Document:

Form of Master Separation Agreement

 Exhibit 10.1 
 FORM OF 
 MASTER SEPARATION AGREEMENT 
 between 
 SARA LEE CORPORATION 
 and 
 HANESBRANDS INC.

 TABLE OF CONTENTS 
  

					
	 ARTICLE I SEPARATION
	  	2
	 Section 1.1
	  	 Separation Date
	  	2
	 Section 1.2
	  	 Closing of Transactions
	  	2
	 Section 1.3
	  	 Exchange of Certificates
	  	2
		
	 ARTICLE II DOCUMENTS AND ITEMS TO BE DELIVERED ON THE SEPARATION DATE
	  	2
	 Section 2.1
	  	 Documents to be Delivered by Sara Lee
	  	2
	 Section 2.2
	  	 Documents to be Delivered by HBI
	  	3
		
	 ARTICLE III THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION
	  	3
	 Section 3.1
	  	 Transactions Prior to the Distribution
	  	3
	 Section 3.2
	  	 Conditions Precedent to Consummation of the Distribution
	  	4
	 Section 3.3
	  	 Distribution
	  	6
	 Section 3.4
	  	 Cooperation and Further Assurances Regarding the Distribution
	  	6
	 Section 3.5
	  	 Fractional Shares; Unclaimed Shares or Cash
	  	7
	 Section 3.6
	  	 Financing Arrangements
	  	7
		
	 ARTICLE IV CONTRIBUTION AND ASSUMPTION
	  	7
	 Section 4.1
	  	 Contribution of Assets and Assumption of Liabilities
	  	7
	 Section 4.2
	  	 HBI Assets
	  	9
	 Section 4.3
	  	 HBI Liabilities
	  	10
	 Section 4.4
	  	 Shared Contracts
	  	12
	 Section 4.5
	  	 Transfer of Certain Excluded Assets and Excluded Liabilities
	  	13
	 Section 4.6
	  	 Methods of Transfer and Assumption
	  	13
	 Section 4.7
	  	 Documents Relating to Transfers of HBI Assets and Assumption of HBI Liabilities
	  	15
	 Section 4.8
	  	 Governmental Approvals and Third Party Consents.
	  	15
	 Section 4.9
	  	 Nonrecurring Costs and Expenses
	  	16
	 Section 4.10
	  	 Novation of Assumed HBI Liabilities
	  	17
	 Section 4.11
	  	 No Representation or Warranty
	  	18
		
	 ARTICLE V COVENANTS AND OTHER MATTERS
	  	18
	 Section 5.1
	  	 Other Agreements
	  	18
	 Section 5.2
	  	 Agreement For Exchange Of Information
	  	19
	 Section 5.3
	  	 Confidentiality
	  	22
	 Section 5.4
	  	 Privileged Matters
	  	24
	 Section 5.5
	  	 Payment Of Expenses
	  	25
	 Section 5.6
	  	 Release of Security Interest
	  	26
	 Section 5.7
	  	 Litigation
	  	26
	 Section 5.8
	  	 Employee Discounts
	  	26
	 Section 5.9
	  	 Termination Of Agreements
	  	26
	 Section 5.10
	  	 Cooperation In Obtaining New Agreements
	  	27

  

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	 Section 5.11
	  	 Cooperation With Respect To Procurement Agreements
	  	27
	 Section 5.12
	  	 Non-Solicitation Of Employees
	  	27
	 Section 5.13
	  	 Stockholder Actions
	  	27
		
	 ARTICLE VI MISCELLANEOUS
	  	28
	 Section 6.1
	  	 Entire Agreement; Incorporation Of Schedules And Exhibits
	  	28
	 Section 6.2
	  	 Amendment and Waiver
	  	28
	 Section 6.3
	  	 No Implied Waivers; Cumulative Remedies; Writing Required
	  	28
	 Section 6.4
	  	 Parties In Interest
	  	28
	 Section 6.5
	  	 Assignment; Binding Agreement
	  	28
	 Section 6.6
	  	 Limitation On Damages
	  	28
	 Section 6.7
	  	 Notices
	  	29
	 Section 6.8
	  	 Severability
	  	29
	 Section 6.9
	  	 Governing Law
	  	29
	 Section 6.10
	  	 Submission To Jurisdiction
	  	29
	 Section 6.11
	  	 Waiver Of Jury Trial
	  	30
	 Section 6.12
	  	 Amicable Resolution
	  	30
	 Section 6.13
	  	 Arbitration
	  	31
	 Section 6.14
	  	 Waiver of Bulk-Sales Laws
	  	33
	 Section 6.15
	  	 Construction
	  	33
	 Section 6.16
	  	 Counterparts
	  	33
	 Section 6.17
	  	 Delivery By Facsimile Or Other Electronic Means
	  	33
		
	 ARTICLE VII DEFINITIONS
	  	34

  

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 FORM OF 
 MASTER SEPARATION AGREEMENT 
 This Master Separation Agreement (this “Agreement”) is
dated as of                          , 2006, 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 VII below. 
 RECITALS 
 WHEREAS, Sara Lee, through its branded apparel business in the Americas and Asia, is engaged in the business of designing, manufacturing, sourcing and
selling apparel essentials such as t-shirts, bras, panties, men’s underwear, kids’ underwear, socks, hosiery, casualwear and activewear, as described in the Registration Statement defined below (the “Branded Apparel
Business”); 
 WHEREAS, the Board of Directors of Sara Lee has determined that it would be appropriate and desirable to separate the
Branded Apparel Business from Sara Lee; 
 WHEREAS, Sara Lee has caused HBI to be incorporated in order to facilitate such separation;

 WHEREAS, Sara Lee currently owns all of the issued and outstanding shares of common stock of HBI (the “HBI Common
Stock”); 
 WHEREAS, the Boards of Directors of Sara Lee and HBI have each determined that it would be appropriate and desirable for
Sara Lee and certain of its Subsidiaries to contribute and transfer to HBI, and for HBI to receive and assume, directly or indirectly, certain assets and liabilities associated with the Branded Apparel Business as further described herein (the
“Separation”); 
 WHEREAS, Sara Lee and HBI currently contemplate that, following the Separation, Sara Lee will distribute,
on a pro rata basis, to the holders of the issued and outstanding shares of Sara Lee’s common stock (the “Sara Lee Common Stock”) all of the issued and outstanding shares of HBI Common Stock owned by Sara Lee as further
described herein (the “Distribution”); 
 WHEREAS, the HBI Common Stock to be distributed in the Distribution will be
registered pursuant to a registration statement on Form 10 filed under the Exchange Act (such registration statement, together with all amendments and supplements thereto, the “Registration Statement”); and 
 WHEREAS, the parties intend in this Agreement to set forth the principal arrangements between them regarding the Separation and the Distribution.

 NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and provisions of
this Agreement, Sara Lee and HBI mutually covenant and agree as follows: 
 ARTICLE I 
 SEPARATION 
 Section 1.1 Separation
Date. Unless otherwise provided in this Agreement, or in any Ancillary Agreement, the effective time and date of each transfer of property, assumption of liability, license, undertaking, or agreement in connection with the Separation shall be
[12:01] a.m., Central Time, on September     , 2006, or such other date as may be determined by Sara Lee (the “Separation Date”). 
 Section 1.2 Closing of Transactions. Unless otherwise provided herein, the closing of the transactions contemplated in Article II
shall occur by the execution and delivery on or prior to the Separation Date of each of the instruments of transfer, assumptions of liability, undertakings, agreements, instruments or other documents contemplated by this Agreement and the Ancillary
Agreements at the offices of Kirkland & Ellis LLP (“K&E”) at 200 East Randolph Drive, Chicago, Illinois 60601 (or such other place as may be designated by Sara Lee) to be held pending delivery as provided in
Section 1.3 on the Separation Date. 
 Section 1.3 Exchange of Certificates. Upon receipt of a certificate of the
Secretary or an Assistant Secretary of Sara Lee authorizing delivery thereof, K&E shall deliver to HBI on behalf of Sara Lee all of the items required to be delivered by Sara Lee hereunder pursuant to Section 2.1 and each such item
shall be deemed to be delivered to HBI as of the Separation Date. Upon receipt of a certificate of the Secretary or an Assistant Secretary of HBI authorizing delivery thereof, K&E shall deliver to Sara Lee on behalf of HBI all of the items
required to be delivered by HBI hereunder pursuant to Section 2.2 and each such item shall be deemed to be delivered to Sara Lee as of the Separation Date. 
 ARTICLE II 
 DOCUMENTS AND ITEMS TO BE 
 DELIVERED ON THE SEPARATION DATE 
 Section 2.1 Documents to be Delivered by
Sara Lee. On the Separation Date, Sara Lee will deliver, or will cause its appropriate Subsidiaries to deliver, to HBI all of the following agreements, documents and instruments (collectively, together with all agreements, documents and
instruments contemplated hereby or thereby or executed in connection herewith or therewith, the “Ancillary Agreements”): 
 (a) A duly executed Employee Matters Agreement substantially in the form attached hereto as Exhibit A (the “Employee Matters Agreement”); 
 (b) A duly executed Tax Sharing Agreement substantially in the form attached hereto as Exhibit B (the “Tax Sharing
Agreement”); 
  

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 (c) A duly executed Master Transition Services Agreement substantially in the form
attached hereto as Exhibit C (the “Master Transition Services Agreement”); 
 (d) A duly executed
Real Estate Matters Agreement substantially in the form attached hereto as Exhibit D (the “Real Estate Matters Agreement”); 
 (e) A duly executed Indemnification and Insurance Matters Agreement substantially in the form attached hereto as Exhibit E (the “Indemnification and Insurance Matters Agreement”);

 (f) A duly executed Intellectual Property Matters Agreement substantially in the form attached hereto as
Exhibit F (the “Intellectual Property Matters Agreement”); 
 (g) Resignations of each individual
who is an officer or director of HBI or its Subsidiaries (including those Subsidiaries which will be transferred to HBI in connection with the Separation) and who is or will be an employee, officer or director of Sara Lee or its Subsidiaries from
and after the Separation Date from any and all such offices and directorships of HBI or such Subsidiaries held by such individual; and 
 (h) Such other agreements, documents or instruments as the parties may agree are necessary or desirable in order to achieve the purposes hereof. 
 Section 2.2 Documents to be Delivered by HBI. On the Separation Date, HBI will deliver, or will cause its appropriate Subsidiaries to deliver, to
Sara Lee all of the following Ancillary Agreements: 
 (a) In each case where HBI is a party to any Ancillary Agreement, a
duly executed counterpart of such Ancillary Agreement; 
 (b) Resignations of each individual who is an officer or director of
Sara Lee or its Subsidiaries (not including those Subsidiaries which have been or will be transferred to HBI in connection with the Separation) and who is or will be an employee, officer or director of HBI or its Subsidiaries from and after the
Separation Date from any and all such offices and directorships of Sara Lee or such Subsidiaries held by such individual; and 
 (c) Such other agreements, documents or instruments as the parties may agree are necessary or desirable in order to achieve the purposes hereof. 
 ARTICLE III 
 THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION 
 Section 3.1 Transactions Prior to the Distribution. Subject to the conditions specified in Section 3.2, Sara Lee and HBI shall use
their reasonable best efforts to consummate the Distribution. Such efforts shall include, without limitation, those specified in this Section 3.1. 
 (a) Registration Statement. Sara Lee and HBI shall cooperate in preparing and filing the Registration Statement with the Securities
and Exchange Commission (the 

  

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“Commission”). Subsequent to filing the Registration Statement, Sara Lee and HBI shall cooperate in the preparation and filing of any
amendments or supplements thereto as may be necessary in order to cause the same to become and remain effective as required by law, including, without limitation, filing such amendments or supplements to the Registration Statement as may be required
by the Commission or federal, state or foreign securities laws. Sara Lee and HBI shall also cooperate in preparing, filing with the Commission and causing to become effective any registration statements or amendments or supplements thereof which are
required to reflect the establishment of, or amendments or supplements to, any employee benefit and other plans necessary or appropriate in connection with the Separation, the Distribution, or the other transactions contemplated by this Agreement
and the Ancillary Agreements. 
 (b) Other Securities Laws Matters. Sara Lee and HBI shall take all such actions as may
be necessary or appropriate under the securities or blue sky laws of any state of the United States (and any comparable laws under any foreign jurisdiction) in connection with the Distribution. 
 (c) Preparation of Materials and Presentations. Sara Lee and HBI shall participate in the preparation of materials and
presentations as Sara Lee and its financial advisors shall deem necessary or desirable from time to time. 
 (d)
Information Statement. Sara Lee shall, as soon as practicable after the Registration Statement is declared effective under the Exchange Act (or, after consultation with counsel, prior to such effectiveness) and the Board of Directors of Sara
Lee has approved the Distribution, cause the Information Statement to be mailed to the Record Holders. 
 (e) Other
Materials. Sara Lee and HBI shall prepare and mail, on or prior to the Distribution Date, to the holders of Sara Lee Common Stock, such other information concerning HBI, its business, operations and management, the Separation, the Distribution
and such other matters as Sara Lee in its sole and absolute discretion determines are necessary or desirable and as may be required by law. Sara Lee and HBI will prepare, and Sara Lee or HBI (as applicable) will, to the extent required under
applicable law, file with the Commission any such documentation and any requisite no action letters which Sara Lee in its sole and absolute discretion determines are necessary or desirable to effectuate the Distribution and Sara Lee and HBI shall
each use its reasonable best efforts to obtain all necessary approvals from the Commission with respect thereto as soon as practicable. 
 (f) NYSE Listing. HBI shall prepare, file and use its reasonable best efforts to seek to make effective, an application for listing of the HBI Common Stock on the New York Stock Exchange
(“NYSE”), subject to official notice of distribution. 
 Section 3.2 Conditions Precedent to Consummation of the
Distribution. The obligations of the parties to use their reasonable best efforts to consummate the Distribution (the date of the distribution as determined by Sara Lee in its discretion, is referred to as the “Distribution
Date”) shall be conditioned on the satisfaction of the following conditions and any other conditions as are determined by Sara Lee, in its discretion: 
 (a) Registration Statement. The Registration Statement shall have been declared effective by the Commission, and there shall be no
stop-order in effect with respect thereto, and no proceeding for that purpose shall have been instituted by the Commission. 
  

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 (b) Blue Sky. The actions and filings with regard to applicable securities and
blue sky laws of any state of the United States (and any comparable laws of any foreign jurisdictions) shall have been taken and, where applicable, have become effective or been accepted. 
 (c) NYSE Listing. The HBI Common Stock to be distributed pursuant to the Distribution shall have been accepted for listing on the
NYSE, on official notice of distribution. 
 (d) No Legal Restraints. No order, injunction or decree issued by any
court or agency of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Separation or the Distribution or any of the other transactions contemplated by this Agreement and the Ancillary Agreements shall be
in effect. 
 (e) Separation. The Separation shall have become effective in accordance with the terms of this Agreement
and the Ancillary Agreements. 
 (f) Financing. HBI shall have received the proceeds of the borrowings under the
Financing Agreements and paid and/or distributed $                         of such proceeds to Sara Lee and Sara Lee shall
be satisfied in its sole discretion that as of the Effective Time it will have no obligation or other Liability whatsoever under the Financing Agreements. 
 (g) Opinion. Sara Lee shall have received from an investment banking or valuation firm a solvency opinion (or similar opinion) with regard to HBI, such opinion to be in form and substance satisfactory to Sara
Lee in its sole discretion. 
 (h) IRS Private Letter Ruling or Opinion of Counsel. A private letter ruling from the
Internal Revenue Service or an opinion of counsel shall have been obtained, and shall continue in effect, to the effect that, among other things, the Distribution will qualify as a tax-free distribution for federal income tax purposes under
Section 355 of the Code and the transfer to HBI of the HBI Assets and the assumption by HBI of the HBI Liabilities in connection with the contribution contemplated by Article IV will not result in recognition of any gain or loss to Sara Lee,
HBI or Sara Lee’s or HBI’s stockholders for federal income tax purposes, and such ruling or opinion shall be in form and substance satisfactory to Sara Lee in its sole discretion. 
 (i) No Termination. This Agreement shall not have been terminated. 
 The foregoing conditions are for the sole benefit of Sara Lee and shall not give rise to or create any duty on the part of Sara Lee or Sara Lee’s
Board of Directors to waive or not to waive any such conditions or in any way limit Sara Lee’s right to terminate this Agreement as set forth in Section 3.3(d) or alter the consequences of any such termination from those specified
in Section 3.3(d). Any determination made by Sara Lee prior to the Distribution concerning the satisfaction or waiver of any or all of the conditions set forth in this Section 3.2 shall be conclusive. 
  

