Document:

EX-10.24

 

MASTER TRANSITION SERVICES AGREEMENT

between

SARA LEE CORPORATION

and

HANESBRANDS INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I ORDER OF PRECEDENCE; CONFLICTS	 	 	1	 
	     Section 1.1
	 	Order of Precedence	 	 	1	 
	     Section 1.2
	 	Conflict with Separation Agreement	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II SERVICES	 	 	1	 
	     Section 2.1
	 	Initial Services	 	 	1	 
	     Section 2.2
	 	Omitted Services; Additional Services	 	 	2	 
	     Section 2.3
	 	Performance of Services	 	 	2	 
	     Section 2.4
	 	Changes to Services	 	 	3	 
	     Section 2.5
	 	Transitional Nature of Services	 	 	3	 
	     Section 2.6
	 	Cooperation	 	 	3	 
	     Section 2.7
	 	Use of Third Parties to Provide the Services	 	 	3	 
	     Section 2.8
	 	Mutual Cooperation	 	 	4	 
	     Section 2.9
	 	Internal Controls, Record Retention and Operating Policies	 	 	4	 
	     Section 2.10
	 	Audit Assistance	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE III CHARGES AND BILLING; TAXES	 	 	5	 
	     Section 3.1
	 	Charges for Services	 	 	5	 
	     Section 3.2
	 	Procedure	 	 	5	 
	     Section 3.3
	 	Late Payments	 	 	5	 
	     Section 3.4
	 	Taxes	 	 	5	 
	     Section 3.5
	 	Record-Keeping	 	 	5	 
	     Section 3.6
	 	No Set-Off	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE IV TERM AND TERMINATION	 	 	6	 
	     Section 4.1
	 	Term	 	 	6	 
	     Section 4.2
	 	Early Termination	 	 	6	 
	     Section 4.3
	 	Information Transmission	 	 	6	 
	     Section 4.4
	 	Termination Assistance	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE V CONFIDENTIALITY	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES; COVENANTS	 	 	7	 
	     Section 6.1
	 	Authorization	 	 	7	 
	     Section 6.2
	 	Non-Infringement	 	 	7	 
	     Section 6.3
	 	Compliance with Laws	 	 	7	 
	     Section 6.4
	 	Disclaimer of Representations and Warranties	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VII LIMITATIONS OF LIABILITY AND INDEMNITY	 	 	8	 
	     Section 7.1
	 	Exclusion of Consequential Damages	 	 	8	 
	     Section 7.2
	 	Indemnification for Third Party Claims	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VIII DISPUTE RESOLUTION; GOVERNING LAW AND JURISDICTION	 	 	8	 
	     Section 8.1
	 	Amicable Resolution	 	 	8	 
	     Section 8.2
	 	Arbitration	 	 	8	 

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	     Section 8.3
	 	Governing Law	 	 	8	 
	     Section 8.4
	 	Submission to Jurisdiction	 	 	9	 
	     Section 8.5
	 	Waiver of Jury Trial	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IX MISCELLANEOUS	 	 	9	 
	     Section 9.1
	 	Survival	 	 	9	 
	     Section 9.2
	 	Title to Intellectual Property	 	 	9	 
	     Section 9.3
	 	Force Majeure	 	 	10	 
	     Section 9.4
	 	Independent Contractors	 	 	10	 
	     Section 9.5
	 	Subrogation.	 	 	10	 
	     Section 9.6
	 	Entire Agreement; Incorporation of Schedules and Exhibits	 	 	10	 
	     Section 9.7
	 	Amendments and Waivers	 	 	11	 
	     Section 9.8
	 	No Implied Waivers; Cumulative Remedies; Writing Required	 	 	11	 
	     Section 9.9
	 	Parties In Interest	 	 	11	 
	     Section 9.10
	 	Assignment; Binding Agreement	 	 	11	 
	     Section 9.11
	 	Responsible Parties	 	 	11	 
	     Section 9.12
	 	Notices	 	 	11	 
	     Section 9.13
	 	Severability	 	 	12	 
	     Section 9.14
	 	Construction	 	 	12	 
	     Section 9.15
	 	Counterparts	 	 	12	 
	     Section 9.16
	 	Delivery by Facsimile and Other Electronic Means	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE X DEFINITIONS	 	 	13	 

ii

 

MASTER TRANSITION SERVICES AGREEMENT

     This Master Transition Services Agreement (this “Agreement”), dated as of August 31,
2006, is by and between Sara Lee Corporation, a Maryland corporation (“Sara Lee”), and
Hanesbrands Inc., a Maryland corporation (“HBI”). Capitalized terms used in this Agreement
and not otherwise defined shall have the meanings ascribed to such terms in Article X below.

RECITALS

     WHEREAS, the board of directors of Sara Lee has determined that it is appropriate and
desirable to separate Sara Lee’s branded apparel business from its other businesses;

     WHEREAS, in order to effectuate the foregoing, Sara Lee and HBI have entered into a Master
Separation Agreement dated as of August 31, 2006 (as amended, modified and/or restated from time to
time, the “Separation Agreement”), which provides, among other things, subject to the
terms and conditions set forth therein, for the Separation and the Distribution, and for the
execution and delivery of certain other agreements in order to facilitate and provide for the
foregoing; and

     WHEREAS, in order to ensure an orderly transition under the Separation Agreement it will be
necessary for each of the Parties to provide to the other the Services described herein for a
transitional period described herein.

     NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, and subject to and on the terms and conditions herein set forth, the Parties hereby agree
as follows.

ARTICLE I

ORDER OF PRECEDENCE; CONFLICTS

     Section 1.1 Order of Precedence. In case of ambiguity or conflict between the terms
and conditions of the body of this Agreement and the terms and conditions of a Schedule to this
Agreement, the terms and conditions of the body of this Agreement shall control.

     Section 1.2 Conflict with Separation Agreement. In the event of any conflict between
the terms and conditions of the body of this Agreement and the terms and conditions of the
Separation Agreement, the terms and conditions of the body of this Agreement shall control.

ARTICLE II

SERVICES

     Section 2.1 Initial Services. Commencing on the Distribution Date, the Party
designated as the Provider on the Schedules hereto shall provide, or with respect to any service to
be provided by a member or members of such Party’s Group, to cause such member or members of such
Party’s Group to provide, to the Party designated as the Purchaser on the Schedules hereto, or with
respect to any service to be provided to a member or members of such

 

 

Party’s Group, to such member
or members of such Party’s Group, the applicable services set forth on Schedule 1 through Schedule
11 hereto (the “Initial Services”).

     Section 2.2 Omitted Services; Additional Services.

          (a) If, after the Distribution Date and during the Term of this Agreement, a Party identifies
a service that the other Party (or a member of the other Party’s Group) previously provided to such
Party (or a member of such other Party’s Group) prior to the Distribution Date, but such service
was inadvertently omitted from the services set forth on the Schedules hereto (an “Omitted
Service”), then upon the prior written consent of the Party that would be the Provider of such
Omitted Service, which consent shall not be unreasonably withheld, such Omitted Service shall be
added and considered as part of the Services. The Parties shall cooperate and act in good faith to
create or amend an existing Schedule for each Omitted Service in a form substantially similar to
the other Schedules hereto and reasonably acceptable to the Parties.

          (b) From time to time after the Distribution Date and during the Term of this Agreement, the
Parties may identify additional services that are not Omitted Services that one Party may agree to
provide to the other Party in accordance with the terms of this Agreement (the “Additional
Services” and, together with the Initial Services and any agreed upon Omitted Services, the
“Services”). The Parties shall cooperate and act in good faith to amend or create a
Schedule for each Additional Service in a form substantially similar to the other Schedules hereto
and reasonably acceptable to the Parties. Notwithstanding the foregoing, neither Party shall have
any obligation to agree to provide any Additional Services.

     Section 2.3 Performance of Services. Each Provider shall, and shall cause the
applicable members of its Group to, perform its duties and responsibilities hereunder in good faith
based on its past practices and in accordance with the service levels and performance obligations
specified in the applicable Schedule, but in no event less than a manner that is substantially the
same in nature, accuracy, quality, completeness, timeliness, responsiveness and efficiency to the
services provided by the applicable Provider to the applicable Purchaser prior to the Distribution
Date.

          (a) Nothing in this Agreement shall require a Provider to perform or cause to be performed any
Service in a manner that would constitute a violation of applicable laws, including, without
limitation, the Foreign Corrupt Practices Act.

          (b) Neither Provider nor any member of its Group will be required to perform or to cause to be
performed any of the Services for the benefit of any Third Party or any other Person other than the
applicable Purchaser.

          (c) Except as expressly contemplated by the Schedules, no Provider shall be obligated to (i)
hire or train additional employees, (ii) purchase, lease or license any additional equipment, or
(iii) pay any costs related to the transfer or conversion of Information to a Purchaser or any
alternate supplier of Services. Subject to the foregoing and any other terms and conditions of
this Agreement, each Provider shall maintain sufficient resources to perform its obligations
hereunder. Except as set forth otherwise in an applicable Schedule, each Provider

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shall be solely
responsible for obtaining and maintaining all equipment, software, licenses, personnel, facilities
and other resources necessary for such Provider’s provision of the Services for which it is
responsible.

     Section 2.4 Changes to Services. Except as provided in Section 2.8 below or
otherwise agreed in writing by the Parties, each Provider may make changes from time to time in the
manner of performing the Services if: (a) such Provider is making similar changes in performing
analogous services for itself or members of its own Group; (b) such Provider furnishes to the
applicable Purchaser substantially the same notice (in content and timing) and right of
consultation as such Provider shall furnish to its own organization or members of its own Group
respecting such changes; and (c) such changes shall not result in any material degradation
of the Services and the Services after the applicable changes shall meet all requirements herein
and shall be of the same or higher nature, accuracy, quality, completeness, timeliness,
responsiveness and efficiency as the same Services prior to such changes. No such change shall
affect the Charges for the applicable Service.

     Section 2.5 Transitional Nature of Services. The Parties acknowledge the transitional
nature of the Services and, in addition to the obligations in Section 4.4, agree to
cooperate in good faith and to use reasonable best efforts to effectuate a smooth and orderly
transition of the Services from the Provider to the Purchaser or such Third Party provider as may
be designated by the Purchaser.

     Section 2.6 Cooperation. In the event that (a) there is nonperformance of any Service
as a result of an event described in Section 9.3, (b) the provision of a Service would
violate applicable law, or (c) the provision of a Service requires consent of a Third Party which
has not been obtained, the Parties agree to work together in good faith to arrange for an
alternative means by which the applicable Purchaser may obtain, at the Purchaser’s sole cost, the
Service so affected.

     Section 2.7 Use of Third Parties to Provide the Services. Each Provider may perform
its obligations through its Group or, if such Provider is obtaining analogous services for itself
from agents, subcontractors or independent contractors, the Provider may perform its obligations
hereunder through the use of agents, subcontractors or independent contractors, if such Provider
furnishes to the applicable Purchaser substantially the same notice (in content and timing) as such
Provider shall furnish to its own organization or members of its own Group respecting such use of
Third Parties. If the Provider is not obtaining analogous services for itself from Third Parties,
the Provider may perform its obligations hereunder through the use of agents, subcontractors or
independent contractors only upon obtaining the prior written consent of the Purchaser, which consent shall not be unreasonably
withheld; provided that such agents, subcontractors or independent contractors (i) can provide the
Services with the same quality as such Services were provided prior to the Separation Date or as is
otherwise required under this Agreement, and (ii) shall maintain the required internal controls
(including compliance with any confidentiality restrictions in ARTICLE V) and comply with
all applicable laws with respect to the Services. Notwithstanding the foregoing, a Provider shall
not be relieved of its obligations under this Agreement by use of such members of its Group,
agents, subcontractors or contractors and such Provider shall be liable for all acts and omissions
of its Group and such Third Parties.

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Delegation of performance of any Service by a Provider as
permitted in this Section 2.7 shall not affect the Charges for the applicable Service.

     Section 2.8 Mutual Cooperation. The Parties and their respective Group members shall
cooperate with each other in connection with the performance of the Services hereunder, including
producing on a timely basis all Information that is reasonably requested with respect to the
performance of Services and the transition of Services at the end of the Term of this Agreement;
provided, however, that such cooperation shall not unreasonably disrupt the normal operations of
the Parties and their respective Group members and provided further, that the Party requesting
cooperation shall pay all reasonable out-of-pocket costs and expenses, excluding salary and wages
of personnel providing such cooperation, incurred by the Party or its Group members furnishing such
requested cooperation, unless otherwise expressly provided in this Agreement or the Separation
Agreement.

     Section 2.9 Internal Controls, Record Retention and Operating Policies. In addition
to the record retention requirements of the Separation Agreement, each Party acting as a Provider
under a Schedule to this Agreement shall, in connection with the Services under such Schedule,
maintain and comply with the internal controls, record retention policies and other operating
policies and procedures that were in place prior to the Distribution for the services that are the
same as such Services or that are otherwise required by applicable law. Without limiting the
foregoing, each such Party acting as a Provider shall maintain with respect to the Services the
internal controls and other compliance policies in place prior to the Distribution as necessary to
comply with the Sarbanes-Oxley Act of 2002 or as otherwise implemented by the Parties to comply
with internal standards and procedures or applicable law. In the event a Party receiving Services
as a Purchaser under a Schedule requires a change to the internal controls or compliance policies
or requires the implementation of additional internal controls or compliance policies related to
the Services in order to comply with changes to applicable law or internal standards and
procedures, the Party acting as Provider shall change or add to the internal controls or compliance
policies related to the Services as requested by the Purchaser. In connection with a Provider
changing or adding to internal controls or compliance policies as required by the foregoing, the
Purchaser shall pay for any additional costs or additional Charges for the Services associated with
the implementation or maintenance of the applicable change or addition; provided, however, that if
(i) such change or addition is required for the compliance of both Parties with a law or policy
applicable to both Parties, or (ii) both Parties will benefit from such change or addition, the
Parties shall negotiate in good faith an equitable sharing of the costs or Charges associated with
such change or addition.

     Section 2.10 Audit Assistance. Each of the Parties and their respective Subsidiaries
are or may be subject to regulation and audit by governmental bodies, standards organizations,
other regulatory authorities, customers or other parties to contracts with such Parties under
applicable law and contract provision (an “Auditing Entity”). If an Auditing Entity
exercises its right to examine or audit such Party’s or a member of its Group’s books, records,
documents or accounting practices and procedures pursuant to such applicable law, rules,
regulations, standards or contract provisions and such audit or examination relates to the
Services, the other Party shall provide, at the sole cost and expense of the requesting Party, all
assistance, records and access requested by the Party that is subject to the audit in responding to
such audits or requests for information, to the extent that such assistance or information is
within the reasonable

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control of the cooperating Party and is related to the Services. A Party
acting as a Purchaser hereunder may request its third party auditor to perform a SAS 70 Type II
audit or other audit or review of such Provider’s internal controls and operating environment
related to the Services upon reasonable advance notice, and the Provider shall perform such an
audit or review or assist Purchaser or Purchaser’s third party auditor in connection with such an
audit or review, in each case at the Purchaser’s expense. At the conclusion of such audit or
review, the Provider shall implement such reasonable changes to the Services or operating
environment to correct deficiencies identified in the audit report to ensure compliance with
applicable law or that are otherwise necessary for Provider to comply with Purchaser’s internal
policies in connection with the Services. The Parties shall share the costs to implement all such
changes equally.

ARTICLE III

CHARGES AND BILLING; TAXES

     Section 3.1 Charges for Services. The charges for the Services shall be (a) as set
forth in the applicable Schedules, or (b) determined in accordance with the charging methodology as
set forth in the applicable Schedules (the “Charges”).

     Section 3.2 Procedure. Charges for the Services shall be charged to, and payable by,
the Purchaser. Amounts payable pursuant to the terms of this Agreement shall be paid to the
Provider, as directed by the Provider in the manner and at the time provided in the applicable
Schedule. All amounts due and payable hereunder shall be invoiced and paid in U.S. dollars in
accordance with the provisions of the applicable Schedule.

     Section 3.3 Late Payments. Charges not paid when due in accordance with the
provisions of the applicable Schedule shall bear interest at a rate per annum equal to the
Prime Rate plus two percent (2%) from such date due until the date paid.

     Section 3.4 Taxes. Each Purchaser shall pay any and all Taxes incurred in connection
with the applicable Provider’s or its Group’s provision of the Services, including all sales, use,
value-added, and similar Taxes, but excluding Taxes based on such Provider’s or its Group’s net
income or Employment Taxes.

     Section 3.5 Record-Keeping. Each Party shall, in its capacity as Provider, maintain
complete and accurate records of any invoices and supporting documentation for all amounts billable
to, and payments made by, the Purchaser under this Agreement. Each Provider shall provide to the
Purchaser or its designee documentation and other information relating to each invoice as may be
reasonably requested by the Purchaser to verify that the Provider’s charges are accurate, complete,
and valid in accordance with this Agreement.

     Section 3.6 No Set-Off. A Purchaser’s obligation to make any required payments under
this Agreement (including any schedule or exhibit hereto), the Separation Agreement (including any
schedule or exhibit thereto) or any Ancillary Agreement (including any schedule or exhibit thereto)
shall not be subject to any unilateral right of offset, set-off, deduction or counterclaim, however
arising.

5

 

ARTICLE IV

TERM AND TERMINATION

     Section 4.1 Term. Unless otherwise terminated pursuant to Section 5.2, this
Agreement will terminate with respect to any Service at the close of business on the last day of
the Service Period for such Service. Notwithstanding the foregoing, the Purchaser may elect to
extend the Service Period for any Service in accordance with the terms for extension provided in
the applicable Schedule. Unless extended in accordance with the foregoing, this Agreement will
terminate at the close of business on the last day of the last Service Period in effect (the
“Term”).

     Section 4.2 Early Termination. Each Purchaser shall have the right at any time during
the Term of this Agreement to terminate its obligation to purchase any Service, upon the giving of
an advance written notice to the Provider of such Service of (i) not less than the number of days
set forth in the applicable Schedule or, (ii) if the applicable Schedule does not set forth a
number of days, not less than thirty (30) days. If a Purchaser terminates a Service prior to the
expiration date for such Service, the fees for such Service will be prorated to account for the
period during which such Service was provided and the fees for any remaining Services will be
decreased to account for the Service that is terminated. In addition, each Purchaser shall have
the right at any time during the Term of this Agreement to terminate its obligation to purchase any
Service if the Provider of such Service materially breaches a material provision with regard to
that particular Service and, if curable, does not cure such breach within thirty (30) days after
being given notice of such breach.

     Section 4.3 Information Transmission. On or prior to the last day of each relevant
Service Period, the Provider shall use reasonable best efforts and shall cause the members of its
Group to use reasonable best efforts to support any transfer of Information concerning the relevant
Services to the applicable Purchaser. If requested by the Purchaser, the Provider shall deliver
and shall cause the members of its Group to deliver to the applicable Purchaser, within such time
periods as the Parties may reasonably agree, all Information received, generated or computed for
the benefit of such Purchaser during the Service Period, in electronic and/or hard copy form;
provided, however, that (i) the Provider shall not have any obligation to provide or cause to
provide Information in any non-standard format, and (ii) the Provider and the members of its Group
shall be reimbursed for their reasonable out-of-pocket costs for providing Information in any
format other than its standard format, unless otherwise expressly provided in the applicable
Schedule.

     Section 4.4 Termination Assistance. Upon termination or expiration of this Agreement,
each Provider shall have an absolute and unconditional obligation to provide to the Purchaser, or
Purchaser’s designees at Purchaser’s request (including one or more Third Parties), services as
necessary to effect an orderly and smooth transition of the Services to Purchaser’s internal
services environment or a successor service provider and such other cooperation as reasonably
requested by the Purchaser in connection with such termination or expiration. Any particular
termination and expiration assistance services may be detailed in an applicable Schedule and shall
include, at a minimum, any knowledge transfer, training of the Purchaser’s or its designee’s
personnel, transfer of data and other materials related to the Services and any other information
and assistance reasonably necessary or desirable or reasonably requested by the

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Purchaser to ensure
an orderly and smooth transition of the Services to Purchaser’s internal services environment or a
successor service provider. Except as otherwise provided in Section 4.3, when any
Information furnished by the other Party after the Distribution Date pursuant to this Agreement is
no longer needed for the purposes contemplated by this Agreement, each Party shall, at such Party’s
option, promptly after receiving a written request from the other Party either return to the other
Party all such Information in a tangible form (including all copies thereof and all notes, extracts
or summaries based thereon) or certify to the other Party that it has destroyed such Information
(and such copies thereof and such notes, extracts or summaries based thereon).

ARTICLE V

CONFIDENTIALITY

     RESERVED.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES; COVENANTS

     Section 6.1 Authorization. Each Party represents and warrants: (a) that this
Agreement has been validly executed and delivered by such Party and that the provisions set forth
in this Agreement constitute legal, valid, and binding obligations of such Party enforceable
against such Party in accordance with their terms, subject to bankruptcy, insolvency,
reorganization and other laws affecting creditors’ rights generally, and with regard to equitable
remedies, to the discretion of the court before which proceedings to obtain such remedies may be
pending; and (b) that such Party has all requisite power and authority to enter into this
Agreement.

     Section 6.2 Non-Infringement. Each Party, as a Provider, shall perform the Services
under this Agreement in a manner that does not and shall not infringe, or constitute an
infringement or misappropriation of, any intellectual property rights of any third party.

     Section 6.3 Compliance with Laws. Each Party shall perform the Services under this
Agreement in a manner that complies in all material respects with all applicable laws.

     Section 6.4 Disclaimer of Representations and Warranties. EXCEPT AS PROVIDED IN
ARTICLE II, THIS ARTICLE VI OR OTHERWISE IN A SCHEDULE, EACH PARTY ACKNOWLEDGES AND
AGREES THAT ALL SERVICES AND PRODUCTS ARE PROVIDED ON AN “AS-IS” “WHERE-IS” BASIS AND THAT NEITHER
PROVIDER NOR ANY MEMBER OF ITS GROUP MAKES ANY WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE
SERVICES OR OTHERWISE HEREUNDER, AND EACH PROVIDER AND MEMBER OF ITS GROUP HEREBY DISCLAIMS ANY
REPRESENTATION OR WARRANTIES WITH RESPECT TO THE SERVICES OR OTHERWISE HEREUNDER, INCLUDING WITHOUT
LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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ARTICLE VII

LIMITATIONS OF LIABILITY AND INDEMNITY

     Section 7.1 Exclusion of Consequential Damages. EXCEPT WITH RESPECT TO BREACHES OF
ARTICLE V AND THE RESPONSIBILITIES UNDER SECTION 7.2, IN NO EVENT SHALL EITHER PARTY, THE
MEMBERS OF ITS GROUP OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO THE OTHER PARTY
FOR INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH
THE PERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF AND THE MEMBERS OF ITS GROUP ANY CLAIM
FOR SUCH DAMAGES, INCLUDING ANY CLAIM FOR LOST PROFITS, WHETHER ARISING IN CONTRACT, TORT OR
OTHERWISE.

     Section 7.2 Indemnification for Third Party Claims. Each Party (the “Indemnifying
Party”) shall indemnify, defend and hold harmless the other Party, the members of its Group and
each of their respective directors, officers and employees, and each of the successors and assigns
of any of the foregoing (collectively, the “Indemnified Parties”), from and against any and
all claims of Third Parties relating to, arising out of or resulting from the Indemnifying Party’s
gross negligence or willful misconduct in the performance of its obligations hereunder, or breach
of this Agreement, other than Third Party claims arising out of the gross negligence or willful
misconduct, or breach of this Agreement by any Indemnified Party.

ARTICLE VIII

DISPUTE RESOLUTION; GOVERNING LAW AND JURISDICTION

     Section 8.1 Amicable Resolution. The Parties desire that friendly collaboration will
develop between them. Accordingly, they will try to resolve in an amicable manner all disputes and
disagreements connected with their respective rights and obligations under this Agreement in
accordance with Section 6.12 of the Separation Agreement.

     Section 8.2 Arbitration. Subject to Section 8.1, and except for suits seeking
injunctive relief or specific performance, in the event of any dispute, controversy or claim
arising under or in connection with this Agreement (including any dispute, controversy or claim
relating to the breach, termination or validity thereof), the Parties agree to submit any such
dispute, controversy or claim to binding arbitration in accordance with Section 6.13 of the
Separation Agreement.

     Section 8.3 Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by and construed in accordance with the domestic
laws of the State of Illinois, without giving effect to any choice of law or conflict of law
provision (whether of the State of Illinois or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Illinois.

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     Section 8.4 Submission to Jurisdiction. SUBJECT TO SECTION 8.2, EACH OF THE PARTIES
IRREVOCABLY SUBMITS (FOR ITSELF AND IN RESPECT OF ITS PROPERTY) TO THE JURISDICTION OF ANY STATE OR
FEDERAL COURT SITTING IN CHICAGO, ILLINOIS, FORSYTH COUNTY, NORTH CAROLINA, OR GUILFORD COUNTY,
NORTH CAROLINA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES
THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT; PROVIDED THAT THE PARTIES MAY BRING ACTIONS OR PROCEEDINGS AGAINST EACH OTHER IN OTHER
JURISDICTIONS TO THE EXTENT NECESSARY TO IMPLEAD THE OTHER PARTY IN ANY ACTION COMMENCED BY A
THIRD PARTY THAT IS RELATED TO THIS AGREEMENT. EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY OTHER COURT OR IN OTHER
JURISDICTIONS UNLESS SUCH ACTIONS OR PROCEEDINGS ARE NECESSARY TO IMPLEAD THE OTHER PARTY IN ANY
ACTION COMMENCED BY A THIRD PARTY THAT IS RELATED TO THIS AGREEMENT. EACH OF THE PARTIES WAIVES
ANY DEFENSE OF INCONVENIENT FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING SO BROUGHT AND
WAIVES ANY BOND, SURETY, OR OTHER SECURITY THAT MIGHT BE REQUIRED OF ANY OTHER PARTY WITH RESPECT
THERETO. ANY PARTY MAY MAKE SERVICE ON ANY OTHER PARTY BY SENDING OR DELIVERING A COPY OF THE
PROCESS TO THE PARTY TO BE SERVED AT THE ADDRESS AND IN THE MANNER PROVIDED FOR THE GIVING OF
NOTICES IN SECTION 9.12. NOTHING IN THIS SECTION 8.4, HOWEVER, SHALL AFFECT THE RIGHT OF ANY PARTY
TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AT EQUITY. EACH PARTY AGREES THAT A
FINAL NONAPPEALABLE JUDGMENT IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND MAY BE
ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW OR AT EQUITY.

     Section 8.5 Waiver of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH
OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH
COUNSEL), EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING
RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Survival. Section 2.3(c), Section 2.10, Section
4.3, Section 4.4, ARTICLE V, ARTICLE VII, ARTICLE
VIII, ARTICLE IX and ARTICLE X shall survive any expiration or termination of
this Agreement.

     Section 9.2 Title to Intellectual Property. Each Purchaser acknowledges that it will
acquire no right, title or interest (including any license rights or rights of use) in any
intellectual property which is owned or licensed by any Provider, by reason of the provision of the
Services

9

 

provided hereunder. No Purchaser will remove or alter any copyright, trademark,
confidentiality or other proprietary notices that appear on any intellectual property owned or
licensed by any Provider, and each Purchaser shall
reproduce any such notices on any and all copies thereof. No Purchaser will attempt to
decompile, translate, reverse engineer or make excessive copies of any intellectual property owned
or licensed by any Provider, and each Purchaser shall promptly notify such Provider of any such
attempt, regardless of whether by Purchaser or any Third Party, of which Purchaser becomes aware.

     Section 9.3 Force Majeure. Neither Party shall be held liable or responsible to the
other Party or be deemed to have defaulted under or breached this Agreement for failure or delay in
fulfilling or performing any term of this Agreement when such failure or delay is caused by or
results from events beyond the reasonable control of the non-performing Party, including fires,
floods, earthquakes, embargoes, shortages, epidemics, pandemics, quarantines, war, acts of war
(whether war be declared or not), terrorist acts, insurrections, riots, civil commotion, strikes,
lockouts or other labor disturbances (whether involving the workforce of the non-performing Party
or of any other Person), acts of God or acts, omissions or delays in acting by any governmental
authority. The non-performing Party shall notify the other Party of such force majeure event as
promptly as possible after such occurrence by giving written notice to the other Party stating the
nature of the event, its anticipated duration, and any action being taken to avoid or minimize its
effect. The non-performing party shall also keep the other Party informed of further developments
regarding such force majeure event on a prompt basis. The non-performing Party shall use
commercially reasonable efforts to remove the cause of non-performance, and both Parties shall
resume performance hereunder as promptly as possible when such cause is removed. The suspension of
performance shall be of no greater scope and no longer duration than is necessary and the
non-performing Party shall use commercially reasonable efforts to remedy its inability to perform.
In the event that such force majeure event lasts for more than ninety (90) days, such other Party
shall have the right to terminate the Agreement or the applicable Schedule(s) upon sixty (60) days
written notice to the non-performing Party. Notwithstanding the foregoing, if a Party in its
capacity as the Provider is unable to provide the Services due to a force majeure event for a
period of greater than five (5) consecutive days, then the other Party may seek substitute services
from a Third Party service provider at its own cost.

     Section 9.4 Independent Contractors. The Parties each acknowledge that they are
separate entities, each of which has entered into this Agreement for independent business reasons.
The relationships of the Parties hereunder are those of independent contractors and nothing
contained herein shall be deemed to create a joint venture, employer/employee, partnership or any
other relationship.

     Section 9.5 Subrogation. If any liability arises from the performance of any Service
under this Agreement by a third party contractor, the Purchaser with respect to such Service shall
be subrogated to such rights, if any, as the Provider may have against such third party contractor.

     Section 9.6 Entire Agreement; Incorporation of Schedules and Exhibits. This Agreement
(including all Schedules and Exhibits referred to herein) and the Ancillary Agreements constitute
the entire agreement among the Parties with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings, both written and oral,

10

 

among the Parties with
respect to the subject matter hereof and thereof. All Schedules and Exhibits referred to herein
are hereby incorporated in and made a part of this Agreement as if set forth in full herein.

     Section 9.7 Amendments and Waivers. This Agreement may be amended and any provision
of this Agreement may be waived, provided that any such amendment or waiver shall be binding upon a
Party only if such amendment or waiver is set forth in a writing executed by such Party. No course
of dealing between or among any Persons having any interest in this Agreement shall be deemed
effective to modify, amend or discharge any part of this Agreement or any rights or obligations of
any party hereto under or by reason of this Agreement.

     Section 9.8 No Implied Waivers; Cumulative Remedies; Writing Required. No delay or
failure in exercising any right, power or remedy hereunder shall affect or operate as a waiver
thereof; nor shall any single or partial exercise thereof or any abandonment or discontinuance of
steps to enforce such a right, power or remedy preclude any further exercise thereof or of any
other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive
of any rights or remedies that any party hereto would otherwise have. Any waiver, permit, consent
or approval of any kind or character of any breach or default under this Agreement or any such
waiver of any provision of this Agreement must satisfy the conditions set forth in Section
9.7 and shall be effective only to the extent in such writing specifically set forth.

     Section 9.9 Parties In Interest. Nothing in this Agreement, express or implied, is
intended to confer on any Person other than the Parties, and their respective successors and
permitted assigns, any rights or remedies of any nature whatsoever under or by virtue of this
Agreement.

     Section 9.10 Assignment; Binding Agreement. Neither this Agreement nor any of the
rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by
operation of law or otherwise by any of the Parties without the prior written consent of the other
Parties, and any instrument purporting to make such an assignment without prior written consent
shall be void; provided, however, either Party may assign this Agreement to a successor entity in
conjunction with a merger effected solely for the purpose of changing such Party’s state of
incorporation (but subject to any applicable requirements of the Tax Sharing Agreement). Subject
to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be
enforceable by, the Parties and their respective successors and permitted assigns.

     Section 9.11 Responsible Parties. Each Party shall be responsible for its Group
members’ compliance with the terms and conditions of this Agreement.

     Section 9.12 Notices. All notices, demands and other communications given under this
Agreement must be in writing and must be either personally delivered, telecopied (and confirmed by
telecopy answer back), mailed by first class mail (postage prepaid and return receipt requested),
or sent by reputable overnight courier service (charges prepaid) to the recipient at the address or
telecopy number indicated below or such other address or telecopy number or to the attention of
such other Person as the recipient party shall have specified by prior written notice to the
sending party. Any notice, demand or other communication under this Agreement shall be deemed to
have been given when so personally delivered or so telecopied and confirmed (if

11

 

telecopied before
5:00 p.m. Eastern Standard Time on a business day, and otherwise on the next business day), or if
sent, one business day after deposit with an overnight courier, or, if mailed, five business days
after deposit in the U.S. mail.

	 	 	 
	To Sara Lee:               
	 	To HBI:
	 
	 	 
	Sara Lee Corporation

	 	Hanesbrands Inc.
	Three First National Plaza

	 	1000 East Hanes Mill Road
	Chicago, Illinois 60602-4260

	 	Winston-Salem, North Carolina 27105
	Attention: General Counsel

	 	Attention: General Counsel
	Facsimile Number: (312) 419-3187

	 	Facsimile Number: (336) 714-7441

     Section 9.13 Severability. The Parties agree that (i) the provisions of this
Agreement shall be severable in the event that for any reason whatsoever any of the provisions
hereof are invalid, void or otherwise unenforceable, (ii) any such invalid, void or otherwise
unenforceable provisions shall be replaced by other provisions which are as similar as possible in
terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable,
and (iii) the remaining provisions shall remain valid and enforceable to the fullest extent
permitted by applicable law.

     Section 9.14 Construction. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be a substantive part of or to affect the
meaning or interpretation of this Agreement. Whenever required by the context, any pronoun used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to
any agreement, document, or instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and if applicable
hereof. The use of the words “include” or “including” in this Agreement shall be by way of example
rather than by limitation. The use of the words “or,” “either” or “any” shall not be exclusive.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of
any of the provisions of this Agreement. The Parties agree that prior drafts of this Agreement
shall be deemed not to provide any evidence as to the meaning of any provision hereof or the intent
of the parties hereto with respect hereto.

     Section 9.15 Counterparts. This Agreement may be executed in multiple counterparts
(any one of which need not contain the signatures of more than one party), each of which shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement.

     Section 9.16 Delivery by Facsimile and Other Electronic Means. This Agreement, and
any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other
electronic transmission, shall be treated in all manner and respects as an original contract and
shall be considered to have the same binding legal effects as if it were the original signed
version thereof delivered in person. At the request of any Party, each other Party shall
re-execute

12

 

original forms thereof and deliver them to all other parties. No Party shall raise the
use of a facsimile machine or other electronic means to deliver a signature or the fact that any
signature was transmitted or communicated through the use of facsimile machine or other electronic
means as a defense to the formation of a contract and each such party forever waives any such
defense.

ARTICLE X

DEFINITIONS

     Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Separation Agreement. In addition, for purposes of this Agreement, the following
terms shall have the following meanings:

     “Additional Services” has the meaning set forth in Section 2.2(b).

     “Agreement” has the meaning set forth in the Preamble.

     “Auditing Entity” has the meaning set forth in Section 2.10.

     “Charges” has the meaning set forth in Section 3.1.

     “Distribution Date” has the meaning set forth in Section 3.2 of the Separation
Agreement.

     “Employment Tax” means withholding, payroll, social security, workers compensation,
unemployment, disability and any similar tax imposed by any Tax Authority, and any interest,
penalties, additions to tax or additional amounts with respect to the foregoing imposed on any
taxpayer or consolidated, combined or unitary group of taxpayers.

     “Governmental Authority” shall mean any federal, state, local, foreign or
international court, government, department, commission, board, bureau, agency, official or other
regulatory, administrative or governmental authority.

     “HBI” has the meaning set forth in the Preamble.

     “Indemnified Party” has the meaning set forth in Section 7.2.

     “Indemnifying Party” has the meaning set forth in Section 7.2.

     “Information” means information, whether or not patentable or copyrightable, in
written, oral, electronic or other tangible or intangible forms, stored in any medium, including
studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts,
know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes,
samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other
software, marketing plans, customer names, communications by or to attorneys (including
attorney-client privileged communications), memos and other materials prepared by attorneys or
under their direction (including attorney work product), and other technical, financial, employee
or business information or data.

13

 

     “Initial Services” has the meaning set forth in Section 2.1.

     “Omitted Services” has the meaning set forth in Section 2.2(a).

     “Parties” means the parties to this Agreement.

     “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a Governmental Authority.

     “Prime Rate” means the rate that Bank of America (or its successor or another major
money center commercial bank agreed to by the Parties) announces as its prime lending rate, as in
effect from time to time.

     “Provider” means, with respect to any Service, the entity or entities identified on
the applicable Schedule as the “Provider.”

     “Purchaser” means, with respect to any Service, the entity or entities identified on
the applicable Schedule as the “Purchaser.”

     “Sara Lee” has the meaning set forth in the Preamble.

     “Separation Agreement” has the meaning set forth in the Recitals.

     “Service Period” means, with respect to any Service, the period commencing on the
Distribution Date and ending on the earlier of (i) the date the Purchaser terminates the provision
of such Service pursuant to Section 4.2, or (ii) the termination date or expiration date
specified with respect to such Service on the Schedule applicable to such Service, unless extended
pursuant to Section 4.1.

     “Services” has the meaning set forth in Section 2.2(b).

     “Subsidiary” of any Person means a corporation or other organization whether
incorporated or unincorporated of which at least a majority of the securities or interests having
by the terms thereof ordinary voting power to elect at least a majority of the board of directors
or others performing similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries; provided,
however, that no Person that is not directly or indirectly wholly-owned by any other Person
shall be a Subsidiary of such other Person unless such other Person controls, or has the right,
power or ability to control, that Person.

     “Tax” means: (i) any income, net income, gross income, gross receipts, profits,
capital stock, franchise, property, ad valorem, stamp, excise, severance, occupation, service,
sales, use, license, lease, transfer, import, export, customs duties, value added, alternative
minimum, estimated or other similar tax (including any fee, assessment, or other charge in the
nature of or in lieu of any tax) imposed by any Tax Authority, and any interest, penalties,
additions to tax or

14

 

additional amounts with respect to the foregoing imposed on any taxpayer or
consolidated, combined or unitary group of taxpayers; and (ii) any Employment Tax.

     “Tax Authority” means, with respect to any Tax, the governmental entity or political
subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of
such Tax for such entity or subdivision.

     “Third Party” means any Person other than Sara Lee, any Subsidiary of Sara Lee, HBI
and any Subsidiary of HBI.

[SIGNATURE PAGE FOLLOWS]

15

 

     IN WITNESS WHEREOF, each of the Parties has caused this Master Transition Services Agreement
to be executed on its behalf by its officers hereunto duly authorized on the day and year first
above written.

	 	 	 	 	 
	 	SARA LEE CORPORATION

 	 
	 	By:  	/s/ Diana S. Ferguson
 	 
	 	 	Diana S. Ferguson 	 
	 	 	Senior Vice President 	 
	 

	 	 	 	 	 
	 	HANESBRANDS INC.

