

Employment means the Executive’s employment under this Agreement 

ERA means the Employment Rights Act 1996 as amended 

Group means the Company and the Group Companies 

Group Company means any company which is for the time being a subsidiary or holding company of the Company and any subsidiary of any
such holding company and for the purposes of this Agreement the terms subsidiary and holding company shall have the meanings ascribed to them by section 1159 Companies Act 2006 or in any subordinate legislation made under the Companies Act 2006 (and
Group Companies shall be interpreted accordingly) 
 Intellectual Property means all patents, registered designs, trade-marks and
service marks (whether registered or not and including any applications for the foregoing), copyrights, design rights, semiconductor topography rights, database rights and all other intellectual property and similar proprietary rights subsisting in
any part of the world (whether or not capable of registration) and including (without limitation) all such rights in materials, works, prototypes, inventions, discoveries, techniques, computer programs, source codes, data,

  
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technical, commercial or confidential information, trading, business or brand names, goodwill or the style of presentation of the goods or services or any improvement of any of the foregoing and
the right to apply for registration or protection of any of them and in existing applications for the protection of any of the above 

Minority Holder means a person who either solely or jointly holds (directly or through nominees) any shares or loan capital in any
company whose shares are listed or dealt in on a recognised investment exchange (as that term is defined by section 285 Financial Services and Markets Act 2000) provided that such holding does not, when aggregated with any shares or loan capital
held by the Executive’s partner and/or her or her partner’s children under the age of 18, exceed 3% of the shares or loan capital of the class concerned for the time being issued 

Pension Scheme means the Diageo Pension Scheme 

Remuneration Committee means the Remuneration Committee of the Company from time to time 

Salary means the salary referred to in Clause 7.1 

Sensitive Data means personal data consisting of information as to racial or ethnic origin; political opinions; religious beliefs or
other beliefs of a similar nature; membership of a trade union; physical or mental health or condition; sexual life; the commission or alleged commission of any offence or any proceedings for any offence committed or alleged to have been committed,
including the disposal of such proceedings or the sentence of any court in such proceedings 
 Termination Date means the date
of the termination of the Employment 
  

	1.2	References to Clauses and schedules are unless otherwise stated to Clauses of and schedules to this Agreement. 

  

	1.3	The headings to the Clauses are for convenience only and shall not affect the construction or interpretation of this Agreement. 

 

	2.	APPOINTMENT 

  

	2.1	The Company shall appoint the Executive and the Executive agrees to act as [ l ] of the Company with effect from the Commencement Date
or in such other capacity (appropriate to the Executive’s skills, experience and qualifications) of an equivalent status as the Company from time to time reasonably directs on the terms of this Agreement. 

 

	2.2	The Executive maybe required to act as a director of the Company and other Group Companies (either executive or non-executive) as the Board reasonably requires from time to time. The Company reserves the right on
giving written notice to the Executive to terminate any office or directorship immediately at any time and upon receipt of that notice the Executive will immediately resign from that office or directorship. 

 

	3.	DURATION OF THE EMPLOYMENT 

  

	3.1	Continuous Employment 

 The Executive’s continuous period of employment with the
Company commenced on [ l ]. 

  
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	3.2	Duration 

 Subject to the provisions of Clauses 3 and 16, the Employment shall continue
unless and until terminated at any time by: 
  

	 	(a)	the Company, which must give to the Executive not less than [twelve months’] prior written notice of termination of the Employment; or 

 

	 	(b)	the Executive, who must give to the Company not less than [six months’] prior written notice of termination of the Employment. 

  

	3.3	Payment in lieu of notice 

  

	 	(a)	The Company shall be entitled, at its sole discretion, to terminate the Employment immediately at any time by giving the Executive notice in writing. In these circumstances, subject to the terms of Clause 3.3(b), the
Company will subsequently make a payment to the Executive in lieu of notice, calculated in accordance with the provisions of Clauses 3.3 and 3.4 (the payment being referred to as a “Notice Payment”). 

 

	 	(b)	For the avoidance of doubt, the Company is not obliged to make a Notice Payment. If the Company shall decide not to make a Notice Payment, the Executive shall not be entitled to enforce that payment as a contractual
debt nor as liquidated damages. 

  

	 	(c)	The Notice Payment will be paid less all deductions that are required or permitted by law to be made including in respect of income tax, national insurance contributions and any sums due to the Company or any Group
Company. 

  

	 	(d)	Subject to the terms of Clause 3.4, the Notice Payment will consist of a sum equivalent to the Salary which the Executive would have received in respect of any notice period outstanding on the Termination Date and the
cost to the Company of providing contractual benefits (excluding any benefits under Clause 7.3) in respect of that period. 

  

	 	(e)	The Notice Payment is in full and final settlement of all and any rights and claims that the Executive may have against the Company arising out of the termination of her employment (including both contractual and
statutory employment claims). The Executive agrees to waive, release and discharge any and all such rights and claims and acknowledges that it is a condition of the payment of the Notice Payment that she will execute a settlement agreement (and any
other documents reasonably required by the Company) in a form reasonably acceptable to the Company in order to give effect to the release and waiver in this Clause 3.3. 

 

	 	(f)	If the Company has elected to make a Notice Payment and subsequently discovers that the Executive committed a repudiatory breach of contract prior to the Termination Date, the Company shall be entitled to withhold the
Notice Payment and the Executive agrees she will have no entitlement to the Notice Payment in these circumstances. 

  

	3.4	Payment in instalments 

  

	 	(a)	The Company may, at its sole discretion and subject to the terms of Clause 3.4(b), pay the Notice Payment as follows: (i) 50 % of the Notice Payment will be made within 28 days after the Termination Date; and
(ii) the remainder of the Notice Payment will be paid in equal monthly instalments over a period of six months (the “Instalment Period”), or such shorter period as the Company may determine in its discretion, the first
instalment payable on the day that is 6 months after the Termination Date. 

  
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	 	(b)	If the Executive commences alternative employment during the Instalment Period then the gross instalments of Notice Payment payable after that date may at the Employer’s sole discretion be reduced by a sum equal to
the gross amount of the Executive’s income (including salary, benefits and incentives) payable or accruing in respect of the alternative employment in the period from the start of that employment until the end of Instalment Period.

  

	 	(c)	If the Executive obtains alternative employment that is to commence during the Instalment Period she will immediately advise the Company of that fact and of her gross monthly salary, benefits and incentive arrangements
from that employment. If the Executive fails to comply with this obligation, then from the date the Executive commences alternative employment, the Executive shall have no further entitlement to any payment of Notice Payment. 