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 Section 3.3 Distribution. 
 (a) Distribution Generally. At any time after the Separation Date, if Sara Lee, in its sole and absolute discretion, advises HBI
that Sara Lee intends to pursue the Distribution, HBI agrees to take all actions requested by Sara Lee to facilitate a Distribution. 
 (b) Sole Discretion. Sara Lee shall, in its sole and absolute discretion, determine whether or not to proceed with all or part of the Distribution, determine the Distribution Date and determine all terms of the Distribution,
including, without limitation, the form, structure and terms of any transaction(s) and/or offering(s) to effect the Distribution and the timing of and conditions to the consummation of the Distribution. In addition, Sara Lee may at any time and from
time to time until the completion of the Distribution, modify or change the terms of the Distribution, including, without limitation, by accelerating or delaying the timing of the consummation of all or part of the Distribution. HBI shall cooperate
with Sara Lee in all respects to accomplish any such Distribution and shall, at Sara Lee’s direction, promptly take any and all actions reasonably necessary or desirable in Sara Lee’s sole and absolute discretion to effect the
Distribution. 
 (c) Actions in Connection with Distribution. Subject to Section 3.2 hereof, on or prior to
the Distribution Date, Sara Lee will deliver to the Agent for the benefit of the Record Holders, a single stock certificate, endorsed by Sara Lee in blank, representing all of the outstanding shares of HBI Common Stock then owned by Sara Lee, and
shall cause the transfer agent for the shares of Sara Lee Common Stock to instruct the Agent to distribute on the Distribution Date the appropriate number of such shares of HBI Common Stock to each such Record Holder. The Distribution shall be
effective at [11:59 p.m.], Central Time, on the Distribution Date (the “Effective Time”). Subject to Section 3.2 and Section 3.5, each Record Holder will be entitled to receive in the Distribution
a number of shares of HBI Common Stock equal to the number of shares of Sara Lee Common Stock held by such Record Holder on the Record Date multiplied by the distribution ratio to be determined by Sara Lee’s Board of Directors when it declares
the Distribution (the “Distribution Ratio”). It is intended that the Distribution Ratio will approximate a fraction the numerator of which is the number of shares of HBI Common Stock beneficially owned by Sara Lee on the
Distribution Date and the denominator of which is the number of shares of Sara Lee Common Stock outstanding on the Record Date. Sara Lee and HBI, as the case may be, will provide to the Agent all share certificates and any information required in
order to complete the Distribution on the basis specified above. 
 (d) Termination. Without limiting the generality of
Section 3.3(b), (i) this Agreement and the Ancillary Agreements may be terminated or (ii) the Distribution may be amended, modified or abandoned, in each case at any time prior to the Effective Time by and in the sole and
absolute discretion of Sara Lee without the approval of HBI. In the event of such termination, neither party shall have any Liability of any kind to the other party. 
 Section 3.4 Cooperation and Further Assurances Regarding the Distribution. In addition to the actions specifically provided for elsewhere in this Agreement, if Sara Lee decides to proceed with the Distribution,
HBI shall, at Sara Lee’s direction, consult and cooperate with Sara Lee in connection with the Distribution and use its reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things desirable,
necessary, proper or expeditious in order to consummate and make effective the Distribution as promptly as 

  

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reasonably practicable as directed by Sara Lee. Without limiting the generality of the foregoing, HBI shall, at Sara Lee’s direction, cooperate with
Sara Lee, and execute and deliver, or cause to have executed and delivered, all instruments, including instruments of conveyance, assignment and transfer, and use its reasonable best efforts to make all filings with, and to obtain all consents,
approvals or authorizations of, any domestic or foreign governmental or regulatory authority requested by Sara Lee in order to consummate and make effective the Distribution. 
 Section 3.5 Fractional Shares; Unclaimed Shares or Cash. 
 (a) Fractional Shares. Sara Lee shall direct the Agent to (i) determine the number of whole shares and fractional shares of
HBI Common Stock allocable to each Record Holder, (ii) aggregate all such fractional shares and sell the whole shares obtained thereby in open market transactions as soon as practicable on or after the Distribution Date at then prevailing
trading prices and (iii) cause to be distributed to each such Record Holder or for the benefit of each such beneficial owner, in lieu of any fractional share, such Record Holder’s or owner’s ratable share of the proceeds of such sale,
after making appropriate deductions of the amount required to be withheld for federal income tax purposes and after deducting an amount equal to all brokerage charges, commissions and transfer taxes attributed to such sale. Solely for purposes of
computing fractional share interests pursuant to this Section 3.5(a), the beneficial owner of Sara Lee Common Stock held of record in the name of a nominee in any nominee account shall be treated as the holder of record with respect to
such shares. 
 (b) Unclaimed Shares or Cash. Any HBI Common Stock or cash in lieu of fractional shares with respect to
HBI Common Stock that remain unclaimed by any Record Holder 180 days after the Distribution Date shall be delivered to HBI. HBI shall hold all such HBI Common Stock and cash for the account of such Record Holder and any such Record Holder shall look
only to HBI for such HBI Common Stock and cash, if any, in lieu of fractional share interests, subject in each case to applicable escheat or other abandoned property laws. HBI shall indemnify the Sara Lee Group for all claims relating to such HBI
Common Stock and cash so delivered to HBI in accordance with the Indemnification and Insurance Matters Agreement. 
 Section 3.6 Financing
Arrangements. Prior to the Effective Time, HBI shall enter into the Financing Agreements. HBI agrees to take all necessary actions to borrow sufficient funds under the Financing Agreements prior to the Effective Time to allow it to pay and/or
distribute $2.4 billion to Sara Lee. Prior to the Effective Time, Sara Lee and HBI shall cooperate in the preparation of all materials as may be necessary or advisable for HBI to secure funding pursuant to the Financing Agreements. 
 ARTICLE IV 
 CONTRIBUTION AND
ASSUMPTION 
 Section 4.1 Contribution of Assets and Assumption of Liabilities. 
 (a) Transfer of Assets. Effective as of the Separation Date, Sara Lee hereby assigns, transfers, conveys and delivers (or will
cause any applicable Subsidiary to assign, transfer, convey and deliver) to HBI or an applicable Subsidiary of HBI, and HBI hereby accepts 

  

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from Sara Lee, or the applicable Subsidiary of Sara Lee, and agrees to cause the applicable Subsidiary of HBI to accept, all of Sara Lee’s and its
applicable Subsidiaries’ respective right, title and interest in and to all HBI Assets, other than the Delayed Transfer Assets; provided, however, that any HBI Assets that are specifically assigned or transferred pursuant to an Ancillary
Agreement shall not be assigned or transferred pursuant to this Section 4.1(a), and such HBI Assets shall be assigned or transferred pursuant to such Ancillary Agreement. 
 (b) Assumption of Liabilities. Effective as of the Separation Date, Sara Lee hereby assigns, transfers, conveys and delivers (or
will cause any applicable Subsidiary to assign, transfer, convey and deliver) to HBI or an applicable Subsidiary of HBI, and HBI hereby assumes and agrees faithfully to perform and fulfill, and if applicable, comply with, or will cause any
applicable Subsidiary of HBI to assume, perform and fulfill, and if applicable, comply with, all of the HBI Liabilities, other than the Delayed Transfer Liabilities, in accordance with their respective terms. Thereafter, HBI shall be responsible (or
will cause any applicable Subsidiary of HBI to be responsible) for all HBI Liabilities, regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to, on or after the date hereof,
regardless of where or against whom such Liabilities are asserted or determined or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of law,
misrepresentation by any member of (i) prior to the Distribution Date, the Sara Lee Group or any of its directors, officers, employees or agents or (ii) prior to, on or after the Distribution Date, the HBI Group or any of its directors,
officers, employees or agents. 
 (c) Delayed Transfer of Assets and Liabilities. Each of the parties hereto agrees
that the Delayed Transfer Assets will be assigned, transferred, conveyed and delivered, and the Delayed Transfer Liabilities will be assumed, in accordance with the terms of the agreements (including this Agreement and the Ancillary Agreements) that
provide for such assignment, transfer, conveyance and delivery, or such assumption, after the Separation Date. Following such assignment, transfer, conveyance and delivery of any Delayed Transfer Asset, or such assumption of any Delayed Transfer
Liability, the applicable Delayed Transfer Asset or Delayed Transfer Liability shall be treated for all tax and other purposes of this Agreement and the Ancillary Agreements as an HBI Asset or as an HBI Liability, as the case may be. Each of the
parties hereto agrees that until any Delayed Transfer Asset is assigned, transferred, conveyed and delivered to HBI or a Subsidiary of HBI, Sara Lee and HBI shall cooperate in any lawful and commercially reasonable arrangement agreed to by the
parties under which HBI or a Subsidiary of HBI shall obtain the economic claims, rights and benefits under such Delayed Transfer Asset. Each of the parties hereto agrees that until a Delayed Transfer Liability is assumed by HBI or a Subsidiary of
HBI, HBI shall indemnify and hold harmless the Sara Lee Group from such Delayed Transfer Liability. 
 (d) Misallocated
Assets. In the event that at any time or from time to time (whether prior to, on or after the Separation Date), any party hereto (or any member of the Sara Lee Group or the HBI Group, as applicable) shall receive or otherwise possess any Asset
that is allocated to any other Person pursuant to this Agreement or any Ancillary Agreement, such party shall promptly transfer, or cause to be transferred, such Asset to the Person so entitled thereto. Prior to any such transfer, the Person
receiving or possessing such Asset shall hold such Asset in trust for any such other Person. 
  

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 Section 4.2 HBI Assets. 
 (a) Included Assets. For purposes of this Agreement, “HBI Assets” shall mean (without duplication) the following
Assets, except as otherwise provided for in any Ancillary Agreement or other written agreement between Sara Lee and HBI executed as of or after the date of this Agreement: 
 (i) all Assets reflected in the HBI Balance Sheet, subject to any dispositions of such Assets subsequent to the date of the HBI Balance
Sheet; provided, however, that such Assets shall exclude the amounts receivable from Sara Lee that are reflected in the HBI Balance Sheet but that, as disclosed in the Registration Statement, will be capitalized into Sara Lee’s equity in HBI or
repaid on or prior to the Distribution Date; 
 (ii) all Assets that have been written off, expensed or fully depreciated
that, had they not been written off, expensed or fully depreciated, would have been reflected in the HBI Balance Sheet in accordance with the principles and accounting policies under which the HBI Balance Sheet was prepared; 
 (iii) all Assets acquired by Sara Lee or its Subsidiaries after the date of the HBI Balance Sheet that would be reflected in the balance
sheet of HBI as of the Separation Date if such balance sheet was prepared using the same principles and accounting policies under which the HBI Balance Sheet was prepared; 
 (iv) all Assets that should have been reflected in the HBI Balance Sheet as of the Separation Date but are not reflected in the HBI
Balance Sheet due to mistake or unintentional omission (or Assets of the type described in clause (iii) above which are not reflected in HBI’s interim balance sheet due to mistake or unintentional omission); provided however that, except
as otherwise provided in the Ancillary Agreements and subject to Section 4.6(b), no Asset shall be an HBI Asset requiring any transfer by Sara Lee unless HBI or Sara Lee has, on or before the eighteen month anniversary of the Separation
Date, given the other notice that it believes that such Asset is a HBI Asset (and the Steering Committee agrees that such Asset is an HBI Asset or it is determined that such Asset is an HBI Asset through an arbitration conducted under
Section 6.13 hereof); 
 (v) all HBI Contingent Gains; 
 (vi) all HBI Contracts; 
 (vii) all of the issued and outstanding capital stock, partnership interest, limited liability company interests or other equity interests of the Subsidiaries set forth in Schedule 4.2(a)(vii) (such stock
and other interests, the “HBI Entity Interests”, and such Subsidiaries, the “HBI Entities”); 
 (viii) [RESERVED]; 

  

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 (ix) all Intellectual Property used exclusively in the Branded Apparel Business, which
shall include, without limitation, the trade name and trademarks set forth on Schedule 4.2(a)(viii), together with the Intellectual Property grants and licenses pursuant to the Ancillary Agreements; 
 (x) to the extent permitted by law and subject to the Indemnification and Insurance Matters Agreement, all rights of any member of the HBI
Group under any of Sara Lee’s Insurance Policies or other insurance policies issued by Persons unaffiliated with Sara Lee; 
 (xi) all Assets that are expressly contemplated by this Agreement or any Ancillary Agreement or any Schedule hereto or thereto as Assets to be transferred to HBI or any member of the HBI Group, including all Assets set forth on
Schedule 4.2(a)(x); 
 (xii) those “GSI Company Prefixes” assigned by the Uniform Code Council,
Inc. to Sara Lee that are listed on Schedule 4.2(a)(xi); and 
 (xiii) except as otherwise expressly provided in this
Agreement or any Ancillary Agreement, all other Assets that are used exclusively by the HBI Group on or prior to the Separation Date. 
 The parties
acknowledge and agree that HBI and its Subsidiaries may acquire the HBI Assets, in part and without duplication, through the transfer and assignment of the HBI Entity Interests of one or more of the HBI Entities which own, lease or have the right to
use such HBI Assets. Notwithstanding the foregoing, the HBI Assets shall not include the Excluded Assets referred to in Section 4.2(b) below. 
 (b) Excluded Assets. For the purposes of this Agreement, “Excluded Assets” shall mean any Assets that are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules
hereto or thereto) as Assets to be retained by Sara Lee or any other member of the Sara Lee Group, including the Assets (if any) set forth on Schedule 4.2(b). The parties acknowledge and agree that neither HBI nor any of its Subsidiaries
will acquire any right, title and interest in any Excluded Assets through the transfer and assignment of the HBI Entity Interests of one or more of the HBI Entities which own, lease or have the right to use such Excluded Assets. 
 Section 4.3 HBI Liabilities. 
 (a) Included Liabilities. For the purposes of this Agreement, “HBI Liabilities” shall mean (without duplication) the following Liabilities, except as otherwise provided for in any Ancillary Agreement or other written
agreement between Sara Lee and HBI executed as of or after the date of this Agreement: 
 (i) all Liabilities reflected in the
HBI Balance Sheet, subject to any discharge of such Liabilities subsequent to the date of the HBI Balance Sheet; provided, however, that such Liabilities shall exclude the amounts owed to Sara Lee that are reflected in the HBI Balance Sheet but
that, as disclosed in the Registration Statement, will be capitalized into Sara Lee’s equity in HBI or repaid on or prior to the Distribution Date; 
  

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 (ii) all Liabilities of Sara Lee or its Subsidiaries that arise after the date of the HBI
Balance Sheet that would be reflected in the balance sheet of HBI as of the Separation Date if such balance sheet was prepared using the same principles and accounting policies under which the HBI Balance Sheet was prepared; 
 (iii) all Liabilities that should have been reflected in the HBI Balance Sheet as of the Separation Date but are not reflected in the HBI
Balance Sheet due to mistake or unintentional omission (or Liabilities of the type described in clause (ii) above which were not reflected in HBI’s interim balance sheet due to mistake or unintentional omission); provided however that,
except as otherwise provided in the Ancillary Agreements and subject to Section 4.6(b), no Liability shall be considered as a HBI Liability unless Sara Lee or HBI has, on or before the earlier of the eighteen month anniversary of the
Separation Date, has given the other notice that it believes that such Liability is an HBI Liability (and the Steering Committee agrees that such Liability is an HBI Liability or it is determined that such Liability is an HBI Liability through an
arbitration conducted under Section 6.13 hereof); 
 (iv) all HBI Contingent Liabilities; 
 (v) all Liabilities (other than Liabilities for Taxes), whether arising before, on or after the Separation Date, substantially or
exclusively relating to, arising out of or resulting from: 
 (A) the operation of the Branded Apparel Business or the
ownership or use of the HBI Assets at any time prior to, on or after the Separation Date, including any Liability relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative
with respect to the Branded Apparel Business (whether or not such act or failure to act is or was within such Person’s authority) and any Liability relating to, arising out of or resulting from any unclaimed property (but excluding any
financing provided by Sara Lee to the Branded Apparel Business and any charges for corporate level services from Sara Lee, except to the extent such financing or charges are included as HBI Liabilities elsewhere in this Section 4.3(a)); or

 (B) the operation of any business conducted by any member of the HBI Group at any time after the Separation Date
(including any Liability relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person’s authority)
and any Liability relating to, arising out of or resulting from any unclaimed property); 
  

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 (vi) all Liabilities, whether arising before, on or after the Separation Date, relating
to, arising out of, resulting from or under the Contracts set forth on Schedule 4.3(a)(vi); 
 (vii) all
Liabilities relating to, arising out of or resulting from the Financing Agreements; 
 (viii) any Liabilities arising out of
claims made by Sara Lee’s or HBI’s (or their Subsidiaries) respective directors, officers, employees, consultants, independent contractors or agents against any member of the Sara Lee Group or the HBI Group, to the extent such claims
relate to the activities of any such Person on behalf of or relating to the Branded Apparel Business; and 
 (ix) all
Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement or any Schedule hereto or thereto as Liabilities to be assumed by HBI or any member of the HBI Group (including, without limitation, for costs and expenses
relating to the Distribution or the Separation (except to the extent set forth in Section 5.5)), and all agreements, obligations and Liabilities of any member of the HBI Group under this Agreement or any of the Ancillary Agreements,
including all Liabilities set forth on Schedule 4.3(a)(viii). 
 Notwithstanding the foregoing, the HBI Liabilities shall not
include the Excluded Liabilities referred to in Section 4.3(b) below. 
 (b) Excluded Liabilities. For the
purposes of this Agreement, “Excluded Liabilities” shall mean the following: 
 (i) any and all agreements,
obligations and Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as agreements, obligations or Liabilities to be retained or assumed by Sara Lee or any other member of the
Sara Lee Group; 
 (ii) all agreements, obligations and Liabilities of any member of the Sara Lee Group under this Agreement
or any Ancillary Agreement; 
 (iii) all agreements, obligations and Liabilities set forth on Schedule 4.3(b); and

 (iv) all Liabilities which are not (A) described in Section 4.3(a) above or (B) assumed by the HBI Group
under this Agreement or the Ancillary Agreements. 
 Section 4.4 Shared Contracts. 
 (a) With respect to Shared Contractual Liabilities pursuant to, under or relating to a given Shared Contract, such Shared Contractual
Liabilities shall be allocated between the parties as follows: 
 (i) First, if a Liability is incurred exclusively in respect
of a benefit received by one party or its Group, the party or Group receiving such benefit shall be responsible for such Liability. 
  