 	 
	 	By:  	/s/ Richard A. Noll
 	 
	 	 	Richard A. Noll 	 
	 	 	Chief Executive Officer 	 

 

 

	 	 	 	 	 

Schedule 1

Human Resources and Payroll Shared Services

	1.	 	General. This is Schedule 1 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara Lee”), and
Hanesbrands Inc., a Maryland corporation (“HBI”) (the “Agreement”). This Schedule 1 describes
certain human resources and payroll services to be provided by HBI (for purposes of this
Schedule, the “Provider”) to Sara Lee (for purposes of this Schedule, the “Purchaser”). This
Schedule 1 incorporates by reference that certain “Human Resources Payroll Service Level
Protocol” dated June 10, 2006 (the “HRSLP”) which is made a part hereof, and includes
Attachment 1-1 attached hereto.

	2.	 	Definitions. Capitalized terms used in this Schedule 1 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	2.1.	 	“Business Unit” shall mean each of Sara Lee Foods, Sara Lee Corporate, Coffee
and Tea, Household and Body Care, Courtaulds and Sara Lee Bakery Group, which are
Purchaser’s business units that will receive HR Services.
	 
	 	2.2.	 	“Commencement Date” shall mean the Distribution Date.
	 
	 	2.3.	 	“Extension Schedule Term” shall mean a period of up to ninety (90) days after
the Initial Schedule Term.
	 
	 	2.4.	 	“HR Services” shall mean the payroll processing services, services related to
submitting files to ADP for payroll tax processing, human resources information system
structure maintenance services, and data entry services for retail bakery stores that
were performed for Purchaser by the predecessor to Provider prior to the Separation (as
such term is defined in the Separation Agreement) and that will be provided by Provider
to Purchaser as described in this Schedule.
	 
	 	2.5.	 	“Initial Schedule Term” shall mean the period from the Commencement Date
through and including January 31, 2007.
	 
	 	2.6.	 	“Schedule Term” shall mean, collectively, the Initial Schedule Term and any
Extension Schedule Term.
	 
	 	2.7.	 	“Service Owner” shall mean, with respect to a Party, the individual designated
in Section 11 to be such Party’s initial point of contact and escalation (pursuant to
Section 6.2) for the HR Services.

	3.	 	Service Commitments.

	 	3.1.	 	Provider Obligations. Starting on the Commencement Date, Provider will perform
the HR Services for Purchaser, including, without limitation, the following services:

 

 

	 	(i)	 	Perform the tasks identified as being the responsibility of
Provider in the “Task Separation” chart in Appendix C of the HRSLP;
	 
	 	(ii)	 	Work with Purchaser and the Business Units to meet all
statutory and regulatory reporting requirements of Purchaser and the Business
Units;
	 
	 	(iii)	 	Provide suitable access to original documentation for
statutory and tax authorities;
	 
	 	(iv)	 	Process, generate or provide the following outputs based on
inputs from Purchaser:

	 	•	 	Payroll related benefits administration information,
	 
	 	•	 	Payroll tax processing and submission to ADP,
	 
	 	•	 	Employee paychecks and direct deposit,
	 
	 	•	 	HR and Payroll reporting; and
	 
	 	•	 	Data entry for retail bakery stores;

	 	(v)	 	Meet Purchaser’s financial reporting requirements;
	 
	 	(vi)	 	Provide to Purchaser the standard set of management reports as
identified in the HRSLP;
	 
	 	(vii)	 	Adhere to existing Purchaser and Business Unit policies and
procedures;
	 
	 	(viii)	 	Maintain sufficient levels of internal controls and segregation of duties for
processes resident at Provider;
	 
	 	(ix)	 	Ensure that data and supporting documentation is accessible to
Business Units upon reasonable request;
	 
	 	(x)	 	Support internal and external audit needs of Purchaser and
Business Units;
	 
	 	(xi)	 	Provide Purchaser access to Lawson systems so that Purchaser
can conduct employee data maintenance and retrieve reports;
	 
	 	(xii)	 	Participate in audits, as reasonably requested by Purchaser or
Business Units;
	 
	 	(xiii)	 	Respond promptly to Business Unit information requests; and
	 
	 	(xiv)	 	Work with Purchaser and the Business Units to reduce overall
processing costs.

2

 

	 	3.2.	 	Purchaser Obligations. In connection with the HR Services to be provided by
Provider to Purchaser hereunder, Purchaser shall do the following, as necessary for
Provider to perform the HR Services:

	 	(i)	 	Perform the tasks identified as being the responsibility of
Purchaser in the “Task Separation” chart in Appendix C of the HRSLP;
	 
	 	(ii)	 	Work with Provider to meet all statutory and regulatory
reporting requirements for Purchaser and the Business Units;
	 
	 	(iii)	 	Assist Provider in ensuring tax and fiscal compliance related
to the HR Services;
	 
	 	(iv)	 	Respond to information requests from Provider in a timely
manner;
	 
	 	(v)	 	Provide to Provider the following inputs:

	 	•	 	Time and attendance data, and
	 
	 	•	 	HR employee data management information;

	 	(vi)	 	Work with Provider to reduce overall processing costs; and
	 
	 	(vii)	 	Provide Provider with accurate source data for transaction
processing purposes.

	4.	 	Service Delivery. Provider will perform the HR Services in the same manner, with the same
frequency of service delivery and the same personnel or personnel with substantially similar
skills and experience, and during the same working hours as were performed by the predecessor
to Provider prior to the Separation Date for the services that are the same as the HR
Services, as more fully set forth in the HRSLP. Provider shall run the Business Units’
payrolls weekly, bi-weekly, and monthly. Provider shall not be required to pay any service
level credits or reimburse any costs to Purchaser if service levels are not met and Purchaser
shall not be required to pay any additional charges not set forth on Attachment 1-1 if
additional Provider work is required due to a Purchaser error.

	5.	 	Schedule Term. Provider shall provide the HR Services during the Schedule Term, unless this
Schedule is first terminated as set forth in the Agreement. In the event Purchaser requires
(i) additional services related to the implementation of its SAP system or other migration
activities, or (ii) other continuing HR Services, Purchaser may extend the Schedule Term for
the Extension Schedule Term by providing to Provider written notice of extension at least
thirty (30) days prior to the expiration of the Initial Schedule Term. Purchaser understands
that planned workforce reductions, with respect to which affected employees have already been
advised of their departure dates, may render it difficult for Provider to render to Purchaser
in any Extension Schedule Term services of the quality rendered in the Initial Schedule Term
due to the loss of experienced employees and the need to replace them in the Extension
Schedule Term with less

3

 

	 	 	experienced temporary workers; however, Provider agrees to take commercially reasonable
actions to maintain the quality of services during any Extension Schedule Term. In addition
to any monthly charges associated with the HR Services during the Extension Schedule Term,
Purchaser will pay the cost difference between the entire cost of such temporary workers and
the cost of workers that is included in the applicable monthly charges.

	6.	 	Service Levels; Escalation.

	 	6.1.	 	Service Level Obligations. Provider will provide the HR Services (i) in
accordance with the service levels identified in the HRSLP, or (ii) if no service
levels are included in the HRSLP with respect to a particular HR Service, in accordance
with the higher of (a) the level of service comparable to what has historically been
provided by the predecessor of Provider prior to the Separation Date, and (b) the level
of service that Provider provides to its own business units for services similar to the
HR Services.
	 
	 	6.2.	 	Resolution Levels and Escalation. The Parties shall attempt to resolve any
disputes or issues arising hereunder first by having the appropriate contact
individuals identified in Section VIII of the HRSLP for a particular Business Unit and
area of the HR Services attempt to resolve the dispute or issue. If such individuals
are unable to resolve the dispute or issue, such individuals shall refer the dispute to
the Service Owners for resolution. If the dispute or issue remains outstanding and
cannot be resolved by the Service Owners, the Parties shall resolve the issue in
accordance with Article VIII of the Agreement.

	7.	 	Costs, Invoicing and Payment.

	 	7.1.	 	Service Fees. For the HR Services provided to Purchaser by Provider, Purchaser
shall pay to Provider the fees set forth in Attachment 1-1. Unless otherwise specified
in this Schedule or the Agreement, all time and materials expended by Provider in the
performance of the HR Services shall be included in the fees set forth in Attachment
1-1, and Provider shall not be entitled to receive any further compensation for those
kinds, numbers, and volumes of HR Services as provided on the Commencement Date.
	 
	 	7.2.	 	Invoicing and Payment. Provider shall invoice Purchaser for the HR Services
monthly in arrears during the Schedule Term. Purchaser shall pay all invoices within
forty-five (45) days of the date of submission of such invoices by Provider to
Purchaser. The fees set forth in Attachment 1-1 will not be in effect until the
Commencement Date and will be prorated as appropriate for any partial month during
which Provider provides HR Services on and after the Commencement Date.

	8.	 	Divestiture. If Purchaser divests a Business Unit or a portion of a Business Unit, Provider
shall continue to provide the HR Services with respect to such Business Unit or portion of a
Business Unit to the acquiring party during the Schedule Term and on the

4

 

	 	 	same terms and conditions set forth herein so long as Purchaser pays any incremental costs
incurred by Provider in accomplishing the foregoing that are above the fees for the HR
Services specified in Attachment 1-1.

	9.	 	Access to Facilities and Systems.

	 	9.1.	 	Service Locations. Provider may provide HR Services at Provider’s offices and
facilities or, as reasonably necessary, at Purchaser’s facilities. During the Schedule
Term, if Provider requires access to Purchaser facilities in connection with Provider’s
provision of the HR Services, Purchaser will provide to Provider access to Purchaser’s
facilities upon Provider’s request as necessary to enable Provider to perform the HR
Services. Provider will comply with the use, security, and access policies at each
Purchaser facility for Purchaser’s employees and visitors generally as may be in effect
from time to time.
	 
	 	9.2.	 	Access to Systems. So long as Purchaser pays any incremental fees and charges
of third parties required to accomplish the following that are above the cost
components included in the fees for the HR Services specified in Attachment 1-1, such
as, for example only, software licensors, Provider shall provide Purchaser personnel
with remote (web-based) access and on-site direct access through the Provider network
to access Provider’s Lawson systems and other human resources systems to conduct
employee data maintenance, retrieve reports from Lawson, and perform other activities
related to Purchaser’s receipt and use of the HR Services. Provider shall use its
commercially reasonable best efforts to provide Purchaser adequate security clearances
as necessary to obtain and utilize such remote access and on-site access.

	10.	 	Software, Hardware and Other Assets.

	 	10.1.	 	Provision of Software, Hardware and Other Assets. Except as otherwise
provided herein, Provider shall be responsible for (i) obtaining all software, hardware
and other assets (including licenses) necessary to perform the HR Services as such
Services have historically been provided, and (ii) the costs of all such software,
hardware, and other assets (including licenses) so long as such annualized costs do not
exceed those annualized costs incurred by the predecessor of Provider before the
Commencement Date. Any increase in such annualized costs after the Commencement Date
for software, hardware or other assets (including licenses) that are necessary in
order for Provider to provide the HR Services without a degradation in the quality of
the HR Services or that are otherwise incurred based on Purchaser’s request, shall be
paid for by Purchaser. Provider agrees to consult with Purchaser before incurring such
increased costs, to the extent possible.
	 
	 	10.2.	 	Operation and Maintenance of Software, Hardware and Other Assets. As part of
the HR Services, and included in the cost of the HR Services set forth in Attachment
1-1, Provider shall operate and maintain the existing systems and the software,
hardware, and other assets (including licenses) necessary to perform the

5

 

	 	 	 	HR Services. Provider’s obligation to operate and maintain the systems, hardware,
software and other assets (including licenses) shall include, without limitation (i)
providing system administration services, (ii) ensuring systems availability, (iii)
performing break/fix, troubleshooting and problem resolution, and (iv) obtaining and
installing software upgrades required to maintain vendor support.
	 
	 	10.3.	 	Related Services. Notwithstanding anything to the contrary in Section 2.2(a)
of the Agreement, at Purchaser’s request, Provider shall provide to Purchaser (i)
system enhancement and modification services related to the HR Services but not
included in the services provided by the predecessor of Provider to Purchaser prior to
the Separation and not otherwise described in this Schedule 1, so long as Provider
elects to provide such enhancement and modification services to itself, and (ii)
additional services related to the implementation of Provider’s SAP system or other
migration activities, regardless of whether Provider elects to provide such services to
itself. In the event Provider performs any such systems enhancements and modifications
or additional services, Provider may charge Purchaser for such systems enhancements and
modifications at a rate of $61 per man hour worked, plus expenses and materials (which
will be charged on a pass-through basis without mark-up).

	11.	 	Service Owners. The Parties’ respective Service Owners under this Schedule are identified
below.

	 	 	 
	Provider:

	 	Purchaser:
	 
	 	 
	Anita Bain

	 	Stephen Kincanon
	VP/General Manager

	 	VP Shared Services NA
	(336) 519-8140

	 	(314) 513-7454

	12.	 	Responsibility for Filings. Purchaser acknowledges and agrees that it is solely responsible
for: (i) any local, state, federal or other governmental or regulatory filings, including,
without limitation, the accuracy and completeness thereof and any and all liabilities, costs,
penalties, fines and charges associated therewith; and (ii) any and all taxes due and owing to
any government or taxing authority. Purchaser hereby irrevocably waives any claim against
Provider, whenever and however arising, based on or related to any filing made by Purchaser
and the payment or non-payment by Purchaser of any taxes.

6

 

Attachment 1-1

Cost of Human Resources Information System and Payroll Services

Except as otherwise expressly provided below, the monthly cost of HRIS and Payroll Services in each
month of the Initial Schedule Term shall be the cost specified in the table below for the
applicable month.

If Purchaser requests further reductions in the number of employees of Provider involved in
services deliveries to Purchaser other than those set forth below, Provider shall effect such
reductions within forty-five (45) days of Purchaser’s request and Provider shall pass on to
Purchaser in the form of a reduction in the monthly cost of Finance Services such cost savings as
Provider achieves by such workforce reductions.

The parties agree that Provider shall implement those workforce reductions already planned in the
numbers and at the times indicated below, and, based on same, Provider’s monthly charges to
Purchaser shall be as set forth below. (If Purchaser requests that Provider delay any planned
workforce reductions, the cost to Purchaser in the month affected shall be the cost for the
preceding month, adjusted in the case of a partial workforce reduction on a pro rata basis for any
actual workforce reduction in such month affected.)

Planned Monthly Costs for Human Resources Information System and Payroll Services

	 	 	 	 	 	 	 	 	 
	 	 	Planned Workforce	 	Provider’s Charge to
	Month	 	Reductions Impacting Cost	 	Purchaser
	 	 	(Month/Cumulative)	 	 	 	 
	August 2006
	 	 	3/3	 	 	$	294,700	 
	September 2006
	 	 	0/3	 	 	$	256,600	 
	October 2006
	 	 	2/5	 	 	$	256,600	 
	November 2006
	 	 	3/8	 	 	$	230,500	 
	December 2006
	 	 	1/9	 	 	$	193,000	 
	January 2007
	 	 	4/13	 	 	$	93,900	 

 

 

Schedule 2

Finance Shared Services

	1.	 	General. This is Schedule 2 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands Inc., a Maryland corporation (“HBI”) (the
“Agreement”). This Schedule 2 describes certain finance processing services and other
finance services to be provided by HBI (for purposes of this Schedule, the “Provider”) to Sara
Lee (for purposes of this Schedule, the “Purchaser”). This Schedule 2 incorporates by
reference that certain “Finance Service Level Protocol” dated June 10, 2006 (the
“FSLP”) which is made a part hereof, and includes Attachment 2-1 attached hereto.

	2.	 	Definitions. Capitalized terms used in this Schedule 2 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	2.1.	 	“Business Unit” shall mean each of Sara Lee Foods and Sara Lee
Corporate, which are Purchaser’s business units that will receive Finance Services.
	 
	 	2.2.	 	“Commencement Date” shall mean the Distribution Date.
	 
	 	2.3.	 	“Extension Schedule Term” shall mean a period of up to ninety (90) days
after the Initial Schedule Term.
	 
	 	2.4.	 	“Finance Services” shall mean the finance processing services and other
finance services to be provided by Provider to Purchaser as described in this Schedule,
including services related to accounts payable (AP), general ledger accounting (GL),
journal entries (JE), and fixed asset management (FA) that were performed for Purchaser
by the predecessor to Provider prior to the Separation (as such term is defined in the
Separation Agreement) and that will be provided by Provider to Purchaser as described
in this Schedule.
	 
	 	2.5.	 	“Initial Schedule Term” shall mean the period from the Commencement
Date through and including January 31, 2007.
	 
	 	2.6.	 	“Schedule Term” shall mean, collectively, the Initial Schedule Term and
any Extension Schedule Term.
	 
	 	2.7.	 	“Service Owner” shall mean, with respect to a Party, the individual
designated in Section 11 to be such Party’s initial point of contact and escalation
(pursuant to Section 6.2) for the Finance Services.

	3.	 	Service Commitments.

	 	3.1.	 	Provider Obligations. Starting on the Commencement Date, Provider will perform
the Finance Services, including, without limitation, the following services:

 

 

	 	(i)	 	Perform the tasks identified as being the responsibility of
Provider in the “Task Separation” chart in Appendix D of the FSLP;
	 
	 	(ii)	 	Process, generate or provide the following outputs based on
inputs from Purchaser:

	 	•	 	AP – Process invoices and payments, prepare
1099 tax forms, process “received not invoiced,”
	 
	 	•	 	GL – Period end reporting and transactions,
	 
	 	•	 	JE – Inter-company transactions, recurring
entries, state and federal taxes, bank account reconciliation, and
	 
	 	•	 	FA – Capitalize, categorize, depreciate, retire
and transfer fixed assets,

	 	(iii)	 	Work with Purchaser and the Business Units to meet all
statutory and regulatory reporting requirements of Purchaser and the Business
Units;
	 
	 	(iv)	 	Provide suitable access to original documentation for statutory
and tax authorities;
	 
	 	(v)	 	Meet Purchaser’s financial reporting requirements;
	 
	 	(vi)	 	Provide to Purchaser the standard set of management reports as
identified in the FSLP;
	 
	 	(vii)	 	Adhere to existing Purchaser and Business Unit policies and
procedures;
	 
	 	(viii)	 	Maintain sufficient levels of internal controls and segregation of duties for
processes resident at Provider;
	 
	 	(ix)	 	Ensure that data and supporting documentation is accessible to
Business Units upon reasonable request;
	 
	 	(x)	 	Support internal and external audit needs of Purchaser and
Business Units;
	 
	 	(xi)	 	Participate in audits, as reasonably requested by Purchaser or
Business Units;
	 
	 	(xii)	 	Respond promptly to Business Unit information requests; and
	 
	 	(xiii)	 	Work with Purchaser and the Business Units to reduce overall processing
costs.

2

 

	 	3.2.	 	Purchaser Obligations. In connection with the Finance Services to be provided
by Provider to Purchaser hereunder, Purchaser shall do the following, as necessary for
Provider to perform the Finance Services:

	 	(i)	 	Perform the tasks identified as being the responsibility of
Purchaser in the “Task Separation” chart in Appendix D of the FSLP;
	 
	 	(ii)	 	Provide to Provider the following inputs:

	 	•	 	AP – Create purchase orders, initiate recurring
payments, correct errors,
	 
	 	•	 	GL – Chart of accounts requests (changes and new),
	 
	 	•	 	JE – All Journal Entries, and
	 
	 	•	 	FA – Authorized Asset Disposition form, project
initiation and completion notices;

	 	(iii)	 	Work with Provider to meet all statutory and regulatory
reporting requirements for Purchaser and the Business Units;
	 
	 	(iv)	 	Assist Provider in ensuring tax and fiscal compliance related
to the Finance Services;
	 
	 	(v)	 	Respond to information requests from Provider in a timely
manner;
	 
	 	(vi)	 	Work with Provider to reduce overall processing costs; and
	 
	 	(vii)	 	Provide Provider with accurate source data for transaction
processing purposes.

	4.	 	Service Delivery. Provider will perform the Finance Services in the same manner, with the
same frequency of service delivery and the same personnel or personnel with substantially
similar skills and experience, and during the same working hours as were performed by the
predecessor to Provider prior to the Separation Date for the services that are the same as the
Finance Services, as more fully set forth in the FSLP. Provider shall not be required to pay
any service level credits or reimburse any costs to Purchaser if service levels are not met
and Purchaser shall not be required to pay any additional charges not set forth on Attachment
2-1 if additional Provider work is required due to a Purchaser error.

	5.	 	Schedule Term. Provider shall provide the Finance Services during the Schedule Term, unless
this Schedule is first terminated as set forth in the Agreement. In the event Purchaser
requires (i) additional services related to the implementation of its SAP system or other
migration activities, or (ii) other continuing Finance Services, Purchaser may extend the
Schedule Term for the Extension Schedule Term by providing to Provider written notice of
extension at least thirty (30) days prior to the expiration of the Initial

3

 

	 	 	Schedule Term. Purchaser understands that planned workforce reductions, with respect to
which affected employees have already been advised of their departure dates, may render it
difficult for Provider to render to Purchaser in any Extension Schedule Term services of the
quality rendered in the Initial Schedule Term due to the loss of experienced employees and
the need to replace them in the Extension Schedule Term with less experienced temporary
workers; however, Provider agrees to take commercially reasonable actions to maintain the
quality of services during any Extension Schedule Term. In addition to any monthly charges
associated with the Finance Services during the Extension Schedule Term, Purchaser will pay
the cost difference between the entire cost of such temporary workers and the cost of
workers that is included in the applicable monthly charges.

	6.	 	Service Levels; Escalation.

	 	6.1.	 	Service Level Obligations. Provider will provide the Finance Services (i) in
accordance with the service levels identified in the FSLP, or (ii) if no service levels
are included in the FSLP with respect to a particular Finance Service, in accordance
with the higher of (a) the level of service comparable to what has historically been
provided by the predecessor of Provider prior to the Separation Date, and (b) the level
of service that Provider provides to its own business units for services similar to the
Finance Services.
	 
	 	6.2.	 	Resolution Levels and Escalation. The Parties shall attempt to resolve any
disputes or issues arising hereunder first by having the appropriate contact
individuals identified in Section VIII of the FSLP for a particular Business Unit and
area of the Finance Services attempt to resolve the dispute or issue. If such
individuals are unable to resolve the dispute or issue, such individuals shall refer
the dispute to the Service Owners for resolution. If the dispute or issue remains
outstanding and cannot be resolved by the Service Owners, the Parties shall resolve the
issue in accordance with Article VIII of the Agreement.

	7.	 	Costs, Invoicing and Payment.

	 	7.1.	 	Service Fees. For the Finance Services provided to Purchaser by Provider,
Purchaser shall pay to Provider the fees set forth in Attachment 2-1. Unless otherwise
specified in this Schedule or the Agreement, all time and materials expended by Provider
in the performance of the Finance Services shall be included in the fees set forth in
Attachment 2-1, and Provider shall not be entitled to receive any further compensation
for those kinds, numbers, and volumes of Finance Services as provided on the
Commencement Date.
	 
	 	7.2.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Finance Services
monthly in arrears during the Schedule Term. Purchaser shall pay all invoices within
forty-five (45) days of the date of submission of such invoices by Provider to
Purchaser. The fees set forth in Attachment 2-1 will not be in effect until the
Commencement Date and will be prorated as appropriate for any partial

4

 

	 	 	 	month during which Provider provides Finance Services on and after the Commencement
Date.

	8.	 	Divestiture. If Purchaser divests a Business Unit or a portion of a Business Unit, Provider
shall continue to provide the Finance Services with respect to such Business Unit or portion
of a Business Unit to the acquiring party during the Schedule Term and on the same terms and
conditions set forth herein so long as Purchaser pays any incremental costs incurred by
Provider in accomplishing the foregoing that are above the fees for the Finance Services
specified in Attachment 2-1.

	9.	 	Access to Facilities and Systems.

	 	9.1.	 	Service Locations. Provider may provide Finance Services at Provider’s offices
and facilities or, as reasonably necessary, at Purchaser’s facilities. During the
Schedule Term, if Provider requires access to Purchaser facilities in connection with
Provider’s provision of the Finance Services, Purchaser will provide to Provider access
to Purchaser’s facilities upon Provider’s request as necessary to enable Provider to
perform the Finance Services. Provider will comply with the use, security, and access
policies at each Purchaser facility for Purchaser’s employees and visitors generally as
may be in effect from time to time.
	 
	 	9.2.	 	Access to Systems. So long as Purchaser pays any incremental fees and charges
of third parties required to accomplish the following that are above the cost
components included in the fees for the Finance Services specified in Attachment 2-1,
such as, for example only, software licensors, Provider shall provide Purchaser
personnel with remote (web-based) access and on-site direct access through the Provider
network to access Provider’s Lawson systems and other finance systems to process
journal entries, retrieve reports from Lawson, and perform other activities related to
Purchaser’s receipt and use of the Finance Services. Provider shall use its
commercially reasonable best efforts to provide Purchaser adequate security clearances
as necessary to obtain and utilize such remote access and on-site access.

	10.	 	Software, Hardware and Other Assets.

	 	10.1.	 	Provision of Software, Hardware and Other Assets. Except as otherwise
provided herein, Provider shall be responsible for (i) obtaining all software, hardware
and other assets (including licenses) necessary to perform the Finance Services as such
Finance Services have historically been provided, and (ii) the costs of all such
software, hardware, and other assets (including licenses) so long as such annualized
costs do not exceed those annualized costs incurred by the predecessor of Provider
before the Commencement Date. Any increase in such annualized costs after the
Commencement Date for software, hardware or other assets (including licenses) that are
necessary in order for Provider to provide the Finance Services without a degradation
in the quality of the Finance Services or that are otherwise incurred based on
Purchaser’s request shall be paid for by

5

 

	 	 	 	Purchaser. Provider agrees to consult with Purchaser before incurring such
increased costs, to the extent possible.
	 
	 	10.2.	 	Operation and Maintenance of Software, Hardware and Other Assets. As part of
the Finance Services, and included in the cost of the Finance Services set forth in
Attachment 2-1, Provider shall operate and maintain the existing systems and the
software, hardware, and other assets (including licenses) necessary to perform the
Finance Services. Provider’s obligation to operate and maintain the systems, hardware,
software and other assets (including licenses) shall include, without limitation (i)
providing system administration services, (ii) ensuring systems availability, (iii)
performing break/fix, troubleshooting and problem resolution, and (iv) obtaining and
installing software upgrades required to maintain vendor support.
	 
	 	10.3.	 	Related Services. Notwithstanding anything to the contrary in Section 2.2(a)
of the Agreement, at Purchaser’s request, Provider shall provide to Purchaser (i)
system enhancement and modification services related to the Finance Services but not
included in the services provided by the predecessor of Provider to Purchaser prior to
the Separation and not otherwise described in this Schedule 2 so long as Provider
elects to provide such enhancement and modification services to itself, and (ii)
additional services related to the implementation of Provider’s SAP system or other
migration activities, regardless of whether Provider elects to provide such services to
itself. In the event Provider performs any such systems enhancements and
modifications, Provider may charge Purchaser for such systems enhancements and
modifications at a rate of $61 per man hour worked, plus expenses and materials (which
will be charged on a pass-through basis without mark-up).

	11.	 	Service Owners. The Parties’ respective Service Owners under this Schedule are identified
below.

	 	 	 
	Provider:

	 	Purchaser:
	 
	 	 
	Anita Bain

	 	Stephen Kincanon
	VP/General Manager

	 	VP Shared Services NA
	(336) 519-8140

	 	(314) 513-7454

	12.	 	Responsibility for Filings. Purchaser acknowledges and agrees that it is solely responsible
for: (i) any local, state, federal or other governmental or regulatory filings, including,
without limitation, the accuracy and completeness thereof and any and all liabilities, costs,
penalties, fines and charges associated therewith; and (ii) any and all taxes due and owing to
any government or taxing authority. Purchaser hereby irrevocably waives any claim against
Provider, whenever and however arising, based on or related to any filing made by Purchaser
and the payment or non-payment by Purchaser of any taxes.

6

 

Attachment 2-1

Cost of Finance Services

Except as otherwise expressly provided in this Schedule 2 or the Agreement, the monthly cost of
Finance Services in each month of the Initial Schedule Term shall be the cost specified in the
table below for the applicable month.

If Purchaser requests reductions in the number of employees of Provider involved in services
deliveries to Purchaser other than those set forth below, Provider shall effect such workforce
reductions within forty-five (45) days of Purchaser’s request and Provider shall pass on to
Purchaser in the form of a reduction in the monthly cost of finance services such cost savings as
Provider achieves by such workforce reductions.

The parties agree that Provider shall implement workforce reductions already planned in the numbers
and at the times indicated below, and, based on same, Provider’s monthly charges to Purchaser shall
be as set forth below. (If Purchaser requests that Provider delay any planned workforce
reductions, the cost to Purchaser in the month affected shall be the cost for the preceding month,
adjusted in the case of a partial workforce reduction on a pro rata basis for any actual workforce
reduction in such month affected.)

Planned Monthly Costs for Finance Services

	 	 	 	 	 	 	 	 	 
	 	 	Planned Workforce	 	Provider’s Charge to
	Month	 	Reductions Impacting Cost	 	Purchaser
	 	 	(Month/Cumulative)	 	 	 	 
	August 2006
	 	 	 	 	 	$	413,500	 
	September 2006
	 	 	23/23	 	 	$	413,500	 
	October 2006
	 	 	3/26	 	 	$	313,800	 
	November 2006
	 	 	1/27	 	 	$	300,800	 
	December 2006
	 	 	11/37	 	 	$	293,100	 
	January 2007
	 	 	1/38	 	 	$	7,800	 

 

 

Schedule 3

IT Mainframe Services

	1.	 	General. This is Schedule 3 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 3 describes certain information technology services to be
provided by HBI (for purposes of this Schedule 3, the “Provider”) to Sara Lee (for
purposes of this Schedule 3, the “Purchaser”). This Schedule 3 includes
Attachment 3-1, Attachment 3-2, Attachment 3-3, and Attachment
3-4, attached hereto.

	2.	 	Definitions. Capitalized terms used in this Schedule 3 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	2.1.	 	“Commencement Date” shall mean the Distribution Date.
	 
	 	2.2.	 	“IBM” shall mean International Business Machines Corporation.
	 
	 	2.3.	 	“Mainframe Services” shall mean those services related to the R66 and
X27 that were performed for Purchaser by the predecessor to Provider prior to the
Commencement Date, including without limitation, the services set forth on
Attachment 3-1.
	 
	 	2.4.	 	“R66” shall mean that certain mainframe currently owned by Provider,
for which both Provider and IBM have operational responsibility and on which the Sara
Lee US Foods US Fresh DCS application runs in a Provider logical partition, and any
upgrades thereof.
	 
	 	2.5.	 	“Service Owner” shall mean, with respect to a Party, the individual
designated in Attachment 3.1 to be such Party’s initial point of contact and escalation
for the Mainframe Services or for a specific portion of the Mainframe Services.
	 
	 	2.6.	 	“X27” shall mean that certain mainframe used by Purchaser but owned by
IBM, for which both Provider and IBM have operational responsibility and on which the
Sara Lee Bakery Group DMS application runs, and any upgrades thereof.

	3.	 	Service Commitments.

	 	3.1.	 	Provider Obligations. Starting on the Commencement Date, Provider shall
provide to Purchaser the Mainframe Services.
	 
	 	3.2.	 	Purchaser Obligations. In connection with the Mainframe Services to be
provided by Provider to Purchaser hereunder, Purchaser shall do the following, as
necessary for Provider to perform the Mainframe Services: (i) perform the tasks
identified as being the responsibility of Purchaser in this Schedule 3; (ii) manage its
relationship with IBM and other service providers and licensors as necessary

 

 

	 	 	 	for Provider to perform its obligations hereunder; and (iii) remove the DCS
application from the R66.

	4.	 	Service Delivery. In addition to the requirements set forth elsewhere in this Schedule 3,
Provider will perform the Mainframe Services in the same manner, with the same frequency of
service delivery and the same personnel, and during the same working hours as the predecessor
to Provider performed services that are the same as the Mainframe Services prior to the
Commencement Date. With respect to any Mainframe Service for which the predecessor to
Provider did not perform an equivalent service prior to the Commencement Date, the Provider
shall perform such Mainframe Service with the frequency of service delivery reasonably
requested by Purchaser, so long as Provider elects to provide such Service and frequency for
itself.

	5.	 	Schedule Term. Unless otherwise terminated under this Schedule 3 or the Agreement, Provider
shall provide the Mainframe Services to Purchaser from the Commencement Date for a period of
one year from the Commencement Date. Subject to Provider’s rights to terminate as provided in
this Section, Purchaser may extend the term of this Schedule 3 in connection with the
Mainframe Services for additional one (1) year periods by providing to Provider written notice
of extension at least ninety (90) days prior to the expiration of the then current term.
Purchaser shall have the right at any time to terminate its obligation to purchase Mainframe
Services, in whole or in part, upon giving of thirty (30) days advance written notice to
Provider. Provider shall have the right to terminate Mainframe Services associated with the
R66 effective on or after December 31, 2007 by giving Purchaser at least ninety (90) days
written notice, and to terminate Mainframe Services associated with the X27 effective on or
before December 31, 2009 by giving Purchaser at least six (6) months written notice.

	6.	 	Service Level Obligations and Escalation. Provider will provide the Mainframe Services (i)
in accordance with the service levels identified in Attachment 3-1 and Attachment 3-4
for the applicable service. If no service levels are included in Attachment 3-1 and
Attachment 3-4 with respect to a particular service, Provider will provide such
service in accordance with the higher of (a) the level of service comparable to what has
historically been provided by the predecessor of Provider prior to the Commencement Date, or
(b) the level of service that Provider provides to its own business units for services similar
to the Mainframe Services.

	7.	 	Costs. For the Mainframe Services, Purchaser shall pay to Provider the fees set forth in
Attachment 3-2. Unless otherwise specified in this Schedule 3 or the Agreement, all
time and materials expended by Provider in the performance of the Mainframe Services shall be
included in the applicable fees set forth in Attachment 3- 2, and Provider shall not
be entitled to receive any further compensation therefor. Provider may provide systems
enhancements and modifications related to the Mainframe Services, above and beyond
applications and reports in existence as of the Commencement Date, at an additional cost to be
negotiated at the time of the request for such enhancements and modifications. In the event
the Parties agree upon such enhancements and modifications, the Parties shall develop a
separate statement of work or addendum to this Schedule 3 with respect to such

2

 

	 	 	enhancements and modifications, and Provider shall separately indicate charges for such
enhancements and modifications on Provider’s regular invoices.

	8.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Mainframe Services in arrears
monthly during the term of this Schedule 3. Purchaser shall pay all invoices for the
Mainframe Services within forty five (45) days of the date of submission of such invoices by
Provider to Purchaser.

	9.	 	Service Locations. Provider shall provide the Mainframe Services from Provider’s Data
Center. Purchaser shall receive the Mainframe Services at Purchaser’s Chicago SLC IT Center,
Purchaser’s Mason SLC Data Center and any other location designated by Purchaser which is
acceptable to Provider. During the term of this Schedule 3, if Provider requires access to
Purchaser facilities in connection with Provider’s provision of the Mainframe Services,
Purchaser will provide to Provider access to Purchaser’s facilities upon Provider’s request as
necessary to enable Provider to perform the Mainframe Services. Provider will comply with all
policies, including without limitation, use, security, and access policies, at each Purchaser
facility for Purchaser’s employees and visitors generally as may be in effect from time to
time.

	10.	 	Software, Hardware and Other Assets. Provider shall be responsible for obtaining all
software, hardware, other assets (including licenses) and any other rights necessary to
perform the Mainframe Services, including without limitation the software, hardware and assets
identified on Attachment 3-3 by the Commencement Date. Provider shall be solely responsible
for the costs of all such software, hardware, other assets (including licenses) and other
rights necessary to perform the Mainframe Services as such Services have historically been
provided so long as such costs do not exceed those incurred by the predecessor of Provider
before the Commencement Date. Any increase in such costs after the Commencement Date shall be
paid for by Purchaser. As part of the Mainframe Services, and included in the cost of the
Mainframe Services set forth in Attachment 3-2, Provider shall operate and maintain the
systems and the software, hardware, and other assets (including licenses) necessary to perform
the Mainframe Services as such Services are provided as of the Commencement Date.

	11.	 	Service Owners. The Parties’ respective Service Owners for Mainframe Services under this
Schedule 3 are identified below.

Provider:

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 
	 	 	 	 
	 

	 	John Zaski
	 	Mike DeJong
	 

	 	VP Technology
	 	VP- Infrastructure
	 

	 	(336) 519-8276
	 	(513) 204-4001

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Attachment 3-1

Service Targets For Mainframe Services

A. Resolution Levels and Escalation for Mainframe Services.

All issues should start for resolution at the Providers help desk (336-519-5000). For systems
issues that cannot be resolved by the Provider help desk, Purchaser may escalate the issues by
calling the following individuals as necessary in the following order: (i) Senior Manager AS400/
Mainframe: Gregory Montgomery (336 519 8839); (ii) Director Systems Engineering: Bill Bazil
(336-519-8467); (iii) Vice President Technology: John Zaski (336 519 8276); and (iv) Chief
Information Officer: Jim Nanton (336 519 4656). The Parties shall attempt to resolve any
outstanding issues not resolved in connection with the foregoing or any other issue or disputes
arising with respect to the Mainframe Services first by having the Service Owners attempt to
resolve the dispute or issue. If the dispute or issue remains outstanding and cannot be resolved
by the Service Owners, the Parties shall resolve the issue in accordance with Article VIII
of the Agreement.

Service Targets over the Escalation Process

	 	 	 	 	 	 	 
	 	 	Level 1	 	Level 2	 	1st Escalation
	All severity 3 issues (not problem related)

	 	1 hour
	 	No maximum target
	 	N/A
	All severity 2 issues (process failure or
process completes with non-critical error,
work-around available)

	 	1 hour
	 	4 hours
	 	Next Business Day
	All severity 1 issues (work interrupted,
no work-around)

	 	1 hour
	 	2 hours same day
	 	1 hour same day

 

 

	B.	 	Description of Mainframe Services.

Provider shall do the following as part of the Mainframe Services:

	1.	 	Allow the running of the current US Fresh application on the R66 mainframe.
	 
	2.	 	Permit the X27 environment to reside in the HBI Data Center.
	 
	3.	 	License and maintain the software installed on the R66 for which Provider, as between
Provider and IBM, is responsible.
	 
	4.	 	Conduct mainframe operations, including without limitation, printing reports, and manual tape
handling for the R.66 and X.27.
	 
	5.	 	Maintain tape libraries for the R66 and X27 mainframes at Provider’s Data Center.
	 
	6.	 	Manage Provider’s relationship with IBM and other service providers and licensors so as to
ensure proper performance and continuity of the mainframe services to be provided by Provider
under this Schedule 3.
	 
	7.	 	Provide office space for IBM personnel as required in Provider’s services agreement with IBM
and in Purchaser’s services agreement with IBM.
	 
	8.	 	In the event of a relocation of mainframe services from the existing HBI Data Center located
at 450 Hanes Mill Road, Winston-Salem, NC to another facility, Provider must provide Purchaser
six (6) months advance notice and coordinate the move with an agreed upon relocation date with
Purchaser. Purchaser shall be responsible for all move and relocation fees of the X27 up to
and including Purchaser’s business loss and application development and testing fees.
Additionally, for the R66 move, if any, Purchaser shall be responsible for the same as relates
to Applications on the R66 utilized by Purchaser.
	 