 

	3.5	Corporate Change 

  

	 	(a)	If at any time within 12 months of a Corporate Change either the Company terminates the Employment other than pursuant to Clause 16.1(a) and without any notice or on notice less than that required by Clause 3.2 or the
Executive resigns for Good Reason (in either event as a consequence of the Corporate Change), the Company shall make a payment in lieu of notice in accordance with Clause 3.3 save that it is agreed that it shall be paid as a single lump sum payment
within 28 days of the termination of the Employment. For the avoidance of doubt, in the event that the Executive resigns for Good Reason in accordance with this Clause 3.5(a), this shall be treated as a termination of the Employment by the Company
for the purposes of calculating the notice period and the relevant payment in lieu of notice under this Clause 3.5(a). This Clause 3.5(a) shall not apply in the event that the Executive gives notice to terminate the Employment other than for Good
Reason. 

  

	 	(b)	For the purposes of Clause 3.5(a) above “Corporate Change” means: 

  

	 	(i)	the acquisition by the Company or any Group Company of shares in any other company or any other assets or business which, in the opinion of the Remuneration Committee (whose determination in respect of such matters
shall be final and binding), constitutes a major acquisition or merger; or 

  

	 	(ii)	the Company coming under the control of any person or persons acting in concert (as those terms are defined for the time being in the City Code on Takeovers and Mergers) not having control of the Company at the date of
this Agreement. 

  

	 	(c)	For the purposes of Clause 3.5(a), a “Good Reason” shall mean circumstances in which the Executive resigns due to (a) a material diminution in her status and/or responsibilities and/or (b) a
requirement for the Executive to be located permanently outside the United Kingdom and Eire (which shall include a requirement for long term extensive commuting to such a location other than during the six months immediately following the Corporate
Change). 

  
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	3.6	Executive’s Representation 

 The Executive represents and warrants that she is not
bound by or subject to any court order, agreement, arrangement or undertaking that in any way restricts or prohibits her from entering into this Agreement or from performing her duties under it. 

 

	4.	SCOPE OF THE EMPLOYMENT 

  

	4.1	Duties 

 During the Employment the Executive shall: 

 

	 	(a)	undertake and carry out to the best of her ability and to the standard reasonable required by the Board such duties and exercise such powers in relation to the Group’s business as may from time to time be assigned
to or vested in her by the Board including where those duties require the Executive to work for any Group Company (but the Board will only assign such duties to the Executive as are appropriate to the Executive’s position); 

 

	 	(b)	unless prevented by ill-health, holidays or other unavoidable cause, devote the whole of her working time, attention and skill to the discharge of her duties under this Agreement; 

 

	 	(c)	in the discharge of those duties and the exercise of those powers observe and comply with all lawful resolutions, regulations and directions from time to time made by, or under the authority of, the Board and promptly
upon request, give a full account to the Board or a person duly authorised by the Board, in writing if requested, of all matters with which she is involved; 

  

	 	(d)	faithfully and diligently perform her duties and at all times use her best endeavours to promote and protect the interests of the Group; 

 

	 	(e)	comply with the articles of association of any Group Company of which she is a director and all statutory, fiduciary and common law duties that apply to her from time to time and do all such things as are necessary to
ensure compliance with the UK Corporate Governance Code; 

  

	 	(f)	do, or refrain from doing, such things as are necessary or expedient to ensure compliance by herself and any Group Company with applicable law and regulation and all regulatory authorities relevant to any Group Company;

  

	 	(g)	refrain from doing anything which would cause her to be disqualified from acting as a director; 

  

	 	(h)	promptly disclose to the Board full details of any wrongdoing by the Executive or any other employee of any Group Company where that wrongdoing is material to that employee’s employment by the relevant company or
to the interests or reputation of any Group Company; 

  

	 	(i)	not incur on behalf of the Company or any Group Company any capital expenditure in excess of such sum as may be authorised from time to time by resolution of the Board; 

 

	 	(j)	not enter into on behalf of the Company or any Group Company any commitment, contract or arrangement which is otherwise than in the normal course of the Company’s or the relevant Group Company’s business or is
outside the scope of her normal duties or authorisations or is of an unusual or onerous or long-term nature; 

  
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	 	(k)	not engage any person on terms which vary from those established from time to time by resolution of the Board; 

  

	 	(l)	report to the [CEO] (or such other person as the Board may from time to time nominate and notify the Executive); 

  

	 	(m)	travel to such places (within or outside the United Kingdom) as the Company may from time to time reasonably require; 

  

	 	(n)	refrain from doing or permitting any matter which causes any regulatory authority in the United Kingdom, United States or elsewhere to withdraw permission or in any way prevent the Company from employing or otherwise
using the services of the Executive. 

  

	4.2	Alternative Duties 

 The Board shall be entitled at any time to require the Executive to
perform duties consistent with her role and status not only for the Company but also for any Group Company including, if so required, acting as a director of any Group Company. The Board may at its discretion remove or procure the removal of the
Executive from any directorship to which she is appointed under this Clause. The Company may at its sole discretion transfer this Agreement or second the Executive to any Group Company at any time. 

 

	4.3	Non-executive positions 

 The Executive shall be entitled to take up one non-executive
appointment provided the discharge of her duties under this Agreement is not impaired as a result of the non-executive appointment and the appointment is approved by the Board in advance (such approval not to be unreasonably withheld). 

 

	4.4	Right to suspend duties and powers 

  

	 	(a)	During any notice period or if the Company believes it may be entitled to terminate the Employment for the purpose of investigating any matter in which the Executive is implicated or involved, the Company reserves the
right in its absolute discretion to suspend all or any of the Executive’s duties and powers on terms it considers expedient or to require her to perform only such duties, specific projects or tasks as are assigned to her expressly by the
Company (including the duties of another position of equivalent status) in any case for such period or periods and at such place or places (including, without limitation, the Executive’s home) as the Company in its absolute discretion deems
necessary (the “Garden Leave”). 

  

	 	(b)	The Company may, at its sole discretion, require that during the Garden Leave the Executive shall not: 

  

	 	(i)	enter or attend the premises of the Company or any Group Company; 

  

	 	(ii)	contact or have any communication with any client or prospective client or supplier of the Company or any Group Company in relation to the business of the Company or any Group Company; 

  
 8 

	 	(iii)	contact or have any communication with any employee, officer, director, agent or consultant of the Company or any Group Company in relation to the business of the Company or any Group Company; 

 

	 	(iv)	remain or become involved in any aspect of the business of the Company or any Group Company except as required by such companies; or 

 

	 	(v)	work either on her own account or on behalf of any other person. 

  

	 	(c)	During Garden Leave, the Executive will continue to receive her Salary and benefits but will not accrue any bonus, commission or share of profit. 

 

	4.5	Joint appointments 

 The Company shall be at liberty to appoint any other person or
persons to act jointly with the Executive in any position to which she may be assigned from time to time. 
  