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 (ii) Second, if a Liability cannot be exclusively allocated to one party or its Group
under clause (i) foregoing, such Liability shall be allocated among both parties and their respective Groups based on the relative proportions of total benefit received (over the term of the Shared Contract, measured as of the date of
allocation) under the relevant Shared Contract. Notwithstanding the foregoing, each party and its Group shall be responsible for any or all Liabilities arising out of or resulting from such party’s or Group’s breach of the relevant Shared
Contract. 
 (b) If Sara Lee or any member of the Sara Lee Group, on the one hand, or HBI or any member of the HBI Group, on
the other hand, receives any benefit or payment under any Shared Contract which was intended for the other party or its Group, Sara Lee and any member of the Sara Lee Group, on the one hand, or HBI and any member of the HBI Group, on the other hand,
will use their respective reasonable best efforts to deliver, transfer or otherwise afford such benefit or payment to the other party. 
 Section 4.5 Transfer of Certain Excluded Assets and Excluded Liabilities Effective as of immediately prior to the Separation Date, (a) Sara Lee will cause any applicable HBI Entity which owns, leases or has any right to use any
Excluded Assets to assign, transfer, convey and deliver to Sara Lee or a Subsidiary of Sara Lee, and Sara Lee will accept from the applicable HBI Entity, and agrees to cause the applicable Subsidiary of Sara Lee to accept, all such applicable HBI
Entity’s respective right, title and interest in and to any and all of such Excluded Assets, and (b) Sara Lee will cause any applicable HBI Entity which is responsible for any Excluded Liability to assign, transfer, convey and deliver to
Sara Lee or a Subsidiary of Sara Lee, and Sara Lee will assume, or will cause any applicable Subsidiary of Sara Lee to assume, any and all of such Excluded Liabilities. In furtherance of the foregoing, the HBI Entities shall execute and deliver such
bills of sale, stock powers, certificates of title, assignments of contracts and other instruments of transfer, conveyance and assignment as and to the extent necessary to evidence the transfer, conveyance and assignment of all of their right, title
and interest in and to the Excluded Assets to Sara Lee and its Subsidiaries, and Sara Lee and any applicable Subsidiary shall execute and deliver to HBI such assumptions of contracts and other instruments of assumption as and to the extent necessary
to evidence the valid and effective assumption of the Excluded Liabilities by Sara Lee or its Subsidiaries, in each case, as determined by Sara Lee in its reasonable discretion. 
 Section 4.6 Methods of Transfer and Assumption. 
 (a) Terms of Ancillary Agreements Govern. The parties shall enter into the Ancillary Agreements, on or about the date of this Agreement. To the extent that the transfer of any HBI Asset or Excluded Asset or the
assumption of any HBI Liability is expressly provided for by the terms of any Ancillary Agreement, the terms of such Ancillary Agreement shall effect, and determine the manner of, the transfer or assumption. For example, and without limitation,
transfers of interests in real property used in the Branded Apparel Business shall be governed by the Real Estate Matters Agreement. It is the intent of the parties that pursuant to Sections 4.1, 

  

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4.2, 4.3 and 4.4, the transfer and assumption of all other HBI Assets and HBI Liabilities, other than Delayed Transfer Assets and
Delayed Transfer Liabilities, shall be made effective as of the Separation Date. 
 (b) Mistaken Assignments and
Assumptions. In addition to those transfers and assumptions accurately identified and designated by the parties to take place but which the parties are not able to effect on or prior to the Separation Date, there may exist (i) Assets that
the parties discover were, contrary to the agreements between the parties, by mistake or unintentional omission, transferred to HBI or retained by Sara Lee or (ii) Liabilities that the parties discover were, contrary to the agreements between
the parties, by mistake or unintentional omission, assumed by HBI or not assumed by HBI. The parties shall cooperate in good faith to effect the transfer or re-transfer of mis-allocated Assets, and/or the assumption or re-assumption of mis-allocated
Liabilities, to or by the appropriate party and shall not use the determination that remedial actions need to be taken to alter the original intent of the parties hereto with respect to the Assets to be transferred to or Liabilities to be assumed by
HBI. Each party shall reimburse the other or make other financial adjustments or other adjustments to remedy any mistakes or omissions relating to any of the Assets transferred hereby or any of the Liabilities assumed hereby. 
 (c) Transfer of Assets and Liabilities not Included in HBI Assets and HBI Liabilities. In the event the parties discover Assets and
Liabilities that are to be transferred to or assumed by HBI under Section 4.2(a)(iv) or 4.3(a)(iii), respectively, the parties shall cooperate in good faith to effect the transfer of such Assets at book value, or the assumption of
such Liabilities, to HBI or its Subsidiaries, and shall not use the determination of remedial actions contemplated in this Agreement to alter the original intent of the parties hereto with respect to the Assets to be transferred to or Liabilities to
be assumed by HBI. Each party shall reimburse the other or make other financial adjustments or other adjustments to remedy any mistakes or omissions relating to any of the Assets transferred hereby or any of the Liabilities assumed hereby.

 (d) Transfer of Certain Leased Equipment. Pursuant to the PHH Agreements, Sara Lee operates an executive auto
program under which certain employees obtain the personal use of leased automobiles. To enable HBI to continue to participate in such executive automobile program for a period of time after the Distribution Date, Sara Lee shall, subject to
Section 4.8, sublease all of the passenger vehicles leased by HBI or its Subsidiaries through the PHH Agreements and covered by Sara Lee’s executive auto program as of the Separation Date (collectively, the “Leased
Vehicles”) to HBI or its applicable Subsidiary (the “Sublease”). To implement the Sublease, HBI shall enter into (i) a sublease agreement with Sara Lee consistent with the provisions of this Section 4.6(b), and
(ii) a management agreement with PHH Fleet America Corporation on terms substantially the same as the Management Agreement dated June 30, 1991 between PHH-CFC Leasing, Inc. and PHH Fleet America Corporation. With respect to any Leased
Vehicle used by an HBI employee who is an active employee as of the Separation Date, the Sublease will continue in effect until the earlier of (A) the expiration of the existing lease term for such vehicle, or (B) December 31, 2006;
provided that PHH Fleet America Corporation, as manager of the executive automobile program, may issue instructions or impose rules to ensure the orderly return of the Leased Vehicles, which instructions or rules may require the return of some
Leased Vehicles earlier than December 31, 2006. With respect to any Leased 

  

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Vehicle used by a former HBI employee pursuant to any severance agreement executed prior to the Separation Date, the Sublease will continue in effect until
the date specified in the applicable severance agreement. After the Distribution Date, HBI and its Subsidiaries shall not execute any severance agreement with any HBI employee that permits such employee to continue to use a Leased Vehicle beyond
December 31, 2006. Notwithstanding the foregoing, and for the avoidance of doubt, from and after the Separation Date, the Leased Vehicles shall constitute HBI Assets. The lease payment for each Leased Vehicle covered by the Sublease shall be
equal to the lease payment Sara Lee is obligated to pay from time to time under the PHH Agreements for such Leased Vehicle. Unless otherwise expressly provided in this Section 4.6(d), the terms of the Sublease shall be substantially the
same as the terms and conditions of the PHH Agreements, except to that Sara Lee shall have no obligation to perform any obligations of the lessor under the PHH Agreements. In the event any active or former HBI Employee exercises his or her right, if
any, to purchase a Leased Vehicle from the third party lessor, Sara Lee shall, subject to the satisfaction of all conditions required for such purchase by such employee and HBI, affect such purchase pursuant to the terms of Sara Lee’s executive
auto program and the PHH Agreements. Prior to the Separation Date, HBI shall purchase all of the motor vehicle pool vehicles, trucks, forklifts and computer, telephone and other equipment leased by HBI and its Subsidiaries through the PHH Agreements
and used in the Branded Apparel Business and that are part of the HBI Assets. 
 Section 4.7 Documents Relating to Transfers of HBI Assets
and Assumption of HBI Liabilities. In furtherance of the assignment, transfer and conveyance of HBI Assets and the assumption of HBI Liabilities set forth in Sections 4.2 and 4.3 and Sections 4.6(a), (b) and
(c) and certain Ancillary Agreements, simultaneously with the execution and delivery hereof or as promptly as practicable thereafter, (i) Sara Lee shall execute and deliver, and shall cause its Subsidiaries to execute and deliver,
such bills of sale, stock powers, certificates of title, assignments of contracts and other instruments of transfer, conveyance and assignment as and to the extent necessary to evidence the transfer, conveyance and assignment of all of Sara
Lee’s and its Subsidiaries’ right, title and interest in and to the HBI Assets to HBI or its Subsidiaries and (ii) HBI shall execute and deliver, and shall cause its Subsidiaries to execute and deliver, to Sara Lee and its
Subsidiaries such assumptions of contracts and other instruments of assumption as and to the extent necessary to evidence the valid and effective assumption of the HBI Liabilities by HBI. 
 Section 4.8 Governmental Approvals and Third Party Consents. 
 (a) Obtaining Governmental Approvals and Third Party Consents. To the extent that the Separation or Distribution requires any third
party consents or Governmental Approvals, the parties will use reasonable best efforts to obtain such consents or Governmental Approvals. 
 (b) Transfer in Violation of Laws or Requiring Consent or Governmental Approval. If and to the extent that the valid, complete and perfected transfer or assignment to the HBI Group of any HBI Assets or to the
Sara Lee Group of any Excluded Asset would be a violation of applicable laws or require any Consent or Governmental Approval in connection with the Separation or the Distribution, then the transfer or assignment to the HBI Group of such HBI Assets
or the Sara Lee Group of such Excluded Asset shall be automatically deemed deferred and any such purported transfer or assignment shall be null and void until such time as 

  

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all legal impediments are removed or such Consents or Governmental Approvals have been obtained (provided that, Sara Lee may, in its reasonable discretion,
elect to require the immediate transfer or assignment of any HBI Asset or Excluded Asset notwithstanding any requirement that an immaterial Consent or immaterial Governmental Approval be obtained). Notwithstanding the foregoing, any such Asset shall
still be considered an HBI Asset or Excluded Asset, as applicable, and the Parties will use their reasonable best efforts to promptly develop and implement arrangements to make such Asset available for use by (and the benefit of) the Party entitled
to receive it pending removal of such legal impediments or obtaining such Consents or Governmental Approvals; provided, however, that if such legal impediments have not been removed or such Consents or Governmental Approvals have not been obtained,
as applicable, within twelve months of the Separation Date, then the Parties will use their reasonable best efforts to achieve an alternative solution in accordance with the Parties’ intentions under this Agreement and the Ancillary Agreements.
If and when the legal impediments the presence of which caused the deferral of transfer of any Asset pursuant to this Section 4.8(b) are removed or any Consents and/or Governmental Approvals the absence of which caused the deferral of
transfer of any Asset pursuant to this Section 4.8(b) are obtained, the transfer of the applicable Asset shall be effected in accordance with the terms of this Agreement and/or such applicable Ancillary Agreement. 
 (c) Transfers not Consummated Prior to Separation Date. If the transfer or assignment of any Assets intended to be transferred or
assigned hereunder is not consummated prior to or on the Separation Date, whether as a result of the provisions of Section 4.8(b) or for any other reason, then the Person retaining such Asset shall thereafter hold such Asset for the use
and benefit, insofar as reasonably possible, of the Person entitled thereto (at the reasonable expense of the Person entitled thereto) until the consummation of the transfer or assignment thereof (or as otherwise determined by Sara Lee and HBI, as
applicable, in accordance with paragraph (b) above). In addition, the Person retaining such Asset shall take such other actions as may be reasonably requested by the Person to whom such Asset is to be transferred in order to place such Person,
insofar as reasonably possible, in the same position as if such Asset had been transferred as contemplated hereby and so that all the benefits and burdens relating to such Asset, including possession, use, risk of loss, potential for gain, and
dominion, control and command over such Asset, are to inure from and after the Separation Date to the Person to whom such Asset is to be transferred. 
 (d) Expenses. The Person retaining an Asset due to the deferral of the transfer and assignment of such Asset shall not be obligated, in connection with the foregoing, to expend any money in connection with the
maintenance of the Asset or otherwise unless the necessary funds are advanced by the Person to whom such Asset is to be transferred, other than reasonable out-of-pocket expenses, attorneys’ fees and recording or similar fees, all of which shall
be promptly reimbursed by the Person to whom such Asset is to be transferred; provided, however, that the Person retaining such Asset shall provide prompt notice to the Person to whom such Asset is to be transferred of the amount of all such
expenses and fees. 
 Section 4.9 Nonrecurring Costs and Expenses. Notwithstanding anything herein to the contrary, any nonrecurring
costs and expenses incurred by the parties hereto to effect the transactions contemplated hereby which are not allocated pursuant to the terms of this 

  

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Agreement or any Ancillary Agreement shall be the responsibility of the party which incurs such costs and expenses. 
 Section 4.10 Novation of Assumed HBI Liabilities. 
 (a) Reasonable Best Efforts. HBI, at the request of Sara Lee, shall use its reasonable best efforts to obtain, or to cause to be obtained, any agreement, instrument, consent, substitution, approval or amendment
required to novate or assign all rights and obligations under Contracts and other obligations or Liabilities (including Other Financial Liabilities) of any nature whatsoever that constitute HBI Liabilities or to obtain in writing the unconditional
release of all parties to such arrangements other than any member of the HBI Group, so that, in any such case, HBI and its Subsidiaries will be solely responsible for such Liabilities. 
 (b) Inability to Obtain Novation. If HBI is unable to obtain, or to cause to be obtained, any such required agreement, instrument,
consent, approval, release, substitution or amendment, the applicable member of the Sara Lee Group shall continue to be bound by such Contracts and other obligations and Liabilities and, unless not permitted by law or the terms thereof (except to
the extent expressly set forth in this Agreement or any Ancillary Agreement), HBI shall, as agent or subcontractor for Sara Lee or such other Person, as the case may be, pay, perform and discharge fully, or cause to be paid, transferred or
discharged all the obligations or other Liabilities of any member of the Sara Lee Group thereunder from and after the Separation Date. Notwithstanding the foregoing, any such Liability shall still be considered an HBI Liability; provided, however,
that Sara Lee shall not (and shall not permit any member of the Sara Lee Group to) and HBI shall not (and shall not permit any member of the HBI Group to) amend, renew, change the term of, modify the obligations under, or transfer to a third Person,
any such Contract or other obligation or other Liability without the written consent of HBI (in the case of any such action by the Sara Lee Group) or Sara Lee (in the case of any such action by the HBI Group). Sara Lee and HBI shall each use
reasonable best efforts to provide prompt notice to the other of any request they receive from the counterparty to any Contract for any such amendment, renewal, change, modification or transfer. Sara Lee shall, without further consideration, pay and
remit, or cause to be paid or remitted, to HBI or its appropriate Subsidiary promptly all money, rights and other consideration received by it or any member of its Group in respect of such performance (unless any such consideration is an Excluded
Asset). If and when any such agreement, instrument, consent, approval, release, substitution or amendment shall be obtained or such Contract or other obligations and Liabilities shall otherwise become assignable or able to be novated, Sara Lee shall
thereafter assign, or cause to be assigned, all its rights, obligations and other Liabilities thereunder or any rights or obligations of any member of its Group to HBI without payment of further consideration and HBI shall, without the payment of
any further consideration, assume such rights, obligations and Liabilities. 
 (c) HBI Guarantees. HBI acknowledges
that Sara Lee or members of the Sara Lee Group have entered into various arrangements in which Sara Lee or members of the Sara Lee Group issued or made available guarantees, sureties, bonds, letters of credit or similar instruments or are the
primary obligors on other agreements, in any such case to support or facilitate the business transactions of members of HBI Group (the “Business Guarantees”). On or prior to the Separation Date, HBI shall use reasonable best efforts
to obtain replacements for such Business Guarantees or will seek to either terminate the business transactions or programs 

  

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of the HBI Group supported or facilitated by such Business Guarantees or arrange for itself or one of its Subsidiaries to be substituted as the primary
obligor thereto (collectively, the “Substitute Guarantees”). If such replacement or termination is not effected by the Separation Date, then (i) HBI shall indemnify and hold harmless the Sara Lee Group from any Liability
arising from or relating thereto (including by promptly reimbursing Sara Lee for any payment made by any member of the Sara Lee Group on the HBI Group’s behalf), (ii) without the prior written consent of Sara Lee, HBI shall not, and shall
not permit any member of the HBI Group to, amend, renew or extend the term of, increase its obligations under, or transfer to a third Person, any loan, lease, contract or, other obligation for which any member of the Sara Lee Group is or may be
liable, unless all obligations of the Sara Lee Group with respect thereto are thereupon terminated by documentation reasonably satisfactory in form and substance to Sara Lee and (iii) Sara Lee shall not and shall not permit any member of the
Sara Lee Group to amend, renew, change the term of, terminate, modify the obligations under, or transfer to a third Person, any such loan, lease, Contract or other obligation without the written consent of HBI. 
 Section 4.11 No Representation or Warranty. Neither Sara Lee nor any member of its Group, in this Agreement or any other agreement, instrument or
document contemplated by this Agreement, make any representation as to, warranty of or covenant with respect to: (a) the value of any asset or thing of value to be transferred to or the amount of any liability to be assumed by HBI; (b) the
freedom from any Security Interest of any asset or thing of value to be transferred to HBI; (c) the absence of defenses or freedom from counterclaims with respect to any claim to be transferred to HBI; or (d) the legal sufficiency of any
assignment, document or instrument delivered hereunder to convey title to any asset or thing of value upon its execution, deliver and filing. Without limiting the generality of the foregoing, neither Sara Lee nor any member of its Group is
representing or warranting as to the HBI Assets or the HBI Liabilities transferred or assumed as contemplated hereby or thereby or as to any consents or approvals required in connection therewith. Except as may expressly be set forth herein or in
any Ancillary Agreement, all assets to be transferred to HBI shall be transferred “AS IS, WHERE IS” and HBI shall bear the economic and legal risk that any conveyance shall prove to be insufficient to vest in HBI good and marketable title,
free and clear of any Security Interest or any necessary Consents or Governmental Approvals are not obtained or that any requirements of laws or judgments are not complied with. 
 ARTICLE V 
 COVENANTS AND OTHER MATTERS 
 Section 5.1 Other Agreements. After the Distribution Date, Sara Lee and HBI agree to execute or cause to be executed by the appropriate parties
and deliver, as appropriate, such other agreements, instruments and other documents as may be necessary or desirable in order to effect the purposes of this Agreement and the Ancillary Agreements. Without limiting the generality of the foregoing, at
the request of HBI, and without further consideration, Sara Lee will execute and deliver, and will cause its applicable Subsidiaries to execute and deliver, to HBI and its Subsidiaries such other instruments of transfer, conveyance, assignment,
substitution, confirmation or other documents and take such action as HBI may reasonably deem necessary or desirable in order to more effectively transfer, convey and assign to HBI and its Subsidiaries and confirm HBI’s and its
Subsidiaries’ title to all of the assets, rights and other things of value 