	9.	 	Systems operation services for Mainframe Services of the kinds, types, and volumes currently
provided:

	 	(a)	 	Data Center Facility Management

	 	 	Maintenance of hosted equipment in a commercial data center environment featuring raised
floor space, computer room monitoring, Halon protection, dual electrical power feeds with
uninterruptible power supplies, and a backup diesel power generator

	 	(b)	 	Operating System Upgrade Restrictions

	 	 	Operating system and program product upgrades for the R.66 must have Purchaser’s prior
approval thirty (30) days in advance of implementation.

	 	(c)	 	Provider and Purchaser, as recipients of Mainframe Services from the other, shall
utilize the change control procedures of the other for all desired changes related to
Mainframe Services to such recipient.

2

 

	 	(d)	 	Availability Management
	 
	 	 	 	Establishment of scheduled availability for hardware and online systems in July of
each year.
	 
	 	(e)	 	Report/Print Management

	 	(i)	 	Printing and distributing reports to Purchaser (through
Provider Computer Operations department) or making online reports for
application systems available to Purchaser.
	 
	 	(ii)	 	Completing quality checks on all printed materials prior to
distribution to Purchaser.
	 
	 	(iii)	 	Providing timely assistance to Purchaser as required for
report tracking.
	 
	 	(iv)	 	Publishing and providing to Purchaser a monthly measurement
print report.
	 
	 	(v)	 	Providing and maintaining an electronic system for online
viewing of reports by Purchaser;

	10.	 	Disaster Recovery/Continuity Services for Mainframe Services:

	 	(a)	 	Disaster recovery planning services that cover a total or partial loss of
Provider’s Data Center. In the event of a disaster that prevents services from being
provided for an extended period of time, Provider shall immediately notify Purchaser
Chief Information Officers and their designated Disaster Recovery Coordinators.
Provider shall declare a disaster and move to a backup site upon determination that the
total or partial data center outage will significantly exceed the maximum defined
recovery time objective (RTO) for lost systems. Provider shall involve Purchaser
Chief Information Officers and their designated Disaster Recovery Coordinators in
making the foregoing determination.
	 
	 	(b)	 	Providing Mainframe Services in a disaster in “keep alive” versus “business as
usual” mode unless otherwise designated (which may require activation of the
Purchaser’s business continuity plan).
	 
	 	(c)	 	Providing assistance to the Purchaser in the development of information
technology disaster recovery plans. Provider shall provide assistance in Purchaser
business continuity plan development depending on resource availability.
	 
	 	(d)	 	Coordinating with the current disaster recovery services vendor (SunGard
Availability Services) and providing Purchaser access to such vendor as necessary or as
reasonably requested by Purchaser.
	 
	 	(e)	 	Coordinating with the current offsite storage vendor and providing Purchaser
access to such vendor as necessary or as reasonably requested by Purchaser.

3

 

Attachment 3-2

Costs

Mainframe Services

Mainframe cost allocation methodology

	•	 	IBM will split the charges for the workload based on consumption from each machine. The R66 workload will
be charged to Provider and the X27 workload being charged to Purchaser, in accordance with the applicable
service agreements with IBM. ARCs and RRCs (resource charges/credits) will accrue to the individual
machines based on the baselines established for the machines and the actual resource consumption on each
machine. (Prior to the Commencement Date, the consumption calculation was shared between both machines.)

	•	 	Purchaser shall pay for the facility and operation cost on the X27 mainframe. These costs include floor
space/power, tape mounts, offsite storage and operations management.

	•	 	Provider will be responsible for software maintenance cost on the R66 mainframe.

	•	 	Provider shall charge Purchaser for maintenance costs associated with the running the US Fresh workload on
the R66 mainframe (i.e., software support, floor space tape mounts, offsite tape storage, operations
management).

	 	 	 	 	 	 	 	 	 
	Item	 	R.66	 	X.27
	Mainframe Costs
	 	$	168,574	 	 	$	100,000	 
	+5% Adjustment
	 	$	8,426	 	 	$	5,000	 
	 
	 	 	 	 	 	 	 	 
	Total Annual Fee
	 	$	177,000	 	 	$	105,000	 

Commencing July 1, 2007 and annually thereafter, all Mainframe Services costs described herein
shall increase by three and one-half percent (3.5%) over such costs in the immediately preceding
twelve (12) month period.

 

 

Attachment 3-3

Hardware, Software and Other Assets

The following systems are required for Provider to deliver the Mainframe Services:

Mainframe Services

	•	 	R66 mainframe
	 
	•	 	X27 mainframe

 

 

Attachment 3.4

Service Levels for R.66

	1.0	 	Introduction
	 
	a.	 	This Schedule describes the minimum levels of service (“Service Levels”) with respect to:

	 	1.	 	Provider’s duties, obligations and responsibilities related to the Service
Levels for defined Services; and
	 
	 	2.	 	certain of Purchaser’s responsibilities.

	b.	 	This Schedule includes Exhibit 3.6-1 which describes those specific Service Level
measurements that IBM will provide to Purchaser (for which Provider is not responsible).

	2.0	 	Applicability of Service Levels

a. Provider’s obligation to perform the Services to the Service Levels is as follows for those
Service Levels for which there is for the preceding twelve (12) months verifiable performance data
collected in the manner by which Provider is obligated herein to do so, Service Levels shall apply
beginning on the Commencement Date.

b. The measuring tools, as used by Purchaser immediately prior to the Commencement Date to track
metric performance in the mainframe environment, will continue to be used during the term.
Provider shall have responsibility for measuring tools. Additional mainframe measurement tools
added during the term are Provider’s responsibility.

	3.0	 	Reporting

Provider will be relieved of responsibility in accordance with the provisions of this Agreement for
meeting any Service Levels and for any associated Service Level Credits to the extent caused by (i)
the failure of Purchaser or its Affiliates, its third-party vendors and suppliers to perform their
responsibilities pursuant to the Agreement, (ii) Purchaser’s reprioritization of available
resources to facilitate the provision of new services, or (iii) circumstances that constitute an
event of force majeure, as described in Section 9.3 of the Agreement, including during the
continuance of disaster recovery during such an event.

	4.0	 	Addition or Deletion of Service Levels and Changes to Weighting Factors

Purchaser will send written notice to Provider at least ninety (90) days prior to the date that:
(i) additions or deletions to Service Levels and/or (ii) modifications to the weighting factors
applicable to the Service Levels are to be effective, provided that (i) Purchaser may send only one
(1) such notice (which notice may contain multiple changes) each calendar quarter and (ii) such
changes shall take effect on the first day of a month.

 

 

Exhibit 3.6-1

Service Level Measurements

	 	 	 	 	 
	 	 	 	 	SERVICE
	SERVICE METRIC	 	MEASUREMENT / CRITERIA	 	LEVEL
	Bakery LPAR #1

Availability of System
and related key
infrastructure
subsystems:

• Production LPARs

• Production DB2
Regions

• Production CICS
Regions

• Production
Datacom/DB

	 	7x24 Availability

(excluding maintenance

windows) per LPAR or

subsystem
	 	99.7%

or

Maximum
unavailability of 3
instances per month
per LPAR or
Subsystem

[(Actual Uptime +
Excusable Downtime)
/Scheduled Hours] x
100
	 
	 	 	 	 
	Batch Processing

Processing Of Key 

Production Batch Jobs

	 	Completed by required

time per production

job
	 	99.50%

or

90% for any
individual batch job
per month

(On Time Completion
Count/Batch Run
Count) * 100
	 
	 	 	 	 
	Response Time

Production CICS 

Response Time

	 	Total response time

per production region
	 	£ 1 Sec

(Average of all
transactions in a
region)
	 
	 	 	 	 
	Change Requests

Simple Change Requests
(e.g., scheduling
request, RACF
administration, CICS
admin, etc.)

Complex Change Requests

	 	

16 Business Hours

Duration to be
negotiated at time of
request
	 	Both Requests

90% on time, 95%
within 1.5x of on
time 

(On Time Completion
Count/Request
Count)

2

 

Schedule 4

Tax Services

	1.	 	General. This is Schedule 4 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands Inc., a Maryland corporation (“HBI”) (the
“Agreement”). This Schedule 4 describes certain tax services to be provided by Sara
Lee (for purposes of this Schedule, the “Provider”) to HBI (for purposes of this
Schedule, the “Purchaser”). This Schedule 4 includes Attachment 4-1 and
Attachment 4-2 attached hereto.

	2.	 	Definitions. Capitalized terms used in this Schedule 4 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	2.1.	 	“Commencement Date” shall mean the Distribution Date.
	 
	 	2.2.	 	“Extension Schedule Term” shall mean a period of up to fifteen (15)
months after the Initial Schedule Term.
	 
	 	2.3.	 	“Initial Schedule Term” shall mean the period from the Commencement
Date through and including June 30, 2007.
	 
	 	2.4.	 	“Schedule Term” shall mean, collectively, the Initial Schedule Term and
any Extension Schedule Term.
	 
	 	2.5.	 	“Service Owner” shall mean, with respect to a Party, the individual
designated in Section 9 to be such Party’s initial point of contact and escalation for
the Tax Services under this Schedule 4.
	 
	 	2.6.	 	“Tax Services” shall mean the tax-related Services to be provided by
Provider to Purchaser as described in this Schedule.

	3.	 	Service Commitments.

	 	3.1.	 	Purchaser Obligations. In connection with the Tax Services to be provided by
Provider to Purchaser hereunder, Purchaser shall do the following:

	 	(i)	 	Provide timely human resources to work with Provider’s tax
department in order to facilitate Provider’s ability to deliver the Tax
Services and Purchaser’s ability to take responsibility for the Tax Services
over time;
	 
	 	(ii)	 	Take gradual responsibility for the Tax Services identified in
Section 3.2 as Purchaser tax personnel become trained and proficient in
tax systems support; and
	 
	 	(iii)	 	Provide facilities, hardware, software and other resources
(and access thereto) and consulting service from software vendors upon
Provider’s request, all as necessary for Provider to perform the Tax Services,

 

 

	 	 	 	including, without limitation, all resources set forth in Section 7
and Section 8.

	 	3.2.	 	Provider Obligations. Starting on the Commencement Date, Provider will perform
the following Tax Services under this Schedule 4 as, and to the extent, requested by
Purchaser:

	 	(i)	 	Provide business support to assist Purchaser in negotiating
license and engagement agreements between Purchaser and Deloitte & Touche
(“D&T”) and Purchaser and other vendors mutually agreed upon by the Parties;
	 
	 	(ii)	 	Assist Purchaser in implementing ETS, CATS or Excel-based
calendar (including interface with accounts payable system) to track filing
items/payments;
	 
	 	(iii)	 	Assist Purchaser in implementing ETS system, including initial
setup for Purchaser;
	 
	 	(iv)	 	Assist Purchaser in implementing the GDX tax data collection
package for domestic and international business units, including creation
and/or revision of schedules for Purchaser if the Parties can obtain necessary
consent(s) from D&T;
	 
	 	(v)	 	Assist Purchaser in implementing STEX for estimated tax and
extension payments;
	 
	 	(vi)	 	Assist Purchaser in implementing new e-Filing requirement for
Purchaser, with the assistance of outside consultants mutually acceptable to
the Parties (possibly D&T); including aggregating return data from ETS and
Fixed Asset/other non-ETS systems using “data importer” or “tax series” type
software;
	 
	 	(vii)	 	Assist Purchaser in implementing M-3 (new requirement for
federal tax returns), including reconfiguring ETS components and building of
integration points with existing accounting systems (or, in anticipation of
integration of a new ERP system such as SAP at HBI, detailed specifications of
integration points and recommendations for such integration);
	 
	 	(viii)	 	Work with Purchaser’s IT department to install hardware/software used by the
tax function involving multiple applications and environments, including (a)
application, Citrix (if needed), Web and/or file servers, and (b) test,
production and disaster recovery servers for ETS, GDX and certain other
applications;
	 
	 	(ix)	 	Provide systems support to Purchaser tax professionals during
tax planning and compliance;

2

 

	 	(x)	 	Assist Purchaser in creating database frameworks and procedures
to retain tax data as required by taxing authorities;
	 
	 	(xi)	 	Assist Purchaser in establishing internal tax knowledge base in
Purchaser intranet;
	 
	 	(xii)	 	Assist Purchaser in establishing account as requested with
BNA, CCH, RIA and/or Superforms;
	 
	 	(xiii)	 	Provide assistance to Purchaser’s Tax Director in developing income
tax-related processes and procedures; and
	 
	 	(xiv)	 	Provide systems training to a designated Purchaser tax systems
employee to be hired after the Commencement Date.

	4.	 	Service Delivery.

	 	4.1.	 	Service Delivery. Provider will provide the Tax Services as necessary during
normal working hours during the Schedule Term, with a gradual reduction in Tax Services
over the course of the Schedule Term as the Purchaser tax department gains the ability
to manage Purchaser’s tax systems on its own. Provider will designate at least two (2)
individuals to provide Tax Services, which may include the Provider Service Owner, and
such individuals may be used by Provider in any combination to provide the Services.
Provider shall not be required to reimburse any costs to Purchaser if service levels
are not met and Purchaser shall not be required to pay any additional charges not set
forth on Attachment 4-1 if additional Provider work is required due to a
Purchaser error.
	 
	 	4.2.	 	Task List and Total Hours. The Parties shall cooperate to generate a task list
and project plan related to the Tax Services and an estimate of the hours. In no event
shall Provider be required to provide greater than 1000 man hours of Tax Services in
the aggregate during the Initial Schedule Term.

	5.	 	Costs, Invoicing and Payment.

	 	5.1.	 	Service Fees. Provider will provide the Tax Services for the fees and expenses
set forth in Attachment 4-1. Unless otherwise specified in this Schedule or
the Agreement, all time and materials expended by Provider in the performance of the HR
Services shall be included in the fees set forth in Attachment 4-1, and
Provider shall not be entitled to receive any further compensation therefor.
	 
	 	5.2.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Tax Services
in arrears on a quarterly basis after the conclusion of each calendar quarter during
the Schedule Term. Purchaser shall pay all invoices within forty-five (45) days of the
date of submission of such invoices by Provider to Purchaser. The fees set forth in
Attachment 4-1 will be prorated as appropriate for any partial fiscal quarter
during which Provider provides Tax Services.

3

 

	6.	 	Service Levels; Escalation.

	 	6.1.	 	Service Level Obligations. Provider will provide the Tax Services with a level
of service comparable to what has historically been provided by technology systems
support to the Winston-Salem satellite office prior to the Separation. For those Tax
Services identified in Section 3.2 that have not been provided to the
Winston-Salem satellite office in the past, the level of service will be comparable to
what has been provided to the Provider tax department for services similar to the Tax
Services. Provider will use commercially reasonable efforts to respond to all calls
and issues within two (2) business days.
	 
	 	6.2.	 	Resolution Levels and Escalation. The Parties shall present any issue that the
Service Owners are unable to resolve to the Purchaser vice president for tax (or other
senior executive with responsibility for tax) and the Provider Vice President of Tax.
If the issues cannot be resolved in a timely manner by the Purchaser vice president for
tax (or other senior executive with responsibility for tax) and the Provider Vice
President of Tax, the Parties shall escalate the issue to the Chief Financial Officers
of each Party. If the issue remains outstanding and cannot be resolved by the Chief
Financial Officers, the Parties shall resolve the issue in accordance with Article
VIII of the Agreement.

	7.	 	Access to Facilities and Systems.

	 	7.1.	 	Service Locations. Provider may provide Tax Services at Provider’s offices or
other facilities, or as reasonably necessary, at Purchaser’s offices in Winston-Salem,
North Carolina. During the Schedule Term, Purchaser will provide to Provider, in
connection with Provider’s provision of the Tax Services, access to Purchaser’s
facilities as necessary in order to enable Provider to perform the Tax Services.
Provider will comply with the use, security, and access policies at each Purchaser
facility for Purchaser’s employees and visitors generally as may be in effect and as are
communicated in writing to Provider.
	 
	 	7.2.	 	Access to Systems. Purchaser shall provide Provider with remote and on-site
direct access through the Purchaser network to access Purchaser tax systems from
Provider locations and Purchaser locations, respectively, as necessary for Provider to
perform the Tax Services. Purchaser shall provide Provider adequate security clearances
as necessary to obtain and utilize such remote and on-site access.

	8.	 	Software, Hardware and Other Assets. Purchaser shall be responsible for obtaining for all
software, hardware and other assets (including licenses) necessary to establish and maintain
its tax department and necessary for Provider to perform the Tax Services, including without
limitation the software, hardware and assets identified on Attachment 4-2. Purchaser shall
obtain the software, hardware and other assets identified on Attachment 4-2 within forty-five
(45) days of the Commencement Date. Purchaser shall be solely responsible for the costs of
all such software, hardware, and other assets (including licenses) and for the costs of
maintaining and upgrading all such software, hardware, and other assets (including licenses).

4

 

	9.	 	Service Owners. The Parties’ respective Service Owners under this Schedule are identified
below.

	 	 	 
	Provider:

James Hahn

Director, Tax System Planning

312-558-8494

	 	Purchaser:

Mike Caminiti

	10.	 	Schedule Term. Provider shall provide the Tax Services identified in Section 3.2 during the
Initial Schedule Term. In the event Purchaser requires systems support in order to e-file its
federal tax return, upon the mutual written agreement of the Parties, Purchaser may extend the
Initial Schedule Term for the Extension Schedule Term; provided, however, that such extension
shall include the following terms: (i) Purchaser shall give Provider prior written notice of
its intent to extent the Schedule Term at least ninety (90) days prior to the expiration the
Initial Schedule Term, which notice shall specify the duration of the Extension Schedule Term
(which shall not exceed fifteen (15) months); (ii) Provider shall only be required to provide
Tax Services with respect to Purchaser’s tax systems as necessary for Purchaser to be able to
e-file its first federal tax return; and (iii) Purchaser shall pay Provider for the Tax
Services during the Extension Schedule Term on a time and materials basis at the blended rate
specified on Attachment 4-1 plus five percent (5%) for inflation, provided that pass-through
expenses will be billed at actual cost.

	11.	 	Responsibility for Tax Filings. The responsibility for: (i) any local, state, federal, and
other tax filings, including, without limitation, the accuracy and completeness thereof and
any and all liabilities, costs, penalties, fines and charges associated therewith; and (ii)
any and all taxes due and owing to any government or taxing authority shall be governed by the
Tax Sharing Agreement entered into between Purchaser and Provider on August 31, 2006.
Purchaser hereby irrevocably waives any claim against Provider arising out of this Agreement
based on or related to any tax filing made by Purchaser and the payment or non-payment by
Purchaser of any taxes.

5

 

Attachment 4-1

Cost of Tax Services

Costs will be billed at a rate of $120/hour, regardless of the level of the Provider personnel
providing the Services.

Travel and other expenses will be billed on a pass-through basis.

6

 

Attachment 4-2

Hardware, Software and Other Assets

HARDWARE

GDX (Global Data Exchange) servers

ETS servers

Citrix servers

Web servers

File servers

SOFTWARE

GDX, ETS, ETS Calendar, BNA, CCH, RIA, etc.

Provider’s employees shall be allowed to access the software with full administrative and user
privileges as agreed upon by the Parties.

7

 

Schedule 5

Calendar Year 2006 Benefits and Compensation

	1.	 	General. This is Schedule 5 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands Inc., a Maryland corporation (“HBI”) (the
“Agreement”). This Schedule 5 describes benefits and compensation accounting and
administrative support services to be provided by Sara Lee (for purposes of this Schedule, the
“Provider”) to HBI (for purposes of this Schedule, the “Purchaser”), with
respect to the employee benefit and compensation plans maintained by HBI, both inside and
outside of the United States (“Purchaser’s Plans”). This Schedule 5 includes
Attachments 5-1 and 5-2.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 5 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	2.1	 	“Commencement Date” shall mean the Distribution Date as defined in the
Separation Agreement.
	 
	 	2.2	 	“Extension Schedule Term” shall mean a period of up to one hundred
eighty (180) days after the Initial Schedule Term.
	 
	 	2.3	 	“Benefits and Compensation Services” shall mean the benefits
accounting, benefits administration and benefits strategy and training implementation
services (including but not limited to the plan specific services listed in Section
3(iv)) to be provided by Provider to Purchaser and Purchaser’s Plans as described
in this Schedule.
	 
	 	2.4	 	“Initial Schedule Term” shall mean the period from the Commencement
Date through and including December 31, 2006.
	 
	 	2.5	 	“Schedule Term” shall mean, collectively, the Initial Schedule Term and
any Extension Schedule Term.
	 
	 	2.6	 	“Service Owner” shall mean, with respect to a Party, an individual
designated in Section 12 to be such Party’s initial point of contact and escalation
(pursuant to Section 7.3) for the Benefits and Compensation Services.

	3.	 	Service Commitments and Provider Obligations. Starting on the Commencement Date, Provider
will perform for Purchaser the following Benefits and Compensation Services:

	 	(i)	 	Benefits Accounting Services: For the Purchaser’s Plans providing the
benefits listed below in this Section 3(i) Provider shall: (a) reconcile
budgeted expenses versus actual expenses for self-insured plans as these pertain to
Purchaser, such reconciliation to result in a charge or a credit to Purchaser; (b)
provide vendor data and reports and Provider’s analysis related to plans; (c) produce
reports in

 

 

	 	 	 	compliance with certain reporting obligations (e.g., barrel reports, claims detail
(current and historic), claims charges on a monthly basis, and detailed information
on monthly cross-charges of claims and plan administration costs); (d) develop
Fiscal Year 2007 AOPs; (e) process all administration fees for self-insured plans
and premium invoices for insured plans for Purchaser; and (f) make available all
support documentation, including expense reconciliation and reports, upon request
and to the extent permitted by law;

	 	•	 	Medical (including Rx)
	 
	 	•	 	Retiree Medical
	 
	 	•	 	COBRA
	 
	 	•	 	Dental
	 
	 	•	 	Vision
	 
	 	•	 	Basic Life Insurance
	 
	 	•	 	Optional Life Insurance
	 
	 	•	 	Dependent Life Insurance
	 
	 	•	 	Retiree Life Insurance
	 
	 	•	 	Executive Life Insurance
	 
	 	•	 	Business Travel Accident Insurance
	 
	 	•	 	International SOS
	 
	 	•	 	Long Term Disability
	 
	 	•	 	Short Term Disability
	 
	 	•	 	Executive Long Term Disability
	 
	 	•	 	State Disability Insurance
	 
	 	•	 	Temporary Disability Income
	 
	 	•	 	Accidental Death and Dismemberment
	 
	 	•	 	Optional Accidental Death and Dismemberment
	 
	 	•	 	Flexible Spending Account (Medical and Dependent Care)
	 
	 	•	 	Long Term Care

2

 

	 	(ii)	 	Benefits Administration Services: Provider shall provide the following benefits
administration services to Purchaser:

	 	•	 	Banking Requirements – maintain funding arrangements in
existence as of the Commencement Date (through an ACH initiated debit process)
for Definity Health, Delta Dental of IL and Acclaim.
	 
	 	•	 	Compliance — plan administrative compliance, including but not
limited to preparing all annual reports and filings needed to comply with
applicable federal and state laws (including ERISA, the Internal Revenue Code,
HIPAA (including administration and EDI), Sarbanes Oxley, and 5500 reporting)
and assistance in meeting reporting and other requirements resulting from a
change, if any, in Purchaser’s fiscal year or the fiscal year of any of
Purchaser’s Plans during or within 90 days after the end of the Schedule Term.
(Excludes Purchaser’s compliance with ERISA fiduciary duty and prohibited
transaction rules and drafting of plan documents and amendments).
	 
	 	•	 	Communications – responsible for communicating administrative,
plan design and/or policy changes made to Purchaser’s Plans implemented to
comply with a change in law or to mirror a change in a corresponding Provider
plan.
	 
	 	•	 	Vendor Management – including, without limitation (and
including both U.S. and non-U.S. employees, plans and programs), addressing
employee, former employee, retiree, and dependent issues, contract
negotiations, monitoring performance guarantees, account management and network
management, for Definity Health, ING, Delta Dental of IL, VSP, Aetna, Hartford
Life Insurance, Cigna, Acclaim, Deloitte (healthcare and international tax and
assignment consultant), Hewitt (401(k) record keeper), Mercer (health and group
insurance administration, pension administration, and pension modeling), State
Street Bank (pension), and The Northern Trust (pension).
	 
	 	•	 	Employee/Participant Support – continued access to vendor call
centers by Purchaser’s employees and participants in Purchaser Plans, as well
as access to Provider personnel by Purchaser’s staff and third party
administrators to answer questions related to Purchaser Plans.
	 
	 	•	 	Claims and Appeals – assistance responding to claims submitted
by plan participants, beneficiaries or QDRO alternate payees, appeals from
denials or partial denials of claims and requests for information in connection
with claims, appeals or otherwise.
	 
	 	•	 	Claims Information – transfer of all information relating to
any outstanding claims and appeals to Purchaser or its third party
administrator

3

 

	 	 	 	when Purchaser commences performing claims and appeals functions with
respect to each Purchaser Plan.

	 	(iii)	 	Benefits Strategy and Training Implementation: Provider shall provide
Purchaser consultative support to leverage current Provider benefit programs and
vendors for stand alone implementation for Purchaser’s Plans. Provider shall assist
Purchaser in the development and implementation of new programs and vendors where
warranted and the administrative processes to manage Purchaser’s benefit programs
(including, without limitation, developing and setting employee rates for benefit year
2007). Provider shall work with Purchaser to develop and execute a project plan (to be
completed within 30 days after the Distribution Date) that ensures timely preparation
and successful execution of the transference of all benefits accounting and benefits
administration services from Provider to Purchaser by January 1, 2007. Provider shall
provide training as necessary to Purchaser with respect to benefits accounting and
benefits administration services to promote an efficient transfer of such
responsibilities to Purchaser. Provider shall provide Vice President Level Review to
ensure that Purchaser is capable of conducting benefits accounting and administration
services by January 1, 2007.
	 
	 	(iv)	 	Compensation Services. Provider shall provide transition functional, training,
vendor and technical support to Purchaser to promote an efficient transfer of
responsibilities to Purschaser with respect to the following Purchaser Plans:

	 	•	 	Omnibus Incentive Plan of 2006 – Provide transition functional
and technical support for transition to E*TRADE (including training, support in
start up, and information and knowledge sharing).
	 
	 	•	 	Annual Incentive Plan
	 
	 	•	 	Performance-Based Annual Incentive Plan
	 
	 	•	 	Non-Employee Directors Deferred Compensation Plan
	 
	 	•	 	Executive Deferred Compensation Plan
	 
	 	•	 	International Tax and Assignment Services
	 
	 	•	 	Stock Recognition Program
	 
	 	•	 	Share 2000/2003

	 	(v)	 	Plan Specific Services: Without limiting the services required to be provided
under the remainder of this Schedule, Provider shall provide Purchaser with the
following plan or benefit specific services:

	 	•	 	Consolidated Pension and Retirement Plan – Review employee
communications prepared by Mercer.

4

 

	 	•	 	Relocation Program – Provide access to and services of
Relocation Manager.
	 
	 	•	 	Medical (including Rx), Dental, Vision Benefits – Provide
monthly reporting on claims, costs, and administrative charges, and review
communications to retirees prepared by Mercer.
	 
	 	•	 	Share 2000/2003 — Provide (1) all necessary communications
regarding the operation of the programs, including, but not limited to, the
post-spin termination provisions and the adjustment to the number and price of
options and (2) a list of HBI participants to whom any communications should be
sent by HBI.

	 	(vi)	 	Other Obligations: Provider shall make available to Purchaser such personnel
as will be required to provide the Benefits and Compensation Services. In the event
that personnel with the designated level of experience are not employed by Provider at
any time during the term of this Agreement, Provider will substitute personnel or third
party personnel having an adequate level of experience. Provider shall make a good
faith effort to provide advance notice of any proposed changes to the benefits
accounting system to relevant Provider personnel and to Purchaser to ensure that
Purchaser and Provider have an opportunity to negotiate such proposed changes prior to
implementation of such changes. In no case will Purchaser be required to accept
changes to the benefits accounting system prior to the end of the Schedule Term unless
required by law or GAAP.

	4.	 	Purchaser Obligations. In connection with the Benefits and Compensation Services to be
provided by Provider to Purchaser hereunder, Purchaser shall do the following, as necessary
for Provider to perform the Benefits and Compensation Services:

	 	(i)	 	Commit adequate resources (including staff) to benefits training and
implementation.
	 
	 	(ii)	 	Work with Provider to develop and execute a project plan (to be completed
within 30 days after the Distribution Date) that ensures timely preparation and
successful execution of the transference of all benefits accounting and benefits
administration services from Provider to Purchaser by January 1, 2007.
	 
	 	(iii)	 	Provide Vice President level review to ensure that Purchaser is capable of
conducting benefits accounting and benefits administration services by January 1, 2007.
	 
	 	(iv)	 	Negotiate with Provider regarding any proposed changes to the benefits
accounting system. In no case will Purchaser be required to accept changes to the
benefits accounting system prior to the end of the Schedule Term unless required by law
or GAAP.

5

 

	 	(v)	 	Effective as of the Commencement Date, assume all ERISA fiduciary liability
with respect to such Purchaser Plans.
	 
	 	(vi)	 	Effective as of the Commencement Date, establish Purchaser’s own ERISA
governance structure including provisions for allocation and delegation of authority.

	5.	 	Service Delivery. Provider and Purchaser will work together to conduct business in the
ordinary course from the Commencement Date through the Schedule Term. Provider shall provide
the benefits accounting services set forth in Section 3(i) of this Schedule 5 on a monthly and
quarterly basis as required by the applicable process or transaction. Provider shall provide
the benefits administration services set forth in Section 3(ii) of this Schedule 5 and the
benefits strategy and training implementation services set forth in Section 3(iii) on
an as-needed and ongoing basis.
	 
	6.	 	Schedule Term. Provider shall provide the Benefits and Compensation Services during the
Schedule Term, unless this Schedule is first terminated as set forth in the Agreement.
Purchaser and Provider may mutually agree to extend the Initial Schedule Term for an Extension
Schedule Term.
	 
	7.	 	Service Levels; Escalation.

	 	7.1	 	Service Level Obligations. Provider will provide the Benefits and Compensation
Services at a level of service comparable to what has historically been provided by the
Provider prior to the Separation. Provider shall make a good faith effort to
acknowledge receipt of inquiries within two (2) business days of receipt thereof and to
timely address such inquiries. If, despite Provider’s best efforts, Provider is unable
to provide any Benefits and Compensation Service because of a failure to obtain
necessary vendor consents, licenses, sublicenses, or approvals, then the Parties shall
cooperate to determine the best alternative approach to providing services to Purchaser
and Purchaser’s Plans. If an agreed upon alternative approach requires payment above
that which is included in the service fees set forth in Attachment 5-1, Purchaser shall
be responsible for such fees to the extent agreed upon by the Parties and as
memorialized in a written amendment to this Schedule 5. In any event, Provider shall
use all reasonable efforts to continue providing the Benefits and Compensation
Services, including, in the case of systems, supporting the function to which the
system permits or allowing Purchaser access to the system so that Purchaser can,
itself, support that function.
	 
	 	7.2	 	Re-performance of Benefits and Compensation Services. In the event of any
breach of the Agreement and this Schedule 5 by Provider with respect to any error or
defect in the provision of any Benefits and Compensation Service, Provider shall use
commercially reasonable efforts to correct in all material respects such error or
defect or re-perform in all material respects such Benefits and Compensation Service at
the request of Purchaser and at the sole expense of Provider. In the event Provider is
unable to correct such error or re-perform such

6

 

	 	 	 	Benefits and Compensation Service,
Purchaser shall have the rights and remedies set forth in the Agreement.
	 
	 	7.3	 	Resolution Levels and Escalation. The Parties shall attempt to resolve any
disputes or issues arising hereunder first by escalating the dispute or issue for
resolution to the Service Owners. In the event that the Service Owners are unable to
resolve a dispute or issue, such dispute or issue shall be escalated to the Vice
President, Compensation and Benefits level in each Party’s organization. If the
dispute or issue remains outstanding and cannot be resolved at the Vice President,
Compensation and Benefits level, the Parties shall resolve the issue in accordance with
Article VIII of the Agreement.

	8.	 	Costs, Invoicing and Payment.

	 	8.1	 	Service Fees. For the Benefits and Compensation Services provided to Purchaser
by Provider, Purchaser shall pay to Provider the fees set forth in Attachment 5-1.
Purchaser shall be responsible for any and all consulting costs arising out of requests
by Purchaser for services which are beyond the scope of Provider’s service commitments
and obligations specifically enumerated herein.
	 
	 	8.2	 	Invoicing and Payment. Provider shall invoice Purchaser for the Benefits and
Compensation Services in arrears on a months basis within thirty (30) days of the
conclusion of each month during the Schedule Term except for any Benefits and
Compensation Services for a Purchaser Plan that is insured, in which case invoicing
shall be within fifteen (15) days of the conclusion of each month. Purchaser shall pay
all invoices within 45 days of the date of submission of such invoices by Provider to
Purchaser

	9.	 	Access to Facilities and Systems. Provider may provide Benefits and Compensation Services at
Provider’s offices and facilities or, as necessary as determined by Purchaser in its sole
discretion, at Purchaser’s facilities. During the Schedule Term, if Provider requires access
to Purchaser facilities in connection with Provider’s provision of the Benefits and
Compensation Services, Purchaser will provide to Provider access to Purchaser’s facilities
upon Provider’s request as necessary to enable Provider to perform the Benefits and
Compensation Services. Provider will comply with the use, security, and access policies at
each Purchaser facility for Purchaser’s employees and visitors generally as may be in effect
from time to time.
	 
	10.	 	Sarbanes-Oxley and Other Compliance. In connection with the Benefits and Compensation
Services, the Parties will maintain and comply with the internal controls, record retention
policies and other operating policies and procedures that were in place prior to the
Separation for the services that are the same as the Benefits and Compensation Services, and
the Parties shall grant data and system access rights accordingly.
	 
	11.	 	Software, Hardware and Other Assets.

7

 

	 	11.1	 	Provision of Software, Hardware and Other Assets. Provider shall work with
Purchaser to obtain any consents, licenses, or other necessary permissions that may be
required in order for Purchaser to use and operate the software, hardware
and assets identified on Attachment 5-2. In addition, Purchaser shall be permitted
to utilize or operate any software, development tools, know-how, methodologies,
processes, technologies, or algorithms owned by Provider to the extent necessary in
connection with Provider’s performance of the Benefits and Compensation Services
hereunder.
	 
	 	11.2	 	Operation and Maintenance of Software, Hardware and Other Assets. As part of the
Benefits and Compensation Services, and included in the cost of the Benefits and
Compensation Services set forth in Attachment 5-1, Provider shall operate and maintain
the existing systems and the software, hardware, and other assets (including licenses)
necessary to perform the Benefits and Compensation Services. Provider’s obligation to
operate and maintain the systems, hardware, software and other assets (including
licenses) shall include, without limitation (i) providing system administration
services, (ii) ensuring systems availability, (iii) performing break/fix,
troubleshooting and problem resolution, and (iv) obtaining and installing software
upgrades required to maintain vendor support.

12. Service Owners. The Parties’ respective Service Owners under this Schedule are identified
below.

	 	 	 
	Provider:
	 	Purchaser:

	Mark Jacobs

	 	Mary Islas
	Vice President, Global Benefits

	 	Director of SLBA Benefits & International Comp
	(312) 558-8569

	 	(336) 519 4055
	 
	 	 
	Ryan Egan

	 	Larry Washing
	Director of Benefits

	 	Director of Compensation
	(312) 558 -8392

	 	(336) 519-3474
	 
	 	 
	Faye Jaraczewski

	 	Teressa Blanchard
	VP Corporate Compensation

	 	Manager, Benefits
	(313) 558-8556

	 	(336) 519-4347

	13.	 	Transition Services. For a period of ninety (90) days following the termination of the
Schedule Term and the obligations under this Schedule 5, Provider shall, upon reasonable
request and at Purchaser’s expense, use commercially reasonable efforts to ensure the orderly
transition of the Benefits and Compensation Services from Provider and its third party vendors
to Purchaser and its third party vendors and to minimize any disruption to the business that
might result from the termination of the Schedule Term.

8

 

Attachment 5-1

Cost of Services

	 	 	 	 	 	 	 	 	 
	 	 	Annual Cost	 	 	Quarterly Cost	 
	Vice President
	 	$	12,344.00	 	 	$	4,115.00	 
	Senior Manager
	 	$	17,719.00	 	 	$	5,906.00	 
	Benefit Analyst
	 	$	4,975.00	 	 	$	1,658.00	 
	Administrators
	 	$	5,906.00	 	 	$	1,969.00	 
	Coordinator
	 	$	2,280.00	 	 	$	760.00	 
	 
	 	 	 	 	 	 
	TOTAL COST
	 	$	43,224.00	 	 	$	14,408.00	 
	 
	 	 	 	 	 	 

All vendor administrative costs will be included in the above service fees. In addition, out
of the amount of the fees paid by Purchaser to Provider pursuant to this Schedule 5, Provider shall
pay any amounts that are required to be paid to any licensors of software that is used primarily in
connection with the provision of any services pursuant to this Schedule 5, and any amounts that are
required to be paid to such licensors to obtain the consent of such licensors to provide any of the
services hereunder. Provider shall obtain any consents that may be required from such licensors in
order to provide any of the services hereunder. Such third party software shall include, without
limitation, the software programs listed in Attachment 5-2. Purchaser will be responsible for any
and all consulting costs rising out of requests by Purchaser for services which are beyond the
scope of Provider’s service commitments and obligations specifically emumerated herein.

Upon the termination of any service in accordance with the Agreement and this Schedule 5, the fees
to be paid to Provider by Purchaser will be reduced by the amount specified for such terminated
service or as otherwise agreed upon by the Parties.

9

 

Attachment 5-2

Hardware, Software and Other Assets

The following systems are required for Provider to deliver the Benefits Services:

	•	 	Lawson and associated infrastructure
	 
	•	 	VitalSprings Technologies
	 
	•	 	Various Microsoft applications {Please specify applications}
	 
	•	 	UltraEdit
	 
	•	 	Hewitt
	 
	•	 	Delta 2
	 
	•	 	Mercer BeneCalc
	 
	•	 	Total Rewards On-line
	 
	•	 	Profiles database
	 
	•	 	InSite 3.0 HR for Professionals intranet
	 
	•	 	InSite 3.0 HR for Employees intranet
	 
	•	 	[Software that supports Shareholder Services]

10

 

Schedule 6

International Decoupling Shared Services

	1.	 	General. This is Schedule 6 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 6 describes certain transition services to be provided by
HBI to Sara Lee and from Sara Lee to HBI in connection with the decoupling of Sara Lee’s and
HBI’s international locations.
	 