	4.6	Group Policies 

 The Company has implemented a Code of Business Conduct and a number of
Policies all of which the Executive is obliged to comply with at all times during the Executive’s employment. In particular, the Executive’s attention is drawn to the sections of the Global Computer Usage, Email and Internet Policy which
indicate that the Company may from time to time monitor the Executive’s use of its communication systems, namely its computer systems and telephones. The Executive acknowledges that the Company has a legitimate interest in carrying out this
monitoring and that, by signing this Agreement, the Executive consents to it. 
  

	5.	HOURS OF WORK 

  

	5.1	The normal business hours of the Company are 9.00 am to 5.00 pm, Monday to Friday. However, the Executive shall be required to work such hours as are necessary to fulfil her duties under this Agreement. No
payment will be made for any additional hours worked by the Executive. 

  

	5.2	The Executive recognises that on account of her autonomous decision taking powers, the duration of her working time is not measured or predetermined and therefore she falls within the exemption set out in
Regulation 20 of the Working Time Regulations 1998 (“the Regulations”) and is thereby excluded from such Regulations as are referred to in Regulation 20. Notwithstanding the understanding of the parties that the Executive is an
employee in respect of whom Regulation 20 applies, the Executive agrees that, if the understanding of the parties is incorrect, she hereby opts out of the 48 hour week limit in Regulation 4, and that if she wishes to withdraw that opt-out, she will
give 3 months’ notice in writing to that effect. 

  

	6.	PLACE OF WORK 

 The Executive’s place of work will initially be the Company’s
offices at [Lakeside Drive, London, NW10 7HQ] but the Company may require the Executive to work at any other location for such periods as the Company may from time to time require. 

 

	7.	REMUNERATION 

  

	7.1	Basic Salary 

  

	 	(a)	The Company shall pay to the Executive the Salary at the rate of [ l ] per annum, on or about the 27th day of each calendar month by credit transfer to her bank account payable by equal monthly instalments in arrears (or such other sum as may from time to time be agreed). 

  
 9 

	 	(b)	The Salary shall be inclusive of any fees to which the Executive may be entitled as a director of the Company or any Group Company. 

  

	 	(c)	Payment of the Salary to the Executive shall be made either by the Company or by a Group Company and, if by more than one company, in such proportions as the Board may from time to time think fit. 

 

	 	(d)	All payments described in this Agreement are gross amounts. All payments and benefits described in this Agreement will be subject to deductions of appropriate taxes and national insurance contributions before payment is
made to the Executive. 

  

	7.2	Salary review 

 The rate of Salary will normally be reviewed annually on 1 October
with the first such review expected to be in October [ l ]. The Company is not obliged to increase the Salary at any
review. 
  

	7.3	Incentive Plans 

  

	 	a)	In addition to her Salary, the Executive will be eligible to participate in the Diageo Long Term Incentive Plan (DLTIP) and Diageo Annual Incentive Plan (AIP), subject always to the rules of this plan as determined by
the Company from time to time. 

  

	 	b)	The Executive’s participation in any such plan or scheme is at the discretion of the Company. If the Company shall make a payment or grant an award under such plan and/or scheme in any one year, this shall not give
rise to a contractual entitlement to a payment or award in future years. Further, the Company may at its discretion reduce the Executive’s participation in the DLTIP in the event that she fails to satisfy the minimum shareholding requirement
(based on her salary and length of service) applicable to her which will be notified to her from time to time. 

  

	 	c)	Any shares awarded under the DLTIP will be subject to a right of forfeiture during either: 

  

	 	(i)	the applicable Retention Period, as defined in the DLTIP (if any); or 

  

	 	(ii)	if there is no applicable Retention Period, the period of 24 months beginning on the date that the beneficial ownership of the shares is transferred to the Executive. 

 

	 	d)	If any of the events set out in rule 9.2 of the DLTIP occur during the period referred to in 7.3(c) above, then, at the discretion of the Remuneration Committee, the Executive who is a participant under the DLTIP may be
required to transfer to the Company or to a person nominated by the Company, immediately upon demand by the Company, the number of shares determined by the Remuneration Committee. The consideration paid to the Participant will be either nominal
consideration or no consideration, at the discretion of the Remuneration Committee. 

  

	 	e)	In connection with the grant of an award under the DLTIP, the Company may require the Executive to enter into any other documents which the Remuneration Committee consider necessary or desirable to give effect to the
terms of the award, including appointing a director of the Company as a power of attorney in respect to the shares and a blank stock transfer form in respect of the shares. 

  
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	 	f)	The Executive will be considered (at the sole discretion of the Company) for a bonus in respect of the then current bonus year in the event that the Employment is terminated by the Company pursuant to Clause 3.2, Clause
3.3 and Clause 3.5. The amount of bonus (if any) will be determined at the sole discretion of the Company and paid at the end of the bonus year at the same time as bonuses under the AIP are paid to employees who have remained in employment.

  

	 	g)	All payments and/or benefits payable to the Executive are subject to and conditional upon: 

  

	 	(i)	the terms of applicable law, regulation and governance codes that regulate or govern executive pay from time to time; and 

  

	 	(ii)	the consent of the shareholders of the Company 

 (together “Remuneration
Governance”). 
 The Company reserves the right to amend, reduce, hold back, defer, claw back and alter the structure of any
payments and benefits payable to the Executive in order to comply with Remuneration Governance. 
 Deductions 

The Company shall be entitled to deduct from any sum due to the Executive under the terms of this Agreement any monies that are owed by the
Executive to the Company. 
  

	7.4	[Corporate Governance 

 All payments and/or benefits payable to the Executive are
subject to and conditional upon: (i) the terms of applicable law, regulation and governance codes that regulate or govern executive pay from time to time; and (ii) the consent of the shareholders of the Company (together
“Remuneration Governance”). The Company reserves the right to amend, reduce, hold back, defer, claw back and alter the structure of any payments and benefits payable to the Executive in order to comply with Remuneration Governance.]

  

	8.	EXPENSES 

  

	8.1	Reimbursement 

 The Company shall reimburse the Executive in respect of all reasonable
expenses wholly, exclusively and necessarily incurred by her in the proper performance of her duties, subject to her providing such receipts or other appropriate evidence as the Company may require. 

 

	8.2	Company Credit Card 

 The Executive will be issued with a company credit card on
condition that she: 
  

	 	(a)	takes good care of such card and immediately reports any loss of it to the Company; 

  

	 	(b)	uses the card only for the purposes of the Company’s business or the business of the Group in accordance with any applicable Company policy; and 

 

	 	(c)	returns the card immediately to the Company on request. 

  
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	9.	HOLIDAYS 

  

	9.1	The Executive shall be entitled, in addition to all Bank and Public holidays normally observed in England, to [28] working days’ paid holiday in each holiday year (being the period from 1 January to 31
December) together with such additional holidays as are acquired under the Diageo Flexible Benefits Programme. 