  

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contemplated to be transferred to HBI and its Subsidiaries pursuant to this Agreement, the Ancillary Agreements, and any documents referred to therein, to
put HBI and its Subsidiaries in actual possession and operating control thereof and to permit HBI and its Subsidiaries to exercise all rights with respect thereto (including, without limitation, rights under contracts and other arrangements as to
which the consent of any third party to the transfer thereof shall not have previously been obtained). Without limiting the generality of the foregoing, at the request of Sara Lee and without further consideration, HBI will execute and deliver, and
will cause its applicable Subsidiaries to execute and deliver, to Sara Lee and its Subsidiaries all instruments, assumptions, novations, undertakings, substitutions or other documents and take such other action as Sara Lee may reasonably deem
necessary or desirable in order to have HBI fully and unconditionally assume and discharge the liabilities contemplated to be assumed by HBI under this Agreement or any document in connection herewith and to relieve the Sara Lee Group of any
liability or obligation with respect thereto and evidence the same to third parties. Neither Sara Lee nor HBI shall be obligated, in connection with the foregoing, to expend money other than reasonable out-of-pocket expenses, attorneys’ fees
and recording or similar fees, unless reimbursed by the other party. Furthermore, each party, at the request of the other party hereto, shall execute and deliver such other instruments and do and perform such other acts and things as may be
necessary or desirable for effecting completely the consummation of the transactions contemplated hereby. 
 Section 5.2 Agreement For
Exchange Of Information. 
 (a) Generally. 
 (i) Except as provided in the Master Transition Services Agreement, in which event such agreement shall control, each of Sara Lee and HBI,
on behalf of its respective Group, agrees to provide, or cause to be provided, to the other party’s Group, at any time after the Distribution Date, as soon as reasonably practicable after written request therefor, (i) all Information
regularly provided by HBI to Sara Lee prior to the Distribution Date, and (ii) any Information in the possession or under the control of such respective Group that the requesting party reasonably needs (A) to comply with reporting,
disclosure, filing or other requirements imposed on the requesting party (including under applicable securities and tax laws) by a Governmental Authority having jurisdiction over the requesting party, (B) for use in any other judicial,
regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation or other similar requirements, in each case other than claims or allegations that one party to this Agreement has against the
other, (C) subject to the foregoing clause (B) above, to comply with its obligations under this Agreement or any Ancillary Agreement, or (D) to the extent such Information and cooperation is necessary to comply with such reporting,
filing and disclosure obligations, for the preparation of financial statements or completing an audit, and as reasonably necessary to conduct the ongoing businesses of Sara Lee or HBI, as the case may be. Each of Sara Lee and HBI agree to make their
respective personnel available during regular business hours to discuss the Information exchanged pursuant to this Section 5.2. 
 (ii) As long as Sara Lee is directly or contingently liable for any HBI Liabilities, HBI shall provide to Sara Lee, no later than fifteen (15) days after the end of 

  

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each fiscal quarter of Sara Lee, a certificate of HBI’s Chief Financial Officer that certifies the accuracy of an attached schedule which lists the HBI
Liabilities for which Sara Lee is directly or contingently liable and shows (A) the categories of such Liabilities, (B) where applicable, the annual future payments over the minimum contract term and any renewal terms and (C) such
other information as Sara Lee believes is reasonably necessary for Sara Lee to prepare its financial statements and satisfy its public reporting obligations. The format and information of such schedule shall be determined by Sara Lee in its
reasonable discretion. 
 (b) Internal Accounting Controls; Financial Information. After the Distribution Date,
(i) each party shall maintain in effect at its own cost and expense adequate systems and controls for its business to the extent reasonably necessary to enable the members of the other Group to satisfy their respective reporting, accounting,
audit and other obligations, and to comply with such party’s obligations under this Section 5.2, and (ii) each party shall provide, or cause to be provided, to the other party in such form as the requesting party shall request,
at no charge to such requesting party, all financial and other data and information as such requesting party determines is reasonably necessary or advisable in order to prepare its financial statements and reports or filings with any Governmental
Authority. Notwithstanding the foregoing, Sara Lee and HBI agree that the following provisions shall govern the retention and use of all Information maintained by Sara Lee Business Services immediately prior to the Distribution Date, which
Information includes without limitation data payroll, general ledger, foreign currency sub-ledger, fixed asset ledger, accounts payable, accounts payable master file and travel and entertainment (Extensity) system regarding Sara Lee and Sara
Lee’s Subsidiaries and Affiliates (collectively, the “Lawson Information”). Effective as of the Distribution Date, possession and control over the Lawson Information will be transferred to HBI, which will maintain such
Information on its servers. Each of Sara Lee and HBI acknowledges that it has, and it will maintain in full force and effect until the expiration of the transition services set forth on Schedule 2 to the Master Transition Services Agreement, a valid
license to access, view and edit the Lawson Information. During the effective period of such Schedule 2, HBI agrees to provide Sara Lee with either web-based access or direct access through HBI’s computer network to the Lawson Information.
Within 45 days after the close of the fiscal quarter ending December 30, 2006 (or such later quarter, if the term of Schedule 2 is extended), HBI will create and deliver to Sara Lee a complete electronic copy of the database containing the
Lawson Information, in the same file format in which the Lawson Information is maintained on the Distribution Date. For 60 days after receipt of such duplicate electronic file, Sara Lee will be entitled to review, utilize and test the electronic
copy of the database for accuracy and completeness and compare the Information contained on the duplicate file to the original Lawson Information maintained on HBI’s servers, and Sara Lee agrees to promptly notify HBI of any errors,
discrepancies or bugs discovered by Sara Lee during its review. HBI and Sara Lee agree to use their respective reasonable best efforts (including, without limitation, creating a new duplicate electronic file) to remedy all such errors, discrepancies
or bugs. HBI agrees, to the extent relevant purge functions permit, that it will purge from its systems and destroy all Lawson Information that both (1) relates exclusively to the Sara Lee Business and (2) relates to Information for which
HBI is not assuming any liability, including all live and backup copies (other than an archival copy), no later than (x) 60 days after Sara Lee receives the electronic copy, if Sara Lee has not given HBI written notice of any errors,
discrepancies or bugs within such 60-day period, or (y) 20 days after HBI and Sara Lee mutually agree that all errors, 

  

 20 

 
discrepancies or bugs identified by Sara Lee have been remedied. HBI will provide to Sara Lee written confirmation that such purging and destruction has been
completed. 
 (c) Ownership of Information. Any Information owned by a party that is provided to the other party
pursuant to this Section 5.2 shall be deemed to remain the property of the party that owned and provided such Information. Unless specifically set forth herein, nothing contained in this Agreement shall be construed as granting or
conferring rights of license or otherwise in any Information owned by one party hereunder to the other party hereunder. 
 (d)
Record Retention. Except with respect to information for which a different retention policy is specified in an Ancillary Agreement, to facilitate the possible exchange of Information pursuant to this Section 5.2 and other
provisions of this Agreement after the Distribution Date, each party agrees to use its reasonable best efforts to retain all Information in its respective possession or control on the Distribution Date in accordance with the record retention and
destruction policies of Sara Lee as in effect on the Distribution Date as provided in writing to HBI (or such longer periods of time as may be set forth in policies adopted by Sara Lee or HBI and provided to the other in writing after the
Distribution Date). No party will destroy, or permit any of its Subsidiaries to destroy, any Information that exists on the Distribution Date (other than Information that is permitted to be destroyed under the current record retention policies of
Sara Lee) and that falls under the categories listed in Section 5.2(a), without first using its reasonable best efforts to notify the other party of the proposed destruction and giving the other party the opportunity to take possession
or make copies of such Information prior to such destruction. In furtherance and not in limitation of the obligations set forth in this Section 5.2, each party shall, and shall cause members of their respective Groups to, remove and
destroy any hard drives or other electronic data storage devices from any computer or server that is reasonably likely to contain Information that is protected by this Section 5.2 and that is transferred or sold to a third party or
otherwise disposed of in accordance with this Section 5.2(d). 
 (e) Limitation of Liability. Each party
will use its reasonable best efforts to ensure that Information provided to the other party hereunder is accurate and complete; provided, however, except as otherwise provided in the Indemnification and Insurance Matters Agreement or any Ancillary
Agreement, no party shall have any liability to any other party in the event that any Information exchanged or provided pursuant to this Section 5.2 is found to be inaccurate, in the absence of gross negligence or willful misconduct by
the party providing such Information. 
 (f) Other Agreements Providing for Exchange of Information. The rights and
obligations granted under this Section 5.2 are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information set forth in this Agreement and any Ancillary
Agreement. 
 (g) Compensation for Providing Information. Except as set forth in Section 5.2(b)(ii), the
party requesting Information agrees to reimburse the other party for the reasonable out-of-pocket costs, if any, of creating, gathering and copying such Information, to the extent that such costs are incurred for the benefit of the requesting party.

  

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 (h) Production of Witnesses; Records; Cooperation. After the Distribution Date,
except in the case of any Action by one party against another party, each party hereto shall use its reasonable best efforts to make available to each other party, upon written request, the former, current and future directors, officers, employees,
other personnel and agents of the members of its respective Group as witnesses and any books, records or other documents within its control or which it otherwise has the ability to make available, to the extent that any such person (giving
consideration to business demands of such directors, officers, employees, other personnel and agents) or books, records or other documents may reasonably be required in connection with any Action in which the requesting party may from time to time
be involved, regardless of whether such Action is a matter with respect to which indemnification may be sought hereunder. Notwithstanding Section 5.2(g), the requesting party shall reimburse the other party for its reasonable
out-of-pocket cost and expenses in connection with requests made under this Section 5.2(h) (other than internal costs). 
 Section 5.3 Confidentiality. 
 (a) For a period (i) in the case of Confidential Information that is
Confidential Business Information, of seven years from the Separation Date and (ii) in the case of Confidential Information that is Confidential Operational Information, ten years from the Separation Date, Sara Lee and HBI shall hold and shall
cause each of the members of their respective Groups to hold, and shall each cause their respective officers, employees, agents, consultants and advisors to hold, in strict confidence and not to disclose or release without the prior written consent
of the other party, any and all Confidential Information (as defined herein) of the other party; provided, that the parties may disclose, or may permit disclosure of, Confidential Information (x) to their respective auditors, attorneys,
financial advisors, bankers and other appropriate consultants and advisors who have a need to know such information and are informed of their obligation to hold such information confidential to the same extent as is applicable to the parties hereto
and in respect of whose failure to comply with such obligations, HBI or Sara Lee, as the case may be, will be responsible or (y) if the parties or any of the members of their respective Groups are compelled to disclose any such Confidential
Information by judicial or administrative process or, in the opinion of independent legal counsel, by other requirements of law. Notwithstanding the foregoing, in the event that any demand or request for disclosure of Confidential Information is
made pursuant to clause (y) above, Sara Lee or HBI, as the case may be, shall promptly notify the other of the existence of such request or demand and shall provide the other a reasonable opportunity to seek an appropriate confidentiality
agreement, protective order or other remedy, which both parties will cooperate in obtaining. In the event that such appropriate protective order or other remedy is not obtained, the party whose Confidential Information is required to be disclosed
shall or shall cause the other party to furnish, or cause to be furnished, only that portion of the Confidential Information that is legally required to be disclosed. As used in this Section 5.3: 
 (i) “Confidential Information” shall mean Confidential Business Information and Confidential Operational Information of
one party which, prior to or following the Distribution Date, has been disclosed by Sara Lee or its Group on the one hand, or HBI or its Group, on the other hand, in written, oral (including by recording), electronic, or visual form to, or otherwise
has come into the possession of, the other, including pursuant to the access provisions of Section 5.2 hereof or any other provision 

  

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of this Agreement (except to the extent that such Information can be shown to have been (x) in the public domain through no fault of such party (or such
party’s Group) or (y) later lawfully acquired from other sources by the party (or such party’s Group) to which it was furnished; provided, however, in the case of (y) that such sources did not provide such Information in breach
of any confidentiality obligations). 
 (ii) “Confidential Operational Information” shall mean all
proprietary, design or operational information, data or material including, without limitation, (a) specifications, ideas and concepts for products and services, (b) manufacturing specifications and procedures, (c) design drawings and
models, (d) materials and material specifications, (e) quality assurance policies, procedures and specifications, (f) customer information, (g) computer software and derivatives thereof relating to design development or
manufacture of products, (h) training materials and information and (i) all other know-how, methodology, procedures, techniques and trade secrets related to design, development and manufacturing. 
 (iii) “Confidential Business Information” shall mean all proprietary information, data or material other than
Confidential Operational Information, including, but not limited to (a) proprietary earnings reports and forecasts, (b) proprietary macro-economic reports and forecasts, (c) proprietary business plans, (d) proprietary general
market evaluations and surveys and (e) proprietary financing and credit-related information. 
 Notwithstanding the first sentence of this
Section 5.3(a), with respect to any Confidential Business Information that is disclosed after the Distribution Date (which shall be deemed to be Confidential Information for the purposes of this Section), the obligations of this
subsection shall terminate seven years after the date of the first disclosure of such Confidential Business Information to Sara Lee or its Group, on the one hand, or HBI or its Group, on the other hand. 
 (b) Notwithstanding anything to the contrary set forth herein, (i) Sara Lee and its Group, on the one hand, and HBI and its Group, on
the other hand, shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree of care) as they take to preserve confidentiality
for their own similar Information and (ii) confidentiality obligations provided for in any agreement between Sara Lee or any of the members of its Group, or HBI or any of the members of its Group, on the one hand, and any employee of Sara Lee
or any member of its Group, or HBI or any member of its Group, on the other hand, shall remain in full force and effect. Confidential Information of Sara Lee and its Group, on the one hand, or HBI and its Group, on the other hand, in the possession
of and used by the other as of the Distribution Date may continue to be used by such Person in possession of the Confidential Information in and only in the operation of the Sara Lee Business or the Branded Apparel Business, the case may be, and may
be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of Section 5.3(a). Such continued right to use may not be transferred to any third party unless the third party purchases all
or substantially all of the business and Assets in one transaction or in a series of related transactions for which or in which the relevant Confidential Information is used or employed. In the event that such right to use is 

  

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transferred in accordance with the preceding sentence, the transferring party shall not disclose the source of the relevant Confidential Information.