	2.	 	Attachments. This Schedule 6 includes Attachment 6-1 through Attachment 6-3 attached
hereto. Each Attachment hereto sets forth specific Decoupling Services that Sara Lee (or a
member of the Sara Lee Group) or HBI (or a member of the HBI Group) shall provide to a
designated recipient in a particular geographic location or with respect to a particular Sara
Lee or HBI business unit. For those Attachments in which HBI or a member of the HBI Group is
providing Decoupling Services to Sara Lee or a member of the Sara Lee Group, HBI (or a member
of the HBI Group, as applicable) is the “Provider” for purposes of the Agreement and
this Schedule 6 and Sara Lee (or a member of the Sara Lee Group, as applicable) is the
“Purchaser” for purposes of the Agreement and this Schedule 6. For those Attachments
in which Sara Lee or a member of the Sara Lee Group is providing Decoupling Services to HBI or
a member of the HBI Group, Sara Lee (or a member of the Sara Lee Group, as applicable) is the
“Provider” for purposes of the Agreement and this Schedule 6 and HBI (or a member of
the HBI Group, as applicable) is the “Purchaser” for purposes of the Agreement and
this Schedule 6. To the extent there are additional transition services with respect to a
particular Sara Lee and/or HBI geographic location or international business unit to be
provided after the Distribution Date in locations not included in Attachment 6-1 through
Attachment 6-3, the Parties shall work together in good faith to reach a mutual agreement
identifying the applicable services and costs and to create an additional Attachment to this
Schedule 6 to address the provision of such services in the applicable location(s) or with
respect to the applicable business unit(s).
	 
	3.	 	Definitions. Capitalized terms used in this Schedule 6 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

	 	3.1.	 	“Commencement Date” shall mean the date specified for the commencement of
Decoupling Services by the Provider for the Purchaser under a particular Attachment.
	 
	 	3.2.	 	“Decoupling Services” shall mean the transition services to be performed by a
Provider to a Purchaser under an applicable Attachment with respect to a particular
Sara Lee and/or HBI geographic location or international business unit.
	 
	 	3.3.	 	“Extension Services Term” shall mean, with respect to a particular Attachment,
a period of up to one hundred eighty (180) days after the Initial Services Term for
such Attachment.

 

 

	 	3.4.	 	“Initial Services Term” shall mean, with respect to any Attachment, the period
from the Commencement Date through the end date for the Decoupling Services under such
Attachment.
	 
	 	3.5.	 	“Service Owner” shall mean, with respect to a Party, the individual designated
in an Attachment, if any, to be such Party’s initial point of contact and escalation
for the Decoupling Services under such Attachment.
	 
	 	3.6.	 	“Services Term” shall mean, with respect to any Attachment, the Initial
Services Term and any Extension Services Term, collectively, for such Attachment.

	4.	 	Service Commitments.

	 	4.1.	 	Provider Obligations. Starting on the Commencement Date identified in an
Attachment, Provider will perform the Decoupling Services identified in such
Attachment.
	 
	 	4.2.	 	Purchaser Obligations. In connection with the Decoupling Services to be
provided by Provider to Purchaser hereunder, Purchaser shall: (i) pay the amounts
specified in the Attachment with respect to such Decoupling Services as set forth in
Section 8.1; and (ii) perform such support obligations and other obligations as set
forth in the applicable Attachment.

	5.	 	Service Delivery. For Decoupling Services that were provided by Provider prior to the
Distribution Date, unless set forth to the contrary in the applicable Attachment, Provider
shall perform the Decoupling Services in the same manner, with the same frequency of service
delivery and the same (or substantially similarly skilled) personnel, and during the same
working hours as were performed by the predecessor to Provider prior to the Distribution Date
for the services that are the same as the Decoupling Services. For Decoupling Services that
were not provided by Provider prior to the Distribution Date, Provider shall perform the
Decoupling Services: (i) in a professional and workmanlike manner; (ii) with the frequency of
service delivery and personnel and during the working hours specified in the applicable
Attachment; (iii) in such a manner as to effect a smooth and orderly decoupling of Sara Lee
and HBI, as applicable in the particular geographic region or with respect to the particular
business unit; and (iv) as otherwise set forth in the applicable Attachment.
	 
	6.	 	Services Terms. Provider shall provide the Decoupling Services under an Attachment during
the Services Term specified in such Attachment, unless this Schedule is first terminated as
set forth in the Agreement. In the event Purchaser requires Decoupling Services under an
Attachment beyond the applicable Initial Services Term, Purchaser may extend the Services Term
for such Attachment by providing to Provider written notice of extension for the Extension
Services Term for such Attachment at least forty-five (45) days prior to the expiration of the
applicable Initial Services Term.
	 
	7.	 	Service Levels; Escalation.

2

 

	 	7.1.	 	Service Level Obligations. Provider will provide the Decoupling Services under
an Attachment to Provider: (i) in accordance with any service levels specified in the
applicable Attachment; or (ii) if no service levels are included in the applicable
Attachment with respect to a particular Decoupling Service, in accordance with the
higher of (a) the level of service comparable to what has historically been provided by
Provider or the predecessor of Provider prior to the Separation, and (b) the level of
service that Provider provides to its own business units for services similar to the
Decoupling Services.
	 
	 	7.2.	 	Resolution Levels and Escalation. The Parties shall attempt to resolve any
disputes or issues arising under a particular Attachment first by having the Service
Owners under such Attachment attempt to resolve the dispute or issue. If the dispute
or issue remains outstanding and cannot be resolved by the Service Owners, the Parties
shall resolve the issue in accordance with Article VIII of the Agreement.

	8.	 	Costs, Invoicing and Payment.

	 	8.1.	 	Service Fees. For the Decoupling Services provided to Purchaser by Provider,
Purchaser shall pay to Provider the fees set forth in the applicable Attachment.
Unless otherwise specified in an Attachment, this Schedule or the Agreement, all time
and materials expended by Provider in the performance of the Decoupling Services under
an Attachment shall be included in the fees set forth in such Attachment, and Provider
shall not be entitled to receive any further compensation therefor.
	 
	 	8.2.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Decoupling
Services under an Attachment monthly in arrears during the Services Term for such
Attachment. Purchaser shall pay all invoices within forty-five (45) days of the date
of submission of such invoices by Provider to Purchaser.

	9.	 	Access to Facilities and Systems.

	 	9.1.	 	Service Locations. Provider shall provide Decoupling Services at Provider’s
offices and facilities or, as necessary in Purchaser’s reasonable discretion, at
Purchaser’s facilities. During the Services Term, if Provider requires access to
Purchaser facilities in connection with Provider’s provision of the Decoupling Services,
Purchaser will provide to Provider access to Purchaser’s facilities upon Provider’s
request as necessary to enable Provider to perform the Decoupling Services. Provider
will comply with the use, security, and access policies at each Purchaser facility for
Purchaser’s employees and visitors generally as may be in effect from time to time.
	 
	 	9.2.	 	Access to Systems. Provider shall provide Purchaser personnel with access
(remote and on-site) to the Provider network and systems as necessary for Purchaser to
receive and utilize the Decoupling Services or as otherwise set forth in the applicable
Attachment. Purchaser shall provide Provider personnel with

3

 

	 	 	 	access (remote and on-site) to the Purchaser network and systems as necessary for
Provider to perform the Decoupling Services or as otherwise set forth in the
applicable Attachment. In each case, the providing Party shall provide the
receiving Party adequate security clearances as necessary to obtain and utilize such
network and systems access.

	10.	 	Software, Hardware and Other Assets.

	 	10.1.	 	Provision of Software, Hardware and Other Assets. Except as otherwise
provided above and unless otherwise specified in a particular Attachment, Provider
shall be responsible for providing all software, hardware and other assets (including
licenses) necessary to perform the Decoupling Services under an Attachment. Unless
otherwise specified in a particular Attachment, Provider shall be solely responsible
for the costs of all such software, hardware, and other assets (including licenses).
	 
	 	10.2.	 	Operation and Maintenance of Software, Hardware and Other Assets. Unless
otherwise specified in a particular Attachment, as part of the Decoupling Services
under an Attachment and included in the cost of the Decoupling Services in such
Attachment, Provider shall operate and maintain the existing systems and the software,
hardware, and other assets (including licenses) necessary to perform the Decoupling
Services under such Attachment.

	11.	 	Service Owners. The Parties’ respective Service Owners under each Attachment, if any, are
identified in the applicable Attachment.

4

 

Attachment 6-1

Asia Business Development and Global Sourcing Office – Hong Kong/Thailand

	1.	 	Parties and Roles.

	 	1.1.	 	Parties and Business Structure.
	 
	 	•	 	Asia Business Development in Hong Kong (“ABD Hong Kong”), a division of
Hanesbrands Hong Kong Ltd. is responsible for selling Branded Apparel Business brands
in the Hong Kong market.
	 
	 	•	 	Currently, ABD Hong Kong is sharing headcount, applications, and infrastructure
with Sara Lee Hong Kong Ltd. (“H&BC”).
	 
	 	•	 	ABD Hong Kong is using certain MFG/PRO software licensed from QAD, Inc. (“MFG
Pro”) for business functions to be provided hereunder in connection with the Decoupling
Services.
	 
	 	•	 	Global Sourcing Organization in Hong Kong (“GSO Hong Kong”) is responsible for
sourcing HBI brands in the Asia/Pac Market. Currently GSO Hong Kong is sharing
headcount, applications, and infrastructure with H&BC. ABD Hong Kong and GSO Hong Kong
are members of the HBI Group and H&BC is a member of the Sara Lee Group.
	 
	 	1.2.	 	Roles of Parties. For purposes of this Attachment 6-1, HB&C shall be the
Provider and ABD Hong Kong and GSO Hong Kong, collectively, shall be the Purchaser.

	2.	 	Commencement Date; Services Term; Service Owners.

	 	2.1.	 	Commencement Date. The Commencement Date for the Decoupling Services to be
provided by Provider to Purchaser hereunder shall be the Distribution Date.
	 
	 	2.2.	 	Initial Services Term. Provider shall provide to Purchaser the business
process and information technology Decoupling Services designated in this Attachment
(i) with respect to Decoupling Services provided to GSO Hong Kong, for an Initial
Services Term starting on the Distribution Date and ending March 31, 2007; and (ii)
with respect to all other Decoupling Services, for an Initial Services Term of one (1)
year after the Distribution Date.
	 
	 	2.3.	 	Extension Services Term. The Parties may extend the Services Term of this
Attachment by mutual agreement for one or more Extension Services Term(s) of a duration
to be agreed upon by the Parties.
	 
	 	2.4.	 	Service Owners. The parties respective Service Owners under this Attachment 6-1 are identified below:

5

 

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 

	 	Joseph Leung
	 	Joy Fong
	 

	 	General Manager
	 	VP Far East Operations
	 

	 	+ 852 2820 8618
	 	852 2 960 9628

	3.	 	Decoupling Services. Starting on the Commencement Date, Provider will perform as Decoupling
Services the business process and information technology services (excluding authorization or
approval of purchases, reimbursements, or other expenditures) that were performed for
Purchaser by Provider prior to the Distribution Date in accordance with the applicable
requirements set forth on Exhibit A to this Attachment 6-1 with respect to the following
functions:
	 
	•	 	Credit (using the H&BC MFG Pro system);
	 
	•	 	Accounts payable (using the H&BC MFG Pro system);
	 
	•	 	Accounts receivable (using the H&BC MFG Pro system);
	 
	•	 	General ledger (using the H&BC MFG Pro system);
	 
	•	 	Fixed assets (using the H&BC MFG Pro system);
	 
	•	 	Payroll (using the H&BC MFG Pro system);
	 
	•	 	Banking transactions (using HSBC Hexagon system);
	 
	•	 	Travel and expense (using the H&BC MFG Pro system);
	 
	•	 	Product procurement and development (using the H&BC MFG Pro system); and
	 
	•	 	Human resources (using the H&BC MFG Pro system and Microsoft Excel).
	 
	 	 	In addition, as part of the Decoupling Services, Provider shall write checks from Purchaser
accounts and process payments for Purchaser in connection with Purchaser-approved expenditures.
	 
	4.	 	Service Fees. For the Decoupling Services provided to Purchaser by Provider during the
Initial Services Term, Purchaser shall pay to Provider an aggregate fee of $802,520.00 in Hong
Kong dollars, to be paid as set forth in Exhibit B attached hereto. If the parties extend the
Initial Services Term by one or more Extension Services Term(s), the parties shall mutually
agree upon the additional fees for the Decoupling Services during such Extension Services
Term(s) at the time they enter into such Extension Services Term(s).
	 
	5.	 	Network Connections. Purchaser and Provider shall maintain the network connection and
network trust relationship with regard to the parties’ respective networks until the
expiration of the Services Term.
	 
	6.	 	Facilities. ABD Hong Kong office has moved to a new location on Hong Kong Island. ABD Hong
Kong is now sharing office space with GSO Hong Kong and DFK Hong

6

 

	 	 	Kong. In connection with the Separation and the Decoupling Services, ABD Hong
Kong, GSO Hong Kong and DFK Hong Kong will standardize on one set of business
processes, applications, and infrastructure.
	 
	7.	 	Bangkok Lease. For fees in addition to, and not
included in, the fees set forth
in Section 4 of this Attachment,
H&BC shall continue to offer
Global Sourcing Organization in
Bangkok (“GSO Bangkok”) a lease
on the office space in which GSO
Bangkok currently resides on the
same terms and conditions in
effect prior to the Distribution
Date for a period of one year
following the Distribution Date

7

 

Exhibit A

	 	 	 	 	 	 	 
	 	 	 	 	Purchaser Requirements after	 	 
	 	 	 	 	Distribution	 	Provider Deliverable
	Chart of account
	 	 	 	Lawson requires a 10-digit account code (6 account code + 4 sub account no.)	 	Follow H&BC existing chart of account (8 digits), cross-reference table is necessary
	 
	 	 	 	 	 	 
	Receipt of GSO information
	 	 	 	Tuesday of period end	 	GSO to submit all invoices, T&E, provisions, etc. by Monday noon of period end
	 
	 	 	 	 	 	 
	Monthly Reporting
	 	 	 	All reports will be under GSO Hong Kong format:-	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	 
	 	1 	 	GL (period end, Fri noon) -same as before	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	 
	 	2	 	Balance Sheet (period end, Fri noon)	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	 
	 	3	 	Trial Balance (period end, Fri noon)	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	 
	 	4 	 	Income Statement  (period end, Fri noon)	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	 
	 	5 	 	Summary of Journal Vouchers (period end, Fri noon)	 	As SLHK MFG-pro system format
	 
	 	 	 	 	 	 
	Monthly Reconciliations
	 	 	 	All reconciliations and schedules will be under GSO Hong Kong format	 	 
	
	 	 	 	 	 	 
	 
	 	1	 	(period end, Fri noon)	 	Maintained as SLHK MFG-pro system format by Friday noon of period end
	 
	 	 	 	 	 	 
	 
	 	2 	 	(period end, Fri noon)	 	Maintained as SLHK MFG-pro system format by Friday noon of period end
	 
	 	 	 	 	 	 
	 
	 	3 	 	Accrual expenses (period end, Fri noon)	 	Friday of period end before close of business
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	4 	 	Provision for bonus & Executive bonus (period end Fri noon)	 	Provide the GSO reconciliation, which is to replace the current monthly schedules
	 
	 	 	 	 	 	 
	 
	 	5 	 	Provision for rent (period end Fri noon)	 	No new GSO required format and therefore current format will be maintained
	 
	 	 	 	 	 	 
	 
	 	6 	 	Temporary Payment (period end Fri noon)	 	same as above
	 
	 	 	 	 	 	 
	 
	 	7 	 	Temporary Receipt (period end Fri noon)	 	same as above
	 
	 	 	 	 	 	 

8

 

	 	 	 	 	 	 	 
	 	 	 	 	Purchaser Requirements after	 	 
	 	 	 	 	Distribution	 	Provider Deliverable
	 
	 	8 	 	All Balance Sheet A/Cs Reconciliations (period end, Fri noon)	 	Provide the GSO reconciliation, which is to replace the current monthly schedules
	 
	 	 	 		 	 
	 
	 	9	 	Bank reconciliations (period end, Fri noon)	 	Will follow the GSO format
	 
	 	 	 		 	 
	 
	 	10	 	Fixed Assets & Depreciation schedule (period end, Fri noon)	 	Will follow the GSO format
	
	 	 	 		 	 
	Weekly Cash Flow Projection Reports
	 	 	 	Accounts Receivable Aging, Accounts Payable Aging,  Weekly Bank Book	 	Bi-weekly in GSO format
	 
	 	 	 	 	 	
	Human Resources
	 	 	 	accounting entries	 	Only accounting entries will be performed
	 
	 	 	 		 	
	Bank payment authorization
	 	 	 	Issue cheque and authorize payments limited to HKD50,000 of each transaction	 	Payments will be authorized based upon GSO’s proper approval
	
	 	 	 		 	

#All reports will be under GSO HK Format

9

 

Exhibit B

	 	 	 	 	 
	 	 	Month Invoiced	 	 
	 	 	(to be paid 45	 	 
	 	 	days from date of	 	 
	 	 	submission of	 	 
	Accrual Period	 	Invoice)	 	Amount
	9/6/06 to 10/5/06

	 	October 2006
	 	HK$ 93,710
	10/6/06 to 11/5/06

	 	November 2006
	 	HK$ 93,710
	11/6/06 to 12/5/06

	 	December 2006
	 	HK$ 93,710
	12/6/06 to 1/5/07

	 	January 2007
	 	HK$ 93,710
	1/6/07 to 2/5/07

	 	February 2007
	 	HK$ 93,710
	2/6/07 to 3/5/07

	 	March 2007
	 	HK$ 93,710
	3/6/07 to 4/5/07

	 	April 2007
	 	HK$ 93,710
	4/6/07 to 5/5/07

	 	May 2007
	 	HK$ 29,310
	5/6/07 to 6/5/07

	 	June 2007
	 	HK$ 29,310
	6/6/07 to 7/5/07

	 	July 2007
	 	HK$ 29,310
	7/6/07 to 8/5/07

	 	August 2007
	 	HK$ 29,310
	8/6/07 to 9/5/07

	 	September 2007
	 	HK$ 29,310

10

 

Attachment 6-2

Sara Lee Japan

	1.	 	Parties and Roles.

	 	1.1.	 	Parties and Business Structure.
	 
	 	•	 	Sara Lee Japan Branded Ltd. (to be renamed Hanesbrands Japan Inc.) (Sara Lee
Japan Branded Apparel) is a member of the HBI Group providing Headcount and
Applications support to Sara Lee Japan (Sara Lee Japan H&BC).
	 
	 	•	 	Sara Lee Japan H&BC is a member of the Sara Lee Group participating in e-mail
and communications to Europe and the U.S.
	 
	 	1.2.	 	Roles of Parties. For purposes of this Attachment 6-2, Sara Lee Japan Branded
Apparel shall be the Provider and Sara Lee Japan H&BC shall be the Purchaser.

	2.	 	Commencement Date; Services Term; Service Owners.

	 	2.1.	 	Commencement Date. The Commencement Date for the Decoupling Services to be
provided by Provider to Purchaser hereunder shall be the Distribution Date.
	 
	 	2.2.	 	Initial Services Term. Provider shall provide to Purchaser the business
process and information technology Decoupling Services designated in this Attachment
for an Initial Services Term of two (2) years after the Distribution Date.
	 
	 	2.3.	 	Extension Services Term. At the end of the first year of the Initial Services
Term, Provider and Purchaser shall meet to assess the state of the H&BC business in
Japan and whether any material changes have occurred that would require an extension to
the Services Term or other changes to this Attachment 6-2. Based on the outcome of the
parties’ assessment, the parties may extend the Services Term of this Attachment by
mutual agreement for one or more Extension Services Term(s) of a duration to be agreed
upon by the parties.
	 
	 	2.4.	 	Service Owners.

The parties respective Service Owners under this Attachment 6-2 are identified below:

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 

	 	Masafumi Ohki
	 	Pedro Bascones
	 

	 	Managing Director SE Asia
	 	General Manager Sara Lee Japan
	 

	 	81 35 361 2879
	 	81 3 5361 2853

	3.	 	Decoupling Services. Starting on the Commencement Date, Provider will perform as Decoupling
Services the business process and information technology services that were performed for
Purchaser by Provider or its predecessor prior to the Distribution Date with respect to the
functions listed below in this Section 3. The parties may agree to modify the Decoupling
Services provided by Provider together with the service fees related to

 

 

	 	 	such Decoupling Services in a manner that is mutually agreeable to both parties; provided,
however, Provider and Purchaser shall mutually discuss and agree on the scope and nature of
the services described below, including the practicality and necessity of providing such
services:

	 	•	 	Credit;
	 
	 	•	 	Accounts payable;
	 
	 	•	 	Accounts receivable;
	 
	 	•	 	General ledger;
	 
	 	•	 	Fixed assets;
	 
	 	•	 	Payroll;
	 
	 	•	 	Banking transactions;
	 
	 	•	 	Management reporting (monthly/quarterly/annual actual, forecast, AOP)
	 
	 	•	 	Tax reporting;
	 
	 	•	 	Employee benefits and compensation reporting;
	 
	 	•	 	Travel and expense;
	 
	 	•	 	Human resources;
	 
	 	•	 	Network access;
	 
	 	•	 	Computer Usage; and
	 
	 	•	 	IT Support.

	4.	 	Purchaser Obligations. During the Services Term, Sara Lee Japan H&BC shall consider its
future applications and network strategies and shall take steps reasonably necessary to
implement its new applications and network strategies by the end of the Services Term. Sara
Lee Japan H&BC shall implement Sara Lee Active Directory at the same time Sara Lee Japan
Branded Apparel is implementing its Active Directory Structure.
	 
	5.	 	Service Fees. For the Decoupling Services provided to Purchaser by Provider, Purchaser shall
pay to Provider an annual fee of ¥59,172,000 including sublease of ¥9,694,000, to be paid in
connection with Schedule 6 in twelve (12) equal monthly installments of ¥4,931,000 in each
year of the Services Term. If the parties modify the Decoupling Services provided by Provider
and related service fees for such modified Decoupling Services pursuant to Section 3 of this
Attachment 6-2, then the service fees charged to Purchaser under this Section 5 shall be
modified accordingly. If the parties extend the

2

 

	 	 	Initial Services Term by one or more Extension Services Term(s), the parties shall mutually
agree upon the additional fees for the Decoupling Services during such Extension Services
Term(s).
	 
	6.	 	Network Connections. Purchaser and Provider shall maintain the network connection and
network trust relationship with regard to the parties’ respective networks until the
expiration of the Services Term.
	 
	7.	 	Facilities. During the Initial Services Term, Sara Lee Japan H&BC will continue renting the
same office space rented from Sara Lee Japan Branded Apparel prior to the Distribution Date,
which rental shall be on the same terms and conditions as those prior to the Distribution
Date.

3

 

Attachment 6-3

Asia Business Development – Philippines

	1.	 	Parties and Roles.

	 	1.1.	 	Parties and Business Structure.
	 
	 	•	 	Asia Business Development in the Philippines (“ABD Philippines”) is the member
of the HBI Group responsible for selling Branded Apparel Business brands in the
Philippines market.
	 
	 	•	 	Currently, ABD Philippines is sharing applications and infrastructure with Sara
Lee Philippines Inc. (“H&BC Philippines”), a member of the Sara Lee Group.
	 
	 	•	 	ABD Philippines is using certain MFG/PRO software licensed from QAD, Inc. (“MFG
Pro”) for business functions to be provided hereunder in connection with the Decoupling
Services.
	 
	 	•	 	H&BC Philippines will convert to SAP going live in December 2006, but has
committed to provide MFG Pro application support to ABD Philippines through March 31,
2007.
	 
	 	1.2.	 	Roles of Parties. For purposes of this Attachment 6-3, H&BC Philippines shall
be the Provider and ABD Philippines shall be the Purchaser.

	2.	 	Commencement Date; Services Term; Service Owners.

	 	2.1.	 	Commencement Date. The Commencement Date for the Decoupling Services to be
provided by Provider to Purchaser hereunder shall be the Distribution Date.
	 
	 	2.2.	 	Initial Services Term. Provider shall provide to Purchaser the business
process and information technology Decoupling Services designated in this Attachment
for an Initial Services Term from the Distribution Date through and including March 31,
2007.
	 
	 	2.3.	 	Extension Services Term. The parties may extend the Services Term of this
Attachment by mutual agreement for one or more Extension Services Term(s) of a duration
to be agreed upon by the parties.
	 
	 	2.4.	 	Service Owners.

The parties respective Service Owners under this Attachment 6-3 are identified below:

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 

	 	Leo G. Obias
	 	 Mr. Carlos Villanueva
	 

	 	President
	 	General Manager ABD Philippines
	 

	 	632-772-2222
	 	632-826-0095

 

 

	3.	 	Decoupling Services. Starting on the Commencement Date, Provider will perform as Decoupling
Services the business process and information technology services that were performed for
Purchaser by Provider or its predecessor prior to the Distribution Date with respect to the
following functions:

	 	•	 	Purchasing (using the H&BC MFG Pro system);
	 
	 	•	 	Accounts payable (using the H&BC MFG Pro system);
	 
	 	•	 	General ledger (using the H&BC MFG Pro system); and
	 
	 	•	 	Tax reporting (using the H&BC MFG Pro system).

	4.	 	Service Fees. For the Decoupling Services provided to Purchaser by Provider during the
Initial Services Term, Purchaser shall pay to Provider services fee of 116,081.03 in
Philippine Pesos per month, to be paid on a quarterly basis as set forth in Schedule 6, with
each quarterly payment including three (3) months of fees. If the parties extend the Initial
Services Term by one or more Extension Services Term(s), the parties shall mutually agree upon
the additional fees for the Decoupling Services during such Extension Services Term(s).
	 
	5.	 	Network Connections. Purchaser and Provider shall maintain the network connection and
network trust relationship with regard to the parties’ respective networks until the
expiration of the Services Term.
	 
	6.	 	Data Extraction. Prior to the expiration of the Initial Services Term, Purchaser will
install replacement systems for MFG Pro. Provider will provide data extraction and transfer
services related to the replacement of MFG Pro described herein with the format, content, and
medium of extracted data to be determined by mutual agreement of the parties at the time of
the installation of such replacement systems for a reasonable hourly rate, such rate to be
mutually agreed upon by the parties at such time as the parties deem appropriate. For
avoidance of doubt, the fees paid by Purchaser for services provided under this Section 6
shall not be included in the fees paid by Purchaser under Section 4 of this Attachment.

2

 

Schedule 7

[INTENTIONALLY LEFT BLANK]

 

 

Schedule 8

Microsoft Active Directory Services

	1.	 	General. This is Schedule 8 to that certain Master Transition Services Agreement dated as of
August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 8 describes certain information technology services
related to Microsoft Active Directory (as defined below) to be provided by Sara Lee (for
purposes of this Schedule 8, the “Provider”) to HBI (for purposes of this Schedule 8,
the “Purchaser”). This Schedule 8 includes Attachment 8-1 and Attachment
8-2 attached hereto.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 8 and not defined herein shall have the
meanings set forth in the Agreement. The following terms shall have the respective meanings
set forth below.

2.1 “Commencement Date” shall mean the Distribution Date.

2.2 “Extension Schedule Term” shall mean a period of up to six (6)
months after the Initial Schedule Term.

2.3 “Initial Schedule Term” shall mean a period of eighteen (18) months
after the Commencement Date.

2.4 “Mason Data Center” shall mean Provider’s data and service center
in Mason, Ohio.

2.5 “Microsoft Active Directory” shall mean Provider’s directory
service used to store information about the network resources across Purchaser’s and
Provider’s domains.

2.6 “Microsoft Active Directory Services” shall mean those general
technical and operational services for the ongoing operation and maintenance of the
existing Microsoft Active Directory systems to be provided by Provider to Purchaser
as described in this Schedule, including, without limitation system administration
and availability services, break/fix troubleshooting and problem resolution
services, and software upgrade services required to maintain vendor support.

2.7 “Schedule Term” shall mean, collectively, the Initial Schedule Term
and any Extension Schedule Term.

2.8 “Service Owner” shall mean, with respect to a Party, the individual
designated in Section 11 to be such Party’s initial point of contact and
escalation for the Microsoft Active Directory Services.

2.9 “Winston-Salem Data Center” shall mean Purchaser’s data and service
center in Winston-Salem, North Carolina.

 

 

	3.	 	Service Commitments.

3.1 Provider Obligations. Starting on the Commencement Date,
Provider shall provide to Purchaser the following Microsoft Active Directory
Services.

	 	(i)	 	Technical support services for Microsoft Active Directory
system, including:

	 	(a)	 	Providing services related to hardware and
Software sourcing, installation, upgrade, maintenance, and
administrative support as required by the HBI Intel group headed by the
Senior Manager, Kristopher Bang (336-519-2933) and SLC Intel group
headed by the Manager, Tom Schario (513-204-4080) (As used in this
paragraph “Software” refers to all non-application software specific to
the platforms supported including operating system and related
components, data transfer products, etc. Hardware and Software
installation or upgrade projects will be scheduled to maintain support,
correct problems and provide capacity.);
	 
	 	(b)	 	Providing services for the maintenance of
operating systems and major subsystems for all platforms at a release
level required to support existing Purchaser application requirements;
	 
	 	(c)	 	Upon receipt of Purchaser’s request for an
installation or upgrade of software or hardware (e.g., to maintain
support), meeting with
interested parties to determine and agree upon a desired completion
date;
	 
	 	(d)	 	Coordinating all software and hardware
installations including planning, scheduling, testing, and
implementation;
	 
	 	(e)	 	Providing periodic management reports, promptly
upon Purchaser’s request, on key indicators and resources
(e.g., central processing unit (CPU) and direct access storage
device (DASD)) pertaining to performance, utilization, and capacity;
and
	 
	 	(f)	 	Providing proactive and reactive
tuning/capacity support in order to maintain agreed to
performance/capacity requirements or service levels and implementing
corrective action within control of the Mason Data Center as quickly as
possible based on a mutually agreed upon schedule.

	 	(ii)	 	Systems operation services for Microsoft Active Directory
system, including those set forth below.

	 	(a)	 	Data center facility management services,
including maintenance of hosted equipment in a commercial data center
environment featuring raised floor space, computer room monitoring,
Halon

2

 

	 	 	 	protection, dual electrical power feeds with uninterruptible
power supplies, and a backup diesel power generator.
	 
	 	(b)	 	Change control and administration services,
including:

	 	•	 	Providing a formal change control process for non-emergency
changes that substantially affect the Mason Data Center and
related components;
	 
	 	•	 	Implementing changes only during downtime and service windows
mutually agreed upon by Provider personnel and Purchaser
customers, unless the Parties mutually agree that the change is
needed to correct a critical problem (in which case Provider
shall implement the change as soon as possible);
	 
	 	•	 	Conducting a weekly meeting as part of the change control
process to Schedule and coordinate changes that affect the Mason
Data Center and Purchaser;
	 
	 	•	 	Inviting Purchaser to participate in weekly meetings to stay
fully informed of changes that may impact specific applications
or the total environment;
	 
	 	•	 	Notifying those parties affected by a change in advance of
the change (within a minimum of one (1) week in advance of the
planned implementation) depending on the scope of impact of the
change, and including in the applicable notification a
description of the change, what the change will impact, and the
expected outage; and
	 
	 	•	 	Implementing all changes through a documented test plan (if
technology permits) and preparing a documented back-out plan.

	 	(c)	 	Availability management services, including:

	 	•	 	Establishing scheduled availability for hardware and online
systems on a fiscal year basis;
	 
	 	•	 	Monitoring all platforms including networks continuously
twenty-four (24) hours a day, seven (7) days a week, including
logging, tracking and escalating any problems according to the
problem management procedures and on-call responsibility list
maintained and supported by the Provider and Purchaser customer
support centers;

3

 

	 	•	 	Maintaining system availability for the Microsoft Active
Directory twenty-four hours a day by three hundred and
sixty-five days a year; and
	 
	 	•	 	Maintaining operating systems and major subsystems for all
platforms at a release level required to support existing
Purchaser application requirements.

	 	(iii)	 	Disaster recovery/continuity services for Microsoft Active
Directory, including:

	 	(a)	 	Providing disaster recovery planning services
that cover a total or partial loss of the Mason Data Center;
	 
	 	(b)	 	Promptly notifying the Purchaser Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in the event of a disaster that prevents services from
being provided for an extended period of time;
	 
	 	(c)	 	Declaring a disaster and moving to a backup
site upon determination that the total or partial data center outage
will significantly exceed the maximum defined recovery time objective
(RTO) for lost systems (currently seventy-two (72) hours for the
Microsoft Activity Directory) and involving the Purchaser Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in making the foregoing determination;
	 
	 	(d)	 	Providing recovery for all contracted system
and production data to the latest weekend back-up and forward recovery
of all Purchaser files to the latest daily offsite backup available;
	 
	 	(e)	 	Providing Microsoft Active Directory Services
in a disaster in “keep alive” versus “business as usual” mode unless
otherwise designated (which may require activation of the Purchaser’s
business continuity plan);
	 
	 	(f)	 	Providing assistance to the Purchaser in the
development of information technology disaster recovery plans depending
on resource availability;
	 
	 	(g)	 	Coordinating and conducting disaster recovery
and fail over tests as requested and working with Purchaser to
determine specific systems to be tested and the scope of each test at
the beginning of each fiscal year with the participation of the
Purchaser’s designated Disaster Recovery Coordinator;
	 
	 	(h)	 	Coordinating with the current disaster recovery
services vendor (SunGard Availability Services) and providing Purchaser
access to

4

 

	 	 	 	such vendor as necessary or as reasonably requested by
Purchaser; and
	 
	 	(i)	 	Coordinating with the current offsite storage
vendor (Iron Mountain) and providing Purchaser access to such vendor as
necessary or as reasonably requested by Purchaser.

	 	(iv)	 	Application services for Microsoft Active Directory, including:

	 	(a)	 	Support, application maintenance,
infrastructure, database, and security administration services,
including without limitation, the following:

	 	•	 	System administration and availability assurance;
	 
	 	•	 	Application configuration changes per Purchaser request or
approved change documents;
	 
	 	•	 	Break/fix – troubleshooting and problem resolution;
	 
	 	•	 	Application performance/tuning services required to maintain
application performance at acceptable levels;
	 
	 	•	 	Software application and hardware upgrades required to
maintain vendor support;
	 
	 	•	 	Support services for testing associated with approved change
or upgrade activities;
	 
	 	•	 	Application security services to assure the integrity,
availability, control, and audit ability of information under
custodianship of Provider and its IT personnel;
	 
	 	•	 	Services to ensure adherence to existing policies and
procedures;
	 
	 	•	 	Services to maintain sufficient levels of internal controls
and segregation of duties for processes resident at Provider’s
facilities;
	 
	 	•	 	Services to provide data and supporting documentation to
Purchaser business units upon request;
	 
	 	•	 	Support services for internal and external audit needs; and
	 
	 	•	 	Services to respond promptly to business unit information
requests.

5

 

	 	(v)	 	Additional services for Microsoft Active Directory, including:

	 	(a)	 	Removing all Purchaser employees as domain
administrators and enterprise administrators from the Provider
Microsoft Active Directory environment;
	 
	 	(b)	 	Managing and supporting the promotion and
demotion of all Microsoft Active Directory controllers remaining
attached to the Purchaser environment for Provider;
	 
	 	(c)	 	Managing and supporting the Microsoft Active
Directory “trust relationships” created between the Provider Microsoft
Active Directory domains and the Purchaser Microsoft Active Directory
domain(s) and using the “trust relationships” to allow Purchaser
applications requiring Microsoft Active Directory functionality to work
until they are fully converted to the Purchaser environment;
	 
	 	(d)	 	Managing and supporting all Provider Microsoft
Active Directory groups for the Purchaser “trust relationship”;
	 
	 	(e)	 	Providing domain name services (DNS) support
for saralee.com applications which Purchaser uses in the Provider
Microsoft Active Directory environment;
	 
	 	(f)	 	Deploying monthly Microsoft security patches to
Microsoft Active Directory controllers on an agreed upon schedule;
	 
	 	(g)	 	Using commercially reasonable efforts to
maintain uniqueness of the Purchaser Microsoft Active Directory user
accounts that are defined to the SLBA Microsoft Active Directory
organization unit and maintain such uniqueness until Purchaser converts
to its own separate Microsoft Active Directory system; and
	 
	 	(h)	 	Providing Microsoft Active Directory
consultative services to Provider, including technical “questions and
answers” on technical infrastructure that was in place at time of
Separation, general informational questions, minor infrastructure
administrative changes, etc.
	 
	 	(i)	 	Adding servers to the Provider active directory
domain for Purchaser in support of maintenance function activities on a
case-by-case basis;
	 
	 	(j)	 	Performing security administration access
following approved change control and administration access monitoring
systems such as Power Keeper;

6

 

	 	(k)	 	Performing as required by Sarbanes Oxley
regulations and procedures quarterly entitlement reviews on all
built/standard power user active directory security groups;
	 
	 	(l)	 	Reviewing with Purchaser any changes, including
deletions, to existing Purchaser active directory accounts including
those with domain administrative authority, server logon authority, HBI
DFS authority, general active directory administrative authority,
standard active directory user accounts, etc. in a reasonable amount of
time prior to taking any action, which shall include accounts in:

	 	•	 	“Admins Exchange”;
	 
	 	•	 	“Admins InSite”;
	 
	 	•	 	“Admins Security”;
	 
	 	•	 	“Admins Server”; and
	 
	 	•	 	All *EXCH* groups;

	 	(m)	 	Working with Purchaser to maintain the
necessary current active directory accounts and related authority
including those with domain administrative authority, server logon
authority, HBI DFS authority, general active directory administrative
authority,
standard active directory user accounts, etc. required for Purchaser
to maintain their respective active directory environment to function
at a comparable level as at the Separation Date, which also includes
accounts in:

	 	•	 	“Admins Exchange”;
	 
	 	•	 	“Admins InSite”;
	 
	 	•	 	“Admins Security”;
	 
	 	•	 	“Admins Server”; and
	 
	 	•	 	All *EXCH* groups;

	 	(n)	 	Permitting a Purchaser representative to attend
the weekly active directory status/steering meeting in order for
Purchaser to stay informed on upcoming changes to the Provider active
directory environment;
	 
	 	(o)	 	Notifying the Purchaser Intel Senior Manager of
active directory planning meetings and permit a Purchaser
representative to attend

7

 

	 	 	 	in order to stay informed on upcoming changes
to the Provider active directory environment;
	 
	 	(p)	 	Providing the necessary ongoing active
directory administrative capability to a limited number of Purchaser
active directory or Intel personnel in order for Purchaser to provide
reasonable administrative support for Purchaser-related organization
units, objects, and user accounts; and
	 
	 	(q)	 	Providing, when requested by Purchaser and for
a reasonable time period, the necessary active directory capability to
a limited number of Purchaser active directory or Intel personnel in
order for Purchaser to execute active directory functions that require
active directory administrator level authority in order to facilitate
active directory migration efforts, HBI DFS support, review of domain
controller event logs, and other similar activities.