  

	9.2	In the respective holiday years in which the Employment commences or terminates, the Executive’s entitlement to holiday shall accrue on a pro rata basis for each completed calendar month of service during
the relevant year. 

  

	9.3	If, on the termination of the Employment, the Executive has exceeded her accrued holiday entitlement, the value of such excess, calculated by reference to clause 9.2 and the Salary, may be deducted by the Company
from any sums due to her. If the Executive has any unused holiday entitlement, the Company shall at its discretion either require the Executive to take such unused holiday during any notice period or make a payment to her in lieu of it (calculated
in accordance with this clause 9.3), provided always that if the Employment is terminated pursuant to clause 16.1 then, subject to the Regulations, the Executive shall not be entitled to any such payment. For these purposes, salary in respect of one
day’s holiday entitlement shall be calculated as 1/261 of Salary. 

  

	9.4	Holiday entitlement for one holiday year cannot be carried forward from one year to the next and failure to take holiday entitlement in the appropriate holiday year will lead to forfeiture of any accrued holiday
not taken without any right to payment in lieu of it provided always that any days of holiday not taken at the Company’s written request in one year may be carried forward to the next year. 

 

	10.	SICKNESS BENEFITS 

  

	10.1	Certification 

 If the Executive is absent from her duties as a result of sickness or
injury:- 
  

	 	(a)	for a period of 6 days or less, she will on her return to work on request, complete and produce a self-certificate; 

  

	 	(b)	for a period of 7 days or more she will, on request, produce medical certificates or “fit notes” 

to the Company in respect of such absence. 
  

	10.2	Payment of sick pay 

  

	 	(a)	Subject to clauses 2.1 and 16, and the Executive complying with clause 10.1, the Company shall continue to pay the Salary for the first [twelve months’] absence on medical grounds in any one continuous period of
absence (or two or more linked periods as determined by the Social Security Contributions and Benefits Act 1992, as amended from time to time), provided that the Executive shall from time to time if required: 

 

	 	(i)	supply the Company with medical certificates covering any period of sickness or incapacity exceeding 6 days (including weekends); and 

 

	 	(ii)	undergo at the Company’s expense, by a doctor appointed by the Company, any medical examination and the Executive hereby authorises such doctor to disclose to, and discuss with the Company and its medical advisers,
the results of such examinations. 

  
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	 	(b)	Payment in respect of any other or further period of absence shall be at the Company’s discretion. 

  

	 	(c)	Any payment to the Executive pursuant to clause 10.2(a) shall be subject to set off by the Company in respect of any Statutory Sick Pay and any Social Security Sickness Benefit or other benefits to which the Executive
may be entitled. 

  

	 	(d)	Subject to clause 10.2(c), when all sick pay entitlement pursuant to clause 10.2(a) has been exhausted, no further salary will be payable by the Company to the Executive until the Executive has returned to active
service of the Company. 

  

	10.3	Absence caused by third party negligence 

 If the Executive’s absence shall
be occasioned by the actionable negligence of a third party in respect of which damages are recoverable, then all sums paid by the Company during the period of the absence shall constitute loans to the Executive who shall: 

 

	 	(a)	notify the Company immediately of all the relevant circumstances and of any claim, compromise, settlement or judgment made or awarded in connection with it; 

 

	 	(b)	give to the Company such information concerning the above matters as the Company may reasonably require; and 

  

	 	(c)	if the Company so requires, refund to the Company any amount received by her from any such third party provided that the refund shall be no more than the amount which she has recovered in respect of remuneration.

  

	11.	PENSION 

  

	11.1	[During the Employment the Executive shall be eligible for membership of the Pension Scheme on the basis of benefits under the Senior Executive Tier 1 Section of the Pension Scheme. The Executive will be required
to make contributions to the Pension Scheme in accordance with the rules of the Pension Scheme from time to time. The Executive’s membership of and pension benefits under the Pension Scheme will be subject always to the rules of the Pension
Scheme. The Pension Scheme may be amended at any time. 

  

	11.2	The Executive will be responsible for the payment of any taxes or charges which may arise in respect of her benefits under the Pension Scheme. 

 

	11.3	The Executive agrees to any amendments to the Pension Scheme designed to effect the terms of this clause 11. 

  

	11.4	A contracting-out certificate under the Pensions Scheme Act 1993 [is/is not] in force in respect of the Employment. 

  

	12.	OTHER BENEFITS 

  

	12.1	Insurance Schemes 

 During the Employment the Executive shall: 

 

	 	(a)	participate in such personal accident insurance at such level as the Company shall (in its absolute discretion) from time to time maintain for the benefit of the Executive; and 

  
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	 	(b)	be provided with life insurance cover under the Pension Scheme (clauses 12.1(a) and 12.1(b) are together the “Schemes”). 

 

	12.2	Conditions relating to insurance coverage 

 Clause 12.1 will be subject in each case to
the following terms and conditions: 
  

	 	(a)	the Executive’s and her family’s participation is subject to the Company’s rules regarding eligibility in force from time to time and the rules, terms and conditions of the relevant Scheme in force from
time to time; 

  

	 	(b)	the Company reserves the right to terminate the Executive’s or her family’s or the Company’s participation in any of the Schemes, substitute a new scheme for an existing Scheme and/or alter the level or
type of benefits available under any Schemes; 

  

	 	(c)	if the provider of one of the Schemes (e.g. an insurance company or pensions provider) refuses for any reason (whether under its own interpretation of the rules, terms and conditions of the relevant insurance policy or
otherwise) to accept a claim and/or provide the relevant benefit(s) to the Executive (or her family) under the applicable Scheme, the Company shall not be liable to provide (or compensate the Executive for the loss of) such benefit(s) nor shall it
be obliged to take action against the provider to enforce any rights under the Scheme; 

  

	 	(d)	the fact that the termination of the Employment under clauses 3 and 16 may result in the Executive or her family ceasing to be eligible to receive or continue to receive benefits under any Scheme does not remove the
Company’s right to terminate the Employment; and 

  

	 	(e)	the Executive’s acceptance of such variations to her terms and conditions of employment as may from time to time be required by the Company. 

 

	12.3	Flexible Benefits Scheme 

 During the Employment, the Executive will participate in the
Diageo Flexible Benefits Programme. This comprises a Flexible Allowance which will be reviewed from time to time and which will be [ l ] per annum as at the Commencement Date. With this allowance, the Executive may receive a combination of any of the following benefits: 

 

	 	(a)	holidays; 

  

	 	(b)	company car(s); 

  

	 	(c)	private fuel; 

  

	 	(d)	financial consulting; and 

  

	 	(e)	private medical insurance. 