 Section 5.4 Privileged Matters. 
 (a) Sara Lee and HBI agree that their respective rights and obligations to maintain, preserve, assert or waive any or all privileges belonging to either corporation or their Subsidiaries with respect to the Branded
Apparel Business or the Sara Lee Business, including but not limited to the attorney-client and work product privileges (collectively, “Privileges”), shall be governed by the provisions of this Section 5.4. With respect
to Privileged Information (as defined below) of Sara Lee, Sara Lee shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and HBI shall take no action (nor permit any member of its Group to take
action) without the prior written consent of Sara Lee that could result in any waiver of any Privilege that could be asserted by Sara Lee or any member of its Group under applicable law and this Agreement. With respect to Privileged Information of
HBI arising after the Separation, HBI shall have sole authority in perpetuity to determine whether to assert or waive any or all Privileges, and Sara Lee shall take no action (nor permit any member of its Group to take action) without the prior
written consent of HBI that could result in any waiver of any Privilege that could be asserted by HBI or any member of its Group under applicable law and this Agreement. The rights and obligations created by this Section 5.4 shall apply
to all Information as to which Sara Lee or HBI or their respective Groups would be entitled to assert or have asserted a Privilege without regard to the effect, if any, of the Separation or the Distribution (“Privileged
Information”). Privileged Information of Sara Lee and its Group includes but is not limited to (i) any and all Information regarding the Sara Lee Business and its Group (other than Information relating to the Branded Apparel Business
(“Branded Apparel Information”)), whether or not such Information (other than Branded Apparel Information) is in the possession of HBI or any member of its Group; (ii) all communications subject to a Privilege between counsel
for Sara Lee (including any person who, at the time of the communication, was an employee of Sara Lee or its Group in the capacity of in-house counsel, regardless of whether such employee is or becomes an employee of HBI or any member of its Group)
and any person who, at the time of the communication, was an employee of Sara Lee, regardless of whether such employee is or becomes an employee of HBI or any member of its Group and (iii) all Information generated, received or arising after
the Separation Date that refers or relates to Privileged Information of Sara Lee or its Group generated, received or arising prior to the Separation Date. Privileged Information of HBI and its Group includes but is not limited to (x) any and
all Branded Apparel Information, whether or not it is in the possession of Sara Lee or any member of its Group; (y) all communications subject to a Privilege occurring after the Separation between counsel for the Branded Apparel Business
(including in-house counsel and former in-house counsel who are employees of Sara Lee) and any person who, at the time of the communication, was an employee of HBI, any member of its Group or the Branded Apparel Business regardless of whether such
employee was, is or becomes an employee of Sara Lee or any of its Subsidiaries and (z) all Information generated, received or arising after the Separation Date that refers or relates to Privileged Information of HBI or its Group generated,
received or arising after the Separation Date. 
 (b) Upon receipt by Sara Lee or HBI, or any of their respective Groups, as
the case may be, of any subpoena, discovery or other request from any third party that actually or 

  

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arguably calls for the production or disclosure of Privileged Information of the other or if Sara Lee or HBI, or any of their respective Groups, as the case
may be, obtains knowledge that any current or former employee of Sara Lee or HBI, as the case may be, receives any subpoena, discovery or other request from any third party that actually or arguably calls for the production or disclosure of
Privileged Information of the other, Sara Lee or HBI, as the case may be, shall promptly notify the other of the existence of the request and shall provide the other a reasonable opportunity to review the Information and to assert any rights it may
have under this Section 5.4 or otherwise to prevent the production or disclosure of Privileged Information. Sara Lee or HBI, as the case may be, will not, and will cause their respective Groups not to, produce or disclose to any third
party any of the other’s Privileged Information under this Section 5.4 unless (i) the other has provided its express written consent to such production or disclosure or (ii) a court of competent jurisdiction has entered an
order not subject to interlocutory appeal or review finding that the Information is not entitled to protection from disclosure under any applicable privilege, doctrine or rule. 
 (c) Sara Lee’s transfer of books and records pertaining to the Branded Apparel Business and other Information to HBI, Sara Lee’s
agreement to permit HBI to obtain Information existing prior to the Separation, HBI’s transfer of books and records pertaining to Sara Lee, if any, and other Information and HBI’s agreement to permit Sara Lee to obtain Information existing
prior to the Separation are made in reliance on Sara Lee’s and HBI’s respective agreements, as set forth in Section 5.3 and this Section 5.4, to maintain the confidentiality of such Information and to take the steps
provided herein for the preservation of all Privileges that may belong to or be asserted by Sara Lee or HBI, as the case may be. The access to Information, witnesses and individuals being granted pursuant to Sections 5.2 and the
disclosure to HBI and Sara Lee of Privileged Information relating to the Branded Apparel Business or the Sara Lee Business pursuant to this Agreement in connection with the Separation shall not be asserted by Sara Lee or HBI to constitute, or
otherwise deemed, a waiver of any Privilege that has been or may be asserted under this Section 5.4 or otherwise. Nothing in this Agreement shall operate to reduce, minimize or condition the rights granted to Sara Lee and HBI in, or the
obligations imposed upon Sara Lee and HBI by, this Section 5.4. 
 Section 5.5 Payment Of Expenses. Except as otherwise
provided in this Agreement, the Ancillary Agreements or any other written agreement between the parties relating to the Separation or the Distribution, (i) all costs and expenses of the parties hereto in connection with the Distribution
(including, without limitation, costs associated with drafting this Agreement, the Ancillary Agreements and the documents relating to the formation of HBI, costs associated with the preparation and filing of the Registration Statement and costs
associated with the preparation, printing and mailing of the Information Statement) and (ii) all costs and expenses of the parties hereto in connection with the Separation shall be paid by Sara Lee. Notwithstanding the foregoing, (i) HBI
and Sara Lee shall each be responsible for their own internal costs (i.e., salaries of personnel) incurred in connection with the Separation and the Distribution, and (ii) HBI shall be responsible for the fees and expenses of its separate legal
counsel (Covington & Burling LLP) and of its independent accountants with respect to services such accountants otherwise would provide in order for HBI comply with its SEC filings, bank facilities and other reporting obligations after the
Distribution. 
  

 25 

 Section 5.6 Release of Security Interest. Upon HBI’s reasonable request, Sara Lee shall use
its reasonable best efforts to obtain from third parties the release of any Security Interest granted by Sara Lee (or its Subsidiaries) on any HBI Asset. 
 Section 5.7 Litigation. All matters relating to claims for Actions, including, but not limited to, indemnification for such claims, shall be governed by the provisions of the Indemnification and Insurance
Matters Agreement. 
 Section 5.8 Employee Discounts. For the period ending two (2) years from the Separation Date, HBI will
continue to offer all employees and directors of the Sara Lee Group on the date of product purchase a discount on all HBI products purchased by such Sara Lee Group employees or directors, which discount shall be equivalent to the HBI employee and
director discount programs in effect with respect to HBI products as of the Separation Date. If required under the terms of the Master Separation Agreement dated October 2, 2000 between Sara Lee and Coach, Inc., HBI will continue to offer
employees and directors of Coach, Inc. the discount contemplated by Section 4.18 thereof. For the period ending two (2) years from the Separation Date, Sara Lee will continue to offer all employees and directors of the HBI Group on the
date of product purchase, a discount on all Sara Lee products purchased by such HBI Group employees or directors, which discount shall be equivalent to the Sara Lee employee and director discount programs in effect with respect to Sara Lee products
as of the Separation Date. 
 Section 5.9 Termination Of Agreements. 
 (a) Termination of Agreements Between Sara Lee and HBI. Except as set forth in subsection (b) below, HBI and each HBI
Subsidiary, on the one hand, and Sara Lee and each Sara Lee Subsidiary, on the other hand, hereby terminate and agree to cause to be terminated all agreements, arrangements, commitments or understandings, whether or not in writing, entered into
prior to the Effective Time between or among HBI or any HBI Subsidiaries, on the one hand, and Sara Lee or any Sara Lee Subsidiaries, on the other hand, effective as of immediately prior to the Effective Time; provided that the provisions of this
subsection (a) shall not terminate any rights or obligations between Sara Lee and any Sara Lee Subsidiary or between any Sara Lee Subsidiaries. 
 (b) Exceptions. The provisions of subsection (a) above shall not apply to any of the following agreements, arrangements, commitments or understandings (or to any of the provisions thereof): (i) this
Agreement and the Ancillary Agreements; (ii) any agreements, arrangements, commitments or understandings listed or described on Schedule 5.9(b) or which is otherwise expressly contemplated by this Agreement or the Ancillary Agreement to
survive the Distribution Date; (iii) any agreements, arrangements, commitments or understandings to which any Person other than the parties hereto and their respective Affiliates is a party; (iv) any agreements, arrangements, commitments
or understandings to which any non-wholly owned Subsidiary of Sara Lee or HBI, as the case may be, is a party (it being understood that directors’ qualifying shares or similar interests shall be disregarded for purposes of determining whether a
Subsidiary is wholly owned); and (v) as otherwise agreed to in good faith by the parties in writing on or after the Effective Time. To the extent that the rights and obligations of Sara Lee or any Sara Lee Subsidiaries under any agreements,
arrangements, commitments or understandings 

  

 26 

 
not terminated under this Section 5.9 constitute HBI Assets or HBI Liabilities, they shall be assigned or assumed pursuant to this Agreement.

 Section 5.10 Cooperation In Obtaining New Agreements. Sara Lee understands that, prior to the Separation Date, HBI has derived
benefits under certain agreements and relationships between Sara Lee and third parties, which agreements and relationships are not being assigned or transferred to HBI in connection with the Separation. After the Separation Date, upon the request of
HBI, Sara Lee agrees to make introductions of appropriate HBI personnel to Sara Lee’s contacts at such third parties, and agrees to provide reasonable assistance to HBI so that HBI, to the extent possible, may enter into agreements or
relationships with such third parties under substantially equivalent terms and conditions, including financial terms and conditions, that apply to Sara Lee. Such assistance may include, but is not limited to, (i) requesting and encouraging such
third parties to enter into such agreements or relationships with HBI and (ii) attending meetings and negotiating sessions with HBI and such third parties. 
 Section 5.11 Cooperation With Respect To Procurement Agreements. Sara Lee and HBI have used their reasonable best efforts to extend certain procurement agreements between Sara Lee and certain preferred
third-party vendors to HBI so that the economic benefits under such agreements would continue to be available to both Sara Lee and HBI after the Separation Date. After the Separation Date, Sara Lee and HBI shall continue to use their reasonable best
efforts to purchase goods and services from each of such vendors under such Shared Contracts in accordance with the terms of any agreement among Sara Lee, HBI and any third party vendor entered into in connection with the Distribution so as to
maximize the discounts available and/or achieve the lowest prices available under such Shared Contracts for both Sara Lee and HBI. 
 Section
5.12 Non-Solicitation Of Employees. Sara Lee and HBI each agree, and each shall cause its Subsidiaries and any employment agencies acting on their behalf, not to solicit, recruit or hire, after the Distribution Date, without the other
party’s express written consent, the other party’s employees who are employed by such party immediately after the Distribution Date, other than such employees identified in Schedule 5.12, for a period of one year following the
Distribution Date. Either party hereto may seek a waiver of this Section 5.12 by submitting a request to the Executive Vice President of Human Resources (or similar officer) of the other party. Notwithstanding the foregoing, this prohibition on
solicitation, recruitment and hiring does not apply to actions taken by a party solely as a result of an employee’s affirmative response to a general recruitment effort carried out through a public solicitation or general solicitation.

 Section 5.13 Stockholder Actions. On or prior to the Distribution Date, Sara Lee and HBI in their respective capacities as direct
and indirect stockholders, managing members or managing partners of their respective Subsidiaries, each shall take and ratify any actions that are reasonably necessary or desirable to effectuate the transactions contemplated by this Agreement,
including all such actions necessary or desirable to approve HBI’s stock-based employee benefit plans in order to satisfy the requirements of Rule 16b-3 under the Exchange Act and the applicable rules and regulations of the NYSE. 
  

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 ARTICLE VI 
 MISCELLANEOUS 
 Section 6.1 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 6.2 Amendment and Waiver. 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 6.3 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 6.2 and shall be effective only to the extent in such writing specifically set forth. 
 Section 6.4 Parties In Interest. Nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties, their respective Groups and their respective successors and permitted assigns, any rights or
remedies of any nature whatsoever under or by virtue of this Agreement. 
 Section 6.5 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 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 6.6 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 

  

 28 

 
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 Ancillary Agreements. 
 Section 6.7 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) 714-7441 
 Section 6.8 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 remaining provisions shall remain valid and enforceable to the fullest extent permitted by applicable law. 
 Section 6.9 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 6.10 Submission To Jurisdiction. SUBJECT TO SECTION 6.13,
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 GUILDFORD COUNTY, NORTH CAROLINA, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES THAT ALL CLAIMS IN RESPECT 

  

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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 6.7 ABOVE. NOTHING IN THIS SECTION 6.10, 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 6.11 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. 
 Section 6.12 Amicable Resolution. 
 (a) 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 or any of the Ancillary Agreements. In furtherance thereof, in the event of any dispute or disagreement among the parties as to the
interpretation of any provision of this Agreement or any of the Ancillary Agreements or the performance of obligations hereunder or thereunder, the matter, upon written request of any party, shall be referred for resolution to a steering committee
established pursuant to this Section 6.12(a) (the “Steering Committee”). 
 (b) The Steering
Committee shall have two members, one of whom shall be appointed by Sara Lee and one of whom shall be appointed by HBI. Sara Lee’s initial member of the Steering Committee shall be Roderick A. Palmore and HBI’s initial member of the
Steering Committee shall be Richard A. Noll. Each of Sara Lee and HBI shall use its reasonable best efforts to avoid replacing its initial member of the Steering Committee with another representative for the first year after the Distribution Date;
provided, however, that HBI may 

  

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replace its initial member of the Steering Committee with any general counsel hired by HBI. Thereafter, Sara Lee and HBI shall consider in good faith any
reasonable objection to any individual being considered as a replacement for a Steering Committee member. While any individual is serving as a member of the Steering Committee, such individual shall not have the right to designate any substitute or
proxy for purposes of attending or voting at a Steering Committee meeting. Any replacement for a Steering Committee member shall be an officer of the appointing party with authority to negotiate and resolve disputes. 
 (c) The Steering Committee shall use reasonable effort to promptly resolve all disputes or disagreements referred to it. All discussions
and negotiations conducted by, and all information and materials shared by, the members of the Steering Committee (and Sara Lee and HBI) shall be confidential and shall be treated as compromise and settlement negotiations for purposes of applicable
rules of evidence. Upon a unanimous vote, Steering Committee decisions shall be final and binding on the parties. If the Steering Committee does not agree to a resolution of the dispute or disagreement within 30 calendar days after the referral of
the matter to it, each of the parties shall be free to exercise the remedies available to it under this Agreement, subject to Sections 6.13 and 6.6. 
 (d) The Steering Committee shall be self-regulating. Between the Distribution Date and the first anniversary of the Distribution Date, the
Steering Committee shall hold meetings every six weeks on dates to be established at the organizational meeting of the Steering Committee, which will be held as promptly as practicable after the Distribution Date. Such meeting dates may be
rescheduled by the Steering Committee if it becomes impracticable to hold such meeting. Between the first and second anniversary of the Distribution Date, the Steering Committee shall hold meetings on a quarterly (or more frequent) basis, on dates
to be established by the Steering Committee. After the second anniversary of the Distribution Date, the Steering Committee shall hold meetings on such basis, if any, as it may determine. 
 Section 6.13 Arbitration. 
 (a) Except for suits seeking injunctive relief or specific performance, or in the event of any impleader action arising from any proceeding commended 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 or any of the Ancillary Agreements (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 conformance with the CPR Institute for Dispute Resolution Rules for Non-Administered Arbitration (the “CPR Rules”) then in effect, and further provided that the parties hereby
agree that the location of any such arbitration shall be either Chicago, Illinois or Forsyth County, North Carolina; provided, however, that this Section 6.13 shall not apply to any dispute, controversy or claim arising
under Article IV of the Tax Sharing Agreement (including any dispute, controversy or claim relating to the breach, termination or validity thereof). Such arbitration shall be conducted in as expedited a manner as is then permitted by such
rules. 
 (b) Subject to Section 6.12, any party may demand that any dispute, controversy or claim be submitted to
binding arbitration at any time. The demand for arbitration shall be in writing, shall be served on the other party(ies) in the manner prescribed herein for the giving of 

  

 31 

 
notices, and shall set forth a short statement of the factual basis for the dispute, controversy or claim, specifying the matter or matters to be arbitrated.
The arbitration shall be conducted by a sole, independent and impartial arbitrator selected from the CPR Panel, except that if the amount in controversy exceeds $5 million, then either party may opt for an arbitration conducted by three independent
and impartial arbitrators selected under Sections 5.1 and 5.2 of the CPR Rules then in effect. With regard to any dispute that is governed by the Tax Sharing Agreement, the amount in controversy shall be calculated to include the taxes in dispute
plus any potential penalties and/or interest on that tax amount. In the case of any arbitration to be conducted by three arbitrators, if any party fails to appoint the arbitrator to be appointed by such party within 30 days after delivery of a
demand for arbitration, then the CPR Institute for Dispute Resolution shall appoint such arbitrator. The parties agree to select as the sole arbitrator or, if applicable, as the three arbitrators, a person or persons with significant experience and
expertise in the subject matter under dispute. For example, in a dispute relating to matters covered by the Tax Sharing Agreement, the sole arbitrator or, if applicable, each of the three arbitrators shall be a tax professional from a national law
or accounting firm who is experienced in the issues under dispute. The arbitrator(s) shall conduct such evidentiary or other hearings as the arbitrator(s) deem necessary or appropriate and thereafter shall make a determination as soon as
practicable. 
 (c) Each party to such arbitration shall bear its own “Costs and Fees,” which are defined as
all reasonable pre-award expenses of the arbitration, including travel expenses, out-of-pocket expenses (including, but not limited to, copying and telephone), witness fees, and attorney’s fees and expenses. The fees and expenses of the
arbitrators and all other costs and expenses incurred in connection with the arbitration (the “Arbitration Expenses”) shall be borne equally by the parties to such arbitration. Notwithstanding the foregoing, the arbitrator(s) shall
be empowered to require any one or more of the parties to the arbitration to bear all or any portion of such Costs and Fees and/or the Arbitration Expenses in the event that the arbitrator(s) determine such party has acted unreasonably or in bad
faith. 
 (d) Except as otherwise provided in Section 6.6, the arbitrator(s) shall have the authority to award any
remedy or relief that a federal or state court sitting in the State of Illinois or the State of North Carolina could order or grant, including, without limitation, the issuance of an injunction or specific performance of any obligation created under
this Agreement or any of the Ancillary Agreements, or the imposition of sanctions for abuse or frustration of the arbitration process. 
 (e) The decision and award of the arbitrators shall be in writing and copies thereof shall be delivered to each party to the arbitration. The decision and award of the arbitrators shall be binding on all parties to
the arbitration. In rendering such decision and award, the arbitrators shall not add to, subtract from or otherwise modify the provisions of this Agreement or the Ancillary Agreements and shall make their determinations in accordance therewith. The
arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. ¶¶ 1-16 to the exclusion of any state laws inconsistent therewith, and any party to the arbitration may have judgment upon the award rendered by the arbitrators entered
in any court having jurisdiction thereof. Each party agrees that it will not file any suit, motion, petition or otherwise commence any legal action or proceeding for any matter which is required to be submitted to arbitration as contemplated herein
except in connection with the enforcement of an award rendered by the arbitrators. Upon the entry of an order dismissing or staying any action or proceeding filed 

  