3.2 Purchaser Obligations. In connection with the Microsoft Active
Directory Services to be provided by Provider to Purchaser hereunder, Purchaser
shall do the following, as necessary for Provider to perform the Microsoft Active
Directory Services:

	 	(i)	 	Perform the tasks identified as being the responsibility of
Purchaser in this Schedule 8;
	 
	 	(ii)	 	Perform application recovery procedures beyond those covered by
Data Center-supported weekly back-up and daily incremental saves and execute
such procedures as part of the master disaster recovery plan owned by
Provider’s technology services team and Purchaser’s Microsoft Active Directory
team;
	 
	 	(iii)	 	Participate in Provider’s application recovery activities as
necessary for Provider to carry out its responsibilities specified in
Section 3.1(iii) through the involvement of Purchaser’s IT staff and
user community;
	 
	 	(iv)	 	Notify Provider of required promotion and demotion of Microsoft
Active Directory controllers;
	 
	 	(v)	 	Allow Provider to deploy monthly Microsoft security patches to
Microsoft Active Directory controllers and not unreasonably withhold approval
or scheduling for deployment of patches;
	 
	 	(vi)	 	Provide consultative services for the Microsoft Operations
Manager environment that performs monitoring of the Purchaser Microsoft Active
Directory environment;
	 
	 	(vii)	 	Manage users and objects within the Microsoft Active Directory
SLBA organizational unit and shared services;

8

 

	 	(viii)	 	Manage security processes with the organizational unit such as user account
creations and deletions and account resets, and provide to Provider a weekly
report of user changes for Provider validation;
	 
	 	(ix)	 	Due to the active directory trust relationship between Provider
and Purchaser and the continued use of the SLC-NA domain, Purchaser shall do
the following:

	 	•	 	Raise the functional level of the SLC-NA domain when Sara Lee is
ready;
	 
	 	•	 	Restructure forest;
	 
	 	•	 	Rename the domain;
	 
	 	•	 	Make schema changes;
	 
	 	•	 	Work with the Provider to provide the necessary upgrade support,
technical support and hardware to support said changes that affect the
Purchaser portion of the Provider active directory environment,
infrastructure, and related logical structures;
	 
	 	•	 	Provide Provider with the same Purchaser active directory migration
project details including status updates and progress
indicators on the same frequency that is being used for Purchaser
internal reporting;
	 
	 	•	 	Permit a Provider representative to attend the Purchaser active
directory migration status/steering meeting in order for Provider to
stay informed on upcoming migration plans and activities;
	 
	 	•	 	Cease to create new User/Group/GPO objects in the Provider domain
except for the Purchaser-related organization units; and
	 
	 	•	 	Cease to add new servers to the Provider domains;

	 	(x)	 	Submit requests to add administrators to the following groups
with justification (Provider will take ownership of such groups as of the
Commencement Date:

	 	•	 	“Admins Exchange”;
	 
	 	•	 	“Admins InSite”;
	 
	 	•	 	“Admins Security”;
	 
	 	•	 	“Admins Server”; and

9

 

	 	•	 	All *EXCH* groups;

	 	(xi)	 	Submit through the change control process requests that require
“Domain Admin” rights and to use the Power Keeper software to perform the
specified admin requests; and
	 
	 	(xii)	 	Submit a request and justification to use all built/standard
power user active directory security groups documented by Provider (which shall
remove all members that are not part of the Provider organization), which
Provider shall consider on a case-by-case basis (not all requests will be
granted) and review on a quarterly basis as required by the Sarbanes Oxley user
entitlement process.

	4.	 	Service Delivery. In addition to the requirements set forth elsewhere in this Schedule 8,
Provider will perform the Microsoft Active Directory Services in the same manner, with the
same frequency of service delivery and the same personnel, and during the same working hours
as the predecessor to Provider performed services that are the same as the Microsoft Active
Directory Services prior to the Commencement Date. With respect to any Microsoft Active
Directory Service for which the predecessor to Provider did not perform an equivalent service
prior to the Commencement Date, the Provider shall perform such Microsoft Active Directory
Service with the frequency of service delivery reasonably requested by Purchaser.
	 
	5.	 	Schedule Term. Provider shall provide the Microsoft Active Directory Services during the
Schedule Term, unless this Schedule is first terminated as set forth in the Agreement. In the
event Purchaser requires continuing Microsoft Active Directory Services, beyond the Initial
Schedule Term, Purchaser may extend the Schedule Term for the Extension Schedule Term by
providing to Provider written notice of extension at least fifteen (15) days prior to the
expiration of the Initial Schedule Term.
	 
	6.	 	Service Level Obligations and Escalation.

6.2 Service Level Obligations. Provider will provide the Microsoft Active
Directory Services in accordance with the service levels identified in Attachment
8-1. If no service levels are included in Attachment 8-1 with respect to a
particular service, Provider will provide such service in accordance with the higher of
(a) the level of service comparable to what has historically been provided by the
predecessor of Provider prior to the Commencement Date, or (b) the level of service
that Provider provides to its own business units for services similar to the Microsoft
Active Directory Services.

6.3 Escalation.  The Parties shall attempt to resolve any outstanding
issues not resolved in connection with Attachment 8-1 or any other issue or
disputes arising with respect to the Microsoft Active Directory Services first by
having the Service Owners attempt to resolve the dispute or issue. If the dispute or
issue remains outstanding and cannot be resolved by the Service Owners, the Parties
shall resolve the issue in accordance with Article VIII of the Agreement.

10

 

	7.	 	Costs. Purchaser shall pay Provider the fees set forth in Attachment 8-2 for the
Microsoft Active Directory Services. Unless otherwise specified in this Schedule 8 or the
Agreement, all time and materials expended by Provider in the performance of the Microsoft
Active Directory Services shall be included in the applicable fees set forth in Attachment
8-2, and Provider shall not be entitled to receive any further compensation therefor.
Provider may provide systems enhancements and modifications related to the Microsoft Active
Directory Services, above and beyond applications and reports in existence as of the
Commencement Date, at an additional cost to be negotiated at the time of the request for such
enhancements and modifications. In the event the Parties agree upon such enhancements and
modifications, the Parties shall develop a separate statement of work or addendum to this
Schedule 8 with respect to such enhancements and modifications and Provider shall invoice
Purchaser for such enhancements and modifications separately.
	 
	8.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Microsoft Active
Directory Services in arrears on a quarterly basis after the conclusion of each fiscal
quarter during the term of this Schedule 8. Purchaser shall pay all invoices for the
Microsoft Active Directory Services within forty-five (45) days of the date of submission of
such invoices by Provider to Purchaser.
	 
	9.	 	Service Locations. Provider shall provide the Microsoft Active Directory Services
from Provider’s Mason Data Center. Purchaser shall receive the Microsoft Active Directory
Services at Purchaser’s Winston-Salem Data Center and any other location designated by
Purchaser. During the term of this Schedule 8, if Provider requires access to Purchaser
facilities in connection with Provider’s provision of the Microsoft Active Directory
Services, Purchaser will provide to Provider access to Purchaser’s facilities upon
Provider’s request as necessary to enable Provider to perform the Microsoft Active Directory
Services. Provider will comply with all policies, including without limitation, use,
security, and access policies, at each Purchaser facility for Purchaser’s employees and
visitors generally as may be in effect from time to time.
	 
	10.	 	Software, Hardware and Other Assets. Except as otherwise provided herein, Provider
shall be responsible for (i) obtaining all software, hardware and other assets (including
licenses) necessary to perform the Microsoft Active Directory Services as such Microsoft
Active Directory Services have historically been provided, and (ii) the costs of all such
software, hardware, and other assets (including licenses) so long as such annualized costs
do not exceed those annualized costs incurred by Provider before the Commencement Date. Any
increase in such annualized costs after the Commencement Date for software, hardware or
other assets (including licenses) that are necessary in order for Provider to provide the
Microsoft Active Directory Services without a degradation in the quality of the Microsoft
Active Directory Services or that are otherwise incurred based on Purchaser’s request shall
be paid for by Purchaser. Provider agrees to consult with Purchaser before incurring such
increased costs.
	 
	11.	 	Service Owners. The Parties’ respective Service Owners for Microsoft Active
Directory Services under this Schedule 8 are identified below.

11

 

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 
	 	 	 	 
	 

	 	Tom Schario
	 	Kristopher Bang
	 

	 	Manager, SLC Intel Group
	 	Senior Manager, HbI Intel Group
	 

	 	(513) 204-4080
	 	(336) 519-2933

12

 

Attachment 8-1

Service Level Targets

Service Targets For MICROSOFT ACTIVE DIRECTORY Application Services

Service Targets over the Escalation Process

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	1st	 
	 	 	Level 1	 	Level 2	 	Level 3	 	Escalation	 
	All severity 3
issues (not problem
related)
	 	1 hour	 	No maximum target	 	No maximum target	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	All severity 2
issues (process
failure or process
completes with
non-critical error,
work-around
available)
	 	1 hour	 	4 hours	 	No maximum target	 	2 hours

	 
	 	 	 	 	 	 	 	 	 	 
	All severity 1
issues (work
interrupted, no
	 	30 minutes	 	2 hours	 	4 hours with vendor assistance	 	1 hour	 	 
	work-around)
	 		 		 		 	

Service Targets Definitions

Level 1 is an introductory Customer Support Consultant and lower level network analyst
troubleshooting and resolving the problem.

Level 2 is a mid level senior analyst and/or network architect troubleshooting and resolving the
problem.

Level 3 is a network architect working with external vendor resources troubleshooting and resolving
the problem.

First escalation is the notification of senior management of the issue.

 

 

Attachment 8-2

Costs

Quarterly Cost

$0

2

 

Schedule 9

Messaging Services

	1.	 	General. This is Schedule 9 to that certain Master Transition Services Agreement dated
as of August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation
(“Sara Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 9 describes certain information technology services
related to messaging to be provided by Sara Lee (for purposes of this Schedule 9, the
“Provider”) to HBI (for purposes of this Schedule 9, the “Purchaser”). This
Schedule 9 includes Attachment 9-1, Attachment 9-2 and Attachment
9-3 attached hereto.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 9 and not defined herein shall have
the meanings set forth in the Agreement. The following terms shall have the respective
meanings set forth below.

2.1 “Business Unit” shall mean Purchaser’s internal business units.

2.2 “Commencement Date” shall mean the Distribution Date.

2.3 “Extension Schedule Term” shall mean a period of up to ninety (90) days after the
Initial Schedule Term.

2.4 “Initial Schedule Term” shall mean the period from the Commencement Date through and
including one (1) year after the Commencement Date.

2.5 “Mason Data Center” shall mean Provider’s data and service center in Mason, Ohio.

2.6 “Messaging Services” shall mean those technical and operational services for the
ongoing operation and maintenance of the Messaging System to be provided by Provider to
Purchaser as described in this Schedule, including, without limitation system administration
and availability services, break/fix troubleshooting and problem resolution services, and
software upgrade services required to maintain vendor support.

2.7 “Messaging System” shall mean Provider’s electronic mail messaging and filtering
system.

2.8 “Schedule Term” shall mean, collectively, the Initial Schedule Term and any Extension
Schedule Term.

2.9 “Service Owner” shall mean, with respect to a Party, the individual designated in
Section 11 to be such Party’s initial point of contact and escalation for the
Messaging Services.

2.10 “Winston-Salem Data Center” shall mean Purchaser’s data and service center in
Winston-Salem, North Carolina.

 

 

	3.	 	Service Commitments.

	 	3.1	 	Provider Obligations. Starting on the Commencement Date, Provider
shall provide to Purchaser the following Messaging Services.

	 	(i)	 	Technical support services for the Messaging System, including:

	 	(a)	 	Providing services related to hardware and
Software sourcing, installation, upgrade, maintenance, and
administrative support as required by the HBI Intel group headed by the
HbI Messaging group headed by the Manager, Willie Henry (336-519-7870)
and SLC Messaging group headed by the Manager, Morgan Jones
(513-204-4229) (As used in this paragraph “Software” refers to all
non-application software specific to the platforms supported including
operating system and related components, Exchange software and related
components, data transfer products, etc. Hardware and Software
installation or upgrade projects will be scheduled to maintain support,
correct problems and provide capacity.);
	 
	 	(b)	 	Providing help desk and technical services for
support for functional and technical intervention (Purchaser, to report
a problem, will first call the Provider help desk number at
1-866-259-9360);
	 
	 	(c)	 	Providing services for the maintenance of
operating systems and major subsystems for all platforms at a release
level required to support existing Purchaser application requirements;
	 
	 	(d)	 	Upon receipt of Purchaser’s request for an
installation or upgrade of software or hardware (e.g., to maintain
support), meeting with interested parties to determine and agree upon a
desired completion date;
	 
	 	(e)	 	Coordinating all software and hardware
installations including planning, scheduling, testing, and
implementation;
	 
	 	(f)	 	Providing periodic management reports, promptly
upon Purchaser’s request, on key indicators and resources
(e.g., central processing unit (CPU) and direct access storage
device (DASD)) pertaining to performance, utilization, and capacity;
and
	 
	 	(g)	 	Providing proactive and reactive
tuning/capacity support in order to maintain agreed to
performance/capacity requirements or service levels and implementing
corrective action within control of the Mason Data Center as quickly as
possible based on a mutually agreed upon schedule.

2

 

	 	(ii)	 	Systems operation services for the Messaging System, including
those set forth below.

	 	(a)	 	Data center facility management services,
including maintenance of hosted equipment in a commercial data center
environment featuring raised floor space, computer room monitoring,
Halon protection, dual electrical power feeds with uninterruptible
power supplies, and a backup diesel power generator.
	 
	 	(b)	 	Change control and administration services,
including:

	 	•	 	Providing formal change control process for non-emergency
changes that substantially affect the Mason Data Center and
related components;
	 
	 	•	 	Implementing changes only during downtime and service windows
mutually agreed upon by Provider personnel and Purchaser
customers, unless the Parties mutually agree that the change is
needed to correct a critical problem (in which case Provider
shall implement the change as soon as possible);
	 
	 	•	 	Conducting a weekly meeting as part of the change control
process to Schedule and coordinate changes that affect the Mason
Data Center and Purchaser;
	 
	 	•	 	Inviting Purchaser’s customers to participate in weekly
meetings described above in this Schedule 9 to stay
fully informed of changes that may impact specific applications
or the total environment;
	 
	 	•	 	Notifying those parties affected by a change in advance of
the change (within a minimum of one (1) week in advance of the
planned implementation) depending on the scope of impact of the
change, and including in the applicable notification a
description of the change, what the change will impact, and the
expected outage; and
	 
	 	•	 	Implementing all changes through a documented test plan (if
technology permits) and preparing a documented back-out plan.

	 	(c)	 	Availability management services, including:

	 	•	 	Establishing scheduled availability for hardware and online
systems on a fiscal year basis;

3

 

	 	•	 	Monitoring all platforms including networks continuously
twenty-four (24) hours a day, seven (7) days a week, including
logging, tracking and escalating any problems according to the
problem management procedures and on-call responsibility list
maintained and supported by the Provider and Purchaser customer
support centers; and
	 
	 	•	 	Maintaining system availability for the Messaging System
twenty-four hours a day by three hundred and sixty-five days a
year.

	 	(iii)	 	Disaster recovery/continuity services for the Messaging
System, including:

	 	(a)	 	Providing disaster recovery planning services
that cover a total or partial loss of the Mason Data Center;
	 
	 	(b)	 	Promptly notifying the Purchaser Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in the event of a disaster that prevents services from
being provided for an extended period of time;
	 
	 	(c)	 	Declaring a disaster and moving to a backup
site upon determination that the total or partial data center outage
will significantly exceed the maximum defined recovery time objective
(RTO) for lost systems (currently seventy-two (72) hours for the
Messaging System) and involving the Purchaser Chief Information
Officers and the Parties’ designated disaster recovery coordinators
in making the foregoing determination;
	 
	 	(d)	 	Providing recovery for all contracted system
and production data to the latest weekend back-up and forward recovery
of all Purchaser files to the latest daily offsite backup available;
	 
	 	(e)	 	Providing Messaging Services in a disaster in
“keep alive” versus “business as usual” mode unless otherwise
designated (which may require activation of the Purchaser’s business
continuity plan);
	 
	 	(f)	 	Providing assistance to the Purchaser in the
development of information technology disaster recovery plans depending
on resource availability;
	 
	 	(g)	 	Coordinating and conducting disaster recovery
and fail over tests as requested and working with Purchaser to
determine specific systems to be tested and the scope of each test at
the beginning of each fiscal year with the participation of the
Purchaser’s designated Disaster Recovery Coordinator;

4

 

	 	(h)	 	Coordinating with the current disaster recovery
services vendor (SunGard Availability Services) and providing Purchaser
access to such vendor as necessary or as reasonably requested by
Purchaser; and
	 
	 	(i)	 	Coordinating with the current offsite storage
vendor (Iron Mountain) and providing Purchaser access to such vendor as
necessary or as reasonably requested by Purchaser.

	 	(iv)	 	Application services for the Messaging System, including:

	 	(a)	 	Support, application maintenance,
infrastructure, database, and security administration services,
including without limitation, the following:

	 	•	 	System administration and availability assurance;
	 
	 	•	 	Application configuration changes per Purchaser request or
approved change documents;
	 
	 	•	 	Break/fix – troubleshooting and problem resolution;
	 
	 	•	 	Application performance/tuning services required to maintain
application performance at acceptable levels;
	 
	 	•	 	Software application and hardware upgrades required to
maintain vendor support;
	 
	 	•	 	Support services for testing associated with approved change
or upgrade activities;
	 
	 	•	 	Application security services to assure the integrity,
availability, control, and audit ability of information under
custodianship of Provider and its IT personnel;
	 
	 	•	 	Services to ensure adherence to existing policies and
procedures;
	 
	 	•	 	Services to maintain sufficient levels of internal controls
and segregation of duties for processes resident at Provider’s
facilities;
	 
	 	•	 	Services to provide data and supporting documentation to
Purchaser business units upon request;
	 
	 	•	 	Support services for internal and external audit needs; and

5

 

	 	•	 	Services to respond promptly to Business Unit information
requests.

	 	(v)	 	Electronic mail forwarding services, including:

	 	(a)	 	For a period of six (6) months after the
Commencement Date, forwarding electronic mail addressed to any
individual who is a Provider employee immediately prior to the
Commencement Date and who becomes a Purchaser employee as of the
Commencement Date (after the Commencement Date, the Provider version of
the directory will be frozen and no additional changes will be
allowed), either through the internet or extranet communications
circuit;
	 
	 	(b)	 	After the initial six (6) month forwarding
period, sending a return receipt message to electronic mail messages
directed to Purchaser employees covered by the forwarding service
stating that the applicable employee is now part of Purchaser for an
additional three (3) months, without the requirement that such messages
be forwarded; and
	 
	 	(c)	 	After the full six months, returning any mail
sent to Provider for a Purchaser employee as undeliverable with no
explanation.

	 	(vi)	 	Consultative services related to the Messaging System,
including technical “questions and answers” on technical infrastructure that
was in place at
time of separation, general informational questions, minor infrastructure
administrative changes, and related issues.
	 
	 	(vii)	 	Services to permit Purchaser to continue to use the domain
names listed in Attachment 9-3.

3.2 Purchaser Obligations. In connection with the Messaging Services to be
provided by Provider to Purchaser hereunder, Purchaser shall do the following, as
necessary for Provider to perform the Messaging Services:

	 	(i)	 	Perform the tasks identified as being the
responsibility of Purchaser in this Schedule 9;
	 
	 	(ii)	 	Perform application recovery procedures beyond
those covered by Data Center-supported weekly back-up and daily
incremental saves and execute such procedures as part of the master
disaster recovery plan owned by Purchaser’s technology services team
and Provider’s Messaging System team;
	 
	 	(iii)	 	Participate in Provider’s application recovery
activities as necessary for Provider to carry out its responsibilities
specified in

6

 

	 	 	 	Section 3.1(iii) through the involvement of
Purchaser’s IT staff and user community; and
	 
	 	(iv)	 	Maintain and manage the MX records for the
domains listed in Attachment 9-3 as an administrator in the
Iron Mountain system.

	4.	 	Service Delivery. In addition to the requirements set forth elsewhere in this Schedule 9,
Provider will perform the Messaging Services in the same manner, with the same frequency of
service delivery and the same personnel, and during the same working hours as the predecessor
to Provider performed services that are the same as the Messaging Services prior to the
Commencement Date. With respect to any Messaging Service for which the predecessor to
Provider did not perform an equivalent service prior to the Commencement Date, the Provider
shall perform such Messaging Service with the frequency of service delivery reasonably
requested by Purchaser.
	 
	5.	 	Schedule Term. Provider shall provide the Messaging Services during the Schedule Term, unless this
Schedule is first terminated as set forth in the Agreement. In the event Purchaser requires
continuing Messaging Services, beyond the Initial Schedule Term, Purchaser may extend the
Schedule Term for the Extension Schedule Term by providing to Provider written notice of
extension at least fifteen (15) days prior to the expiration of the Initial Schedule Term.
	 
	6.	 	Service Level Obligations and Escalation.

6.1 Service Level Obligations. Provider will provide the Messaging
Services in accordance with the service levels identified in Attachment 9-1.
If no service levels are included in Attachment 9-1 with respect to a
particular service, Provider will provide such service in accordance with the higher of
(a) the level of service comparable to what has historically been provided by the
predecessor of Provider prior to the Commencement Date, or (b) the level of service
that Provider provides to its own business units for services similar to the Messaging
Services.

6.2 Escalation.  The Parties shall attempt to resolve any outstanding
issues not resolved in connection with Attachment 9-1 or any other issue or
disputes arising with respect to the Messaging Services first by having the Service
Owners attempt to resolve the dispute or issue. If the dispute or issue remains
outstanding and cannot be resolved by the Service Owners, the Parties shall resolve the
issue in accordance with Article VIII of the Agreement.

	7.	 	Costs. Purchaser shall pay Provider the fees set forth in Attachment 9-2 for the
Messaging Services. Unless otherwise specified in this Schedule 9 or the Agreement, all
time and materials expended by Provider in the performance of the Messaging Services shall
be included in the applicable fees set forth in Attachment 9-2, and Provider shall
not be entitled to receive any further compensation therefor. Provider may provide systems
enhancements and modifications related to the Messaging Services, above and beyond
applications and reports in existence as of the Commencement Date, at an additional cost to
be negotiated at the time of the request for such enhancements and modifications. In

7

 

	 	 	the event the Parties agree upon such enhancements and modifications, the Parties shall develop
a separate statement of work or addendum to this Schedule 9 with respect to such
enhancements and modifications and Provider shall invoice Purchaser for such enhancements
and modifications separately.
	 
	8.	 	Invoicing and Payment. Provider shall invoice Purchaser for the Messaging Services in arrears on a quarterly
basis after the conclusion of each fiscal quarter during the term of this Schedule 9.
Purchaser shall pay all invoices for the Messaging Services within forty-five (45) days of
the date of submission of such invoices by Provider to Purchaser.
	 
	9.	 	Service Locations. Provider shall provide the Messaging Services from Provider’s
Mason Data Center. Purchaser shall receive the Messaging Services at Purchaser’s
Winston-Salem Data Center and any other location designated by Purchaser. During the term
of this Schedule 9, if Provider requires access to Purchaser facilities in connection with
Provider’s provision of the Messaging Services, Purchaser will provide to Provider access to
Purchaser’s facilities upon Provider’s request as necessary to enable Provider to perform
the Messaging Services. Provider will comply with all policies, including without
limitation, use, security, and access policies, at each Purchaser facility for Purchaser’s
employees and visitors generally as may be in effect from time to time.
	 
	10.	 	Software, Hardware and Other Assets. Except as otherwise provided herein, Provider
shall be responsible for (i) obtaining all software, hardware and other assets (including
licenses) necessary to perform the Messaging Services as such Messaging Services have
historically been provided, and (ii) the costs of all such software, hardware, and other
assets (including licenses) so long as such annualized costs do not exceed those annualized
costs incurred by Provider before the Commencement Date. Any increase in such annualized
costs after the Commencement Date for software, hardware or other assets (including
licenses) that are necessary in order for Provider to provide the Messaging Services without
a degradation in the quality of the Messaging Services or that are otherwise incurred based
on Purchaser’s request shall be paid for by Purchaser. Provider agrees to consult with
Purchaser before incurring such increased costs.
	 
	11.	 	Service Owners. The Parties’ respective Service Owners for Messaging Services
under this Schedule 9 are identified below.

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 
	 	 	 	 
	 

	 	Morgan Jones
	 	Willie Henry
	 

	 	Manager, SLC Messaging Group
	 	Manager, HbI Messaging Group
	 

	 	(513) 204-4229
	 	(336) 519-7870

8

 

Attachment 9-1

Service Level Targets

Service Targets For MESSAGING Application Services

Service Targets over the Escalation Process

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	1st	 
	 	 	Level 1	 	Level 2	 	Level 3	 	Escalation	 
	All severity 3
issues (not problem
related)
	 	1 hour	 	No maximum target	 	No maximum target	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	All severity 2
issues (process
failure or process
completes with
non-critical error,
work-around
available)
	 	1 hour	 	4 hours	 	No maximum target	 	2 hours

	 
	 	 	 	 	 	 	 	 	 	 
	All severity 1
issues (work
interrupted, no
	 	15 minutes	 	2 hours	 	8 hours with vendor assistance	 	1 hour
	 	 
	work-around)
	 		 		 		 	

Service Targets Definitions

Level 1 is an introductory Customer Support Consultant and lower level network analyst
troubleshooting and resolving the problem.

Level 2 is a mid level senior analyst and/or network architect troubleshooting and resolving the
problem.

Level 3 is a network architect working with external vendor resources troubleshooting and resolving
the problem.

First escalation is the notification of senior management of the issue.

9

 

Attachment 9-2

Costs

Quarterly Cost

$0

10

 

Attachment 9-3

HBI Domains

saralee.net

saraleedirect.com

saraleeintimateapparel.com

saraleeintimateapparel.net

saraleeintimateapparel.org

saraleeintimates.com

saraleeprintables.at

saraleeprintables.be

saraleeprintables.ch

saraleeprintables.co.hu

saraleeprintables.co.uk

saraleeprintables.com

saraleeprintables.com.pt

saraleeprintables.cz

saraleeprintables.de

saraleeprintables.dk

saraleeprintables.gen.tr

saraleeprintables.gr

saraleeprintables.it

saraleeprintables.lt

saraleeprintables.lv

saraleeprintables.net

 

 

saraleeprintables.pl

saraleeprintables.ro

saraleeprintables.se

slbanet.com

saraleeba.com

slbasfa.com

slbasourcing.com

sldcatalog.com

sldirect.com

slh-b2b.com

slhlink.com

slhnet.com

slh-retail.com

slianet.com

slianet.net

slianet.org

slkp.com

slouterbanks.com

slsc.com

slucpfr.com

slu-online.com

slusourcing.com

2

 

Schedule 10

Network Services

	1.	 	General. This is Schedule 10 to that certain Master Transition Services Agreement dated
as of August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation
(“Sara Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 10 describes certain network services to be provided by
each of Sara Lee and HBI to the other Party. This Schedule 10 includes Attachment
10-1, Attachment 10-2 and Attachment 10-3 attached hereto.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 10 and not defined herein shall have
the meanings set forth in the Agreement. The following terms shall have the respective
meanings set forth below.

2.1 “Commencement Date” shall mean the Distribution Date.

2.2 “Mason Data Center” shall mean Sara Lee’s data and service center in
Mason, Ohio.

2.3 “Network Services” shall mean those services for the ongoing operation
and maintenance of the Network to be provided by a Party to the Requestor as described
in this Schedule, including, without limitation system administration and availability
services, break/fix troubleshooting and problem resolution services, and software
upgrade services required to maintain vendor support.

2.4 “Network” shall mean the shared network used by the Parties prior to
the Separation, as modified and segregated after the Separation pursuant to this
Schedule 10.

2.5 “Provider” shall mean the Party providing Network Services to the other
Party as a Requestor hereunder.

2.6 “Requestor” shall mean a Party requesting Network Services from the
other Party hereunder.

2.7 “Schedule Term”  shall mean the period from the Commencement Date through the date when the last of
the Schedules under the Agreement that relies upon Network Services expires or
terminates.

2.9 “Service Owner” shall mean, with respect to a Party, the individual
designated in Section 11 to be such Party’s initial point of contact and
escalation for the Network Services.

2.10 “Winston-Salem Data Center” shall mean HBI’s data and service center in
Winston-Salem, North Carolina.

 

 

	3.	 	Service Commitments.

3.1 Provider Obligations. Starting on the Commencement Date, Provider shall
provide to Requestor the following Network Services.

	 	(i)	 	Technical support services for the Network, including:

	 	(a)	 	Providing services related to hardware and
Software sourcing, installation, upgrade, maintenance, and
administrative support as required by the HbI Network group headed by
the Manager, Scott Bernard (336-519-8858) and SLC Network group headed
by the Manager, Dave Mummey (513-204-4059) (As used in this paragraph
“Software” refers to all non-application software specific to the
platforms supported including operating system and related components,
Exchange software and related components, data transfer products, etc.
Hardware and Software installation or upgrade projects will be
scheduled to maintain support, correct problems and provide capacity.);
	 
	 	(b)	 	Providing services for the maintenance of
operating systems and major subsystems for all platforms at a release
level required to support existing Requestor application requirements;
	 
	 	(c)	 	Upon receipt of Requestor’s request for an
installation or upgrade of software or hardware (e.g., to maintain
support), meeting with interested parties to determine and agree upon a
desired completion date;
	 
	 	(d)	 	Coordinating all software and hardware
installations including planning, scheduling, testing, and
implementation;
	 
	 	(e)	 	Providing periodic management reports, promptly
upon Requestor’s request, on key indicators and resources
(e.g., response time and circuit utilization) pertaining to
performance, utilization, and capacity; and
	 
	 	(f)	 	Providing proactive and reactive
tuning/capacity support in order to maintain agreed to
performance/capacity requirements or service levels and implementing
corrective action within control of the Mason Data Center as quickly as
possible based on a mutually agreed upon schedule.

	 	(ii)	 	Systems operation services for the Network, including those set
forth below.

	 	(a)	 	Data center facility management services,
including maintenance of hosted equipment in a commercial data center
environment featuring raised floor space, computer room monitoring,
Halon

2

 

	 	 	 	protection, dual electrical power feeds with uninterruptible power
supplies, and a backup diesel power generator.
	 
	 	(b)	 	Change control and administration services,
including:

	 	•	 	Establishing, implementing and executing a formal change
control process for non-emergency changes that substantially
affect the Mason Data Center and related components;
	 
	 	•	 	Implementing changes only during downtime and service windows
mutually agreed upon by Provider personnel and Requestor
customers, unless the Parties mutually agree that the change is
needed to correct a critical problem (in which case Provider
shall implement the change as soon as possible);
	 
	 	•	 	Conducting a weekly meeting as part of the change control
process to Schedule and coordinate changes that affect the Mason
Data Center and Requestor;
	 
	 	•	 	Participating in weekly meetings with the other Party to stay
fully informed of changes that may impact specific applications
or the total environment;
	 
	 	•	 	Notifying those parties affected by a change in advance of
the change (within a minimum of one (1) week in advance
of the planned implementation) depending on the scope of
impact of the change, and including in the applicable
notification a description of the change, what the change
will impact, and the expected outage; and
	 
	 	•	 	Implementing all changes through a documented test plan (if
technology permits) and preparing a documented back-out plan.

	 	(c)	 	Availability management services, including:

	 	•	 	Establishing scheduled availability for hardware and online
systems on a fiscal year basis;
	 
	 	•	 	Monitoring all platforms including networks continuously
twenty-four (24) hours a day, seven (7) days a week, including
logging, tracking and escalating any problems according to the
problem management procedures and on-call responsibility list
maintained and supported by the Provider and Requestor customer
support centers; and

3

 

	 	•	 	Maintaining system availability for the Network twenty-four
hours a day by three hundred and sixty-five days a year.

	 	(iii)	 	Disaster recovery/continuity services for the Network,
including:

	 	(a)	 	Promptly notifying the Requestor Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in the event of a disaster that affects the availability
of joint Network Services for an extended period of time;
	 
	 	(b)	 	Working with the other Party during the
disaster recovery period to make available the joint Network Services
as quickly as possible;
	 
	 	(c)	 	Executing its disaster recovery plan necessary
for the recovery of its data center and/or network as needed including
providing for the availability of the joint Network Services after the
declaration of a disaster (with the other Party responsible for
implementing its portion of the plan required to support the
availability of the joint Network Services);
	 
	 	(d)	 	Providing Network Services in a disaster in
“keep alive” versus “business as usual” mode unless otherwise
designated (which may require activation of the Requestor’s business
continuity plan);
	 
	 	(e)	 	Providing assistance to the Requestor in the
development of information technology disaster recovery plans depending
on resource availability;
	 
	 	(f)	 	Coordinating and conducting disaster recovery
and fail over tests as requested and working with Requestor to
determine specific systems to be tested and the scope of each test at
the beginning of each fiscal year with the participation of the
Requestor’s designated Disaster Recovery Coordinator;
	 
	 	(g)	 	Coordinating with the current disaster recovery
services vendor (SunGard Availability Services) and providing Requestor
access to such vendor as necessary or as reasonably requested by
Requestor;
	 
	 	(h)	 	Coordinating with the current offsite storage
vendor (Iron Mountain) and providing Requestor access to such vendor as
necessary or as reasonably requested by Requestor; and

	 	(iv)	 	Internetworking Operating System services for the Network,
including:

	 	(a)	 	Support, application maintenance,
infrastructure, database, and security administration services,
including without limitation, the following:

4

 

	 	•	 	System administration and availability assurance;
	 
	 	•	 	Application configuration changes per Requestor request or
approved change documents;
	 
	 	•	 	Break/fix – troubleshooting and problem resolution;
	 
	 	•	 	Application performance/tuning services required to maintain
application performance at acceptable levels;
	 
	 	•	 	Software application and hardware upgrades required to
maintain vendor support;
	 
	 	•	 	Support services for testing associated with approved change
or upgrade activities;
	 
	 	•	 	Application security services to assure the integrity,
availability, control, and audit ability of information under
custodianship of Provider and its IT personnel;
	 
	 	•	 	Services to ensure adherence to existing policies and
procedures;
	 
	 	•	 	Services to maintain sufficient levels of internal controls
and segregation of duties for processes resident at Provider’s
facilities;
	 
	 	•	 	Services to provide data and supporting documentation to
Requestor business units upon request;
	 
	 	•	 	Support services for internal and external audit needs; and
	 
	 	•	 	Services to respond promptly to business unit information
requests.

	 	(v)	 	Additional services, including:

	 	(a)	 	Working together with the other Party to move
the network connection to an extranet connection with a site-to-site
VPN backup between HBI’s Winston-Salem Data Center and Sara Lee’s Mason
Data Center; and
	 
	 	(b)	 	Performing application recovery procedures
beyond those covered by Data Center supported weekly back up and daily
incremental saves and execute such procedures as part of the master
disaster recovery plan owned by Sara Lee’s technology services team and
HBI’s Network team.

5

 

	 	(vi)	 	Data transport services, including, for 6 months following the
Commencement Date, continuing to provide data transport services for the Lawson
to HBI Zone Company Directory data feed via Crossworlds/ICS, which services
will be consistent with offerings and level of service prior to the
Commencement Date (including general technical, administrative, break/fix
troubleshooting and problem resolution, and operational support).

3.2 Sara Lee Obligations. In connection with the Network Services, Sara
Lee shall do the following:

	 	(i)	 	Pay for the physical circuits in Mason, Ohio and for the
required PVC charges linking Sara Lee and HBI for extranet connectivity;
	 
	 	(ii)	 	Provide help desk and technical services to provide support to
HBI for functional and technical intervention (HBI, to report a problem, will
first call the Sara Lee help desk);
	 
	 	(iii)	 	Provide the Sara Lee-side internet connectivity required for
the site to site VPN and the physical equipment required on the Sara Lee side
for the connection between the Parties;
	 
	 	(iv)	 	Install and/or configure a firewall and intrusion prevention
system (IPS) environment within the Sara Lee-side network configuration for its
segment of the joint extranet connection and work with HBI to establish and
manage network security for the extranet connection;
	 
	 	(v)	 	Mutually agree with HBI on any increases or decreases in
required communications connectivity between the companies;
	 
	 	(vi)	 	Establish disaster recovery network connectivity to its
disaster recovery site and discontinue use of the HBI Disaster Recovery network
and related network infrastructure within six (6) months of the Commencement
Date, provided that the six (6) month period shall be extended as necessary if
Sara Lee is unable to establish its own network connectivity within the initial
six (6) month period;
	 
	 	(vii)	 	Establish the necessary network connectivity between the Sara
Lee and HBI disaster recovery sites networks and related network infrastructure
to facilitate access, in the event of a disaster recovery to either Party, to
HBI services and applications provided by this Schedule 10 and other Schedules
under the Agreement, configure the network connection with firewall and IPS
protection, bear the cost (one-time and recurring) of establishing such
connectivity, and maintain the disaster recovery configuration remain in place
until all other Schedules under the Agreement expire or are terminated;

6

 

	 	(viii)	 	Work with HBI to complete the separation of internet domain names between the
Parties with Iron Mountain;
	 
	 	(ix)	 	Provide Network Services consultative services to HBI,
including technical “questions and answers” on technical infrastructure that
was in place at time of Separation, general informational questions, minor
infrastructure administrative changes, etc.;
	 
	 	(x)	 	Allow HBI continued use of the domain names listed in the “HBI
Domains” section of Attachment 10-3 for a period of one (1) year after
the Commencement Date and manage such domain names through its Iron Mountain
contract under the Sara Lee Corp Iron Mountain Portal in the division
referenced as SLBA;
	 
	 	(xi)	 	Allow HBI continued use of the host names listed in the “HBI
Host Names” section of Attachment 10-3 for a period of one (1) year
after the Commencement Date; and
	 
	 	(xii)	 	Permit HBI to access and utilize the existing Sara Lee network
and related network infrastructure that is currently in place in the Sara Lee
Bentonville Sales Office for a period of six (6) months after the Commencement
Date to facilitate access of the HBI Wal-Mart Sales Team to the Winston-Salem
Data Center through the Sara Lee network.