 The Flexible Benefits Programme allows the Executive to influence
the mix and level of benefits the Executive receives from the Company, within certain specified limits. Whilst the Company will take the Executive’s preferences into account, the ultimate decision as to the

  
 14 

 
package of benefits received by the Executive and as to the availability of any cash supplement is entirely at the Company’s discretion. The Company will offer the Executive a total package
which the Executive may choose to accept. The offer may be revised from time to time but shall not be reviewed more frequently than once a year. 
  

	12.4	Medical Examination 

 In accordance with Company policy on medical examinations, the
Executive will be entitled to an annual medical examination and test by a medical practitioner nominated by the Company. In addition, the Company may also require the Executive at any time to submit to a medical examination with such frequency as is
reasonable. The Executive will permit the results of such medical examinations to be disclosed to the Company. 
  

	12.5	Taxable Allowance 

 The Executive will be provided with a taxable product allowance, the
level of which will be notified to the Executive by the Company from time to time and will not exceed [ l ] per annum
as at the Commencement Date. If the Executive is employed for part of a full calendar year, she will receive a pro rated allowance. 
  

	12.6	Professional Subscription Fees 

 The Company shall pay on the Executive’s behalf the
annual subscription fees for one professional body relevant to the Employment. 
  

	12.7	Private Travel Allowance 

 [The Executive shall receive a private travel allowance of
[ l ] per annum.] 
  

	12.8	General Terms 

 All benefits provided under this clause 12 are subject to the rules of
any applicable schemes from time to time in force. 
  

	13.	RESTRICTIONS DURING THE EMPLOYMENT 

  

	13.1	Disclosure of other interests 

 The Executive shall disclose to the Board any interest of
her own (or that of her partner or of any child of hers or of her partner under eighteen years of age): 
  

	 	(a)	in any trade, business or occupation whatsoever which is in any way similar to any of those in which the Company or any Group Company is involved; and 

 

	 	(b)	in any trade, business or occupation carried on by any supplier or customer of the Company or any Group Company whether or not such trade, business or occupation is conducted for profit or gain. 

 

	13.2	Restrictions on other activities and interests of the Executive 

  

	 	(a)	During the Employment the Executive shall not at any time, without the prior written consent of the Board, either alone or jointly with any other person, carry on or be directly or indirectly employed, engaged,
concerned or interested in any business, prospective business or undertaking other than a Group Company. Nothing contained in this clause shall preclude the Executive from being a Minority Holder unless the holding is in a company that is a direct
business competitor of the Company or any Group Company in which case, the Executive shall obtain the prior consent of the Board to the acquisition or variation of such holding. 

  
 15 

	 	(b)	If the Executive, with the consent of the Board, accepts any other appointment she must keep the Company accurately informed of the amount of time she spends working under that appointment. 

 

	13.3	Transactions with the Company 

 Subject to any regulations issued by the Company, the
Executive shall not be entitled to receive or obtain directly or indirectly any discount, rebate, commission or any other form of gift or gratuity (any of these referred to as a “Gratuity”) as a result of the Employment or any sale
or purchase of goods or services effected or other business transacted (whether or not by her) by or on behalf of the Company or any Group Company and if she (or any person in which she is interested) obtains any Gratuity she shall account to the
Company for the amount received by her (or a due proportion of the amount received by the person having regard to the extent of her interest therein). 
  

	13.4	[Dealing in securities 

 The Executive shall comply with every rule of law
(including but not limited to the insider dealing provisions contained in Part V of the Criminal Justice Act 1993), the Financial Conduct Authority’s listing rules’ Model Code for transactions in securities by directors of listed
companies, certain employees and persons connected with them and every regulation of the Company for the time being in force in relation to dealings in shares or other securities of the Company or any Group Company. Under Rule 4 of the Model Code,
the person to whom notice should be given and from whom acknowledgement must be received before the Executive may deal in securities shall be the Company Secretary of the Company from time to time or such other person as shall be notified to the
Executive. The Executive also acknowledges that under the provisions of the Model Code the Executive must seek to ensure compliance with the Model Code by persons connected with the Executive (within the meaning of section 96B and Schedule 11B of
the Financial Services and Markets Act 2000) including, without limitation, the Executive’s spouse and dependent children, and by investment managers acting on the Executive’s behalf or on behalf of connected persons. The Executive
undertakes to procure that dealings by or on behalf of such persons are in compliance with the Model Code.] 
  

	13.5	[Compliance with the code on Corporate Governance 

 The Executive shall comply, to the
extent that the Board considers appropriate for a company the size of the Company, with the provisions of “The UK Corporate Governance Code” a corporate governance code issued by the Financial Reporting Council (as the same is amended from
time to time).] 
  

	14.	CONFIDENTIAL INFORMATION AND COMPANY DOCUMENTS 

  

	14.1	Confidentiality 

 The Executive shall not during the Employment (except in the proper
performance of her duties or for the purpose of obtaining legal, accountancy or pension advice or with the express written consent of the Board) or at any time (without limit) after the termination of the Employment except in compliance with an
order of a competent court, the HMRC or any regulatory authority: 
  

	 	(a)	Divulge or communicate to any person, company, business entity or other organisation; 

  
 16 

	 	(b)	use for her own purposes or for any purposes other than those of the Company or any Group Company; or 

  

	 	(c)	through any failure to exercise due care and diligence, permit or cause any unauthorised disclosure of any Confidential Information. 

These restrictions shall cease to apply to any information that shall become available to the public generally otherwise than through any
breach by the Executive of the provisions of this Agreement or other default of the Executive. 
  

	14.2	Property of the Company 

 The Executive acknowledges that all books, notes, memoranda,
records, lists of customers and suppliers and employees, correspondence, documents, computer and other discs and tapes, data listings, codes, designs and drawings and other documents and material whatsoever (whether made or created by the Executive
or otherwise) relating to the business of the Company or any Group Company (and any copies of the same): 
  

	 	(a)	shall be and remain the property of the Company or the relevant Group Company; and 

  

	 	(b)	shall be handed over by the Executive to the Company or to the relevant Group Company on demand and in any event on the termination of the Employment and the Executive shall certify that all such property has been
handed over on request by the Board; 

 provided that following the termination of the Employment, the Executive shall be
provided with reasonable access to Board Minutes and agendas of the Company or any Group Company relating to a period during which she was a director of the Company or such Group Company that shall nevertheless remain confidential. 

 

	15.	INVENTIONS AND OTHER INTELLECTUAL PROPERTY 

  

	15.1	The parties foresee that the Executive may make inventions or create other Intellectual Property in the course of her duties and agree that in this respect the Executive has a special responsibility to further
the interests of the Company and any Group Company. 