 32 

 
contrary to the preceding sentence, the party which filed such action or proceeding shall promptly pay to the other party the reasonable attorney’s
fees, costs and expenses incurred by such other party prior to the entry of such order. 
 (f) The statute of limitations of
the State of Illinois or North Carolina, as appropriate, applicable to the commencement of a lawsuit shall apply to the commencement of an arbitration hereunder. 
 Section 6.14 Waiver of Bulk-Sales Laws. Each of Sara Lee and HBI hereby waives compliance by each member of their respective Group with the requirements and provisions of the “bulk-sale” or
“bulk-transfer” Laws of any jurisdiction that may otherwise be applicable with respect to the transfer or sale of any or all of the Assets to any member of the Sara Lee Group or HBI Group, as applicable. 
 Section 6.15 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 and the Ancillary Agreements, and the Parties acknowledge that (i) HBI has been represented by Covington & Burling LLP in connection
with this Agreement and the Ancillary Agreements and (ii) Sara Lee has been represented by Kirkland & Ellis LLP in connection with this Agreement and the Ancillary Agreements (and Kirkland & Ellis LLP has not acted as counsel
to HBI in connection therewith). 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 6.16 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 6.17 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 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 

  

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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 VII 
 DEFINITIONS 
 For purposes of this Agreement, the following terms shall have the following meanings:

 “Action” means any demand, action, suit, counter suit, arbitration, inquiry, proceeding or investigation by or before any
Federal, state, local, foreign or international Governmental Authority or any arbitration or mediation tribunal. 
 “Affiliated
Company” of any Person means any entity that controls, is controlled by, or is under common control with such Person. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise. 
 “Agreement” shall have the meaning set forth in the preamble of this Agreement. 
 “Agent” means the distribution agent to be appointed by Sara Lee to distribute to the stockholders of Sara Lee pursuant to the Distribution all of the shares of HBI Common Stock. 
 “Ancillary Agreements” shall have the meaning set forth in Section 2.1 of this Agreement. 
 “Arbitration Expenses” has the meaning set forth in Section 6.13(c) of this Agreement. 
 “Assets” means assets, properties and rights (including goodwill), wherever located (including in the possession of vendors or other
third parties or elsewhere), whether real, personal or mixed, tangible, intangible or contingent, in each case whether or not recorded or reflected or required to be recorded or reflected on the books and records or financial statements of any
Person, including the following: (i) all accounting and other books, records and files whether in paper, microfilm, microfiche, computer tape or disc, magnetic tape or any other form; (ii) all computers and other electronic data processing
equipment, fixtures, machinery, equipment, furniture, office equipment, motor vehicles and other transportation equipment, special and general tools, prototypes and models and other tangible personal property; (iii) all inventories of
materials, parts, raw materials, supplies, work-in-process and finished goods and products; (iv) all interests in real property of whatever nature, including easements, whether as owner or holder of a Security Interest, lessor, sublessor,
lessee, sublessee or otherwise; (v) all interests in any capital stock or other equity interests of any Subsidiary or any other Person; all bonds, notes, debentures or other securities issued by any Subsidiary or any other Person; all loans,
advances or other extensions of credit or capital contributions to any Subsidiary or any other Person; and all other investments in securities of any Person; (vi) all license agreements, leases of personal property, open purchase orders for raw
materials, supplies, parts or services, unfilled orders for the manufacture and sale of products and other contracts, agreements or commitments; (vii) all deposits, letters of credit and performance and surety bonds; (viii) all 

  

 34 

 
written technical information, data, specifications, research and development information, engineering drawings, operating and maintenance manuals, and
materials and analyses prepared by consultants and other third parties; (ix) all Intellectual Property and licenses from third Persons granting the right to use any Intellectual Property; (x) all computer applications, programs and other
software, including operating software, network software, firmware, middleware, design software, design tools, systems documentation and instructions; (xi) all cost information, sales and pricing data, customer prospect lists, supplier records,
customer and supplier lists, customer and vendor data, correspondence and lists, product literature, artwork, design, development and manufacturing files, vendor and customer drawings, formulations and specifications, quality records and reports and
other books, records, studies, surveys, reports, plans and documents; (xii) all prepaid expenses, trade accounts and other accounts and notes receivables; (xiii) all rights under contracts or agreements, all claims or rights against any
Person arising from the ownership of any Asset, all rights in connection with any bids or offers and all claims, choses in action or similar rights, whether accrued or contingent; (xiv) all rights under insurance policies and all rights in the
nature of insurance, indemnification or contribution; (xv) all licenses (including radio and similar licenses), permits, approvals and authorizations which have been issued by any Governmental Authority; (xvi) cash or cash equivalents,
bank accounts, lock boxes and other deposit arrangements; and (xvii) interest rate, currency, commodity or other swap, collar, cap or other hedging or similar agreements or arrangements. 
 “Branded Apparel Business” shall have the meaning set forth in the preamble of this Agreement. 
 “Branded Apparel Information” shall have the meaning set forth in Section 5.4(a) of this Agreement. 
 “Business Guarantees” shall have the meaning set forth in Section 4.12(a) of this Agreement. 
 “Code” means the Internal Revenue Code of 1986 (or any successor statute), as amended from time to time, and the regulations promulgated
thereunder. 
 “Commission” shall have the meaning set forth in Section 3.1(a) of this Agreement. 
 “Confidential Business Information” shall have the meaning set forth in Section 5.3(a)(iii) of this Agreement. 

“Confidential Information” shall have the meaning set forth in Section 5.3(a)(i) of this Agreement. 
 “Confidential Operational Information” shall have the meaning set forth in Section 5.3(a)(ii) of this Agreement. 

“Consents” means any consents, waivers or approvals from, or notification requirements to, any third parties. 
  

 35 

 “Contracts” means any contract, agreement, lease, license, sales order, purchase order,
instrument or other commitment, whether written or oral, that is binding on any Person or any part of its property under applicable law. 
 “Costs and Fees” has the meaning set forth in Section 6.13(c) of this Agreement. 
 “CPR
Rules” has the meaning set forth in Section 6.13(a) of this Agreement. 
 “Delayed Transfer Assets”
means any HBI Assets that are expressly provided in this Agreement or any Ancillary Agreement to be transferred after the Separation Date. 
 “Delayed Transfer Liabilities” means any HBI Liabilities that are expressly provided in this Agreement or any Ancillary Agreement to be transferred after the Separation Date. 
 “Distribution” shall have the meaning set forth in the preamble of this Agreement. 
 “Distribution Date” shall have the meaning set forth in Section 3.2 of this Agreement. 
 “Distribution Ratio” shall have the meaning set forth in Section 3.3(c) of this Agreement. 
 “Effective Time” has the meaning set forth in Section 3.3(c) of this Agreement. 
 “Employee Matters Agreement” has the meaning set forth in Section 2.1(a) of this Agreement. From and after the Separation
Date, the Employee Matters Agreement shall refer to the agreement executed and delivered pursuant to such section, as amended and/or modified from time to time in accordance with its terms. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

 “Excluded Assets” has the meaning set forth in Section 4.2(b) of this Agreement. 
 “Excluded Liabilities” has the meaning set forth in Section 4.3(b) of this Agreement. 
 “Financing Agreements” means (i) the credit agreement and related documentation to be entered into prior to the Effective Time by
and among HBI and              and              as co-agents in a principal amount of approximately
$                    , and (ii) indentures, placement agreements and other documentation to be entered into by HBI in connection with the
issuance of its senior notes in a principal amount of approximately $                    . 
 “Governmental Approvals” means any notices, reports or other filings to be made, or any consents, registrations, approvals, permits or
authorizations to be obtained from, any Governmental Authority. 
 “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. 
 “Group” means the Sara Lee Group or the HBI Group, as the context requires. 
  

 36 

 “HBI” shall have the meaning set forth in the preamble of this Agreement. 
 “HBI Action” shall have the meaning set forth in Section 5.9(a) of this Agreement. 
 “HBI Assets” has the meaning set forth in Section 4.2(a) of this Agreement. 
 “HBI Balance Sheet” means the audited balance sheet (including the notes thereto) of the Branded Apparel Business as of April 1,
2006 that is included in the Registration Statement. 
 “HBI Common Stock” shall have the meaning set forth in the preamble
of this Agreement. 
 “HBI Contingent Gain” means any claim or other right of a member of the Sara Lee Group or the HBI
Group that substantially or exclusively relates to the Branded Apparel Business, whenever arising, against any Person other than a member of the Sara Lee Group or the HBI Group, if and to the extent that (i) such claim or right arises out of
the events, acts or omissions occurring as of or before the Separation Date (based on then existing law) and (ii) the existence or scope of the obligation of such other Person as of the Separation Date was not acknowledged, fixed or determined
in any material respect, due to a dispute or other uncertainty as of the Separation Date or as a result of the failure of such claim or other right to have been discovered or asserted as of the Separation Date. A claim or right meeting the foregoing
definition shall be considered an HBI Contingent Gain regardless of whether there was any Action pending, threatened or contemplated as of the Separation Date with respect thereto. In the case of any claim or right a portion of which arises out of
events, acts or omissions occurring prior to the Separation Date and a portion of which arises out of events, acts or omissions occurring on or after the Separation Date, only that portion that arises out of events, acts or omissions occurring prior
to the Separation Date shall be considered an HBI Contingent Gain. For purposes of the foregoing, a claim or right shall be deemed to have accrued as of the Separation Date if all the elements of the claim necessary for its assertion shall have
occurred on or prior to the Separation Date, such that the claim or right, were it asserted in an Action on or prior to the Separation Date, would not be dismissed by a court on ripeness or similar grounds. Notwithstanding the foregoing, none of
(i) any Insurance Proceeds (which term is defined in, and the treatment of which is governed by, the Indemnification and Insurance Matters Agreement), (ii) any Excluded Assets, (iii) any reversal of any litigation or other reserve,
except to the extent that such reversal or reserve directly relates to HBI Liabilities, or (iv) any matters relating to Taxes (which are governed solely by the Tax Sharing Agreement) shall be deemed to be an HBI Contingent Gain. 
 “HBI Contingent Liability” means any Liability, other than Liabilities for Taxes (which are governed solely by the Tax Sharing
Agreement), of a member of the Sara Lee Group or the HBI Group that substantially or exclusively relates to the Branded Apparel Business, whenever arising, to any Person other than a member of the Sara Lee Group or the HBI Group, if and to the
extent that (i) such Liability arises out of the events, acts or omissions occurring as of or before the Separation Date and (ii) the existence or scope of the obligation of a member of the Sara Lee Group or the HBI Group as of the
Separation Date with respect to such Liability was not acknowledged, fixed or determined in any material respect, due to a dispute or other uncertainty as of the Separation Date or as a result of the failure of such Liability to have been discovered
or 

  

 37 

 
asserted as of the Separation Date (it being understood that the existence of a litigation or other reserve with respect to any Liability shall not be
sufficient for such Liability to be considered acknowledged, fixed or determined). In the case of any Liability a portion of which arises out of events, acts or omissions occurring prior to the Separation Date and a portion of which arises out of
events, acts or omissions occurring on or after the Separation Date, only that portion that arises out of events, acts or omissions occurring prior to the Separation Date shall be considered an HBI Contingent Liability. For purposes of the
foregoing, a Liability shall be deemed to have arisen out of events, acts or omissions occurring prior to the Separation Date if all the elements necessary for the assertion of a claim with respect to such Liability shall have occurred on or prior
to the Separation Date, such that the claim, were it asserted in an Action on or prior to the Separation Date, would not be dismissed by a court on ripeness or similar grounds. For purposes of clarification of the foregoing, the parties agree that
no Liability relating to, arising out of or resulting from any obligation of any Person to perform the executory portion of any contract or agreement existing as of the Separation Date, or to satisfy any obligation accrued under any Plan (as defined
in the Employee Matters Agreement) as of the Separation Date, shall be deemed to be an HBI Contingent Liability. 
 “HBI
Contracts” means the following Contracts to which Sara Lee or any member of the Sara Lee Group is a party or by which it or any of its Assets is bound, whether or not in writing, except for any such Contract that is explicitly retained by
Sara Lee or any member of the Sara Lee Group pursuant to any provision of this Agreement or any Ancillary Agreement: (i) any contract or agreement entered into in the name of, or expressly on behalf of, the Branded Apparel Business;
(ii) any contract or agreement that relates substantially or exclusively to the Branded Apparel Business; (iii) any contract or agreement that is otherwise expressly contemplated pursuant to this Agreement or any of the Ancillary
Agreements to be assigned to HBI; (iv) any guarantee, indemnity, representation, warranty or other Liability of any member of the HBI Group or the Sara Lee Group in respect of any other HBI Contract, any HBI Liability or the Branded Apparel
Business (including guarantees of financing incurred by customers or other third parties in connection with purchases of products or services from the Branded Apparel Business); (v) any Other Financial Liability exclusively for or on behalf of
the Branded Apparel Business (excluding any Excluded Liability), together with all rights relating thereto; and (vi) any other Contract identified on Schedule 7. 
 “HBI Entities” has the meaning set forth in Section 4.2(a)(vii) of this Agreement. 
 “HBI Entity Interests” has the meaning set forth in Section 4.2(a)(vii) of this Agreement. 
 “HBI Group” means the affiliated group (within the meaning of Section 1504(a) of the Code), or similar group of entities as defined
under corresponding provisions of the laws of other jurisdictions, of which HBI will be the common parent corporation immediately after the Separation, and any corporation or other entity which may become a member of such group from time to time,
but excluding any member of the Sara Lee Group. 
 “HBI Liabilities” has the meaning set forth in Section 4.3(a)
of this Agreement. 
 “Indemnification and Insurance Matters Agreement” has the meaning set forth in
Section 2.1(e) of this Agreement. From and after the Separation Date, the Indemnification and 

  

 38 

 
Insurance Matters Agreement shall refer to the agreement executed and delivered pursuant to such section, as amended and/or modified from time to time in
accordance with its terms. 
 “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, but in any case excluding back-up tapes.

 “Information Statement” means the information statement forming a part of the Registration Statement. 
 “Insurance Policies” means insurance policies pursuant to which a Person makes a true risk transfer to an insurer. 
 “Intellectual Property” means all domestic and foreign patents and patent applications, together with any continuations,
continuations-in-part or divisional applications thereof, and all patents issuing thereon (including reissues, renewals and re-examinations of the foregoing); design patents, invention disclosures; mask works; copyrights, and copyright applications
and registrations; Web addresses, trademarks, service marks, trade names, and trade dress, in each case together with any applications and registrations therefor and all appurtenant goodwill relating thereto; trade secrets, commercial and technical
information, know-how, proprietary or confidential information, including engineering, production and other designs, notebooks, processes, drawings, specifications, formulae, and technology; computer and electronic data processing programs and
software (object and source code), data bases and documentation thereof; inventions (whether patented or not); utility models; registered designs, certificates of invention and all other intellectual property under the laws of any country throughout
the world. 
 “Intellectual Property Matters Agreement” has the meaning set forth in Section 2.1(f) of this
Agreement. From and after the Separation Date, the Intellectual Property Matters Agreement shall refer to the agreement executed and delivered pursuant to such section, as amended and/or modified from time to time in accordance with its terms.

 “K&E” shall have the meaning set forth in Section 1.2 of this Agreement. 
 “Lawson Information” shall have the meaning set forth in Section 5.2(b) of this Agreement. 
 “Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute,
asserted or unasserted, matured or unmatured, 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 

  

 39 

 
generally accepted principles and accounting policies to be reflected in financial statements or disclosed in the notes thereto. 
 “Master Transition Services Agreement” has the meaning set forth in Section 2.1(c) of this Agreement. From and after the
Separation Date, the Master Transition Services Agreement shall refer to the agreement executed and delivered pursuant to such section, as amended and/or modified from time to time in accordance with its terms. 
 “NYSE” shall have the meaning set forth in Section 3.1(c) of this Agreement. 
 “Other Financial Liabilities” means all liabilities, obligations, contingencies, instruments and other Liabilities of any member of the
Sara Lee Group of a financial nature with third parties existing on the date hereof or entered into or established between the date hereof and the Separation Date, including any of the following: (i) foreign exchange contracts,
(ii) letters of credit, (iii) guarantees of third party loans to customers, (iv) surety bonds (excluding surety for workers’ compensation self-insurance), (v) interest support agreements on third party loans to customers,
(vi) performance bonds or guarantees issued by third parties, (vii) swaps or other derivatives contracts, and (viii) recourse arrangements on the sale of receivables or notes. 
 “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. 
 “PHH Agreements” means the Operating Lease
(Lease No. 122), dated June 25, 1998, between PHH-CFC Leasing, Inc., Sara Lee and certain other parties identified therein, and the Management Agreement, dated June 30, 1991, between PHH-CFC Leasing, Inc. and PHH Fleet America
Corporation. 
 “Privileged Information” shall have the meaning set forth in Section 5.4(a) of this Agreement.

 “Privileges” shall have the meaning set forth in Section 5.4(a) of this Agreement. 
 “Real Estate Matters Agreement” has the meaning set forth in Section 2.1(d) of this Agreement. From and after the Separation
Date, the Real Estate Matters Agreement shall refer to the agreement executed and delivered pursuant to such section, as amended and/or modified from time to time in accordance with its terms. 
 “Record Date” means the close of business on the date to be determined by Sara Lee’s Board of Directors in its sole and absolute
discretion as the record date for determining stockholders of Sara Lee entitled to receive shares of HBI Common Stock in the Distribution. 
 “Record Holders” mean the holders of record of Sara Lee Common Stock as of the close of business on the Record Date. 
 “Registration Statement” shall have the meaning set forth in the preamble of this Agreement. 
  

 40 

 “Sara Lee” shall have the meaning set forth in the preamble of this Agreement.