3.3 HBI Obligations. In connection with the Network Services, HBI
shall do the following:

	 	(i)	 	Pay for the physical circuits for the extranet connectivity in
Winston-Salem, NC;
	 
	 	(ii)	 	Provide help desk and technical services to provide support to
Sara Lee for functional and technical intervention (Sara Lee, to report a
problem, will first call the HBI help desk at 336-519-5000);
	 
	 	(iii)	 	Disconnect existing circuits from Provider’s SLC Corporate
MPLS network within forty-five (45) days after the Commencement Date as a
prerequisite for the transition of the network connection to an extranet
connection with a site-to-site VPN backup as described above;
	 
	 	(iv)	 	Provide the HBI-side internet connectivity required for the
site to site VPN and the physical equipment required on the HBI side for the
connection between the Parties;
	 
	 	(v)	 	Install and/or configure a firewall and intrusion prevention
system (IPS) environment within the HBI-side network configuration for its
segment of the joint extranet connection and work with Sara Lee to establish
and manage network security for the extranet connection;

7

 

	 	(vi)	 	Mutually agree with Sara Lee on any increases or decreases in
required communications connectivity between the companies;
	 
	 	(vii)	 	Work with Sara Lee to complete the separation of internet
domain names between the Parties with Iron Mountain and, upon completion,
cross-train Sara Lee personnel on management of the domains that have been
transferred to Sara Lee;
	 
	 	(viii)	 	Provide consulting services to Sara Lee for domain names for three (3) months
after the Commencement Date;
	 
	 	(ix)	 	Provide access for Sara Lee to the existing HBI Disaster
Recovery network and related network infrastructure that is currently in place
to facilitate access to Sara Lee’s disaster recovery site as necessary for nine
(9) months following the Commencement Date;
	 
	 	(x)	 	Provide Network Services consultative services to Sara Lee,
including technical “questions and answers” on technical infrastructure that
was in place at time of Separation, general informational questions, minor
infrastructure administrative changes, etc.;
	 
	 	(xi)	 	Maintain and manage the Internet DNS records for the domains
listed in “HBI Domains” section of Attachment 10-3 and maintain and
manage the
Internet DNS records for the host names listed in the “HBI Host Names”
section of Attachment 10-3;
	 
	 	(xii)	 	Establish separate necessary network connectivity and related
network infrastructure for the HBI Wal-Mart Sales Team in the Sara Lee
Bentonville Sales Office to access the Winston-Salem Data Center and
discontinue use of the Sara Lee network for such purpose within six (6) months
after the Commencement Date; and
	 
	 	(xiii)	 	Permit use by Sara Lee of existing HBI telephone numbers and related
telecommunications infrastructure currently in place at the Stratford Road
plant and used to support the Sara Lee Bakery Outlet Store located in
Winston-Salem, North Carolina for a period equal to the Schedule Term; provided
that (a) HBI will give Sara Lee at least six (6) months notice if it is
necessary for Sara Lee to implement a replacement capability (the cost of which
will be borne solely by Sara Lee) if the service needs to canceled due to any
unplanned circumstances such as (1) plant ownership change, (2) abandonment by
HBI of the telephone system, telephone exchange (519-xxxx), and/or related
telecommunications infrastructure, (3) mandated changes required by local
telecommunications provider, or (4) other unplanned events outside of HBI’s
control, (b) permitted use and related services will be on an “as-is” basis and
Sara Lee shall, at its own expense, implement any changes or replacements
necessary to support a

8

 

	 	 	 	different type or level of use and service, and (c) Sara
Lee may cancel such use at any time with thirty (30) days advance notice to
HBI.

	4.	 	Service Delivery. In addition to the requirements set forth elsewhere in this Schedule 10,
Provider will perform the Network Services in the same manner, with the same frequency of
service delivery and the same personnel, and during the same working hours as the predecessor
to Provider performed services that are the same as the Network Services prior to the
Commencement Date. With respect to any Network Service for which the predecessor to Provider
did not perform an equivalent service prior to the Commencement Date, the Provider shall
perform such Network Service with the frequency of service delivery reasonably requested by
Requestor.
	 
	5.	 	Schedule Term. Provider shall provide the Network Services during the Schedule Term,
unless this Schedule is first terminated as set forth in the Agreement.
	 
	6.	 	Service Level Obligations and Escalation.

6.1 Service Level Obligations. Provider will provide the Network Services in accordance with the service levels
identified in Attachment 10-1. If no service levels are included in
Attachment 10-1 with respect to a particular service, Provider will provide
such service in accordance with the higher of (a) the level of service comparable to
what has historically been provided by the predecessor of Provider prior to the
Commencement Date, or (b) the level of service that Provider provides to its own
business units for services similar to the Network Services. Each Party shall pay
to the other Party any credits due for certain service failures as specified in
Attachment 10-1.

6.2 Escalation.  The Parties shall attempt to resolve any outstanding
issues not resolved in connection with Attachment 10-1 or any other issue or
disputes arising with respect to the Network Services first by having the Service
Owners attempt to resolve the dispute or issue. If the dispute or issue remains
outstanding and cannot be resolved by the Service Owners, the Parties shall resolve the
issue in accordance with Article VIII of the Agreement.

	7.	 	Costs. Each Party shall pay to the other Party the fees set forth in Attachment 10-2
for the Network Services provided from such other Party as a Provider to the first Party as a
Requestor. Unless otherwise specified in this Schedule 10 or the Agreement, all time and
materials expended by either Party in the performance of its respective Network Services shall
be included in the applicable fees set forth in Attachment 10-2, and such Party shall
not be entitled to receive any further compensation therefor. A Party may provide to the
other Party systems enhancements and modifications related to the Network Services, above and
beyond applications and reports in existence as of the Commencement Date, at an additional
cost to be negotiated at the time of the request for such enhancements and modifications. In
the event the Parties agree upon such enhancements and modifications, the Parties shall
develop a separate statement of work or addendum to this Schedule 10 with respect to such
enhancements and modifications and the Party acting as Provider shall invoice the other Party
for such enhancements and modifications separately.

9

 

	8.	 	Invoicing and Payment. Each Party shall invoice the other Party for the Network
Services provided by such first Party in arrears on a quarterly basis after the conclusion
of each fiscal quarter during the Schedule Term. Each invoiced Party shall pay all invoices
for the Network Services or other services hereunder within forty-five (45) days of the date
of submission of such invoices by the invoicing Party.
	 
	9.	 	Service Locations. Sara Lee shall provide the Network Services from its Mason Data Center and HBI shall
provide its services hereunder from its Winston-Salem Data Center. HBI shall receive the
Network Services at its Winston-Salem Data Center and any other location designated by HBI
and Sara Lee shall receive services provided by HBI hereunder at Sara Lee’s Mason Data
Center and any other location designated by Sara Lee. During the term of this Schedule 10,
if a Party providing services hereunder requires access to facilities of the Party receiving
services in connection with the providing Party’s provision of such services, the receiving
Party will provide to the providing Party access to such receiving Party’s facilities upon
such providing Party’s request as necessary to enable such providing Party to perform such
services. Each Party will comply with all policies, including without limitation, use,
security, and access policies, at each of the other Party’s facilities for such other
Party’s employees and visitors generally as may be in effect from time to time.
	 
	10.	 	Software, Hardware and Other Assets. Except as set forth otherwise herein, each Party shall
be responsible for obtaining all software, hardware, other assets (including licenses) and any
other rights necessary to perform its portion of the Network Services.
	 
	11.	 	Service Owners. The Parties’ respective Service Owners for Network Services under
this Schedule 10 are identified below.

	 	 	 	 	 
	 

	 	Sara Lee:
	 	HBI:
	 
	 	 	 	 
	 

	 	Dave Mummey
	 	Scott Bernard
	 

	 	Manager, SLC Network Group
	 	Manager, HbI Network Group
	 

	 	(513) 204-4059
	 	(336) 519-8858

10

 

Attachment 10-1

Service Level Targets

Service Targets For MESSAGING Application Services

Service Targets over the Escalation Process

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	1st	 
	 	 	Level 1	 	Level 2	 	Level 3	 	Escalation	 
	All severity 3
issues (not problem
related)
	 	1 hour	 	No maximum target	 	No maximum target	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	All severity 2
issues (process
failure or process
completes with
non-critical error,
work-around
available)
	 	1 hour	 	4 hours	 	No maximum target	 	2 hours

	 
	 	 	 	 	 	 	 	 	 	 
	All severity 1
issues (work interrupted, no work-around)
	 	 	 	 	 		 	 	 	 
	 
	 	15 minutes	 	1 hour	 	3 hours maximum and issue must be resolved	 	30 minutes	 	 
	 
	 		 		 		 	

Service Targets Definitions

Level 1 is an introductory Customer Support Consultant and lower level network analyst
troubleshooting and resolving the problem.

Level 2 is a mid level senior analyst and/or network architect troubleshooting and resolving the
problem.

Level 3 is a network architect working with external vendor resources troubleshooting and resolving
the problem.

First escalation is the notification of senior management of the issue.

1

 

Attachment 10-2

Costs

Sara Lee to HBI

Quarterly Cost

$0

HBI to Sara Lee

Quarterly Cost

$0

2

 

Attachment 10-3

Domain Names and Host Names

HBI Domains

saralee.net

saraleedirect.com

saraleeintimateapparel.com

saraleeintimateapparel.net

saraleeintimateapparel.org

saraleeintimates.com

saraleeprintables.at

saraleeprintables.be

saraleeprintables.ch

saraleeprintables.co.hu

saraleeprintables.co.uk

saraleeprintables.com

saraleeprintables.com.pt

saraleeprintables.cz

saraleeprintables.de

saraleeprintables.dk

saraleeprintables.gen.tr

saraleeprintables.gr

saraleeprintables.it

saraleeprintables.lt

saraleeprintables.lv

saraleeprintables.net

saraleeprintables.pl

saraleeprintables.ro

saraleeprintables.se

slbanet.com

saraleeba.com

slbasfa.com

slbasourcing.com

sldcatalog.com

sldirect.com

slh-b2b.com

slhlink.com

slhnet.com

slh-retail.com

slianet.com

slianet.net

slianet.org

slkp.com

slouterbanks.com

slsc.com

slucpfr.com

 

 

slu-online.com

slusourcing.com

HBI Host Names

450.saralee.net

notes.saralee.net

mail.saralee.net

nowhere20.saralee.net

user3.saralee.net

ns3.saralee.net

notes.saralee.net

ironmail3.saralee.net

ironmail4.saralee.net

ironmail.saralee.net

ironmail2.saralee.net

ironcmc.saralee.net

user4.saralee.net

user2.saralee.net

nowhere9.saralee.net

nowhere10.saralee.net

nowhere11.saralee.net

nowhere12.saralee.net

nowhere13.saralee.net

nowhere14.saralee.net

nowhere6.saralee.net

nowhere7.saralee.net

nowhere15.saralee.net

nowhere18.saralee.net

dmzgate.saralee.net

krycek.saralee.net

ns.saralee.net

dmzserv3.saralee.net

ns2.saralee.net

sliaweb1.saralee.net

ftp.saralee.net

nowhere1.saralee.net

centauri.saralee.net

sldf51.saralee.net

sldf52.saralee.net

sldf5v.saralee.net

mail.saralee.net

byers.saralee.net

scully.saralee.net

mulder.saralee.net

2

 

langly.saralee.net

as21.saralee.net

as2v.saralee.net

as22.saralee.net

as23.saralee.net

as24.saralee.net

as2vn.saralee.net

slctweb1.saralee.net

gadget.saralee.net

450.saralee.net

tracker01.saralee.net

hbiauth.saralee.net

tracker03.saralee.net

tracker04.saralee.net

itsweb1.saralee.net

testproxy.saralee.net

hive.saralee.net

w1lapd01.saralee.net

w1happ01.saralee.net

x.saralee.net

3

 

Schedule 11

Consultative Services

	1.	 	General. This is Schedule 11 to that certain Master Transition Services Agreement dated as
of August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 11 describes certain information technology consultation
to be provided by each Party to the other Party.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 11 and not defined herein shall have
the meanings set forth in the Agreement. The following terms shall have the respective
meanings set forth below.

2.1 “Business Unit” shall mean Purchaser’s internal business units.

2.2 “Commencement Date” shall mean the Distribution Date.

2.3 “Consultative Services” shall mean consultative services including
technical “questions and answers” on technical infrastructure that was in place at time
of Separation, general informational questions (e.g., circuit provisioning, billing,
contracts, etc.), infrastructure administrative changes, and related issues.

2.4 “Schedule Term” shall mean a period of six (months) from the
Commencement Date.

	3.	 	Service Commitments.

3.1 Sara Lee Obligations. Starting on the Commencement Date, Sara Lee
shall provide to HBI the Consultative Services based on requests from HBI. Service
requests associated with an active technical services agreement (e.g., Microsoft Active
Directory Services (as defined in Schedule 8)) are not covered by this Schedule 11, but
are covered under the applicable schedule to the Agreement.

3.2 HBI Obligations. Starting on the Commencement Date, HBI shall provide to Sara Lee the Consultative
Services based on requests from Sara Lee. Service requests associated with an
active technical services agreement (e.g., Microsoft Active Directory Services (as
defined in Schedule 8)) are not covered by this Schedule 11, but are covered under
the applicable schedule to the Agreement.

	4.	 	Schedule Term. Each Party shall provide Consultative Services to the other Party during
the Schedule Term, unless this Schedule is first terminated as set forth in the Agreement.
	 
	5.	 	Costs and Payment. No fee will be charged by either Party for the Consultative
Services if each Consultative Service request takes no more than four (4) hours and the
monthly aggregate of Consultative Services by a Party does not exceed sixteen (16) hours.
For each Consultative Service request that is more than four (4) hours in duration or
exceeds the monthly limit, the Party providing such Consultative Services can, in its

 

 

	 	 	discretion, charge the other Party for such Consultative Service request at the rate of
$61.00/hour for total time required to provide such Consultative Service along with any
additional expenses (e.g., travel, supplies, etc.) required to satisfy such request. Prior
to taking action on any Consultative Service request that might be chargeable, the providing
Party will provide, in a reasonable amount of time, to the requesting representative of the
other Party a brief written time and cost estimate and such other Party may thereafter
accept or decline such Consultative Service. For any Consultative Services for which a cost
may be charged hereunder, the Party receiving such Services shall pay the providing Party
within thirty (30) days of the date of submission of an invoices for such Consultative
Services by such providing Party.

2

 

Schedule 12

AB Spooler Viking Services

	1.	 	General. This is Schedule 12 to that certain Master Transition Services Agreement dated as
of August 31, 2006, by and between Sara Lee Corporation, a Maryland corporation (“Sara
Lee”), and Hanesbrands, Inc. (“HBI”), a Maryland corporation (the
“Agreement”). This Schedule 12 describes certain information technology services
related to AB Spooler Viking services (as defined below) to be provided by HBI (for purposes
of this Schedule 12, the “Provider”) to Sara Lee (for purposes of this Schedule 12,
the “Purchaser”). This Schedule 12 includes Attachment 12-1 and
Attachment 12-2 attached hereto.
	 
	2.	 	Definitions. Capitalized terms used in this Schedule 12 and not defined herein shall have
the meanings set forth in the Agreement. The following terms shall have the respective
meanings set forth below.

2.1 “Commencement Date” shall mean the Distribution Date.

2.2 “Extension Schedule Term” shall mean a period of up to three (3) months
after the Initial Schedule Term.

2.3 “Initial Schedule Term” shall mean a period of three (3) months after
the Commencement Date.

2.4 “Mason Data Center” shall mean Purchaser’s data and service center in
Mason, Ohio.

2.5 “AB Spooler Viking” shall mean Provider’s directory service used to
print information from and to the Purchaser’s environment.

2.6 “AB Spooler Viking Services” shall mean those general technical and
operational services for the ongoing operation and maintenance of the existing AB
Spooler Viking Services systems to be provided by Provider to Purchaser as described in
this Schedule, including, without limitation system administration and availability
services, break/fix troubleshooting and problem resolution services.

2.7 “Schedule Term” shall mean, collectively, the Initial Schedule Term and any Extension Schedule Term.

2.8 “Service Owner” shall mean, with respect to a Party, the individual
designated in Section 11 to be such Party’s initial point of contact and
escalation for the AB Spooler Viking Services.

2.9  “Winston-Salem Data Center” shall mean Provider’s data and service
center in Winston-Salem, North Carolina.

 

 

	3.	 	Service Commitments.

3.1 Provider Obligations. Starting on the Commencement Date, Provider
shall provide to Purchaser the following AB Spooler Viking Services.

	 	(i)	 	Technical support services for AB Spooler Viking system,
including:

	 	(a)	 	Providing services related to hardware and
Software sourcing, installation, upgrade, maintenance, and
administrative support as required by the HBI Systems Engineering group
headed by the Senior Manager, David Whitley (336-519-8421) and SLC
Intel group headed by the Manager, Tom Schario (513-204-4080) (As used
in this paragraph “Software” refers to all non-application software
specific to the platforms supported including operating system and
related components, data transfer products, etc. Hardware and Software
installation or upgrade projects will be scheduled to maintain support,
correct problems and provide capacity.);
	 
	 	(b)	 	Providing services for the maintenance of
operating systems and major subsystems for all platforms at a release
level required to support existing Purchaser application requirements;
	 
	 	(c)	 	Coordinating all software and hardware
installations including planning, scheduling, testing, and
implementation;
	 
	 	(d)	 	Providing periodic management reports, promptly
upon Purchaser’s request, on key indicators and resources
(e.g., central processing unit (CPU) and direct access storage
device (DASD)) pertaining to performance, utilization, and capacity;
and
	 
	 	(e)	 	Providing proactive and reactive
tuning/capacity support in order to maintain agreed to
performance/capacity requirements or service levels and implementing
corrective action within control of the Mason Data Center as quickly as
possible based on a mutually agreed upon schedule.

	 	(ii)	 	Systems operation services for AB Spooler Viking system,
including those set forth below.

	 	(a)	 	Change control and administration services,
including:

	 	•	 	Providing a formal change control process for non-emergency
changes that substantially affect the Winston-Salem Data Center
and related components;
	 
	 	•	 	Implementing changes only during downtime and service windows
mutually agreed upon by Provider personnel and

2

 

	 	 	 	Purchaser customers, unless the Parties mutually agree that the change is
needed to correct a critical problem (in which case Provider
shall implement the change as soon as possible);
	 
	 	•	 	Conducting a weekly meeting as part of the change control
process to Schedule and coordinate changes that affect the
Winston-Salem Data Center and Purchaser;
	 
	 	•	 	Inviting Purchaser to participate in weekly meetings to stay
fully informed of changes that may impact specific applications
or the total environment;
	 
	 	•	 	Notifying those parties affected by a change in advance of
the change (within a minimum of one (1) week in advance of the
planned implementation) depending on the scope of impact of the
change, and including in the applicable notification a
description of the change, what the change will impact, and the
expected outage; and
	 
	 	•	 	Implementing all changes through a documented test plan (if
technology permits) and preparing a documented back-out plan.

	 	(b)	 	Availability management services, including:

	 	•	 	Establishing scheduled availability for hardware and online
systems on a fiscal year basis;
	 
	 	•	 	Monitoring all platforms including networks continuously
twenty-four (24) hours a day, seven (7) days a week, including
logging, tracking and escalating any problems according to the
problem management procedures and on-call responsibility list
maintained and supported by the Provider and Purchaser customer
support centers;
	 
	 	•	 	Maintaining system availability for the AB Spooler Viking
system twenty-four hours a day by three hundred and sixty-five
days a year; and
	 
	 	•	 	Maintaining operating systems and major subsystems for all
platforms at a release level required to support existing
Purchaser application requirements.

	 	(iii)	 	Disaster recovery/continuity services for AB Spooler Viking
system, including:

3

 

	 	(a)	 	Providing disaster recovery planning services
that cover a total or partial loss of the Winston-Salem Data Center;
	 
	 	(b)	 	Promptly notifying the Purchaser Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in the event of a disaster that prevents services from
being provided for an extended period of time;
	 
	 	(c)	 	Declaring a disaster and moving to a backup
site upon determination that the total or partial data center outage
will significantly exceed the maximum defined recovery time objective
(RTO) for lost systems (currently seventy-two (72) hours for the
Microsoft Activity Directory) and involving the Purchaser Chief
Information Officers and the Parties’ designated disaster recovery
coordinators in making the foregoing determination;
	 
	 	(d)	 	Providing recovery for all contracted system
and production data to the latest weekend back-up and forward recovery
of all Purchaser files to the latest daily offsite backup available;
	 
	 	(e)	 	Providing AB Spooler Viking Services in a
disaster in “keep alive” versus “business as usual” mode unless
otherwise designated (which may require activation of the Purchaser’s
business continuity plan);
	 
	 	(f)	 	Providing assistance to the Purchaser in the
development of information technology disaster recovery plans depending
on resource availability;
	 
	 	(g)	 	Coordinating and conducting disaster recovery
and fail over tests as requested and working with Purchaser to
determine specific systems to be tested and the scope of each test at
the beginning of each fiscal year with the participation of the
Purchaser’s designated Disaster Recovery Coordinator;
	 
	 	(h)	 	Coordinating with the current disaster recovery
services vendor (SunGard Availability Services) and providing Purchaser
access to such vendor as necessary or as reasonably requested by
Purchaser; and
	 
	 	(i)	 	Coordinating with the current offsite storage
vendor (Iron Mountain) and providing Purchaser access to such vendor as
necessary or as reasonably requested by Purchaser.

	 	(iv)	 	Application services for AB Spooler Viking system, including:

4

 

	 	(a)	 	Support, application maintenance,
infrastructure, database, and security administration services,
including without limitation, the following:

	 	•	 	System administration and availability assurance;
	 
	 	•	 	Application configuration changes per Purchaser request or
approved change documents;
	 
	 	•	 	Break/fix – troubleshooting and problem resolution;
	 
	 	•	 	Application performance/tuning services required to maintain
application performance at acceptable levels;
	 
	 	•	 	Software application and hardware upgrades required to
maintain vendor support;
	 
	 	•	 	Support services for testing associated with approved change
or upgrade activities;
	 
	 	•	 	Application security services to assure the integrity,
availability, control, and audit ability of information under
custodianship of Provider and its IT personnel;
	 
	 	•	 	Services to ensure adherence to existing policies and
procedures;
	 
	 	•	 	Services to maintain sufficient levels of internal controls
and segregation of duties for processes resident at Provider’s
facilities;
	 
	 	•	 	Services to provide data and supporting documentation to
Purchaser business units upon request;
	 
	 	•	 	Support services for internal and external audit needs; and
	 
	 	•	 	Services to respond promptly to business unit information
requests.

3.2 Purchaser Obligations. In connection with the AB Spooler Viking
Services to be provided by Provider to Purchaser hereunder, Purchaser shall do the
following, as necessary for Provider to perform the AB Spooler Viking Services:

	 	(i)	 	Perform the tasks identified as being the responsibility of
Purchaser in this Schedule 12;

5

 

	 	(ii)	 	Perform application recovery procedures beyond those covered by
Data Center-supported weekly back-up and daily incremental saves and execute
such procedures as part of the master disaster recovery plan owned by
Provider’s technology services team and Purchaser’s AB Spooler Viking system
team;
	 
	 	(iii)	 	Participate in Provider’s application recovery activities as
necessary for Provider to carry out its responsibilities specified in
Section 3.1(iii) through the involvement of Purchaser’s IT staff and
user community;

	4.	 	Service Delivery. In addition to the requirements set forth elsewhere in this Schedule 12,
Provider will perform the AB Spooler Viking Services in the same manner, with the same
frequency of service delivery and the same personnel, and during the same working hours as the
predecessor to Provider performed services that are the same as the AB Spooler Viking Services
prior to the Commencement Date. With respect to any AB Spooler Viking system Service for
which the predecessor to Provider did not perform an equivalent service prior to the
Commencement Date, the Provider shall perform such AB Spooler Viking system Service with the
frequency of service delivery reasonably requested by Purchaser.
	 
	5.	 	Schedule Term. Provider shall provide the AB Spooler Viking Services during the Schedule
Term, unless this Schedule is first terminated as set forth in the Agreement. In the event
Purchaser requires continuing AB Spooler Viking Services, beyond the Initial Schedule Term,
Purchaser may extend the Schedule Term for the Extension Schedule Term by providing to
Provider written notice of extension at least fifteen (15) days prior to the expiration of
the Initial Schedule Term.
	 
	6.	 	Service Level Obligations and Escalation.

6.1 Service Level Obligations. Provider will provide the AB Spooler Viking
Services in accordance with the service levels identified in Attachment 12-1.
If no service levels are included in Attachment 12-1 with respect to a
particular service, Provider will provide such service in accordance with the higher of
(a) the level of service comparable to what has historically been provided by the
predecessor of Provider prior to the Commencement Date, or (b) the level of service
that Provider provides to its own business units for services similar to the AB Spooler
Viking Services.

6.2 Escalation.  The Parties shall attempt to resolve any outstanding
issues not resolved in connection with Attachment 12-1 or any other issue or
disputes arising with respect to the AB Spooler Viking Services first by having the
Service Owners attempt to resolve the dispute or issue. If the dispute or issue
remains outstanding and cannot be resolved by the Service Owners, the Parties shall
resolve the issue in accordance with Article VIII of the Agreement.

	7.	 	Costs. Purchaser shall pay Provider the fees set forth in Attachment 12-2 for the AB
Spooler Viking Services. Unless otherwise specified in this Schedule 12 or the

6

 

	 	 	Agreement, all
time and materials expended by Provider in the performance of the AB Spooler Viking Services
shall be included in the applicable fees set forth in Attachment 12-2, and Provider
shall not be entitled to receive any further compensation therefor. Provider may provide
systems enhancements and modifications related to the AB Spooler Viking Services, above and
beyond applications and reports in existence as of the Commencement Date, at an additional
cost to be negotiated at the time of the request for such enhancements and modifications. In
the event the Parties agree upon such enhancements and modifications, the Parties shall
develop a separate statement of work or addendum to this Schedule 12 with respect to such
enhancements and modifications and Provider shall invoice Purchaser for such enhancements and
modifications separately.
	 
	8.	 	Invoicing and Payment. Provider shall invoice Purchaser for the AB Spooler Viking Services in
arrears on a quarterly basis after the conclusion of each fiscal quarter during the term of
this Schedule 12. Purchaser shall pay all invoices for the AB Spooler Viking Services within
forty-five (45) days of the date of submission of such invoices by Provider to Purchaser.
	 
	9.	 	Service Locations. Provider shall provide the AB Spooler Viking Services from Provider’s Winston-Salem Data
Center. Purchaser shall receive the AB Spooler Viking Services at Purchaser’s Mason Data
Center, its facilities in Clayton, MO and Earth City, MO and any other location designated
by Purchaser. During the term of this Schedule 12, if Provider requires access to Purchaser
facilities in connection with Provider’s provision of the AB Spooler Viking Services,
Purchaser will provide to Provider access to Purchaser’s facilities upon Provider’s request
as necessary to enable Provider to perform the AB Spooler Viking Services. Provider will
comply with all policies, including without limitation, use, security, and access policies,
at each Purchaser facility for Purchaser’s employees and visitors generally as may be in
effect from time to time.
	 
	10.	 	Software, Hardware and Other Assets. Except as otherwise provided herein, Provider shall be
responsible for (i) obtaining all software, hardware and other assets (including licenses)
necessary to perform the AB Spooler Viking Services as such AB Spooler Viking Services have
historically been provided, and (ii) the costs of all such software, hardware, and other
assets (including licenses) so long as such annualized costs do not exceed those annualized
costs incurred by Provider before the Commencement Date. Any increase in such annualized
costs after the Commencement Date for software, hardware or other assets (including licenses)
that are necessary in order for Provider to provide the AB Spooler Viking Services without a
degradation in the quality of the AB Spooler Viking Services or that are otherwise incurred
based on Purchaser’s request shall be paid for by Purchaser. Provider agrees to consult with
Purchaser before incurring such increased costs.

7

 

	11.	 	Service Owners. The Parties’ respective Service Owners for AB Spooler Viking Services under
this Schedule 12 are identified below.

	 	 	 	 	 
	 

	 	Provider:
	 	Purchaser:
	 
	 	 	 	 
	 

	 	David Whitley
	 	Tom Schario
	 

	 	Senior Manager, HbI Systems Engineering
	 	Manager, SLC Intel Group
	 

	 	(336) 519-8421
	 	(513) 204-4080

8

 

Attachment 12-1

Service Level Targets

Service Targets For AB SPOOLER VIKING SYSTEM Application Services

Service Targets over the Escalation Process

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	1st	 
	 	 	Level 1	 	Level 2	 	Level 3	 	Escalation	 
	All severity 3
issues (not problem
related)
	 	1 hour	 	No maximum target	 	No maximum target	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 
	All severity 2
issues (process
failure or process
completes with
non-critical error,
work-around
available)
	 	1 hour	 	4 hours	 	No maximum target	 	2 hours

	 
	 	 	 	 	 	 	 	 	 	 
	All severity 1
issues (work
interrupted, no
	 	30 minutes	 	2 hours	 	4 hours with vendor assistance	 	1 hour	 	 
	work-around)
	 		 		 		 	

Service Targets Definitions

Level 1 is an introductory Customer Support Consultant and lower level network analyst
troubleshooting and resolving the problem.

Level 2 is a mid level senior analyst and/or network architect troubleshooting and resolving the
problem.

Level 3 is a network architect working with external vendor resources troubleshooting and resolving
the problem.

First escalation is the notification of senior management of the issue.

 

 

Attachment 12-2

Costs

	 	 	 	 	 
	Quarterly Cost
 

	 	 	 	 
	$0
	 	 	 	 

2EX-10.25

 

REAL ESTATE MATTERS AGREEMENT

between

SARA LEE CORPORATION

and

HANESBRANDS INC.

 

 

TABLE OF CONTENTS

	 	 	 
	ARTICLE I PROPERTIES
	 	1
	Section 1.1 Owned Property
	 	1
	Section 1.2 Leased Property
	 	1
	Section 1.3 Lease Consents
	 	2
	Section 1.4 Releases
	 	3
	Section 1.5 Temporary Occupancy
	 	3
	Section 1.6 Performance of Leases
	 	4
	Section 1.7 Alternative Sublease
	 	5
	Section 1.8 Form Of Transfer
	 	5
	Section 1.9 Title to the Properties
	 	6
	Section 1.10 Condition of Properties
	 	6
	Section 1.11 Lease Termination
	 	7
	Section 1.12 Tenant’s Fixtures And Fittings
	 	7
	Section 1.13 Lease Extensions
	 	7
	Section 1.14 Costs And Expenses
	 	7
	Section 1.15 Landlord Estoppel Certificates
	 	8
	Section 1.16 Title Insurance
	 	8
	Section 1.17 Cooperation
	 	8
	 
	 	 
	ARTICLE II INDEMNIFICATION
	 	8
	Section 2.1 Notice Of Default Under The Guaranteed Leases; Indemnification And Reimbursement
	 	8
	Section 2.2 Termination Of Assignment Upon Breach Or Event Of Default
	 	11
	Section 2.3 No Obligation To Pay Rent
	 	12
	 
	 	 
	ARTICLE III COVENANTS
	 	12
	Section 3.1 Merger
	 	12
	Section 3.2 Security Interests
	 	13
	Section 3.3 Sharing Of Information
	 	13
	Section 3.4 Limitation On Assignment
	 	13
	Section 3.5 Further Assurances
	 	14
	 
	 	 
	ARTICLE IV MISCELLANEOUS
	 	14
	Section 4.1 Entire Agreement; Incorporation Of Schedules And Exhibits
	 	14
	Section 4.2 Amendments And Waivers
	 	14
	Section 4.3 No Implied Waivers; Cumulative Remedies; Writing Required
	 	14
	Section 4.4 Parties In Interest
	 	15
	Section 4.5 Assignment; Binding Agreement
	 	15
	Section 4.6 Notices
	 	15
	Section 4.7 Severability
	 	15
	Section 4.8 Governing Law
	 	16
	Section 4.9 Submission To Jurisdiction
	 	16
	Section 4.10 Waiver Of Jury Trial
	 	16
	Section 4.11 Amicable Resolution
	 	17
	Section 4.12 Arbitration
	 	17

ii

 

	 	 	 
	Section 4.13 Construction
	 	17
	Section 4.14 Counterparts
	 	17
	Section 4.15 Limitation On Damages
	 	17
	Section 4.16 Delivery By Facsimile Or Other Electronic Means
	 	17
	Section 4.17 Time of Essence
	 	18
	 
	 	 
	ARTICLE V DEFINITIONS
	 	18

SCHEDULES

	 	 	 
	Schedule 1.1

	 	Owned Properties
	 
	 	 
	Schedule 1.2

	 	Leased Properties

EXHIBITS

	 	 	 
	Exhibit A

	 	Form Conveyance for Owned Properties
	 
	 	 
	Exhibit B

	 	Form Assignment for Leased Properties

iii

 

REAL ESTATE MATTERS AGREEMENT

          This Real Estate Matters Agreement (this “Agreement”) is dated as of August 31, 2006
between Sara Lee Corporation, a Maryland corporation (“Sara Lee”), and Hanesbrands Inc., a
Maryland corporation (“HBI”).

          Capitalized terms used herein and not otherwise defined herein shall have the meanings
ascribed to such terms in Article V hereof.

RECITALS

     WHEREAS, the board of directors of Sara Lee has determined that it is appropriate and
desirable to separate Sara Lee’s Branded Apparel Business from its other businesses;

     WHEREAS, in order to effectuate the foregoing, Sara Lee and HBI have entered into a Master
Separation Agreement dated as of August 31, 2006 (as amended, modified and/or restated from time to
time, the “Separation Agreement”), which provides, among other things, subject to the
terms and conditions set forth therein, for the Separation and the Distribution, and for the
execution and delivery of certain other agreements in order to facilitate and provide for the
foregoing; and

     WHEREAS the Parties desire to set forth certain agreements regarding the real estate
associated with the Branded Apparel Business as described herein;

     NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, and subject to and on the terms and conditions herein set forth, the Parties hereby agree
as follows:

ARTICLE I

PROPERTIES

     Section 1.1 Owned Property. Sara Lee shall convey or otherwise transfer to HBI or its
designated Subsidiary, or cause its designated Subsidiary to convey or otherwise transfer to HBI or
its designated Subsidiary, and HBI shall accept, or cause its applicable Subsidiary to accept, all
of Sara Lee’s or its Subsidiary’s rights, title and interests in and to the Owned Properties,
subject to the other provisions of this Agreement and (to the extent not inconsistent with the
provisions of this Agreement) the terms of the Separation Agreement and the other Ancillary
Agreements. The parties shall use reasonable best efforts to effect such conveyance or transfer
upon the Separation Date or as soon thereafter as practicable. The foregoing provisions in this
Section 1.1 contemplate that Owned Properties in the name of a Subsidiary of Sara Lee (or
its predecessor), the stock of which is to be contributed to HBI or its designated Subsidiary,
shall not be conveyed under this Section 1.1 (with the result that such Owned Properties
will be owned by a Subsidiary of HBI upon completion of the Separation).

     Section 1.2 Leased Property. Sara Lee shall assign or otherwise transfer to HBI or
its designated Subsidiary, or cause its applicable Subsidiary to assign or otherwise transfer to
HBI or its designated Subsidiary, and HBI shall accept and assume, or cause its designated
Subsidiary

1

 

to accept and assume, all of Sara Lee’s or its Subsidiary’s rights, title, interests in
and to, and obligations under, the Leases (including thereunder, any right, title and interest in
and to any security deposits and related interest posted in accordance with such Leases), subject
to the other provisions of this Agreement and (to the extent not inconsistent with the provisions
of this Agreement) the terms of the Separation Agreement and the other Ancillary Agreements. Such
assignment or transfer shall be completed on the later of: (i) the Separation Date and (ii) the
fifth business day after the relevant Lease Consent has been granted (or such earlier date as is
mutually agreed upon by Sara Lee and HBI). The foregoing provisions of this Section 1.2
contemplate that Sara Lee or a Subsidiary of Sara Lee (the stock of which is not being contributed
to HBI) is the lessee or that a “change in control” or similar provision appears in a Lease in
which a Subsidiary of Sara Lee (or its predecessor), the stock of which is to be contributed to
HBI, is the lessee. Leases that do not contain such a provision which are in the name of a
Subsidiary of Sara Lee (or its predecessor), the stock of which is to be contributed to HBI, shall
not be assigned or transferred under this Section 1.2 (but shall instead continue to be leased by
such Subsidiary from and after the time it is contributed to HBI in the Separation).

     Section 1.3 Lease Consents.

          (a) HBI confirms that it or Sara Lee Branded Apparel has, before the Separation Date, applied
for the Lease Consents on Sara Lee’s behalf by written notice to the Landlord with respect to each
Lease Requiring Consent and provided or plans to provide any notice required to be delivered under
each Lease Requiring Notice.

          (b) HBI shall use its reasonable best efforts to obtain the Lease Consents required by each
Lease Requiring Consent. Sara Lee shall cooperate as reasonably requested by HBI and at HBI’s sole
expense to obtain the Lease Consents; provided, however, that Sara Lee shall not be
required to commence or pursue any Action (whether to obtain a declaration that a Lease Consent has
been improperly withheld or delayed or for any other purpose), nor shall Sara Lee be required to
pay any consideration or otherwise offer or grant any accommodation (financial or otherwise), to
obtain any Lease Consent. Neither Sara Lee nor any of its Subsidiaries shall have any liability to
HBI or any of its Subsidiaries arising out of, or relating to, the failure to obtain any Lease
Consents or any default, loss of any rights or acceleration of any obligations under, or any
termination of, any Lease Requiring Consent as a result of any failure to obtain any Lease
Consents. If and to the extent that a Lease Requiring Consent provides the applicable Landlord the
opportunity to recapture all or a portion of a leased premises due to request for a Lease Consent
and such Lease Requiring Consent permits a request to be withdrawn (or words of similar import)
upon such Landlord’s election so to recapture, then Sara Lee shall use reasonable best efforts to
exercise such right to withdraw a request for Lease Consent at the request of HBI.

          (c) HBI shall use its reasonable best efforts to satisfy promptly, or cause its applicable
Subsidiaries to use its reasonable best efforts to satisfy promptly, all of the
requirements set forth in each Lease Requiring Consent and any other lawful and reasonable
requirements of the Landlord in obtaining the Lease Consents, including, without limitation:

          (i) if required by any Landlord with respect to any Lease Requiring Consent, entering
into an agreement with such Landlord to assume, observe and perform

2

 

the tenant’s obligations
under such Lease Requiring Consent during the remainder of the term of such Lease Requiring
Consent; and

          (ii) if reasonably required by any such Landlord, providing, or causing another Person
(other than Sara Lee or any other member of the Sara Lee Group) to provide, a guarantee,
surety, letter of credit, security deposit or other security for the obligations of HBI or
its applicable Subsidiary as tenant under any Lease Requiring Consent.

     Section 1.4 Releases.

          (a) HBI shall use its reasonable best efforts to obtain a Release from each Landlord with
respect to each Lease and to satisfy promptly, or cause its designated Subsidiaries to use their
reasonable best efforts to satisfy promptly, all of the lawful and reasonable requirements of each
Landlord in obtaining each Release, including, without limitation:

          (i) if required by the Landlord with respect to any Lease, entering into an agreement
with such Landlord to assume, observe and perform the tenant’s obligations under such Lease
during the remainder of the term of such Lease; and

          (ii) if reasonably required by any the Landlord with respect to any Lease, providing,
or causing another Person (other than Sara Lee or any other member of the Sara Lee Group) to
provide, a guarantee, surety, letter of credit, security deposit or other security for the
obligations of HBI or its applicable Subsidiary as tenant under such Lease.

          (b) Sara Lee shall cooperate, reasonably and at HBI’s sole expense, with HBI’s efforts to
obtain each Release; provided, however, that Sara Lee shall not be required to
commence or pursue any Action, nor shall Sara Lee be required to pay any consideration or incur any
cost or otherwise offer or grant any accommodation (financial or otherwise), to obtain any Release.

          (c) To the extent that HBI does not obtain a Release from each Landlord with respect to any
Lease, HBI shall indemnify, defend, protect and hold harmless the Sara Lee Indemnitees from and
against, and shall reimburse each Sara Lee Indemnitee for, all Losses incurred by any Sara Lee
Indemnitee and occurring or accruing after the Separation Date as a result of (i) all Obligations
or the failure by HBI or any of its Subsidiaries to pay, perform, observe and discharge all
Obligations or (ii) HBI’s or its applicable Subsidiary’s use or occupancy of the respective Leased
Properties under each such Lease, including without limitation HBI’s or such Subsidiary’s use or
occupancy of any Leased Property under Section 1.5 of this Agreement.

     Section 1.5 Temporary Occupancy.

