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This excerpt taken from the HBI 8-K filed Nov 29, 2006. Guarantees
Due to our historical relationship with Sara Lee, there are
various contracts under which Sara Lee has guaranteed certain
third-party obligations relating to our business. Typically,
these obligations arise from
third-party
credit facilities guaranteed by Sara Lee and as a result of
contracts entered into by our entities and authorized by Sara
Lee, under which Sara Lee agrees to indemnify a third-party
against losses arising from a breach of representations and
covenants related to such matters as title to assets sold, the
collectibility of receivables, specified environmental matters,
lease obligations assumed and certain tax matters. In each of
these circumstances, payment by Sara Lee is conditioned on the
other party making a claim pursuant to the procedures specified
in the contract. These procedures allow Sara Lee to challenge
the other party’s claims. In addition, Sara Lee’s
obligations under these agreements may be limited in terms of
time and/or
amount, and in some cases Sara Lee or the related entities may
have recourse against third-parties for certain payments made by
Sara Lee. It is not possible to predict the maximum potential
amount of future payments under certain of these agreements, due
to the conditional nature of Sara Lee’s obligations and the
unique facts and circumstances involved in each particular
agreement. Historically, payments made by Sara Lee under these
agreements have not been material, and no amounts are accrued
for these items on our Combined and Consolidated Balance Sheets.
As of July 1, 2006, these contracts included the guarantee
of credit limits with third-party banks, and guarantees over
supplier purchases. We had not guaranteed or undertaken any
obligation on behalf of Sara Lee or any other related entities
as of July 1, 2006.
This excerpt taken from the HBI 10-K filed Sep 28, 2006. Guarantees
Due to our historical relationship with Sara Lee, there are
various contracts under which Sara Lee has guaranteed certain
third-party obligations relating to our business. Typically,
these obligations arise from
third-party
credit facilities guaranteed by Sara Lee and as a result of
contracts entered into by our entities and authorized by Sara
Lee, under which Sara Lee agrees to indemnify a third-party
against losses arising from a breach of representations and
covenants related to such matters as title to assets sold, the
collectibility of receivables, specified environmental matters,
lease obligations assumed and certain tax matters. In each of
these circumstances, payment by Sara Lee is conditioned on the
other party making a claim pursuant to the procedures specified
in the contract. These procedures allow Sara Lee to challenge
the other party’s claims. In addition, Sara Lee’s
obligations under these agreements may be limited in terms of
time and/or
amount, and in some cases Sara Lee or the related entities may
have recourse against third-parties for certain payments made by
Sara Lee. It is not possible to predict the maximum potential
amount of future payments under certain of these agreements, due
to the conditional nature of Sara Lee’s obligations and the
unique facts and circumstances involved in each particular
agreement. Historically, payments made by Sara Lee under these
agreements have not been material, and no amounts are accrued
for these items on our Combined and Consolidated Balance Sheets.
As of July 1, 2006, these contracts included the guarantee
of credit limits with third-party banks, and guarantees over
supplier purchases. We had not guaranteed or undertaken any
obligation on behalf of Sara Lee or any other related entities
as of July 1, 2006.
This excerpt taken from the HBI 8-K filed Sep 5, 2006. Guarantees Due to our historical relationship with Sara Lee, there are several contracts under which Sara Lee has guaranteed certain third-party obligations for several of our entities. Typically, these obligations arise as a result of contracts entered into by our entities and authorized by Sara Lee, under which Sara Lee agrees to indemnify a third-party against losses arising from a breach of representations and covenants related to such matters as title to assets sold, the collectibility of receivables, specified environmental matters, lease obligations assumed and certain tax matters. In each of these circumstances, payment by Sara Lee is conditioned on the other party making a claim pursuant to the procedures specified in the contract. These procedures allow Sara Lee to challenge the other party’s claims. In addition, Sara Lee’s obligations under these agreements may be limited in terms of time and/or amount, and in some cases Sara Lee or the related entities may have recourse against third-parties for certain payments made by Sara Lee. It is not possible to predict the maximum potential amount of future payments under certain of these agreements, due to the conditional nature of Sara Lee’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by Sara Lee under these agreements have not been material, and no amounts are accrued for these items on our Combined and Consolidated Balance Sheets. As of July 2, 2005, these contracts included the guarantee of credit limits with third-party banks, and guarantees over supplier purchases. We had not guaranteed or undertaken any obligation on behalf of Sara Lee or any other related entities as of April 1, 2006. | EXCERPTS ON THIS PAGE:
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