 “Sara Lee Action” shall have the meaning set forth in Section 5.9 of this Agreement. 
 “Sara Lee Business” means all businesses and operations (whether or not such businesses or operations are or have been terminated,
divested or discontinued) conducted prior to the Effective Time by Sara Lee, the Sara Lee Subsidiaries, HBI and the HBI Subsidiaries, in each case that are not included in the Branded Apparel Business. 
 “Sara Lee Common Stock” shall have the meaning set forth in the preamble of this Agreement. 
 “Sara Lee Group” means the affiliated group (within the meaning of Section 1504(a) of the Code), or similar group of entities as
defined under corresponding provisions of the laws of other jurisdictions, of which Sara Lee is the common parent corporation, and any corporation or other entity which may be, may have been or may become a member of such group from time to time,
but excluding any member of the HBI Group. 
 “Security Interest” means any mortgage, security interest, pledge, lien,
charge, claim, option, right to acquire, voting or other restriction, right-of-way, covenant, condition, easement, encroachment, restriction on transfer, or other encumbrance of any nature whatsoever. 
 “Separation” shall have the meaning set forth in the preamble of this Agreement. 
 “Separation Date” shall have the meaning set forth in Section 1.1 of this Agreement. 
 “Shared Contract” means Contracts with third parties which directly benefit both Sara Lee or a member of the Sara Lee Group or HBI or a
member of the HBI Group. 
 “Shared Contractual Liabilities” means Liabilities with respect to Shared Contracts. 

“Steering Committee” has the meaning set forth in Section 6.12(a) of this 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. 
 “Substitute Guarantees” shall have the meaning set forth in Section 4.12(a) of this Agreement. 
 “Tax Sharing Agreement” has the meaning set forth in Section 2.1(b) of this Agreement. From and after the Separation Date, the Tax Sharing Agreement shall refer to the agreement 

  

 41 

 
executed and delivered pursuant to such section, as amended and/or modified from time to time in accordance with its terms. 
 [SIGNATURE PAGE FOLLOWS] 
  

 42 

 WHEREFORE, the parties have signed this Master Separation Agreement effective as of the date first
set forth above. 
  

	
	 SARA LEE CORPORATION

	
	   
	 Name:

	 Title:

	
	 HANESBRANDS INC.

	
	   
	 Name:

	 Title:Form of Tax Sharing Agreement

 Exhibit 10.2 
 FORM OF 
 TAX SHARING AGREEMENT 
 by and among 
 SARA LEE CORPORATION 
 AND ITS AFFILIATES 
 and 
 HANESBRANDS INC. 
 AND ITS
AFFILIATES 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE I
	  	
	 DEFINITIONS
	  	1
		
	 ARTICLE II
	  	
	 RESPONSIBILITY FOR TAXES
	  	8
	 2.1      Responsibility and Indemnification for Taxes
	  	8
	 2.2      Income Taxes
	  	9
	 2.3      Other Taxes
	  	9
	 2.4      Allocation of Certain Income Taxes and Income Tax Items
	  	9
	 2.5      Tax Refunds
	  	10
	 2.6      Carrybacks
	  	11
	 2.7      Audit Adjustments
	  	12
	 2.8      Timing of Certain Payments
	  	12
	 2.9      Treatment of Restricted Stock, Stock Options, and Deferred Compensation
	  	12
	 2.10    True-Up Payment for Deferred Taxes
	  	13
	 2.11    Successor Employer Status
	  	14
	 2.12    Subpart F Income
	  	14
		
	 ARTICLE III
	  	
	 TAX RETURNS AND INFORMATION EXCHANGE
	  	15
	 3.1      Tax Return Preparation Responsibility; Payment of Taxes Shown Thereon
	  	15
	 3.2      Review of Tax Returns
	  	15
	 3.3      Certain Items Related to Tax Return Preparation
	  	16
	 3.4      Tax Information Exchanges and Tax Services
	  	17
		
	 ARTICLE IV
	  	
	 TAX TREATMENT OF THE DISTRIBUTION
	  	18
	 4.1      Representations
	  	18
	 4.2      Covenants
	  	18
	 4.3      Supplemental Rulings and Restrictions on HBI
	  	21
	 4.4      Liability for Undertaking Certain Actions
	  	22
	 4.5      Cooperation
	  	22
	 4.6      Enforcement
	  	23
		
	 ARTICLE V
	  	
	 COOPERATION AND EXCHANGE OF INFORMATION
	  	23
	 5.1      Cooperation
	  	23

  

 i 

			
	 5.2      Contest Provisions
	  	25
	 5.3      Information for Shareholders
	  	26
		
	 ARTICLE VI
	  	
	 DISPUTE RESOLUTION
	  	26
	 6.1      Amicable Resolution
	  	26
	 6.2      Arbitration
	  	26
		
	 ARTICLE VII
	  	
	 MISCELLANEOUS
	  	27
	 7.1      Effectiveness
	  	27
	 7.2      Indemnification for Inaccurate, Incomplete or Untimely Information
	  	27
	 7.3      Breach
	  	27
	 7.4      Disclaimers
	  	27
	 7.5      Payments
	  	27
	 7.6      Changes in Law
	  	28
	 7.7      Notices
	  	29
	 7.8      Entire Agreement; Incorporation of Schedules and Exhibits
	  	29
	 7.9      Authority
	  	29
	 7.10    Governing Law
	  	30
	 7.11    Successors and Assigns
	  	30
	 7.12    Joint and Several Liability
	  	30
	 7.13    Parties in Interest
	  	30
	 7.14    Legal Enforceability; Waiver of Default
	  	31
	 7.15    Action by Affiliates
	  	31
	 7.16    Expenses
	  	31
	 7.17    Confidentiality
	  	31
	 7.18    Amendments and Waiver
	  	31
	 7.19    No Implied Waivers; Cumulative Remedies; Writing Required
	  	31
	 7.20    Limitation on Damages
	  	32
	 7.21    Severability
	  	32
	 7.22    SUBMISSION TO JURISDICTION
	  	32
	 7.23    WAIVER OF JURY TRIAL
	  	33
	 7.24    Construction
	  	33
	 7.25    Counterparts
	  	33
	 7.26    Delivery by Facsimile and Other Electronic Means
	  	33

  

 ii 

 TAX SHARING AGREEMENT 
 THIS TAX SHARING AGREEMENT, dated as of this [__]th day of [            ], 2006, by
and among Sara Lee Corporation (“Sara Lee”), a Maryland corporation; each Affiliate of Sara Lee; Hanesbrands Inc. (“HBI”), a Maryland corporation and currently a direct, wholly owned subsidiary of Sara Lee; and each
Affiliate of HBI. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Article I hereof. 
 RECITALS 
 WHEREAS, as of the date of this Agreement, Sara Lee and its direct and indirect domestic corporate subsidiaries
are members of the Sara Lee Consolidated Group; 
 WHEREAS, the boards of directors of Sara Lee and HBI have each determined that it is
appropriate and desirable for Sara Lee to contribute and transfer to HBI, and for HBI to receive and assume, directly or indirectly, assets and liabilities currently held directly or indirectly by Sara Lee and associated with the HBI Business (the
“Restructuring”); 
 WHEREAS, as set forth in the Master Separation Agreement dated as of
[            ], 2006 (the “Separation Agreement”), and subject to the terms and conditions thereof, Sara Lee intends to distribute all of its shares of HBI to Sara
Lee shareholders pursuant to the Distribution; 
 WHEREAS, the Restructuring and Distribution are intended to qualify as a tax-free
reorganization and distribution under Sections 368(a)(1)(D) and 355 of the Code; and 
 WHEREAS, in contemplation of the Distribution, Sara
Lee and HBI desire to set forth their agreement on the rights and obligations of Sara Lee and HBI and their respective Affiliates with respect to the responsibility, handling and allocation of federal, state, local, and foreign Taxes, and various
other Tax matters. 

 NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants, and provisions of
this Agreement, Sara Lee, HBI, and their respective Affiliates mutually covenant and agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 “959 Dividend
Exclusion” has the meaning prescribed in Section 2.12. 
 “Affiliate” means any corporation, partnership,
limited liability company, or other entity directly or indirectly Controlled by the entity in question. For purposes of this Agreement, an Affiliate of Sara Lee shall not include any entity that is, or is also, an Affiliate of HBI. 
 “After Tax Amount” means any additional amount necessary to reflect (through a gross-up mechanism) the hypothetical Tax consequences of
the receipt or accrual of any payment required to be made under this Agreement (including payment of an additional amount or amounts hereunder and the effect of the deductions available for interest paid or accrued and for Taxes such as state and
local Income Taxes), determined by using the highest marginal corporate Tax rate (or rates, in the case of an item that affects more than one Tax) for the relevant taxable period (or portion thereof). 
 “Agreement” means this Tax Sharing Agreement, including any schedules, exhibits, and appendices attached hereto. 
 “Ancillary Agreements” has the meaning prescribed in the Separation Agreement. 
 “Cash Acquisition Merger” means a merger of a newly-formed subsidiary of HBI with a corporation, limited liability company, limited
partnership, general partnership or joint venture (in each case, not previously owned, directly or indirectly, by HBI) solely for cash pursuant to which HBI acquires such corporation, limited liability company, limited partnership, general
partnership or joint venture and no Equity Securities of HBI or any HBI Affiliate are issued, sold, redeemed, or acquired, directly or indirectly. 
 “CFC” means a “controlled foreign corporation” as defined in Section 957(a) of the Code. 
 “Code” means the Internal Revenue Code of 1986 (or, if relevant, the Internal Revenue Code of 1954), as amended, or any successor thereto, as in effect for the taxable period in question. 
 “Combined Jurisdiction” means, for any taxable period, any jurisdiction in which HBI or an HBI Affiliate is included in a consolidated,
combined, or unitary return with Sara Lee or a Sara Lee Affiliate for state Income Tax or Other Tax purposes. 
 “Combined
Return” means any combined, unitary, or consolidated return or report used in the determination of a state Income Tax or Other Tax liability. 
 “Control” means the ownership of stock or other securities possessing at least 50 percent of the total combined voting power of all classes of securities entitled to vote. 

 “Deferred Tax Assets” means, as of a given date, the amount of deferred tax benefits
(including deferred tax consequences attributable to deductible temporary differences and carryforwards) that would be recognized as assets on a business enterprise’s balance sheet computed in accordance with GAAP, but without regard to
valuation allowances. 
 “Deferred Tax Liabilities” means, as of a given date, the amount of deferred tax liabilities
(including deferred tax consequences attributable to deductible temporary differences) that would be recognized as liabilities on a business enterprise’s balance sheet computed in accordance with GAAP, but without regard to valuation
allowances. 
 “Deferred Taxes” means, as of a given date, the amount of Deferred Tax Assets, less the amount of Deferred
Tax Liabilities. Deferred Taxes may be a net negative or positive amount, and shall be computed without regard to any payments to be made pursuant to Section 2.10. 
 “Distribution” has the meaning prescribed to that term in the Separation Agreement. 
 “Distribution Date” means the date on which the HBI stock is distributed by Sara Lee to its shareholders in a transaction intended to qualify as a tax-free distribution under Sections 355 and 368(a)(1)(D) of the Code.

 “Employee Restricted Stock” means either Sara Lee Restricted Stock or HBI Restricted Stock. 
 “Employee Stock Option” means either a Sara Lee Stock Option or an HBI Stock Option. 
 “Equity Securities” means any stock or other equity securities treated as stock for Tax purposes, or options, warrants, rights,
convertible debt, or any other instrument or security that affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an amount determined by reference to the value of stock. 
 “Estimated Deferred Taxes” has the meaning prescribed in Section 2.10(a). 
 “Filing Party” has the meaning prescribed in Section 3.2(b). 
 “Final Deferred Taxes” has the meaning prescribed in Section 2.10(b). 
 “Final Determination” shall mean the final resolution of liability for any Tax for a taxable period, including any related interest,
penalties or other additions to tax, (i) by Internal Revenue Service Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the IRS, or by a comparable form under the laws of other jurisdictions;
except that a Form 870 or 870-AD or comparable form that reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund and/or the right of the Taxing Authority to assert a further deficiency with respect
to a Tax Item shall not constitute a Final Determination with respect to such Tax Item; (ii) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and 

  

 2 

 
unappealable; (iii) by a closing agreement or accepted offer in compromise under Section 7121 or Section 7122 of the Code, or comparable
agreements under the laws of other jurisdictions; (iv) by any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of
offset) by the jurisdiction imposing such Tax; or (v) by any other final disposition, including by reason of the expiration of the applicable statute of limitations. 
 “GAAP” means United States generally accepted accounting principles as in effect on the Distribution Date, and to the extent permissible, consistent with the preparation of the June 30, 2005
audited consolidated financial statements of Sara Lee and its Affiliates. 
 “Gain Recognition Agreement” means any
agreement to recognize gain described in Treasury Regulation Section 1.367(a)-8 to which Sara Lee or any Sara Lee Affiliate is a party. 
 “HBI” has the meaning prescribed in the preamble to this Agreement. 
 “HBI Business” has the
meaning prescribed to the term “Branded Apparel Business” in the Separation Agreement. 
 “HBI Employee” means an
employee of HBI or any HBI Affiliate immediately after the Distribution. 
 “HBI Group” means the group of corporations
that, immediately after the Distribution Date, will be members of the affiliated group of corporations of which HBI is the common parent (within the meaning of Section 1504 of the Code). For purposes of this definition, it is assumed that HBI
will elect to file consolidated federal income tax returns with HBI as the common parent for the taxable year beginning immediately after the Distribution. 
 “HBI Opening Balance Sheet” means the opening GAAP balance sheet for the consolidated financial statements for HBI and its Affiliates for the period which begins immediately after the Distribution.

 “HBI Representation Letter” means an officer’s certificate in which certain representations, warranties and
covenants are made on behalf of HBI and its Affiliates in connection with the issuance of a Tax Opinion or Tax Ruling. 
 “HBI
Restricted Stock” means HBI common stock received by an HBI Employee or Sara Lee Employee in connection with his or her employment, which stock has not yet been included in the income of such Employee as of the Distribution Date.

 “HBI Stock Option” means an Option to acquire HBI common stock received by an HBI Employee or Sara Lee Employee in
connection with his or her employment, which Option has not yet been exercised as of the Distribution Date. 
 “Income
Taxes” means all federal, state, local, and foreign income Taxes or other Taxes based on income or net worth including, without limitation, the Michigan “single business tax” set forth at MCL sections 208.1 to 208.145, the Ohio
“Commercial Activity Tax” set forth in Ohio Rev. Code Ann. §§ 5751.01 through 5751.99, the Ohio “personal property tax” set forth 

  

 3 

 
in Ohio Rev. Code Ann. §§ 319, 323, 5701, 5705, 5709, 5711, and 5719, the New Jersey “alternative minimum assessment” on corporations set
forth in N.J. Rev. Stat. § 54:10A-5, the New Jersey “litter-generating products tax” set forth in N.J. Rev. Stat. § 13:1E-216(a), the Texas “franchise tax” set forth in Title 2, Subtitle F, Chapter 171 of the Texas Tax
Code Annotated, the California “franchise tax” set forth in Cal. Rev. & Tax Code § 23151, the “Business Privilege Tax” set forth in Tennessee Code section 67-4-709, the Philadelphia “business privilege
tax” set forth in Philadelphia Code section 19-2604, the North Carolina “Franchise Tax” set forth in N.C. Gen. Stat. §§ 105-122, and any other franchise or similar Taxes. 
 “IRS” means the United States Internal Revenue Service or any successor thereto, including, but not limited to its agents,
representatives, and attorneys. 
 “Liability Issue” has the meaning prescribed in Section 5.1(c). 
 “Non-filing Party” has the meaning prescribed in Section 3.2(b). 
 “Option” means an option to acquire common stock, or other equity-based incentives the economic value of which is designed to mirror
that of an option, including non-qualified stock options, discounted non-qualified stock options, cliff options to the extent stock is issued or issuable (as opposed to cash compensation), and tandem stock options to the extent stock is issued or
issuable (as opposed to cash compensation). 
 “Other Taxes” means all taxes other than Income Taxes, including (but not
limited to) transfer, sales, use, payroll, property, and unemployment Taxes. 
 “Owed Party” has the meaning prescribed in
Section 7.5. 
 “Owing Party” has the meaning prescribed in Section 7.5. 
 “Permitted Transaction” means any transaction that satisfies the requirements of Section 4.2(j). 
 “Person” means any natural person, corporation, general partnership, limited partnership, limited liability company, limited liability
partnership, proprietorship, trust, association, union, governmental authority or other entity, enterprise, authority or organization. 
 “Post-Distribution Tax Period” means, with respect to a given entity, any taxable period (or portion thereof) for which a Tax Return is filed, if such period begins after the Distribution Date. By way of example, if the
Distribution Date were to occur on July 31, 2006, then for federal Income Tax purposes the taxable year beginning August 1, 2006 would constitute a Post-Distribution Tax Period with respect to the members of the HBI Group immediately after
the Distribution Date. 
 “Pre-Distribution Tax Period” means, with respect to a given entity, any taxable period (or
portion thereof) for which a Tax Return is filed, if such period ends on or before the Distribution Date. By way of example, if the Distribution Date were to occur on July 31, 2006, then for federal Income Tax purposes the period from
July 1, 2006 through July 31, 2006 would constitute a Pre-Distribution Tax Period with respect to the members of the HBI Group 

  

 4 

 
immediately after the Distribution Date, even though the taxable income of those corporations for such period is includable on the Sara Lee Consolidated
Group’s Tax Return for that Group’s taxable year ending June 30, 2007. 
 “Reportable Transaction” means a
reportable or listed transaction as defined in Section 6011 of the Code or Treasury Regulations thereunder. 
 “Representation
Letter” means the HBI Representation Letter and the Sara Lee Representation Letter. 
 “Responsible Party” has the
meaning prescribed in Section 5.2. 
 “Restricted Stock” means either Sara Lee Restricted Stock or HBI Restricted
Stock. 
 “Restriction Period” means the period beginning on the date hereof and ending on the second anniversary of the
Distribution Date. 
 “Restructuring” has the meaning prescribed in the recitals to this Agreement. 
 “Ruling Documents” means the Ruling Request, the appendices, attachments and exhibits thereto, and any additional or supplemental
information submitted to the IRS in connection with the Ruling Request. 
 “Ruling Request” means the private letter ruling
request filed by Sara Lee with the IRS dated March 31, 2006 pertaining to certain Tax aspects of the Restructuring and the Distribution. 
 “Sara Lee” has the meaning prescribed in the preamble to this Agreement. 
 “Sara Lee Businesses”
means the present and future businesses of Sara Lee and any Sara Lee Affiliate, other than the HBI Business. 
 “Sara Lee
Employee” means an employee of Sara Lee or any Sara Lee Affiliate immediately after the Distribution. 
 “Sara Lee
Consolidated Group” means the affiliated group of corporations (within the meaning of Section 1504 of the Code) of which Sara Lee is the common parent prior to the Distribution Date. 
 “Sara Lee Group” means the group of corporations that, immediately after the Distribution Date, are members of the affiliated group of
corporations of which Sara Lee is the common parent (within the meaning of Section 1504 of the Code). 
 “Sara Lee
Representation Letter” means an officer’s certificate in which certain representations, warranties and covenants are made on behalf of Sara Lee and its Affiliates in connection with the issuance of a Tax Opinion or Tax Ruling.