     In the event that the Actual Closing for any Leased Property does not occur on or before the
Separation Date, Sara Lee and HBI shall use their respective reasonable best efforts to allow HBI
to occupy such Leased Property upon the terms and conditions contained in the relevant Lease and
until the Actual Closing for such Leased Property; provided, however, that if an

3

 

enforcement action
or forfeiture by the relevant Landlord due to HBI’s or its applicable Subsidiary’s occupation of
such Leased Property constituting a breach of a Relevant Lease cannot, in the reasonable opinion of
Sara Lee, be avoided other than by requiring HBI or its applicable Subsidiary to promptly vacate
the relevant Leased Property, Sara Lee may by notice to HBI promptly require HBI or its applicable
Subsidiary to vacate the relevant Leased Property on not less than ten (10) days prior written
notice. HBI will be responsible for all Losses incurred by Sara Lee or any of its Subsidiaries as a
consequence of such occupation. Neither HBI nor its applicable Subsidiary shall be entitled to make
any claim or demand against, or obtain reimbursement from, Sara Lee or any of its Subsidiaries with
respect to any Losses incurred by HBI or its applicable Subsidiary as a consequence of being
obliged to vacate the Leased Property or in obtaining alternative premises, including, without
limitation, any Action or forfeiture which a Landlord may take against HBI or its applicable
Subsidiary.

     Section 1.6 Performance of Leases.

          (a) Whether or not (i) the Actual Closing with respect to any Leased Property has occurred or
(ii) HBI or its applicable Subsidiary occupies any Leased Property under Section 1.5 above
as of the Separation Date, HBI shall, effective as of the Separation Date, pay, perform, observe
and discharge promptly when due, or cause its applicable Subsidiary to pay, perform, observe and
discharge promptly when due, all Obligations under the Lease of such Leased Property; provided,
however, that if, prior to an Actual Closing, a Landlord refuses to accept direct payment,
performance, observation or other discharge of Obligations by HBI, then Sara Lee at HBI’s request
shall make such payment, performance, observation or otherwise discharge such Obligations until
such Actual Closing, subject to Sara Lee’s receipt of payment from HBI of all rent and other
amounts payable under the applicable Lease prior to payment by Sara Lee to the Landlord.

          (b) Upon (i) the Actual Closing with respect to any Guaranteed Property or (ii) the
commencement of HBI’s or its applicable Subsidiary’s occupancy of any Leased Property under
Section 1.5 of this Agreement or sublease of any Leased Property under Section 1.7
of this Agreement, HBI and each of its applicable Subsidiaries shall obtain and maintain all
insurance, in such amounts and with such coverage, terms and conditions, as the tenant is required
to maintain under each such Lease; provided, however, if, prior to an Actual Closing, a Landlord
refuses to accept HBI’s performance of the insurance requirements of any Lease or HBI’s insurer
does not recognize an insurable interest on behalf of HBI, then Sara Lee at HBI’s request shall use
reasonable best efforts to obtain and maintain insurance policies until such Actual Closing, in
such amounts and with such coverage, terms and conditions, as the tenant is required to maintain
under such Lease, subject to (i) Sara Lee’s receipt of payment from HBI of all premiums and other
amounts owing with respect to such policies prior to payment by Sara Lee to the carriers and (ii)
indemnification from HBI against any Losses which any Sara Lee Indemnitee may suffer under or in
connection with such arrangements. HBI and each of its applicable Subsidiaries shall maintain such
insurance for so long as Sara Lee retains any Obligations with regard to the Properties or Leases
subject to such insurance. Each of Sara Lee and HBI (each, an “Obtaining
Party”) shall, when obtaining insurance pursuant to this Agreement, use reasonable best
efforts to provide that coverage under such insurance shall not expire or be terminated or
materially modified without such insurer endeavoring to provide written notice to the other party
at least 30 days in advance of such expiration, termination or modification. All policies of
commercial

4

 

general liability insurance obtained by an Obtaining Party (or any Subsidiary of such
Obtaining Party) shall designate the other party and, as applicable, the other members of the Sara
Lee Group or the appropriate Subsidiary of HBI, as additional insureds. On or before each such
Actual Closing or the commencement of any such occupancy or sublease, and thereafter at least 30
days before the expiration of any such insurance or within ten days after receiving a written
request from the other party, the Obtaining Party shall deliver certificates from the issuers of
all such insurance evidencing full compliance with this Section 1.6(b), together with evidence of
the payment of any premiums due on account of such insurance.

          (c) Sara Lee shall use reasonable best efforts to promptly deliver to HBI copies of all
invoices, demands, notices and other communications received by Sara Lee or its applicable
Subsidiary or agents in connection with any of the Leased Properties or the Leases and shall, at
HBI’s cost and upon HBI’s reasonable request, use reasonable best efforts to give notices and
otherwise communicate on behalf of HBI or its applicable Subsidiary with respect to matters
relating to any Lease or Leased Property. HBI shall use reasonable best efforts to promptly
deliver to Sara Lee copies of all demands, notices and other communications received by HBI or its
applicable Subsidiary or agents that allege any breach or default of any Lease, which breach or
default could reasonably be expected to result in Sara Lee or any of its Subsidiaries incurring any
Liabilities under such Lease or relating to the applicable Leased Property.

     Section 1.7 Alternative Sublease. If, at any time the relevant Lease Consent is
expressly refused, and provided HBI has otherwise discharged its obligations under Section
1.3 and Section 1.14 with regards to obtaining such Lease Consent, Sara Lee may, in its
reasonable discretion, by written notice to HBI, elect to sublease all of the relevant Leased
Property utilized by HBI or its applicable Subsidiary to HBI or such Subsidiary for the remainder
of the term of the Lease (or, if required by Landlord, for a period equal to substantially all of
the remainder of the term of such Lease). If Sara Lee makes such an election, Sara Lee shall apply
to the relevant Landlord for the Lease Consent with respect to such sublease, and, on the grant of
such Lease Consent, Sara Lee shall sublease or cause its applicable Subsidiary to sublease to HBI
or its applicable Subsidiary the relevant Leased Property for the remainder of the term of the
Lease Requiring Consent, at a rent equal to the rent from time to time under the Lease Requiring
Consent, but otherwise on substantially the same terms and conditions as the Lease Requiring
Consent, except to the extent inconsistent with this Agreement and except that Sara Lee shall have
no obligation to perform any obligations of such Landlord under such Lease. The sublease shall
provide that (i) Sara Lee shall use reasonable best efforts to enforce such Lease for the benefit
of HBI, at HBI’s sole cost and expense, (ii) Sara Lee shall not terminate or otherwise amend such
Lease so as to materially adversely affect such subleased premises or HBI’s rights thereunder; and
(iii) subject to Section 1.13 of this Agreement, Sara Lee shall exercise such Lease rights as may
be reasonably requested by HBI from time to time, at HBI’s sole cost and expense and subject to
indemnification from HBI against any Losses any Sara Lee Indemnitee may suffer in connection
therewith.

     Section 1.8 Form Of Transfer. Sara Lee or its applicable Subsidiary shall make the
conveyance or transfer of the Owned Property in accordance Section 1.1 of this Agreement
using one or more instruments substantially in the form attached to this Agreement as Exhibit
A and shall make the assignment or transfer of the Leased Property in accordance Section
1.2 of this

5

 

Agreement using one or more instruments substantially in the form attached to this
Agreement as Exhibit B (or, if any Landlord so requires, in the form of assignment
reasonably proposed by the relevant Landlord), in each case with such modifications as are
necessary to conform to local requirements, customs and practices to the extent necessary to render
such form effective and, if requested by HBI, recordable. Sara Lee and HBI shall also execute and
deliver such other documents as may be reasonably necessary in connection with the conveyance,
assignment or other transfer of real property interests under this Agreement, including local
governmental forms and FIRPTA affidavits, and such other documents as may reasonably be requested
by title insurers in order to issue owner’s title insurance coverage; provided that in no event
shall Sara Lee be required to make any representations or warranties which are broader than the
representations and warranties which Sara Lee is making in the form of conveyance attached as
Exhibit A to this Agreement (or provide any indemnities or undertake any actual or contingent
exposure with respect to any such matter).

     Section 1.9 Title to the Properties. Sara Lee makes no representations or warranties,
express or implied, with respect to the quality or condition of, or any encumbrances on, the title
to the Properties, and HBI or its applicable Subsidiary shall accept the rights, title and
interests of Sara Lee or its applicable Subsidiary in and to each Owned Property and each Lease,
subject to any defects in the quality or condition of such title and any easements, covenants,
conditions, restrictions, reservations and other matters affecting, encumbering or relating to each
Property.

     Section 1.10 Condition of Properties. Sara Lee makes no representations or
warranties, express or implied, with respect to the condition of the Properties, and HBI or its
applicable Subsidiary shall accept each Property in such condition and state of repair as exists on
the Separation Date, with respect to the Owned Properties, and on the Actual Closing Date, with
respect to the Leased Properties, with all faults, limitations and defects (latent and apparent),
without any representations or warranties, express or implied, as to its quality, merchantability
or its fitness for any intended use or particular purpose. HBI, for itself and on behalf of its
Subsidiaries, acknowledges that it has had the opportunity to inspect the Properties to its full
satisfaction and is familiar with the Properties. The Parties obligations under this Agreement are
not conditioned upon the Properties being in any particular condition, and, any damage from
condemnation or any fire or other casualty or any other change in the condition of any Property
notwithstanding, Sara Lee shall make, or cause its applicable Subsidiary to make, the conveyances,
assignments and transfers under Sections 1.1 and 1.2 of this Agreement, and HBI
shall accept, or cause its applicable Subsidiary to accept, all
such conveyances, assignments and transfers; provided, however, in the event of any such
damage from condemnation or fire or other casualty before the Separation Date, with respect to the
Owned Properties, or the Actual Closing, with respect to the Leased Properties, Sara Lee or its
applicable Subsidiary shall confer with HBI regarding, and use reasonable best efforts to pursue
and assign to HBI or its applicable Subsidiary, all rights and interests of Sara Lee or its
applicable Subsidiary in and to any proceeds of insurance arising from such fire or casualty or
proceeds arising from any condemnation proceeding at the time of the conveyance, assignment or
transfer for the relevant Property. To the extent that there is any damage from condemnation or
any fire or other casualty to any Leased Property prior to the Actual Closing, Sara Lee shall
consult with HBI prior to the exercise of any right set forth in the respective Lease with respect
to such an event.

6

 

     Section 1.11 Lease Termination. If any Lease expires or is terminated prior to the
Separation Date, (a) Sara Lee or its applicable Subsidiary shall not be required to assign or
transfer such Lease, (b) HBI or its applicable Subsidiary shall not be required to accept an
assignment or transfer of such Lease or a sublease of the Leased Property relating to such Lease,
and (c) neither Party shall have any further obligations with respect to such Lease or Leased
Property under this Agreement.

     Section 1.12 Tenant’s Fixtures And Fittings. The Separation Agreement and the other
Ancillary Agreements shall govern the ownership, and the transfer of ownership, of any trade
fixtures and personal property located at each Property.

     Section 1.13 Lease Extensions.

          (a) HBI shall not enter into, and shall not permit its applicable Subsidiaries to enter into,
any agreement renewing any Guaranteed Lease or extending the term of any Guaranteed Lease unless
Sara Lee is released from all Obligations, including any guaranty, surety and other security
relating to such Guaranteed Lease. If HBI or its Subsidiary wishes to remain in any Guaranteed
Property after the expiration of the current term of any Guaranteed Lease, HBI shall enter into, or
cause its applicable Subsidiary to enter into, a new lease of such Guaranteed Property under which
neither Sara Lee nor any of its Subsidiaries shall have any Liabilities. If any Guaranteed Lease
provides (a) a right or option to renew such Guaranteed Lease or extend the term of such Guaranteed
Lease that the tenant under such Guaranteed Lease may exercise with respect to such Guaranteed
Lease or (b) that such Guaranteed Lease shall renew or the term of such Guaranteed Lease shall be
extended automatically if the tenant under such Guaranteed Lease fails to take an action to prevent
such automatic renewal or extension, then, HBI shall not exercise, and shall not permit its
applicable Subsidiary to exercise, such right or option to renew such Guaranteed Lease or extend
the term of such Guaranteed Lease, and HBI shall take such action, or shall cause its applicable
Subsidiary to take such action, as is necessary to prevent the automatic renewal of such Guaranteed
Lease or the automatic extension of the term of such Guaranteed Lease. Neither Sara Lee nor any of
its Subsidiaries shall have any
Liabilities under (i) any Lease that expires or is subject to renewal on or after the
Separation Date, or (ii) any new lease executed in connection with the Branded Apparel Business on
or after the Separation Date.

          (b) Notwithstanding the proceeding provisions of this Section 1.13, if HBI desires to exercise
a renewal or extension right in a Guaranteed Lease, then HBI may exercise such renewal or extension
right upon posting a bond, Letter of Credit, or other security (in each case on terms and in
amounts which are reasonably acceptable to Sara Lee) to fully indemnify Sara Lee’s Obligations
during any such extension term. HBI shall post any such bond, Letter of Credit or other security
not less than ten (10) business days prior to HBI’s exercise of such renewal or extension right.

     Section 1.14 Costs And Expenses.

          (a) HBI shall pay all out-of-pocket costs and expenses incurred in connection with obtaining
the Lease Consents and the Releases by each Landlord, including, without limitation, any consent,
processing or other fee charged by any Landlord for any Lease Consent

7

 

or Release and any attorneys’
fees and any costs and expenses relating to re-negotiation or renewal of any Lease. HBI shall also
pay all out-of-pocket costs and expenses payable in connection with the conveyance or transfer of
the Owned Properties and the assignment or transfer of the Leases, including, without limitation,
title insurance premiums, escrow fees, recording fees and any transfer taxes.

          (b) If and to the extent that a Landlord requires the payment of any material consent fee,
processing fee or other fee in consideration for a Lease Consent or Release, then Sara Lee and HBI
shall consider in good faith whether there is a mutually agreeable alternative arrangement which
Sara Lee and HBI could implement with respect to the Lease which would not require the payment of
such fee.

     Section 1.15 Landlord Estoppel Certificates. Sara Lee will use its reasonable best
efforts to provide estoppel certificates to landlords under the Guaranteed Leases, subject to the
receipt of factual representations from HBI in form and substance reasonably satisfactory to Sara
Lee (and subject to receipt of an acknowledgement from HBI that it will be solely responsible for,
and will hold Sara Lee harmless against, any Liabilities which may arise from such estoppel
certificate or the matters covered thereby).

     Section 1.16 Title Insurance. At the request of HBI (and at HBI’s sole cost and
expense), Sara Lee shall use its reasonable best efforts to obtain endorsements to existing title
insurance policies held by the Sara Lee Group providing for the transfer of such policies to HBI or
its designated Subsidiaries. HBI may, at its own cost and expense, elect to obtain title insurance
policies and/or surveys with respect to any or all of the Owned Properties.

     Section 1.17 Cooperation. In the event that (1) Sara Lee or HBI identifies any real properties which should have been
included in the Owned Real Properties or Leased Real Properties (but were not so included due to
mistake or unintentional omission), then it shall notify the other and the parties shall cooperate
to transfer such Owned Real Property or Leased Real Property to HBI or an HBI Subsidiary in
accordance with the terms of this Agreement, (2) Sara Lee identifies any records or files relating
to the Owned Real Properties or Leased Real Properties in the possession of Sara Lee or a Sara Lee
Subsidiary (which records or files have not previously been transferred to HBI or an HBI
Subsidiary), then Sara Lee shall promptly cause such records or files to transferred to HBI and (3)
Sara Lee or HBI identifies any obligation of Sara Lee, whether direct or indirect, to make payments
under or otherwise be financially responsible with respect to any Leased Real Property (and as to
which a Release has not previously been sought under this Agreement due to mistake or unintentional
omission), then it shall promptly notify the other and HBI shall promptly seek a Release in
accordance with the terms of this Agreement.

ARTICLE II

INDEMNIFICATION

     Section 2.1 Notice Of Default Under The Guaranteed Leases; Indemnification And
Reimbursement.

8

 

          (a) HBI shall provide Sara Lee with a copy of any written notice of default, notice of alleged
default or other notice that HBI or any of its Subsidiaries receives from a Landlord or a lender
with respect to any Lease that may result in an event of default, which copy shall be given to Sara
Lee as soon as practicable and in any event no later than five (5) business days after HBI’s or any
of its Subsidiaries’ receipt of any such notice. Sara Lee shall provide HBI with a copy of any
written notice of default, notice of alleged default or other notice that Sara Lee or any member of
the Sara Lee Group receives from a Landlord with respect to any Lease, which copy shall be given to
HBI as soon as practicable and in any event no later than five (5) business days after Sara Lee’s
or any of the Sara Lee Group members’ receipt of any such notice.

          (b) HBI shall deliver to Sara Lee, as soon as practicable and in any event no later than five
(5) business days after HBI’s or any of its Subsidiaries’ receipt of any notice described in
Section 2.1(a) hereof, a statement from HBI concerning HBI’s intentions with respect to said
default or alleged default. Sara Lee shall reasonably cooperate with any attempt by HBI pursuant
to this Section 2.1(b) to cure or contest a default or alleged default.

          (i) If HBI indicates an intent to contest said default or alleged default, then HBI
shall engage legal counsel reasonably acceptable to Sara Lee and shall diligently pursue
such contest; provided, however, if Sara Lee reasonably believes that HBI is not likely to
prevail in such contest and Sara Lee reasonably believes that Sara Lee or any member of the
Sara Lee Group will suffer adverse consequences as a result of such default or alleged
default if it is not cured promptly, then, in any such event, Sara Lee may (in its sole and
absolute discretion and without any obligation to do so) give
HBI written notice of Sara Lee’s intention to cure the default of alleged default under
such Guaranteed Lease, and the parties shall be thereafter be governed by Section
2.1(b)(iii).

          (ii) If HBI indicates its intent to cure such default or alleged default, HBI shall
cure said default or alleged default within the time period set forth in the applicable
Guaranteed Lease, or if said default or alleged default is of a character which does not
permit the curing of said default or alleged default within the time period set forth in the
applicable Guaranteed Lease, HBI shall eliminate, cure, obtain a waiver or otherwise
constructively address such default or alleged default and proceed diligently with respect
to said default or alleged default until cured, waived or eliminated, but, in any event, in
the manner required under the terms and conditions of the applicable Guaranteed Lease. So
long as HBI is working diligently to cure such default or alleged default in accordance with
the foregoing, Sara Lee shall refrain from taking actions to cure such default or alleged
default and shall cooperate as reasonably requested by HBI with respect to curing such
default or alleged default or settling such dispute with the applicable Landlord;
provided, however, if HBI (1) provides written notice to Sara Lee of its
intention not to cure said default or alleged default, (2) fails to send any notice of its
intentions, or (3) fails to cure a default or alleged default in accordance with its
previous notice to Sara Lee, or if Sara Lee reasonably believes that Sara Lee or any member
of the Sara Lee Group will suffer adverse consequences as a result of such default or
alleged default if it is not cured promptly, then, in any such event, Sara Lee may (in its
sole and absolute discretion and without any obligation to do so) give HBI written notice of
Sara

9

 

Lee’s intention to cure the default or alleged default under such Guaranteed Lease and
the parties shall be thereafter be governed by Section 2.1(b)(iii).

          (iii) If HBI has not cured such default or alleged default within five (5) days after
HBI’s receipt of Sara Lee’s written notice to HBI pursuant to the final sentences of
Sections 2.1(b)(i) or 2.1(b)(ii) (or, if such default or alleged default cannot be cured
within such five (5) day period, HBI has not commenced to cure and continued to diligently
pursue such cure to completion within the grace or cure periods provided under, and
otherwise in accordance with the terms of the applicable Guaranteed Lease), then, regardless
of any stated intention of HBI, Sara Lee may (in its sole and absolute discretion and
without any obligation to do so) cure such default or alleged default on behalf of HBI at
HBI’s sole cost and expense, and HBI, for itself and on behalf of each of its Subsidiaries,
hereby grants to Sara Lee a license to enter upon any Leased Property for the purpose of
effecting such cure, subject to the provisions of such Guaranteed Lease.

          (iv) If Sara Lee or any member of the Sara Lee Group incurs any Losses as a result of a
default or alleged default under any Guaranteed Lease by HBI or any of its Subsidiaries, and
if HBI does not pay to Sara Lee the full amount of such Losses promptly after receipt of
notice of such Losses from Sara Lee, Sara Lee shall be entitled to exercise any and all
remedies available to it under this Agreement or under any other agreement between the
parties, at law or in equity.

          (c) HBI, for itself and as agent for each of its Subsidiaries, hereby agrees to indemnify,
defend (or, where applicable, pay the costs of defense for) and hold harmless the Sara
Lee Indemnitees from and against, and shall reimburse such Sara Lee Indemnitees for, all
Losses incurred by the Sara Lee Indemnitees by reason of (i) the incurrence by any Sara Lee
Indemnitees of reasonable out-of-pocket costs of enforcement (excluding any internal administrative
costs of such Sara Lee Indemnitees) of any terms, covenants or agreements contained in this
Agreement, (ii) any and all payments or performance required of any of the Sara Lee Indemnitees
with respect to any Obligation, and (iii) any breach or default by HBI or any of its Subsidiaries
under any Guaranteed Lease, except to the extent any such Losses have been finally determined by a
court of competent jurisdiction to have resulted directly from acts or omissions after the
Distribution Date of any Sara Lee Indemnitee which constitute gross negligence or willful
misconduct. If any Sara Lee Indemnitee incurs any such Losses, HBI shall reimburse Sara Lee for
the full amount thereof, within ten (10) days after receiving a written demand for such Losses from
Sara Lee; provided that each demand for reimbursement by Sara Lee shall be accompanied by copies of
supporting invoices and copies of paid receipts, cancelled checks or other reasonable proof of
payment or incurrence of liability by Sara Lee, to the extent available. In the event that, with
the consent of Sara Lee, HBI assumes the defense of any Sara Lee Indemnitee with respect to any
Action arising out of any matter from and against which HBI is obligated to indemnify, defend and
hold harmless such Sara Lee Indemnitee under this Section 2.1(c), such defense shall
include the employment of counsel reasonably satisfactory to HBI and Sara Lee and the payment by
HBI of all of such counsel’s fees and expenses. Sara Lee shall not be liable for the payment of
any settlement of any such Action effected by HBI without the written consent of Sara Lee. HBI
shall not, without the prior written consent of Sara Lee (not to be unreasonably withheld or
delayed), effect any settlement of any Action in respect of which any Sara Lee Indemnitee is a
party and from and against which HBI is obligated to indemnify,

10

 

defend and hold harmless such Sara
Lee Indemnitee under this Section 2.1(c), unless such settlement is paid, in the first
instance, by HBI and includes an unconditional release of all Sara Lee Indemnitees from all
liability on all claims that are the subject matter of such Action. Sara Lee agrees to cooperate
with HBI’s defense of any such Action, as reasonably requested by HBI.

     Section 2.2 Termination Of Assignment Upon Breach Or Event Of Default. If a breach or
default occurs under any of the Guaranteed Leases and such breach or default remains uncured after
any applicable notice and cure period, then Sara Lee, at its election, shall have the following
non-exclusive remedies:

          (a) Sara Lee shall be entitled to all of the rights and remedies which Sara Lee may have under
this Agreement or any other Contract or at law or in equity;

          (b) Sara Lee shall have the right to terminate the assignment to HBI or its applicable
Subsidiary of Sara Lee’s or its applicable Subsidiary’s right, title and interest in and to the
Guaranteed Lease with respect to which there exists a default following any notice and cure period
provided for in such Guaranteed Lease, which right Sara Lee shall exercise by written notice to
HBI. Provided that the Landlord consented in the Landlord’s Consent to the re-assignment of the
Guaranteed Lease to Sara Lee or such Lease is not a Lease Requiring Consent, upon receiving such
notice from Sara Lee, such assignment shall be of no further force and effect; and HBI shall assign
or otherwise transfer, or cause its applicable Subsidiary to assign or otherwise transfer, to Sara
Lee all of HBI or such Subsidiary’s right, title and interest in and to such Guaranteed Lease and
any related improvements and fixtures (but excluding any
furnishings, trade fixtures and business equipment) used in connection with the Leased
Property demised under such Guaranteed Lease (collectively, the “Related Property”). If a
Landlord did not consent in the Landlord’s Consent to the re-assignment of the Guaranteed Lease to
Sara Lee and such Guaranteed Lease is a Lease Requiring Consent, then Sara Lee may seek Landlord’s
consent to re-assignment of the Lease to Sara Lee at HBI’s sole cost and expense, and, upon the
receipt of such consent, HBI (or its Subsidiary) shall perform such assignment and transfer called
for in the preceding sentence.

          (c) If Sara Lee exercises its right to terminate the assignment to HBI of any Guaranteed
Lease, Sara Lee shall have the immediate right to possession and use of the Leased Property with
respect to which such breach or event of default exists and any Related Property associated with
such Leased Property, and, upon receiving the notice of termination of such Guaranteed Lease from
Sara Lee, HBI shall quit and vacate, or shall cause its applicable Subsidiary and all other tenants
and occupants of such Leased Property, to quit and vacate such Leased Property in accordance with
the requirements of such Guaranteed Lease, broom clean, with all rubbish, debris and personal
property belonging to HBI or such Subsidiary, tenant or occupant (other than the Related Property)
having been removed. If HBI or any such Subsidiary, tenant or occupant shall fail to quit and
vacate such Leased Property after receipt of such notice of termination in accordance with the
requirements of the Guaranteed Lease, Sara Lee shall have all rights and remedies available at law
and in equity to evict HBI, or such Subsidiary, tenant or occupant from such Leased Premises.

          (d) HBI, for itself and as agent for each of its Subsidiaries, hereby irrevocably constitutes
and appoints Sara Lee its true and lawful attorney-in-fact for the purpose of carrying

11

 

out the
terms and provisions of this Agreement after a breach or default under this Agreement or under any
Lease (which continues after the giving of any notice and the expiration of any cure period
provided under such Lease), in HBI’s or such Subsidiary’s name and stead, (i) to secure and
maintain the use and possession of any Leased Properties with respect to which any breach or event
of default exists under any Guaranteed Lease and any Related Property; (ii) to take any and all
actions which Sara Lee reasonably deems necessary to protect, maintain and secure its interest in
any such Leased Property and Related Property; and (iii) to put and substitute one or more agents,
attorney or attorneys-in-fact for HBI or any such Subsidiary to do, execute, perform and finish for
HBI or such Subsidiary those matters which shall be reasonably necessary or advisable, or which
HBI’s agent, attorney-in-fact or its substitute shall deem reasonably necessary or advisable, with
respect to such Leased Property or Related Property, including, without limitation, executing on
behalf of HBI any instrument deemed necessary or advisable by Sara Lee to evidence the termination
of the previous assignment, and the assignment of HBI’s or its Subsidiary’s rights, title and
interests in and to such Guaranteed Lease under this Section 2.2, as thoroughly, amply and
fully as HBI could do personally. All such powers of attorney shall be deemed coupled with an
interest and shall be irrevocable.

     Section 2.3 No Obligation To Pay Rent. Nothing in this Agreement, the instruments
assigning the Guaranteed Leases to HBI or its applicable Subsidiary, or any other agreement between
HBI and Sara Lee creates any obligation on the part of Sara Lee to pay any amounts due or owing
under any of the Guaranteed Leases.

ARTICLE III

COVENANTS

     Section 3.1 Merger.

          (a) As long as the Total Guaranteed Rent exceeds $25 million HBI shall not consolidate with or
merge into any Person or permit any Person to consolidate with or merge into HBI (or enter into any
transaction involving or related to an acquisition of a controlling interest in HBI or a sale of
all or substantially all of HBI’s assets on a consolidated basis) (in each case, a
“Transaction”) unless:

          (i) the surviving Person in such Transaction (the “Surviving Person”) (A) is
rated at least B+ by Standard & Poor’s or at least Ba3 by Moody’s Investors Services, and
(B) the Surviving Person assumes in writing all of HBI’s obligations under this Agreement;
or

          (ii) (A) the Surviving Person assumes in writing all of HBI’s obligations under this
Agreement, and (B) the Surviving Person delivers to Sara Lee a Letter of Credit in the
Required Amount; or

          (iii) HBI obtains the prior written consent of Sara Lee (which may be granted or
withheld in Sara Lee’s sole discretion).

          (b) If the Surviving Person provides the Letter of Credit under Section 3.1(a)(ii),
then (i) the Required Amount shall be calculated as of a date within 60 days

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prior to the closing
of the Transaction (such date to be mutually acceptable to Sara Lee and the Surviving Person), (ii)
the Required Amount shall be re-calculated on an annual basis following the closing of the
Transaction and the Surviving Person shall provide Sara Lee with a replacement Letter of Credit in
the Required Amount as so re-calculated and (iii) the Surviving Person shall be obligated to
maintain the Letter of Credit in the Required Amount until the date on which the Total Guaranteed
Rent falls below $25 million (such term, the “Letter of Credit Term”).

     Section 3.2 Security Interests. As long as Sara Lee’s duties under any Obligation
remain outstanding with regards to any Leased Properties or Leases, HBI shall not pledge,
hypothecate, collaterally assign, mortgage or otherwise encumber, or permit any lien or encumbrance
upon, or grant any security interest in, any of HBI’s rights, title or interests, as lessee or
assignee, in or to any of such Leased Properties or Leases, except to the extent any such lien,
encumbrance or security interest is subordinate to, and would not otherwise interfere with, the
interests, rights or remedies of Sara Lee with respect to such Leased Property or Lease under the
terms of this Agreement; provided, however, that this Section 3.2 shall not apply to (a)
any lien or encumbrance on any Landlord’s interest in any Leased Property existing as of the
Separation Date or expressly permitted under a Lease; (b) any liens against the Properties for real
estate taxes or mechanics’, materialmens’ or
other liens based upon claims for work, labor or materials relating to any Property, if (i)
such taxes or claims are not due and payable or are being contested in good faith by appropriate
proceedings and (ii) HBI maintains adequate reserves for payment of such taxes or claims in
accordance with generally accepted accounting principles; and (c) any mortgage, deed of trust or
security interest on any Property or Lease in favor of the provider or providers of any senior
working capital facility and/or any senior term loan facility. It shall not be considered a
default of this Agreement if, within ten (10) business days after HBI receives notice of a lien
against a Property, HBI causes such lien to be released of record or provides Sara Lee with
insurance against the same issued by a major title insurance company or such other protection
against the same as Sara Lee shall accept in its sole and absolute discretion.

     Section 3.3 Sharing Of Information. As long as any Obligations remain outstanding,
HBI will provide to Sara Lee, no later than fifteen (15) days after the end of each fiscal quarter
of HBI, a certificate of HBI’s Chief Operating Officer or Chief Financial Officer that (a)
certifies the accuracy of an attached schedule listing each Guaranteed Lease and, with respect
thereto, (i) the location of the Property covered by, and the parties to, such Guaranteed Lease,
(ii) the expiration date of each Guaranteed Lease, and (iii) the current monthly rental payment by
HBI or its applicable Subsidiary and the date of any contractual escalation in the monthly rental
payment under each Guaranteed Lease, and (b) certifies that HBI is not in breach or default under
any of the Guaranteed Leases and that no event exists which, with the passage of time, would become
an event of breach or default (or, if applicable, identifies any exceptions).

     Section 3.4 Limitation On Assignment. As long as any Obligations remain outstanding
with regards to a Guaranteed Lease, HBI or its applicable Subsidiary may assign or otherwise
transfer its rights, title and interests in and to under any such Guaranteed Lease, or sublease all
or substantially all of any the Guaranteed Property, to a third party (any such proposed assignee,
sublessee or transferee being a “Proposed Transferee,” and any such proposed assignment,
sublease or transfer being a “Proposed Transfer”); provided, however, that
(a) Sara Lee consents to such Proposed Transfer, such consent not to be unreasonably withheld,

13

 

(b)
effective upon or before such Proposed Transfer, Sara Lee is fully and unconditionally released
from any and all Obligations under such Guaranteed Lease, or (c) the Proposed Transferee is a
direct or indirect wholly-owned Subsidiary of HBI, under common control with HBI, or in control of
HBI at all times and HBI remains primarily liable for the Obligations as if HBI were still the
tenant or assignee under the applicable Guaranteed Lease or Guaranteed Leases. Any transfer in
violation of this Section 3.4 is void.

     Section 3.5 Further Assurances. At any time and from time to time, upon the request of the
other Party, HBI and Sara Lee shall each execute and deliver to the other Party such further
instruments and documents, and do such further acts and things, as such other Party may reasonably
request in order to effectuate fully the purposes of this Agreement. To the extent it is possible
without causing a default under any Lease, Sara Lee shall take such other actions as may be
reasonably requested by HBI in order to
place HBI, insofar as reasonably possible, in the same position as if the Leases for any Leased
Property for which the Actual Closing did not occur on or before the Separation Date had been
transferred as contemplated hereby.

ARTICLE IV

MISCELLANEOUS

     Section 4.1 Entire Agreement; Incorporation Of Schedules And Exhibits. This Agreement
(including all Schedules and Exhibits referred to herein) and the Ancillary Agreements constitute
the entire agreement among the Parties with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings, both written and oral, among the Parties with
respect to the subject matter hereof and thereof. All Schedules and Exhibits referred to herein
are hereby incorporated in and made a part of this Agreement as if set forth in full herein.

     Section 4.2 Amendments And Waivers. This Agreement may be amended and any provision
of this Agreement may be waived, provided that any such amendment or waiver shall be binding upon a
Party only if such amendment or waiver is set forth in a writing executed by such Party. No course
of dealing between or among any Persons having any interest in this Agreement shall be deemed
effective to modify, amend or discharge any part of this Agreement or any rights or obligations of
any Party under or by reason of this Agreement.

     Section 4.3 No Implied Waivers; Cumulative Remedies; Writing Required. No delay or
failure in exercising any right, power or remedy hereunder shall affect or operate as a waiver
thereof; nor shall any single or partial exercise thereof or any abandonment or discontinuance of
steps to enforce such a right, power or remedy preclude any further exercise thereof or of any
other right, power or remedy. The rights and remedies hereunder are cumulative and not exclusive
of any rights or remedies that any party hereto would otherwise have. Any waiver, permit, consent
or approval of any kind or character of any breach or default under this Agreement or any such
waiver of any provision of this Agreement must satisfy the conditions set forth in Section
4.2 and shall be effective only to the extent in such writing specifically set forth.

14

 

     Section 4.4 Parties In Interest. Nothing in this Agreement, express or implied, is
intended to confer on any Person other than the Parties, and their respective successors and
permitted assigns, any rights or remedies of any nature whatsoever under or by virtue of this
Agreement.

     Section 4.5 Assignment; Binding Agreement. Neither this Agreement nor any of the rights, interests or obligations under this Agreement
shall be assigned, in whole or in part, by operation of law or otherwise by any of the Parties
without the prior written consent of the other Parties, and any instrument purporting to make such
an assignment without prior written consent shall be void; provided, however, either Party may
assign this Agreement to a successor entity in conjunction with such Party’s reincorporation.
Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of,
and be enforceable by, the Parties and their respective successors and permitted assigns. Any
contrary or inconsistent provision of this Agreement notwithstanding, this Agreement shall be
binding upon HBI and any successor or assign of HBI that, through a merger or consolidation,
succeeds to all or substantially all of HBI’s interest in the Guaranteed Leases or the Guaranteed
Properties.

     Section 4.6 Notices. All notices, demands and other communications given under this
Agreement must be in writing and must be either personally delivered, telecopied (and confirmed by
telecopy answer back), mailed by first class mail (postage prepaid and return receipt requested),
or sent by reputable overnight courier service (charges prepaid) to the recipient at the address or
telecopy number indicated below or such other address or telecopy number or to the attention of
such other Person as the recipient party shall have specified by prior written notice to the
sending party. Any notice, demand or other communication under this Agreement shall be deemed to
have been given when so personally delivered or so telecopied and confirmed (if telecopied before
5:00 p.m. Eastern Standard Time on a business day, and otherwise on the next business day), or if
sent, one business day after deposit with an overnight courier, or, if mailed, five business days
after deposit in the U.S. mail.

Sara Lee Corporation

Three First National Plaza

Chicago, Illinois 60602-4260

Attention: General Counsel

Facsimile Number: (312) 419-3187

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105

Attention: General Counsel

Facsimile Number: (336) 714-3638

     Section 4.7 Severability. The Parties agree that (a) the provisions of this Agreement
shall be severable in the event that for any reason whatsoever any of the provisions hereof are
invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable
provisions shall be replaced by other provisions which are as similar as possible in terms to such
invalid, void or otherwise unenforceable provisions but are valid and enforceable, and (c) the

15

 

remaining provisions shall remain valid and enforceable to the fullest extent permitted by
applicable law.

     Section 4.8 Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by and construed in accordance with the domestic
laws of the State of Illinois, without giving effect to any choice of law or conflict of law
provision (whether of the State of Illinois or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Illinois.

     Section 4.9 Submission To Jurisdiction. EACH OF THE PARTIES IRREVOCABLY SUBMITS (FOR
ITSELF AND IN RESPECT OF ITS PROPERTY) TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN
CHICAGO, ILLINOIS, OR FORSYTH COUNTY, NORTH CAROLINA OR GUILDFORD COUNTY, NORTH CAROLINA, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES THAT ALL CLAIMS IN
RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT; PROVIDED THAT
THE PARTIES MAY BRING ACTIONS OR PROCEEDINGS AGAINST EACH OTHER IN OTHER JURISDICTIONS TO THE
EXTENT NECESSARY TO ENFORCE THEIR RIGHTS UNDER THIS AGREEMENT UNDER STATE LAW OR TO IMPLEAD THE
OTHER PARTY IN ANY ACTION COMMENCED BY A THIRD PARTY THAT IS RELATED TO THIS AGREEMENT. EACH PARTY
ALSO AGREES NOT TO BRING ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN
ANY OTHER COURT OR OTHER JURISDICTIONS UNLESS SUCH ACTIONS OR PROCEEDINGS ARE NECESSARY TO ENFORCE
ITS RIGHTS UNDER THIS AGREEMENT UNDER STATE LAW OR TO IMPLEAD THE OTHER PARTY IN ANY ACTION
COMMENCED BY A THIRD PARTY THAT IS RELATED TO THIS AGREEMENT. EACH OF THE PARTIES WAIVES ANY
DEFENSE OF INCONVENIENT FORUM TO THE MAINTENANCE OF ANY ACTION OR PROCEEDING SO BROUGHT AND WAIVES
ANY BOND, SURETY, OR OTHER SECURITY THAT MIGHT BE REQUIRED OF ANY OTHER PARTY WITH RESPECT THERETO.
ANY PARTY MAY MAKE SERVICE ON ANY OTHER PARTY BY SENDING OR DELIVERING A COPY OF THE PROCESS TO
THE PARTY TO BE SERVED AT THE ADDRESS AND IN THE MANNER PROVIDED FOR THE GIVING OF NOTICES IN
SECTION 4.6 ABOVE. NOTHING IN THIS SECTION 4.9, HOWEVER, SHALL AFFECT THE RIGHT OF
ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AT EQUITY. EACH PARTY
AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND MAY BE
ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW OR AT EQUITY.