  

	15.2	Any invention, improvement, design, process, information, copyright work, computer program, trade mark, trade name or get-up, work or other output made, created or discovered by the Executive during the
Employment (whether capable of being patented or registered or not and whether or not made or discovered in the course of the Employment) in conjunction with or in any way affecting or relating to the business of the Company or of any Group Company
or capable of being used or adapted for use in or in connection with such business, together with all Intellectual Property subsisting therein, (collectively “Intellectual Property Rights”) shall be disclosed immediately to
the Company and shall (subject to sections 39 to 43 Patents Act 1977) belong to and be the absolute property of the Company or such Group Company as the Company may direct and the Executive hereby assigns to the Company with full title guarantee and
by way of present assignment of future rights, all such copyright, database rights, design rights (and any other Intellectual Property capable of assignment by way of present assignment of future rights) which may fall within the definition of the
Intellectual Property Rights absolutely for the full term of those rights. 

  

	15.3	If and whenever required so to do by the Company the Executive shall at the expense of the Company or such Group Company as the Company may direct: 

 

	 	(a)	apply or join with the Company or such Group Company in applying for patent or other protection or registration in the United Kingdom and in any other part of the world for any Intellectual Property Rights; and

  
 17 

	 	(b)	execute all instruments and do all things necessary for vesting all Intellectual Property Rights (including such patent or other protection or registration when so obtained) and all right, title and interest to and in
them absolutely, with full title guarantee and as sole beneficial owner, in the Company or such Group Company or in such other person as the Company may specify. 

  

	15.4	The Executive irrevocably and unconditionally waives all rights under Chapter IV of Part I Copyright Designs and Patents Act 1988 in connection with her authorship of any existing or future copyright work in the
course of the Employment, in whatever part of the world such rights may be enforceable including, without limitation: 

  

	 	(a)	the right conferred by section 77 of that Act to be identified as the author of any such work; and 

  

	 	(b)	the right conferred by section 80 of that Act not to have any such work subjected to derogatory treatment. 

  

	15.5	The Executive irrevocably appoints the Company to be her Attorney in her name and on her behalf to execute any such instrument or do any such thing and generally to use her name for the purpose of giving to the
Company the full benefits of this clause. A certificate in writing in favour of any third party signed by any director or by the Secretary of the Company that any instrument or act falls within the authority conferred by this Agreement shall be
conclusive evidence that such is the case. 

  

	15.6	Nothing in this clause 15 shall be construed as restricting the rights of the Executive or the Company under sections 39 to 43 Patents Act 1977. 

 

	16.	TERMINATION 

  

	16.1	Termination events 

  

	 	(a)	Notwithstanding any other provisions of this Agreement, in any of the following circumstances the Company may terminate the Employment summarily by serving written notice on the Executive to that effect. In such event
the Executive shall not be entitled to any further payment from the Company except such sums as shall have accrued due at the date of service of such notice. The circumstances are if the Executive: 

 

	 	(i)	is guilty of any gross misconduct or gross incompetence; 

  

	 	(ii)	commits any serious breach of this Agreement or of the Diageo Code of Business Conduct, or any willful neglect or unreasonable refusal to discharge her duties provided that if such breach is capable of remedy, she shall
have failed to remedy it within such reasonable period as is specified in a written notice from the Company pointing out the breach and requiring it to be remedied; 

 

	 	(iii)	repeats or continues (after warning) any breach of this Agreement or of the Diageo Code of Business Conduct; 

  

	 	(iv)	is guilty of any fraud, dishonesty or conduct tending to bring herself, the Company or any Group Company into disrepute; 

  
 18 

	 	(v)	commits any act of bankruptcy or takes advantage of any statute for the time being in force offering relief for insolvent debtors; 

  

	 	(vi)	is convicted of any criminal offence (other than minor offences under the Road Traffic Acts or the Road Safety Acts for which a fine or non-custodial penalty is imposed) which might reasonably be thought to affect
adversely the performance of her duties; 

  

	 	(vii)	has an order made against her disqualifying her from acting as a company director or is found to have committed any serious disciplinary offence by any professional or other body, which undermines the confidence of the
Board in her continued employment with the Company; or 

  

	 	(viii)	resigns other than at the request of the Company or otherwise ceases to be or becomes prohibited by law from being a director of the Company, otherwise than at the Company’s request. 

Any delay by the Company in exercising such right of termination shall not constitute a waiver of it. The proper exercise by the Company of its
right of termination under this clause is without prejudice to any other rights or remedies which it or any Group Company may have or be entitled to exercise against the Executive. 

 

	 	(b)	If at any time the Executive is unable to perform her duties properly because of ill health accident or otherwise for a period or periods totalling at least [12 months], or becomes incapable by reason of mental disorder
of managing and administering her property and affairs, then the Company may in its absolute discretion terminate the Employment by giving her not less than three months’ written notice to that effect provided that: 

 

	 	(i)	if at any time during the currency of such a notice the Executive shall provide a medical certificate satisfactory to the Board to the effect that she has fully recovered her physical and/or mental health and that no
recurrence of illness or incapacity can reasonably be anticipated, the Company shall withdraw the notice unless, by that date, a replacement for the Executive has been appointed; and 

 

	 	(ii)	subject to and in accordance with the rules of the Pension Scheme, the Executive qualifies for an early retirement pension by reason of Partial Incapacity or Total Incapacity (as these terms are defined under the
Pension Scheme). 

  

	16.2	Events on Termination 

 On the termination of the Employment or upon the Company having
exercised its rights under clause 4.4 or if requested to do so by the Company in circumstances where the Executive has been prevented from performing her duties through long term sickness (for a period of [12 months]), the Executive shall: 

 

	 	(a)	at the request of the Company resign from office as a director of the Company and all offices held by her in any Group Company and shall transfer to the Company without payment or as the Company may direct any
qualifying shares held by her as nominee for the Company provided however that such resignation shall be without prejudice to any claims which the Executive may have against the Company or any Group Company arising out of the termination of the
Employment; 

  
 19 

	 	(b)	immediately deliver to the Company all materials within the scope of Clause 14.2, any Company car, mobile telephone or other Company equipment in her possession and all keys, credit cards, and other property of or
relating to the business of the Company or of any Group Company which may be in her possession or under her power or control but excluding, in the event that the Company exercises its rights under Clause 4.4, any Company car, mobile telephone or
other Company equipment provided to the Executive for her benefit during the Employment; 

 and the Executive irrevocably
authorises the Company to appoint any person in her name and on her behalf to sign any documents and do any things necessary or requisite to give effect to her obligations under this Clause 16.2. 

 

	16.3	Reconstruction 

 If the Employment shall be terminated [(otherwise than in circumstances
set out in Clause 3.5)] for the purpose of reorganisation, reconstruction or amalgamation for whatever reason and the Executive is offered employment with any concern or undertaking resulting from such reorganisation, reconstruction or amalgamation
on terms and conditions which as a whole are no less favourable than the terms of this Agreement, then she shall have no claim against the Company in respect of the termination of the Employment. 