     Section 4.10 Waiver Of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR
EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT
WITH COUNSEL), EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING
RELATING TO
OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

16

 

     Section 4.11 Amicable Resolution. The Parties desire that friendly collaboration will
develop between them. Accordingly, they will try to resolve in an amicable manner all disputes and
disagreements connected with their respective rights and obligations under this Agreement in
accordance with Section 6.12 of the Separation Agreement.

     Section 4.12 Arbitration. Except for suits seeking eviction, injunctive relief or
specific performance or in the event of any impleader action arising from any proceeding commenced
by a third party that it is related to this Agreement, in the event of any dispute, controversy or
claim arising under or in connection with this Agreement (including any dispute, controversy or
claim relating to the breach, termination or validity thereof), the Parties shall submit any such
dispute, controversy or claim to binding arbitration in accordance with Section 6.13 of the
Separation Agreement.

     Section 4.13 Construction. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be a substantive part of or to affect the
meaning or interpretation of this Agreement. Whenever required by the context, any pronoun used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns, pronouns and verbs shall include the plural and vice versa. Reference to
any agreement, document, or instrument means such agreement, document or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and if applicable
hereof. The use of the words “include” or “including” in this Agreement shall be by way of example
rather than by limitation. The use of the words “or,” “either” or “any” shall not be exclusive.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the Parties hereto, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement. The Parties agree that prior drafts of this Agreement shall be deemed not to
provide any evidence as to the meaning of any provision hereof or the intent of the Parties hereto
with respect hereto.

     Section 4.14 Counterparts. This Agreement may be executed in multiple counterparts
(any one of which need not contain the signatures of more than one party), each of which shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement.

     Section 4.15 Limitation On Damages. Each Party irrevocably waives, and no Party shall
be entitled to seek or receive, consequential, special, indirect or incidental damages (including
without limitation damages for
loss of profits) or punitive damages, regardless of how such damages were caused and
regardless of the theory of liability; provided that the foregoing shall not limit each
Party’s indemnification obligations set forth in the Indemnification and Insurance Matters
Agreement.

     Section 4.16 Delivery By Facsimile Or Other Electronic Means. This Agreement, and any
amendments hereto, to the extent signed and delivered by means of a facsimile machine or other
electronic transmission, shall be treated in all manner and respects as an original contract and
shall be considered to have the same binding legal effects as if it were the original signed
version thereof delivered in person. At the request of any Party, each other Party shall
re-execute

17

 

original forms thereof and deliver them to all other Parties. No Party shall raise the
use of a facsimile machine or other electronic means to deliver a signature or the fact that any
signature was transmitted or communicated through the use of facsimile machine or other electronic
means as a defense to the formation of a contract and each such party forever waives any such
defense.

     Section 4.17 Time of Essence. Time is of the essence with respect to all terms and
conditions of, rights and obligations under, this Agreement.

ARTICLE V

DEFINITIONS

Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in
the Separation Agreement. In addition, for purposes of this Agreement, the following terms shall
have the following meanings:

     “Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding
or investigation by or before any federal, state, local, foreign or international governmental
authority or any arbitration or mediation tribunal.

     “Actual Closing” means, with respect to each Leased Property, the consummation of the
assignment or transfer of the rights, title and interest of Sara Lee or its applicable Subsidiary
in and to the Lease of such Leased Property to HBI or one of its Subsidiaries to HBI.

     “Ancillary Agreements” shall have the meaning set forth in the Separation Agreement.

     “Branded Apparel Business” shall have the meaning set forth in the Separation
Agreement.

     “Contract” means any contract, agreement, lease, license, sales order, purchase order,
instrument or other commitment that is binding on any Person or any part of its property under
applicable law.

     “Guaranteed Leases” means any Leases under which Sara Lee or any member of the Sara
Lee Group shall, from time to time, have Obligations after the Separation but only for so long as,
and to the extent that, any such Leases continue in effect after Separation and only with
respect to those Obligations that remain unperformed or unfulfilled after Separation and at the
time such determinations may be made.

     “Guaranteed Properties” means any Leased Properties leased, used or occupied under any
Guaranteed Leases.

     “Indemnification and Insurance Matters Agreement” shall have the meaning set forth in
the Separation Agreement.

     “Landlord” means (1) the holder of the landlord’s rights, title and interests in and
to any Lease from time to time, (2) with respect to the Lease Consents, any other Person from which
any consent or waiver is required to assign any Lease or sublease any Leased Property to HBI or

18

 

its
applicable Subsidiary on the terms and conditions of this Agreement, and (3) with respect to the
release of all Liabilities of Sara Lee or any of its Subsidiaries under any Lease, any other Person
having the right to enforce any such Liabilities.

     “Lease” means, with respect to each Leased Property, any lease, sublease or other
agreement under which Sara Lee or its applicable Subsidiary (including, for the avoidance of doubt,
through any division of Sara Lee or any such Subsidiary) holds a leasehold interest in such Leased
Property or has the right to use or occupy such Leased Property, together with any amendments or
extensions of such leases, subleases or agreements, any guaranty of such lease, sublease or
agreement by any member of the Sara Lee Group, and any other agreements affecting such leases,
subleases or agreements, such leasehold interest or the use and occupancy of such Leased Property.

     “Lease Consents” means all consents under, or amendments or waivers of any provision
of, any Leases required to (1) assign the Lease or sublease the applicable Leased Property to HBI
or its applicable Subsidiary on the terms and conditions of this Agreement or (2) in order to
prevent a breach or default thereunder, in connection with the consummation of the Separation or
Distribution.

     “Lease Requiring Consent” means any Lease (1) which prohibits the assignment of such
Lease, or the sublease of the applicable Leased Property, to HBI or its applicable Subsidiary or
(2) under which the consent of any Landlord is required for assignment of such Lease, or the
sublease of the applicable Leased Property, to HBI or such Subsidiary, on the terms and conditions
of this Agreement or, in order to prevent a breach or default thereunder, in connection with the
consummation of the Separation or Distribution.

     “Lease Requiring Notice” means any Lease under which notice to any Landlord is
required for assignment of such Lease, or the sublease of the applicable Leased Property, to HBI or
such Subsidiary, on the terms and conditions of this Agreement or, in order to prevent a breach or
default thereunder, in connection with the consummation of the Separation or Distribution.

     “Leased Properties” means those real properties, including without limitation any
land, buildings, fixtures and other improvements constituting real property, which are leased or
otherwise used and occupied by Sara Lee or one of its Subsidiaries and are part of the HBI
Assets (including without limitation those properties identified in Schedule 1.2),
together with (1) all easements, rights-of-way, restrictions, reservations and other rights and
interests appurtenant to such real properties and (2) all of Sara Lee’s or such Subsidiary’s
rights, interests and obligations under any subleases, licenses or other agreements regarding the
use or occupancy of all or any portion of any such real property.

     “Letter of Credit” shall mean an irrevocable standby letter of credit in the Required
Amount issued by a Qualified Bank for the benefit of Sara Lee on terms and conditions satisfactory
to Sara Lee.

     “Liabilities” means all debts, liabilities, guarantees, assurances, commitments and
obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured,

19

 

liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due,
whenever or however arising (including, without limitation, whether arising out of any Contract or
tort based on negligence or strict liability) and whether or not the same would be required by
generally accepted principles and accounting policies to be reflected in financial statements or
disclosed in the notes thereto.

     “Loss” and “Losses” mean any and all damages, losses, deficiencies,
Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest,
costs and expenses (including, without limitation, the costs and expenses of any and all Actions
and demands, assessments, judgments, settlements and compromises relating thereto and the costs and
expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses
incurred in the investigation or defense thereof or the enforcement of rights hereunder), including
direct and consequential damages, but excluding punitive damages (other than punitive damages
awarded to any third party against an indemnified party).

     “Obtaining Party” shall have the meaning set forth in Section 1.6(b) of this
Agreement.

     “Obligations” means all Liabilities of Sara Lee or its Subsidiaries as lessee,
assignor, sublessor, guarantor or otherwise under or relating to any Lease, including, without
limitation, any guarantee, surety, letter of credit, security deposit or other security which Sara
Lee or its Subsidiaries have provided or will provide to a Landlord with respect to any Lease, to
the extent such Liabilities have not expired, terminated or been fully and unconditionally
released.

     “Owned Properties” means those real properties, including without limitation all land
and any buildings, fixtures and other improvements on such land, which are owned by Sara Lee or one
of its Subsidiaries and are part of the HBI Assets (including without limitation those properties
identified in Schedule 1.1), together with (1) all easements, rights-of-way, restrictions,
reservations and other rights and interests appurtenant to such real properties and (2) such
owners’ rights, interests and obligations under any leases, subleases, licenses or other agreements
regarding the use or occupancy of all or any portion of any such real property.

     “Parties” means the parties to this Agreement.

     “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.

     “Properties” means the Owned Properties and Leased Properties.

     “Qualified Bank” shall be a financial institution with a minimum rating of A by
Standard & Poor’s or a minimum rating of A2 by Moody’s Investors Services.

     “Release” means, with respect to each Lease, the unconditional release of all
Liabilities of Sara Lee or its Subsidiaries under such Lease, including, without limitation, the
termination and return of any guarantee, surety, letter of credit, security deposit or other
security which Sara Lee or any of its Subsidiaries has provided to any Landlord with respect to
such Lease.

     “Required Amount” means 100% of the Total Guaranteed Rent.

20

 

     “Sara Lee Group” shall have the meaning set forth in the Separation Agreement.

     “Sara Lee Indemnitees” means Sara Lee, each member of the Sara Lee Group and each of
their respective successors and assigns, and all Persons who are or have been stockholders,
directors, partners, managers, managing members, officers, agents or employees of any member of the
Sara Lee Group (in each case, in their respective capacities as such), and their respective heirs,
executors, administrators, successors and assigns.

     “Separation” shall have the meaning set forth in the Separation Agreement.

     “Separation Date” has the meaning set forth in the Separation Agreement.

     “Subsidiary” of any Person means a corporation or other organization whether
incorporated or unincorporated of which at least a majority of the securities or interests having
by the terms thereof ordinary voting power to elect at least a majority of the board of directors
or others performing similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such Person or by any one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries; provided, however, that no
Person that is not directly or indirectly wholly-owned by any other Person shall be a Subsidiary of
such other Person unless such other Person controls, or has the right, power or ability to control,
that Person. For purposes of this Agreement, it is understood that HBI and each Subsidiary of HBI
after the Separation shall be deemed not to be a Subsidiary of Sara Lee after the Separation.

     “Total Guaranteed Rent” means the minimum aggregate rent, additional rent and other
charges, costs and expenses that HBI or any of its Subsidiaries is required to pay to the Landlords
over the remaining life of the Guaranteed Leases, regardless of such Person’s volume of business.

[SIGNATURE PAGE FOLLOWS]

21

 

 

          IN WITNESS WHEREOF, each of the parties has caused this Real Estate Matters Agreement to be
executed on its behalf by its officers hereunto duly authorized on the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	SARA LEE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Diana S. Ferguson
 

Diana S. Ferguson

Senior Vice President
	 	 
	 
	 	 	 	 	 	 
	 	 	HANESBRANDS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard A. Noll	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Richard A. Noll

Chief Executive Officer	 	 

22

 

SCHEDULE 1.1

OWNED PROPERTIES

23

 

SCHEDULE 1.1

OWNED PROPERTITES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BU	 	Total Bldg SF	 	 	Plant Name	 	State	 	Address	 	Country
	1
	 	International	 	 	60127	 	 	S.A.)	 	 	 	Alsina 1771, San Martin, Buenos Aires	 	Argentina
	2
	 	International	 	 	20811	 	 	S.A.)	 	 	 	San Juan	 	Argentina
	3
	 	International	 	 	13285	 	 	S.A.)	 	 	 	3 de Febrero 414, San Martin, Buenos Aires	 	Argentina
	4
	 	International	 	 	8211	 	 	S.A.)	 	 	 	Medeiros 3484, Buenos Aires	 	Argentina
	5
	 	International	 	 	289480	 	 	Cutting, Packing, Dist., Head Office	 	 	 	4405 Metropolitain Blvd., East, Montreal, (QC) H1R 1Z4	 	Canada
	6
	 	International	 	 	27300	 	 	Sewing Plant	 	 	 	4409 Dollard Street, Lac Megantic, (QC) G6B 3B4	 	Canada
	7
	 	Intimates/Hosiery	 	 	110011	 	 	Bali - Cartago	 	 	 	Cartago	 	Costa Rica
	8
	 	Underwear/Socks	 	 	76433	 	 	Heredia	 	 	 	Industria Texilera Del Este, Heredia	 	Costa Rica
	9
	 	Underwear/Socks	 	 	75000	 	 	Cartex	 	 	 	Parque Industrial Cartago, Cartago	 	Costa Rica
	10
	 	Underwear/Socks	 	 	75000	 	 	Cretex	 	 	 	Costado Este del Liceo, Grecia	 	Costa Rica
	11
	 	Underwear/Socks	 	 	74500	 	 	Cartago	 	 	 	Industria Texilera Del Este, Heredia	 	Costa Rica
	12
	 	Intimates/Hosiery	 	 	66505	 	 	Tucurrique	 	 	 	 	 	Costa Rica
	13
	 	Intimates/Hosiery	 	 	43859	 	 	Paraiso	 	 	 	 	 	Costa Rica
	14
	 	Intimates/Hosiery	 	 	35893	 	 	Bali - Cartago	 	 	 	Contiguo Al Cementario, Cartago	 	Costa Rica
	15
	 	Underwear/Socks	 	 	27000	 	 	Cartex	 	 	 	Parque Industrial Cartago, Cartago	 	Costa Rica
	16
	 	Intimates/Hosiery	 	 	530000	 	 	 	 	 	 	Dos Rios (new 5/06)	 	D.R.
	17
	 	Underwear/Socks	 	 	88000	 	 	Las Americas	 	 	 	Zona Franca Las Americas, Santa Domingo	 	D.R.
	18
	 	Underwear/Socks	 	 	86000	 	 	Las Americas	 	 	 	Zona Franca Las Americas, Santa Domingo	 	D.R.
	19
	 	Underwear/Socks	 	 	74000	 	 	San Isidro	 	 	 	Zona Franca San Isidro, Santa Domingo	 	D.R.
	20
	 	Underwear/Socks	 	 	70000	 	 	SU UW Lacaleta	 	 	 	Zona Franca Las Americas, Santa Domingo	 	D.R.
	21
	 	Intimates/Hosiery	 	 	94584	 	 	Jiboa	 	 	 	Zona Franca El Pedrigal	 	El Salvador
	22
	 	Underwear/Socks	 	 	92492	 	 	El Pedrigal	 	 	 	Zona Franca El Pedrigal, El Rosario	 	El Salvador
	23
	 	Intimates/Hosiery	 	 	118020	 	 	Villanueva	 	 	 	ZIP Buena Vista, Villanueva	 	Honduras
	24
	 	Sportswear	 	 	94811	 	 	Hanes Choloma	 	 	 	ZIP Choloma, Choloma, Cortes	 	Honduras
	25
	 	Underwear/Socks	 	 	60000	 	 	La Ceiba	 	 	 	Zona Libre Manufactura Celbena, La Ceiba	 	Honduras
	26
	 	Underwear/Socks	 	 	55812	 	 	San Pedro	 	 	 	ZIP Buenavista, Villanueva, Cortes	 	Honduras
	27
	 	Intimates/Hosiery	 	 	53555	 	 	Choloma	 	 	 	ZIP Choloma, Choloma	 	Honduras
	28
	 	International	 	 	218039	 	 	SLBA LAN (Knit)	 	 	 	Col., Renovacion	 	Mexico
	29
	 	Sportswear	 	 	171019	 	 	Monolova 2	 	 	 	Avenida Sidermexy Calle, Monclova	 	Mexico
	30
	 	Sportswear	 	 	166853	 	 	San Pedro	 	 	 	#26 Calle Zaragoza Sur, Coahuila	 	Mexico
	31
	 	Sportswear	 	 	121022	 	 	Madero	 	 	 	Blvd. Manuel Avila Camacho, Francisco L. Mode	 	Mexico
	32
	 	Sportswear	 	 	110344	 	 	Allende	 	 	 	Carretera 57 1252, Allende, Coahuila	 	Mexico
	33
	 	Sportswear	 	 	100810	 	 	Nueva Rosita	 	 	 	Carretera 57 KH 123, Rosita, Coahuila	 	Mexico
	34
	 	Sportswear	 	 	95968	 	 	Monclova 1	 	 	 	Monclova, Coahuila	 	Mexico
	35
	 	Intimates/Hosiery	 	 	68171	 	 	Yucatan	 	 	 	KM 102 Merida, Mexico	 	Mexico
	36
	 	International	 	 	63238	 	 	SLBA LAN (Knit)	 	 	 	AGS Pabellon Artteaga	 	Mexico
	37
	 	International	 	 	54133	 	 	SLBA LAN (Knit)	 	 	 	Taller 174 L. Boturini	 	Mexico
	38
	 	International	 	 	36112	 	 	SLBA LAN (Knit)	 	 	 	Col., Renovacion	 	Mexico
	39
	 	International	 	 	27706	 	 	SLBA LAN (Playtex)	 	 	 	Cadereyta 2	 	Mexico
	40
	 	International	 	 	26864	 	 	SLBA LAN (Playtex)	 	 	 	Naucalpan C.3	 	Mexico
	41
	 	International	 	 	24249	 	 	SLBA LAN (Knit)	 	 	 	Taller 179 A. Graficas	 	Mexico
	42
	 	International	 	 	10731	 	 	SLBA LAN (Playtex)	 	 	 	Cadereyta 1	 	Mexico
	43
	 	International	 	 	0	 	 	SLBA LAN (Playtex)	 	 	 	Colon	 	Mexico
	44
	 	Intimates/Hosiery	 	 	241419	 	 	Clarksville	 	AR	 	Cline & Clark Rd. Clarksville, AR	 	USA
	45
	 	Textiles	 	 	736453	 	 	Rabun Gap	 	GA	 	John Beck Dockins Rd., Rabun Gap., Georgia	 	USA
	46
	 	Sportswear	 	 	986000	 	 	North Ridge	 	NC	 	Rural Hall, NC	 	USA
	47
	 	Intimates/Hosiery	 	 	840452	 	 	Weeks	 	NC	 	401 Hanes Mill Rd., W-S. NC	 	USA
	48
	 	Textiles	 	 	582292	 	 	China Grove	 	NC	 	E. Thom Street, China Grove, North Carolina	 	USA
	49
	 	Underwear/Socks	 	 	568359	 	 	Stratford Rd.	 	NC	 	700 South Stratford Road, W-S. NC	 	USA
	50
	 	Intimates/Hosiery	 	 	548212	 	 	Commerce (Cleveland)	 	NC	 	219 Commerce Blvd, Kings Mountain, NC	 	USA
	51
	 	Textiles	 	 	512406	 	 	Eden	 	NC	 	Gant Road, Eden, North Carolina	 	USA
	52
	 	Sportswear	 	 	468000	 	 	Oak Summit	 	NC	 	1000 Hanes Mill Road, W-S. NC	 	USA
	53
	 	Intimates/Hosiery	 	 	429578	 	 	Canterbury	 	NC	 	705 Canterbury Rd. Gastonia, NC	 	USA
	54
	 	Textiles	 	 	422171	 	 	Forest City	 	NC	 	W. Main Street, Forest City, North Carolina	 	USA
	55
	 	Sportswear	 	 	398000	 	 	Eden Yarns	 	NC	 	328 Gant Road, Eden. NC	 	USA
	56
	 	Underwear/Socks	 	 	391888	 	 	Annapolis	 	NC	 	2655 Annapolis, W-S, NC	 	USA
	57
	 	Underwear/Socks	 	 	385310	 	 	Kennersville	 	NC	 	700 North Main Street, Kernersville, NC	 	USA
	58
	 	Sportswear	 	 	380000	 	 	Laurel Hill	 	NC	 	18400 Fielderest Road, Laurel Hill, NC	 	USA
	59
	 	Intimates/Hosiery	 	 	380000	 	 	Aleo	 	NC	 	30 5th Ave., Rockingham, NC	 	USA
	60
	 	Textiles	 	 	290000	 	 	Morganton	 	NC	 	 	 	USA
	61
	 	Textiles	 	 	271659	 	 	Sanford	 	NC	 	2652 Dalrymple Street, Sanford, North Carolina	 	USA
	62
	 	Sportswear	 	 	2300000	 	 	I-95	 	NC	 	4185 W. 5th Street, Lumberton, NC	 	USA
	63
	 	Textiles	 	 	223836	 	 	Gastonia	 	NC	 	Poplar Street, Gastonia, North Carolina	 	USA
	64
	 	Textiles	 	 	206000	 	 	Advance	 	NC	 	Cornatzer Road, Adnance, North Carolina	 	USA
	65
	 	Underwear/Socks	 	 	201000	 	 	Mt. Airy	 	NC	 	645 West Pine Street Mt. Airy, NC	 	USA
	66
	 	Intimates/Hosiery	 	 	173805	 	 	Crawford	 	NC	 	328 Crawford Rd., Statesville, NC	 	USA
	67
	 	Underwear/Socks	 	 	138892	 	 	Asheboro	 	NC	 	100 Industrial Park, Ave., Asheboro, NC	 	USA
	68
	 	Intimates/Hosiery	 	 	124198	 	 	Meacham	 	NC	 	933 Meacham Rd. Statesville, NC	 	USA
	69
	 	Textiles	 	 	103570	 	 	Artington	 	NC	 	 	 	USA
	70
	 	Underwear/Socks	 	 	66918	 	 	Watkins	 	NC	 	4801 Bethnia Tation Road, W-S. NC	 	USA
	71
	 	Textiles	 	 	66925	 	 	490 Office	 	NC	 	480, W. Hanes Mill Road, Winston-Salem. N.C.	 	USA
	72
	 	Sportswear	 	 	64000	 	 	Starlite	 	NC	 	1401 Starlite Drive, Lumberton, NC	 	USA
	73
	 	 	 	 	 	 	 	Lumberton Culp Property	 	NC	 	Lumberton - Culp Property	 	USA
	74
	 	Underwear/Socks	 	 	35000	 	 	Narrow Fabrics	 	NC	 	548 NC Highway 801 North, Advance,
NC	 	USA
	75
	 	Underwear/Socks	 	 	480684	 	 	Tamaqua Hometown DC	 	PA	 	143 Mahonoy Ave, Tamaqua, PA	 	USA
	76
	 	Underwear/Socks	 	 	132000	 	 	Tamaqua Tidewood DC	 	PA	 	92 Progress Avenue, Tamaqua, PA	 	USA
	77
	 	Underwear/Socks	 	 	97640	 	 	Tamaqua Liberty DC	 	PA	 	25 Liberty Street, Tamaqua, PA	 	USA
	78
	 	Textiles	 	 	498912	 	 	Greenwood	 	SC	 	Highway 25 North, Hodges, South
Carolina	 	USA
	79
	 	Underwear/Socks	 	 	236000	 	 	Barnwell	 	SC	 	11200 Dunbarton Blvd, Barnwell, SC	 	USA
	80
	 	Intimates/Hosiery	 	 	143791	 	 	Marion	 	SC	 	Hgwy 578, Marion, SC	 	USA
	81
	 	Textiles	 	 	0	 	 	Greenwood	 	SC	 	Highway 25 North, Hodges, South
Carolina	 	USA
	82
	 	Textiles	 	 	607577	 	 	Mountain City	 	TN	 	Highway 421 South Mountain City,
Tennessee	 	USA
	83
	 	Sportwswear	 	 	744000	 	 	VSC	 	VA	 	380 Beaver Creek Road,
Martinsville, VA	 	USA
	84
	 	Textiles	 	 	254603	 	 	Galax (Textiles)	 	VA	 	1012 Glendale Drive, Galax, Virginia	 	USA
	85
	 	Intimates/Hosiery	 	 	243840	 	 	Liberty	 	VA	 	138 Elamsville Rd, Stuart, VA	 	USA
	86
	 	Textiles	 	 	176560	 	 	Galax (Yarn)	 	VA	 	1012 Glendale Drive, Galax, Virginia	 	USA

24

 

SCHEDULE 1.2

LEASED PROPERTIES

	 	 	 	 	 	 	 
	SLC Contracting Entity	 	Landlord	 	Start Date	 	Property Location
	Sara Lee Corporation
(formerly in name of
Champion Products, Inc.)

	 	Highwoods DLF 97/26
DLF 99/32, L.P.
(formerly Chedren,
Inc.)
	 	7/1/1993
	 	105,723 sq. ft.@
475 Corporate
Drive,
Winston-Salem, NC
	 
	 	 	 	 	 	 
	Sara Lee Corporation

	 	Twin City
Properties, Corp.
	 	7/31/2003
	 	470 Hanes Mill Road Office Building, Winston-Salem, NC
	 
	 	 	 	 	 	 
	Sara Lee Hosiery, a
division of Sara Lee
Corporation

	 	Mary Kimbrough
	 	3/10/2005
	 	Rental of bldg. at
111 Porter
Industrial Rd.,
Clarksville, AR
	 
	 	 	 	 	 	 
	Sara Lee Corporation

	 	Twin City
Properties, Corp.
	 	7/31/2003
	 	450 and 460 Hanes
Mill Road
Buildings,
Winston-Salem NC
	 
	 	 	 	 	 	 
	Playtex Apparel, Inc.

	 	ANA Capital
Partners, Ltd. fka
Metropolitan
Parkway West 1994,
Ltd.
	 	9/12/2000
	 	1,162 square feet
@4011 W. Plano
Parkway, Suite 123,
Plano, TX
	 
	 	 	 	 	 	 
	Sara Lee Corporation

	 	Commerce Plaza, LLC
	 	10/1/1999
	 	Bentonville office, Lots 16 & 17, Commerce Centre, Bentonville, Arkansas
	 
	 	 	 	 	 	 
	Sara Lee Underwear and
Sara Lee Sportswear

	 	Glenn Hart
	 	4/4/2005
	 	Warehouse @ 5620
Shattalon Dr.,
Winston-Salem, NC
	 
	 	 	 	 	 	 
	Sara Lee Corporation (as
successor to Scotch
Maid, Inc.)

	 	WOHIO Holdings, Inc.
	 	6/12/1992
	 	11th
Floor,
16th
East
34th
St., New York City
	 
	 	 	 	 	 	 
	Sara Lee Corporation (as
successor in interest to
Playtex Apparel, Inc.)

	 	WOHIO Holdings, Inc.
	 	10/10/1989
	 	7th
Floor,
16th
East
34th
St., New York City
	 
	 	 	 	 	 	 
	Sara Lee Intimate
Apparel, an operating
division of Sara Lee
Corporation

	 	Clara Ridgley
Properties, L.L.C.
	 	9/1/2004
	 	54,776 sq.ft. @
Clara and Ridgley
Rd., Dover,
Delaware
	 
	 	 	 	 	 	 
	Sara Lee Corporation,
for its division of Sara
Lee Hosiery

	 	Locke Land Company,

LLC
	 	1/12/2001
	 	206 Enterprise Dr.,
Rockingham, NC
	 
	 	 	 	 	 	 
	Bali Company, A Division
of Sara Lee Corporation

	 	260/61 Madison
Equities Corp.
	 	5/1/1997
	 	14th
floor, 260
Madison Ave., New
York City

25

 

SCHEDULE
1.2 (cont’d)

	 	 	 	 	 	 	 
	SLC Contracting Entity	 	Landlord	 	Start Date	 	Property Location
	Sara Lee Corporation
(originally Hanes
Knitwear/Printables,
Inc., a wholly owned
subsidiary of Sara Lee
Corporation)

	 	Highwoods Realty

Limited Partnership

(originally

Forsyth/Stratford

Partners)
	 	2/26/1987
	 	2828 WestPoint Blvd, Winston-Salem, NC

(Warehouse)
	 
	 	 	 	 	 	 
	Sara Lee Intimate
Apparel, a division of
Sara Lee Corporation

	 	260/261 Madison
Equities Corp.
	 	2/1/2002
	 	6th
Floor, 260 Madison
Ave., New York City
	 
	 	 	 	 	 	 
	Sara Lee Sock Company

	 	Pope Companies, Inc.
	 	10/23/2003
	 	Warehouse at 1384 South Park Drive, 1421 Highway 66
South, Kernersville, NC
	 
	 	 	 	 	 	 
	Sara Lee Corporation

	 	Industrial Property
Fund IV, L.P.
	 	6/112001
	 	2935 West Corporate
Lakes Blvd.,
Weston, FL
	 
	 	 	 	 	 	 
	Sara Lee Underwear, a
division of Sara Lee
Corporation

	 	Highwoods

Industrial North

Carolina, LLC
	 	7/1/2005
	 	446,818 sq. ft. at
710 Almondridge
Road, Rural Hall,
NC 27045
	 
	 	 	 	 	 	 
	Sara Lee Underwear, a
division of Sara Lee
Corporation

	 	Lentz Transfer and
Storage Company
	 	7/1/2005
	 	Warehouse No 1, 4509 Hampton, Rd., Winston-Salem, NC
	 
	 	 	 	 	 	 
	Sara Lee Intimate Apparel

	 	Patrick County
Fruit Growers, Inc.
	 	5/1/2003
	 	Warehouse on Route 8, Wooline, VA
	 
	 	 	 	 	 	 
	Sara Lee Direct, LLC
(successor in interest
to Net Apparel, LLC,
L’eggs Brands, Inc., and
Sara Lee Corporation on
behalf of its Direct
Marketing Division and
L’eggs Brands, Inc.)
NOTE: Payment
Guaranteed by Sara Lee
Corporation

	 	G-T Gateway, LLC
(successor in
interest to
Winston-Salem
Industrial, LLC,
Highwoods Realty
Limited
Partnership, and
The Shelton
Companies)
	 	7/8/1988
	 	531 Northridge Park

Drive, Rural Hall,

NC

26

 

SCHEDULE
1.2 (cont’d)

	 	 	 	 	 	 	 
	SLC Contracting Entity	 	Landlord	 	Start Date	 	Property Location
	Sara Lee Underwear,
a division of Sara
Lee Corporation

	 	Gateway Holdings,

LLC
	 	4/13/1998
	 	Warehouse space at
Gateway Business
Center, 1325 Ivy Ave.,
Winston-Salem, NC
	 
	 	 	 	 	 	 
	Sara Lee Underwear,
a division of Sara
Lee Corporation

	 	Highwoods Realty

Limited Partnership
	 	9/28/2001
	 	Warehouse space at
2599 Empire Dr.,
Winston-Salem, NC
27103
	 
	 	 	 	 	 	 
	**Sara Lee Direct,
a division of Sara
Lee corporation

	 	Flatwoods Factory
Outlet Stores, Inc.
	 	6/09/1997
	 	L’eggs Hanes Bali Playtex, Flatwoods
Factory Outlet Shopping Center, Sutton, WV
	 
	 	 	 	 	 	 
	**Sara Lee Direct,
a division of Sara
Lee corporation

	 	COROC/Hilton Head
II, L.L.C. c/o
Tanger Properties
Limited
Partnership,
	 	9/16/2003
	 	L’eggs Hanes Bali Playtex, Store A132,
Hilton Head Factory Stores 2, Bluffton, SC
	 
	 	 	 	 	 	 
	**Sara Lee Direct,
a division of Sara
Lee corporation

	 	R.R.Bayside, Inc.
	 	3/15/2003
	 	Socks Galore, Store 450 Rehoboth Outlets

Rehoboth, DE
	 
	 	 	 	 	 	 
	**Sara Lee Direct,
a division of Sara
Lee corporation

	 	SunCor Development

Company
	 	12/04/2001
	 	L’eggs Hanes Bali
Playtex Express Store,
Suite F3, Palm Valley
Pavillions West,
Goodyear, AZ

 

			
	**	 	The assignee is to be Sara Lee Direct, LLC, a Colorado limited liability company and not
Hanesbrands Inc.

 

 

EXHIBIT A

FORM CONVEYANCE FOR OWNED PROPERTIES 1

Prepared by and after recording mail to: 2

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

SPECIAL WARRANTY DEED 3

Sara Lee Corporation, a Maryland corporation [or the applicable Subsidiary] with its principal
office at with its principal office at                                                                                 
(“Grantor”), in
consideration of $10.00 4 and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, hereby grants 5 to Hanesbrands Inc., a
Maryland corporation [or the applicable Subsidiary] with its principal office at
                                                                                
(“Grantee”),6
with SPECIAL WARRANTY
COVENANTS, the real property described on Exhibit A attached to this Deed (the “Property”).

The Property, the grant of the Property pursuant to this Deed, and the warranties and covenants
under this Special Warranty Deed are subject to (a) all easements, right-of-way, covenants,
conditions, restrictions, restrictive covenants, reservations, mortgages, deeds of trust, security
interests, liens, attachments, encumbrances and other matters of record or arising by statute
affecting, encumbering or relating to the Property, (b) any lease or other agreement granting a
right to use or occupy the Property, (c) any liens of mechanics and materialmen securing charges
for work performed on, or otherwise relating to, the Property, (d) any matters that would be
disclosed by a complete and accurate survey of the Property, and (e) all real estate taxes,
assessments and betterments assessed with respect to the Property, which, by accepting and
recording this Deed, Grantee assumes and agrees to pay.

 

			
	1	 	The form of Deed (including any formatting
requirements) will be adapted as necessary to conform to local requirements,
customs and practices to the extent necessary to render such form effective
and, if requested by HBI, recordable.
	 
	2	 	Insert name and address of local attorney.
	 
	3	 	A separate Deed should be produced for each county
in which any Owned Property is located (and covering all Owned Property in that
county).
	 
	4	 	Some states and counties may require a statement of
the value attributed to the Owned Property covered by each Deed.
	 
	5	 	The granting language required for effective
conveyances under state law.
	 
	6	 	Insert name, organizational jurisdiction and address
of Buyer.

 

 

Grantor executes this Deed as of                                         , 2006. 7

	 	 	 	 	 	 	 
	 	 	SARA LEE CORPORATION, a Maryland

corporation [or the applicable Subsidiary]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

STATE OF                                         8

COUNTY OF                     

          The attached Deed was acknowledged before me this                      day of                                  
       , 2005, by
                                                            ,                                                              of Sara Lee corporation, a Maryland corporation [or the
applicable Subsidiary], on behalf of said corporation.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

	 	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	My commission expires:	 	 	 	 
	 

	 	 	 	 

	 	 

 

			
	7	 	The form of Deed should conform to any requirements
and formalities for effective execution of deeds and recordable instruments
under state law, including the number of signatories and witnesses (if any),
execution by specific officers of corporations, attestation by a corporate
secretary, and the appropriate form of acknowledgement for instruments executed
in a different jurisdiction but recorded locally.
	 
	8	 	The form of acknowledgement should conform to the
requirements applicable in the jurisdiction of the Owned Property.

 

 

EXHIBIT B

FORM ASSIGNMENT FOR LEASED PROPERTIES 9

Prepared by and after recording mail to: 10

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

ASSIGNMENT AND ASSUMPTION OF LEASES 11

          THIS ASSIGNMENT AND ASSUMPTION OF LEASES (this “Assignment and Assumption”) made as of
                                        , 2006 (the “Effective Date”), between Sara Lee Corporation, a Maryland
corporation [or the applicable Subsidiary] with its principal office at
                                                             (“Assignor”), and Hanesbrands Inc., a Maryland corporation
[or the applicable Subsidiary] with its principal office at                                                             
(“Assignee”).

          WHEREAS Assignor is the holder of the rights, title, interests and obligations of the tenant
or occupant of the real properties identified generally on Schedule A attached to this
Assignment and Assumption (collectively, the “Leased Properties”) under the lease(s),
sublease(s) or other agreement(s), together with any amendments or extensions of such lease(s),
sublease(s) or agreements(s), any guaranty of any such lease, sublease or agreement, and any other
agreements affecting such lease(s), sublease(s) or agreement(s) (collectively, the
“Leases”); and

          WHEREAS Assignor wishes to assign the Leases to Assignee, and Assignee wishes to accept such
assignment and assume the Leases, on the terms of the Real Estate Matters Agreement entered into as
of                     , 2006, between Assignor [or Sara Lee] and Assignee [or HBI] (the “Real Estate Matters
Agreement”);

          NOW
THEREFORE, in consideration of $10.0012 and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor and Assignee
agree as follows:

 

			
	9	 	The form of Assignment and Assumption of Leases,
including any formatting requirements, will be adapted as necessary to conform
to local requirements, customs and practices to the extent necessary to render
such form effective and, if requested by HBI, recordable
	 
	10	 	Insert name and address of a local attorney.
	 
	11	 	A separate Assignment and Assumption of Leases
should be produced for each county in which any Leased Property is located (and
covering all Leased Property in that county).

 

 

          1. As of the Effective Date, Assignor hereby assigns and transfers to Assignee, without any
warranties, express or implied, all of Assignor’s rights, title and interests in and to, and
obligations arising or accruing on or after the Effective Date under, the Leases, together with
Assignor’s rights, title and interests in and to, and obligations arising or accruing on or after
the Effective Date with respect to, (a) all easements, rights-of-way, restrictions, reservations
and other rights and interests appurtenant to the Leased Properties, (b) any subleases, licenses or
other agreements regarding the use or occupancy of all or any portion of any Leased Property, and
(c) any guarantee, surety, letter of credit, security deposit or other security provided under the
Leases (the “Appurtenant Rights and Interests”), subject to the terms and conditions of the
Real Estate Matters Agreement.

          2. Assignee hereby accepts such assignment and transfer and assumes, and agrees to pay,
perform, observe and discharge promptly when due, all of Assignor’s obligations arising or accruing
on or after the Effective Date under the Leases or with respect to the Appurtenant Rights and
Interests, subject to the terms and conditions of the Real Estate Matters Agreement.

[SIGNATURE PAGE FOLLOWS]

 

			
	12	 	Some states and counties may require a statement of
the value attributed to the Leased Property covered by each Assignment and
Assumption.

 

 

          IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment and Assumption as of
the Effective Date.13

	 	 	 	 	 	 	 	 	 	 	 
	SARA LEE CORPORATION, a
Maryland
 corporation [or the
applicable Subsidiary]	 	 	 	HANESBRANDS INC., a Maryland
corporation [or the applicable
Subsidiary]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	Name:

	 	 
	 	 	 	Name:
	 	 
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

STATE OF                                          14

COUNTY OF                     

     The attached Assignment and Assumption of Leases was acknowledged before me this                      day of
                                        , 2005, by
                                                            ,                                                             
of Sara Lee corporation, a
Maryland corporation [or the applicable Subsidiary], on behalf of said corporation.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Notary Public	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 

STATE OF                                          15

COUNTY OF                     

     The attached Assignment and Assumption of Leases was acknowledged before me this                      day of
                                        , 2005, by
                                                            ,                                                              of

 

			
	13	 	The form of Assignment and Assumption should
conform to any requirements and formalities for effective execution of
recordable instruments under state law, including the number of signatories and
witnesses (if any), execution by specific officers of corporations, attestation
by a corporate secretary, and the appropriate form of acknowledgement for
instruments executed in a different jurisdiction but recorded locally.
	 
	14	 	The form of acknowledgement should conform to the
requirements applicable in the jurisdiction of the Leased Property.
	 
	15	 	The form of acknowledgement should conform to the
requirements applicable in the jurisdiction of the Leased Property.

 

 

     Hanesbrands Inc., a Maryland corporation [or the applicable Subsidiary], on behalf of said
corporation.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Notary Public	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

Schedule A

List of Leased Properties

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