 

	16.4	No public statement 

 The Executive shall not at any time during any period when she is
required to cease the performance of her duties under Clause 4.4 or after the Termination Date make any public statement in relation to the Company or any Group Company or any of their officers or employees. The Executive shall not without the
Company’s consent after the termination of the Employment represent herself as being employed by or connected with the Company or any Group Company. 
  

	16.5	No claim for loss of incentives or benefits 

 On the termination of the Employment
(howsoever arising, including lawfully or unlawfully), the Executive shall not be entitled to any compensation or payment for the loss of any incentives or benefits granted under Clause 7.3 or any benefit which could have been derived from them,
whether the compensation or payment is claimed by way of a payment in lieu of notice, damages for wrongful dismissal, breach of contract or loss of office, or compensation for unfair dismissal, or on any other basis. 

 

	17.	RESTRICTIVE COVENANTS 

  

	17.1	Definitions 

 Since the Executive is likely to obtain Confidential Information in the
course of the Employment and personal knowledge of and influence over suppliers, customers, clients and employees of the Company and Group Companies, the Executive hereby agrees with the Company that in addition to the other terms of this Agreement
and without prejudice to the other restrictions imposed upon her by law, she will be bound by the covenants and undertakings contained in Clauses 17.2 to 17.5. In this Clause 17, unless the context otherwise requires: 

 

			
	 “Customer”
	  	means any person to which the Company distributed, sold or supplied Restricted Products or Restricted Services during the Relevant Period and with which, during that period either the Executive, or any employee under the direct or
indirect supervision of the Executive, had material dealings in the course of the Employment, but always excluding any division, branch or office of such person with which the Executive and/or any such employee had no dealings during that
period;

  
 20 

			
	 “Prospective Customer”
	  	means any person with which the Company had discussions during the Relevant Period regarding the possible distribution, sale or supply of Restricted Products or Restricted Services and with which during such period the Executive, or
any employee who was under the direct or indirect supervision of the Executive, had material dealings in the course of the Employment, but always excluding any division, branch or office of that person with which the Executive and/or any such
employee had no dealings during that period;
		
	 “Relevant Period”
	  	means: (i) where the Employment is continuing, the period of the Employment; and (ii) where the Employment has terminated, the period of 12 months immediately preceding the Termination Date;
		
	 “Restricted Employee”
	  	means any person who was a director, employee or consultant of the Company or any Group Company or any joint venture between the Company (or any Group Company) and a third party at any time within the Relevant Period who by reason
of that position and in particular either (i) their seniority (level 3 or above) and expertise or (ii) knowledge of Confidential Information or knowledge of or influence over the clients, customers or contacts of the Company is likely to cause
damage to the Company if they were to leave the employment of the Company and become employed by a competitor of the Company;
		
	 “Restricted Period”
	  	means the period commencing on the Termination Date and, subject to the terms of 17.4, continuing for [9] months;
		
	 “Restricted Products”
	  	means any products, equipment or machinery researched into, developed, manufactured, supplied, marketed, distributed or sold by the Company and with which the duties of the Executive were materially concerned or for which she was
responsible during the Relevant Period, or any products, equipment or machinery of the same type or materially similar to those products, equipment or machinery;
		
	 “Restricted Services”
	  	means any services (including but not limited to technical and product support, technical advice and customer services) researched into, developed or supplied by the Company and with which the duties of the Executive were materially
concerned or for which she was responsible during the Relevant Period, or any services of the same type or materially similar to those services;
		
	 “Supplier”
	  	means any supplier, agent, distributor or other person who, during the Relevant Period was in the habit of dealing with the Company and with which, during that period, the Executive, or any employee under the direct or indirect
supervision of the Executive, had material dealings in the course of the Employment.

  
 21 

	17.2	Restrictive covenants 

 Both during the Employment and during the Restricted Period, the
Executive will not, without the prior written consent of the Company (such consent not to be unreasonably withheld), whether by herself, through her employees or agents or otherwise and whether on her own behalf or on behalf of any person, directly
or indirectly: 
  

	 	(a)	so as to compete with the Company, solicit business from or canvas any Customer or Prospective Customer in respect of Restricted Products or Restricted Services; 

 

	 	(b)	so as to compete with the Company, accept orders from, act for or have any business dealings with, any Customer or Prospective Customer in respect of Restricted Products or Restricted Services; 

 

	 	(c)	be employed, engaged or concerned, or at all interested (except as a Minority Holder) in:- (i) the businesses of [AB InBev, Bacardi Limited, Brown-Forman, Carlsberg A/S, Heineken NV, PernodRicard or SAB Miller].
The Company may notify the Executive from time to time of addition to the foregoing list of companies, such additions being businesses which are similar to and compete with any business being carried on by the Company or any Group Company; or
(ii) that part of a business or person which is involved in the business of researching into, developing, manufacturing, distributing, selling, supplying or otherwise dealing with Restricted Products or Restricted Services, if the business or
person is or seeks to be in competition with the Company; 

  

	 	(d)	solicit or induce or endeavour to solicit or induce any person who, on the Termination Date, was a Restricted Employee (and with whom the Executive had dealings during the Relevant Period) to cease working for or
providing services to the Company, whether or not any such person would thereby commit a breach of contract; 

  

	 	(e)	employ or otherwise engage any Restricted Employee in the business of researching into, developing, manufacturing, distributing, selling, supplying or otherwise dealing with Restricted Products or Restricted Services if
that business is, or seeks to be, in competition with the Company; or 

  

	 	(f)	solicit or induce or endeavour to solicit or induce any Supplier to cease to deal with the Company and shall not interfere in any way with any relationship between a Supplier and the Company. 

 

	17.3	Application of restrictive covenants to other Group Companies 

 Clause 17 shall also
apply as though references to the “Company” include references to each Group Company in relation to which the Executive has in the course of the Employment or by reason of rendering services to or holding office in such Group Company: 

 

	 	(a)	acquired knowledge of its products, services, trade secrets or Confidential Information; or 

  

	 	(b)	had personal dealings with its Customers or Prospective Customers; or 

  

	 	(c)	supervised directly or indirectly employees having personal dealings with its Customers or Prospective Customers. 

The obligations undertaken by the Executive pursuant to this Clause 17 shall, with respect to each Group Company, constitute a separate and
distinct covenant and the invalidity or unenforceability of any such covenant shall not affect the validity or enforceability of the covenants in favour of any other Group Company. 

  
 22 

	17.4	Effect of suspension on Restricted Period 

 If the Company exercises its right to suspend
the Executive’s duties and powers under Clause 4.4 after notice of termination of the Employment has been given, the aggregate of the period of the suspension and the Restricted Period shall not exceed [nine] months and if the aggregate of the
two periods would exceed [nine] months, the Restricted Period shall be reduced accordingly. 
  

	17.5	Further undertakings 

 The Executive hereby undertakes to the Company that she will not
at any time: 
  

	 	(a)	during the Employment or after the Termination Date engage in any trade or business or be associated with any person engaged in any trade or business using any trading names used by the Company or any Group Company
including the name(s) or incorporating the word(s) “Diageo”; or 

  

	 	(b)	after the Termination Date represent or otherwise indicate any continuing association or connection with the Company or any Group Company or for the purpose of carrying on or retaining any business represent or
otherwise indicate any past association with the Company or any Group Company. 

  

	17.6	Severance 

 The restrictions in this Clause 17 (on which the Executive has had the
opportunity to take independent advice, as the Executive hereby acknowledges) are separate and severable restrictions and are considered by the parties to be reasonable in all the circumstances. It is agreed that if any such restrictions, by
themselves, or taken together, shall be adjudged to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Company or a Group Company but would be adjudged reasonable if some part of it were
deleted, the relevant restriction or restrictions shall apply with such deletion(s) as may be necessary to make it or them valid and enforceable. 
  

	18.	DISCIPLINARY AND GRIEVANCE PROCEDURES 

  

	18.1	If the Executive wishes to obtain redress of any grievance relating to the Employment or is dissatisfied with any reprimand, suspension or other disciplinary step taken by the Company, she may apply in writing to
the [Chief Executive], setting out the nature and details of any such grievance or dissatisfaction. Should the Executive wish to appeal against any grievance decision, she should submit her appeal in writing to the [Chairman] whose decision shall be
final. The provisions of this Clause shall not apply in any event, to any action taken by the Company under Clause 16.1(a) or Clause 4.4. 

  

	18.2	There are no specific disciplinary rules which apply to the Executive and any disciplinary matters affecting her will be dealt with by the [Chief Executive]. Should the Executive wish to appeal against any
disciplinary action, she should submit her appeal in writing to the Chairman whose decision on such appeal shall be final. 

  

	18.3	The provisions of Clauses 18.1 and 18.2 do not form part of the Executive’s contract of employment. 

  

	19.	DATA PROTECTION 

 For the purposes of the Data Protection Act 1998, the Executive
consents to the Company’s processing of personal data, including Sensitive Data, of which the Executive is the subject, details of which are specified in the Company’s Data Privacy Policy. In particular: 

  
 23 

	 	(a)	The Executive agrees that personal data relating to the Executive which has been or is in the future obtained by the Group may be held and processed by the Group either by computer or manually for any purpose relating
to the administration, management and operation of the Executive’s employment, or in relation to the Group’s legal obligations or business needs; 

  

	 	(b)	The Executive hereby agrees that Sensitive Data concerning the Executive which have been or is in the future obtained by the Group may also be held and processed as above for the purposes of keeping under review
equality of opportunity and for ensuring the Company’s compliance with any legal obligations; and 

  

	 	(c)	Due to the multinational nature of the Group’s business, it may be necessary for the Group’s overseas offices to have access to information held about the Executive in the UK by the Group. However, it is only
intended that information about the Executive will be used by the Group’s overseas offices for the purposes of enabling the Group to deal with personnel issues connected with the Executive’s employment, including advising relevant
statutory authorities in order to obtain a work permit or visa or assisting in the Executive’s secondment to an overseas office for payroll purposes. The Executive agrees that the Company may, where appropriate, transfer personal information
about the Executive to the Group’s overseas offices. 

  

	20.	NOTICES 

  

	20.1	Any notice or other document to be given under this Agreement shall be in writing and may be given personally to the Executive or to the Secretary of the Company (as the case may be) or may be sent by first class
post or other fast postal service or by facsimile transmission to, in the case of the Company, its registered office for the time being and in the case of the Executive either to her address shown on the face of this Agreement or to her last known
place of residence. 

  

	20.2	Any such notice shall (unless the contrary is proved) be deemed served when in the ordinary course of the means of transmission it would first be received by the addressee in normal business hours. In the case of
first class post, this shall be deemed to be no later than two working days after posting. In proving such service it shall be sufficient to prove, where appropriate, that the notice was addressed properly and posted, or that the facsimile
transmission was dispatched. 

  

	21.	FORMER CONTRACTS OF EMPLOYMENT 

  

	21.1	This Agreement and the documents referred to in it, constitute the entire agreement and understanding of the parties. 

  

	21.2	This Agreement shall be in substitution for any previous contracts, whether by way of letters of appointment, agreements or arrangements, whether written, oral or implied, relating to the employment of the
Executive, which shall be deemed to have been terminated by mutual consent as from the Commencement Date and the Executive acknowledges that she has no outstanding claims of any kind against the Company or any Group Company in respect of any such
contract. 

  

	21.3	For the avoidance of doubt, this clause shall not affect benefits which have already accrued to the Executive prior to the date hereof under any pre-existing scheme or arrangement by virtue of which she was
entitled to benefits. 

  

	22.	CHOICE OF LAW AND SUBMISSION TO JURISDICTION 

  

	22.1	This Agreement shall be governed by and interpreted in accordance with English law. 

  

	22.2	The parties submit to the exclusive jurisdiction of the English courts but this Agreement may be enforced by the Company in any court of competent jurisdiction. 

  
 24 

	23.	GENERAL 

  

	23.1	The expiration or termination of this Agreement shall not prejudice any claim which either party may have against the other in respect of any pre-existing breach of or contravention of or non-compliance with any
provision of this Agreement nor shall it prejudice the coming into force or the continuance in force of any provision of this Agreement which is expressly or by implication intended to or has the effect of coming into or continuing in force on or
after such expiration or termination. 

  

	23.2	No failure or delay by the Company in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise by the Company of any right, power or
privilege preclude any further exercise thereof or the exercise of any other right, power or privilege. 

  

	23.3	There are no collective agreements directly affecting the Executive’s employment. 

  

	23.4	This Agreement constitutes the written statement of the terms of employment of the Executive provided in compliance with Part I of the ERA. 

 

	23.5	A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement but this does not affect any right or remedy of a third
party which exists or is available apart from that Act. 

  

							
	Executed as a deed	  	)	  		  	
	by the Company	  	)	  	  
	  	
		  		  	Director	  	

 In the presence of: 
  

			
	 	 	 
	  

Signature of witness

		
	 Name:
	 	  

		
	 Address:
	 	  

  
 25 

							
	Executed as a deed by	  	)	  		  	
	the Executive	  	)	  	  
	  	

 In the presence of: 
  

			
	 	 	 
	  

Signature of witness

		
	 Name:
	 	  

		
	 Address:
	 	  

  
 26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]