  

 5 

 “Sara Lee Restricted Stock” means Sara Lee common stock received by a Sara Lee or HBI
Employee in connection with his or her employment, which stock has not yet been included in the income of such Employee as of the Distribution Date. 
 “Sara Lee Shareholder Tax Indemnity Payment” has the meaning prescribed in Section 4.2 hereof. 
 “Sara Lee Stock Option” means an Option to acquire Sara Lee common stock received by a Sara Lee or HBI Employee in connection with his or her employment, which Option has not yet been exercised as of
the Distribution Date. 
 “Separation Agreement” has the meaning prescribed in the recitals to this Agreement. 

“Straddle Period” means, with respect to a given entity, any state, local, or foreign taxable period beginning on or before the
Distribution Date and ending after the Distribution Date; provided, however, that for the avoidance of doubt, the term “Straddle Period” shall not include any federal income taxable period of the Sara Lee Consolidated Group
or Sara Lee Group. By way of example, if the Distribution Date were to occur on July 31, 2006, then for North Carolina franchise tax purposes, the period from July 1, 2006 through June 30, 2007 would constitute a Straddle Period with
respect to the North Carolina franchise tax return. 
 “Supplemental Ruling” means any IRS private letter ruling issued in
connection with the Restructuring and/or the Distribution other than the Ruling Request. 
 “Supplemental Ruling Documents”
means the Supplemental Ruling Request, the appendices, attachments and exhibits thereto, and any additional or supplemental information submitted to the IRS in connection with the Supplemental Ruling Request. 
 “Supplemental Ruling Request” means the Supplemental Ruling request filed by Sara Lee with the IRS pertaining to certain Tax aspects of
the Restructuring and/or the Distribution. 
 “Subpart F Pre-Distribution Inclusion” has the meaning prescribed in
Section 2.12. 
 “Tax” and “Taxes” mean any form of taxation, whenever created or imposed, and
whenever imposed by a Taxing Authority, and without limiting the generality of the foregoing, shall include any net income, alternative or add-on minimum tax, gross income, sales, use, ad valorem, gross receipts, value added, franchise, profits,
license, transfer, recording, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profit, custom duty, annual report, or other tax, government fee, or other like assessment or charge, of any kind
whatsoever, together with any related interest, penalties, or other additions to tax, or additional amount imposed by any such Taxing Authority; provided, however, that “Tax” and “Taxes” shall not
include any amount owed to a federal, state, local, or foreign government under the laws governing unclaimed property or escheat. 
  

 6 

 “Tax Asset” means any Tax Item that has accrued for Tax purposes (including a net
operating loss, net capital loss, investment tax credit, foreign tax credit, charitable contribution deduction, credit related to alternative minimum tax and any other Tax credit), that could reduce a Tax in the taxable period in which it accrued,
but which is available to reduce a Tax in a later taxable period. 
 “Taxing Authority” means any national, municipal,
governmental, state, federal, foreign, or other body, or any quasi-governmental or private body, having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS). 
 “Tax Benefit” means, without double counting, the sum of (i) the amount of the reduction in the Tax liability of an entity (or of
the consolidated or combined group of which it is a member), whether temporary or permanent, for any taxable period that arises, or may arise in the future, as a result of any adjustment to, or addition or deletion of, a Tax Item in the computation
of the Tax liability of the entity (or the consolidated or combined group of which it is a member), and (ii) the amount by which the entity’s (or consolidated or combined group of which it is a member) Deferred Taxes are decreased as a
result of such adjustment, addition, or deletion. 
 “Tax Controversy” has the meaning prescribed in Section 5.2(a).

 “Tax Detriment” means, without double counting, the sum of (i) the amount of the increase in the Tax liability of an
entity (or of the consolidated or combined group of which it is a member), whether temporary or permanent, for any taxable period that arises, or may arise in the future, as a result of any adjustment to, or addition or deletion of, a Tax Item in
the computation of the Tax liability of the entity (or the consolidated or combined group of which it is a member), and (ii) the amount by which the entity’s (or consolidated or combined group of which it is a member) Deferred Taxes are
increased as a result of such adjustment, addition, or deletion. 
 “Tax-Free Status” means the qualification of the
Restructuring and the Distribution as a tax-free reorganization (i) described in Sections 355(a) and 368(a)(1)(D) of the Code, (ii) in which the stock distributed thereby is qualified property for purposes of Section 361(c) of the
Code, (iii) in which each of Sara Lee, the Sara Lee Affiliates, HBI, and the HBI Affiliates recognize no income or gain other than intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated
pursuant to Section 1502 of the Code, and (iv) in which no gain or loss is recognized by (and no amount is included in the income of) holders of Sara Lee common stock upon the receipt of HBI common stock pursuant to the Restructuring and
Distribution, other than cash in lieu of fractional shares. 
 “Tax Item” means any item of income, gain, loss, deduction,
credit, recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Income Taxes paid or payable in any taxable period. 
 “Tax Opinion” means an opinion issued to Sara Lee by a law firm or an accounting firm with respect to the qualification of the
Restructuring and the Distribution for treatment under Sections 355 and 368(a)(1)(D) of the Code. 
  

 7 

 “Tax Package” means the information and documents in the possession of HBI and its
Affiliates that are reasonably necessary for the preparation of a Tax Return by Sara Lee, the Sara Lee Group, the Sara Lee Consolidated Group, or a Sara Lee Affiliate with respect to a Pre-Distribution Tax Period or a Straddle Period, assembled in
all material respects in accordance with the standards that Sara Lee has heretofore applied to divisions and Affiliates of Sara Lee. 
 “Tax Return” means any return, filing, questionnaire or other document required to be filed, including requests for extensions of time, filings made with estimated Tax payments, claims for refund or amended returns, that
may be filed for any taxable period with any Taxing Authority in connection with any Tax or Taxes (whether or not a payment is required to be made with respect to such filing). 
 “Tax Ruling” means the IRS private letter ruling to be issued to Sara Lee in connection with the Ruling Request. 
 “Transitional Services Agreement” means the Master Transition Services Agreement between Sara Lee and HBI dated as of
                    , 2006, and any appendices attached thereto. 
 “Treasury Regulations” means the final and temporary (but not proposed) income tax regulations promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 ARTICLE II 

RESPONSIBILITY FOR TAXES 
 2.1
Responsibility and Indemnification for Taxes. 
 (a) From and after the Distribution Date, without duplication,
each of Sara Lee and HBI shall be responsible for, and shall pay its respective share of, the liability for Taxes of Sara Lee, HBI and their respective Affiliates, as provided in this Agreement. Sara Lee and its Affiliates shall indemnify and hold
harmless HBI and its Affiliates from any Taxes for which Sara Lee is responsible pursuant to this Agreement. HBI and its Affiliates shall indemnify and hold harmless Sara Lee and its Affiliates from any Taxes for which HBI is responsible pursuant to
this Agreement. 
 (b) Payments to Taxing Authorities and between the parties, as the case may be, shall be made in accordance
with the provisions of this Agreement. 
  

 8 

 2.2 Income Taxes. 
 (a) Sara Lee shall be responsible for all Income Taxes (i) for any Pre-Distribution Tax Period of HBI and its Affiliates;
(ii) for any Straddle Period of HBI and its Affiliates, but only to the extent allocated to Sara Lee pursuant to Section 2.4; and (iii) imposed under Treasury Regulation Section 1.1502-6 or under any comparable or similar
provision of state, local or foreign laws or regulations on HBI or an Affiliate as a result of such company being a member of a consolidated, combined, or unitary group with Sara Lee or any Sara Lee Affiliate during any Tax period. 
 (b) HBI shall be responsible for all Income Taxes (i) of HBI and its Affiliates which are not the responsibility of Sara Lee pursuant
to Section 2.2(a) (including, without limitation, Income Taxes for Post-Distribution Tax Periods of HBI and its Affiliates); and (ii) of Sara Lee and its Affiliates attributable to acts or omissions of HBI or its Affiliates taken after the
Distribution (other than acts or omissions in the ordinary course of business or otherwise contemplated by the Separation Agreement and Ancillary Agreements). 
 2.3 Other Taxes. 
 (a) HBI shall be responsible for all Other Taxes
attributable to HBI and its Affiliates or to the HBI Business, or resulting from the Restructuring and Distribution for all Pre-Distribution Tax Periods, Straddle Periods, and Post-Distribution Tax Periods. 
 (b) Sara Lee shall be responsible for all Other Taxes attributable to Sara Lee and its Affiliates (other than HBI and its Affiliates) and
to its business activities other than the HBI Business for all Pre-Distribution Tax Periods, Straddle Periods, and Post-Distribution Tax Periods. 
 2.4 Allocation of Certain Income Taxes and Income Tax Items. 
 (a) If Sara Lee, HBI or any of their
respective Affiliates is permitted but not required under applicable United States Federal, state, local or foreign Tax laws to treat the Distribution Date as the last day of a taxable period, then the parties shall treat such day as the last
day of a taxable period under such applicable Tax law, and shall file any elections necessary or appropriate to such treatment; provided that this Section 2.4(a) shall not be construed to require Sara Lee to change its taxable year.

 (b) Transactions occurring, or actions taken, on the Distribution Date but after the Distribution outside the ordinary
course of business by, or with respect to, HBI or any of its Affiliates shall be deemed subject to the “next day rule” of Treasury Regulation Section 1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state,
local or foreign laws or regulations, provided that if there is no comparable or similar provision under state, local or foreign laws or regulations, then the transaction will be deemed subject to the “next day rule” of Treasury
Regulation Section 1.1502-76(b)(1)(ii)(B)) and as such shall for purposes of this Agreement be treated (and consistently reported by the parties) as occurring in a Post-Distribution Tax Period of HBI or an HBI Affiliate, as appropriate.

 (c) Any Taxes for a Straddle Period with respect to HBI and/or its Affiliates (or entities in which HBI and/or one of its
Affiliates has an ownership interest) shall, for purposes of this Agreement, be apportioned between Sara Lee and HBI based on the portion of 

  

 9 

 
the period ending on and including the Distribution Date and the portion of the period beginning after the Distribution Date, and each such portion of such
period shall be deemed to be a taxable period (whether or not it is in fact a taxable period). Any allocation of income or deductions required to determine any Income Taxes for a Straddle Period shall be made by means of a closing of the books and
records of HBI and its Affiliates as of the close of business on the Distribution Date; provided that (i) Sara Lee may elect to allocate Tax Items (other than any extraordinary Tax Items) ratably in the month in which the Distribution
occurs (and if Sara Lee so elects, HBI shall so elect) as described in Treasury Regulation Section 1.1502-76(b)(2)(iii) and corresponding provisions of state, local, and foreign Tax laws; and (ii) subject to (i), exemptions, allowances or
deductions that are calculated on an annual basis, and not on a closing of the books method, (including, but not limited to, depreciation and amortization deductions) shall be allocated between the period ending on and including the Distribution
Date and the period beginning after the Distribution Date based on the number of days for the portion of the Straddle Period ending on and including the Distribution Date, on the one hand, and the number of days for the portion of the Straddle
Period beginning after the Distribution Date, on the other hand. 
 (d) Tax attributes determined on a consolidated or
combined basis for taxable periods ending before or including the Distribution Date shall be allocated to Sara Lee and its Affiliates, and HBI and its Affiliates, in accordance with the Code and the Treasury Regulations (and any applicable state,
local, or foreign law or regulation). Sara Lee shall reasonably determine the amounts and proper allocation of such attributes, and the Tax basis of the assets and liabilities transferred to HBI in connection with the Restructuring and Distribution,
as of the Distribution Date; provided that HBI shall be entitled to participate in such determination. Sara Lee and HBI agree to compute their Tax liabilities for taxable periods after the Distribution Date consistent with that determination
and allocation, and treat the Tax Assets and Tax Items as reflected on any federal (or applicable state, local or foreign) Income Tax Return filed by the parties as presumptively correct. 
 2.5 Tax Refunds. Except as provided in Section 2.6: 
 (a) Sara Lee shall be entitled to all refunds (including refunds paid by means of a credit against other or future Tax liabilities) and
credits with respect to any Tax for which Sara Lee is responsible under Section 2.1. HBI shall be entitled to all refunds (including refunds paid by means of a credit against other or future Tax liabilities) and credits with respect to any Tax
for which HBI is responsible under Section 2.1. 
 (b) HBI and Sara Lee shall each forward to the other party, or
reimburse such other party for, any refunds received by the first party and due to such other party pursuant to this Section. Where a refund is received in the form of a credit against other or future Tax liabilities, reimbursement with respect to
such refund shall be due in each case on the due date for payment of the Tax against which such refund has been credited. All payments made pursuant to this Section 2.5 shall describe in reasonable detail the basis for the calculation of the
amount being paid. 
 (c) If one party reasonably so requests, the other party (at the first party’s expense) shall file
for and pursue any refund to which the first party is entitled under this 

  

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Section; provided that the other party need not pursue any refund on behalf of the first party unless the first party provides the other party a
certification by an appropriate officer of the first party setting forth the first party’s belief (together with supporting analysis) that the Tax treatment of the Tax Items on which the entitlement to such refund is based is more likely than
not correct, and is not a Tax Item arising from a Reportable Transaction. 
 (d) If the other party pays any amount to the
first party under this Section 2.5 and, as a result of a subsequent Final Determination, the first party is not entitled to some or all of such amount, the other party shall notify the first party of the amount to be repaid to the other party,
and the first party shall then repay such amount to the other party, together with any interest, fines, additions to Tax, penalties or any additional amounts imposed by a Taxing Authority relating thereto. 
 2.6 Carrybacks. 
 (a) Notwithstanding anything in this Agreement, HBI shall file (or cause to be filed) on a timely basis any available election to waive the carryback of net operating losses, Tax credits or other Tax Items by HBI or any Affiliate from a
Post-Distribution Tax Period to a Straddle Period or Pre-Distribution Tax Period. Such elections shall include, but not be limited to, the election described in Treasury Regulation Section 1.1502-21T(b)(3)(ii)(B), and any analogous election
under state, local, or foreign Income Tax laws, to waive the carryback of net operating losses for federal Income Tax purposes. 
 (b) If, notwithstanding the provisions of Section 2.6(a), HBI is required to carryback losses or credits, HBI shall be entitled to any refund of any Tax obtained by Sara Lee or a Sara Lee Affiliate as a result of the carryback of
losses or credits of HBI or its Affiliate from any Post-Distribution Tax Period to any Pre-Distribution Tax Period. Such refund is limited to the net amount received by Sara Lee or a Sara Lee Affiliate (by refund, offset against other Taxes, or
otherwise), net of any Tax Detriment incurred by Sara Lee or such Affiliate resulting from such refund. Upon request by HBI, Sara Lee shall advise HBI of an estimate of any Tax Detriment Sara Lee projects will be associated with any carryback of
losses or credits of HBI or its Affiliates as provided in this Section 2.6(b). 
 (c) If HBI has a Tax Item that must be
carried back to any Pre-Distribution Tax Period, HBI shall notify in writing Sara Lee that such Tax Item must be carried back. Such notification shall include a description in reasonable detail of the ground for the refund and the amount thereof,
and a certification by an appropriate officer of HBI setting forth HBI’s belief (together with supporting analysis) that the Tax treatment of such Tax Item is more likely than not correct, and is not a Tax Item arising from a Reportable
Transaction. 
 (d) If Sara Lee pays any amount to HBI under Section 2.6(b) and, as a result of a subsequent Final
Determination, HBI is not entitled to some or all of such amount, Sara Lee shall notify HBI of the amount to be repaid to Sara Lee, and HBI shall then repay such amount to Sara Lee, together with any interest, fines, additions to Tax, penalties or
any additional amounts imposed by a Taxing Authority relating thereto. 
  

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 2.7 Audit Adjustments. 
 (a) If as a result of any Final Determination there is an adjustment to any Tax Return relating, in whole or in part, to Tax for which
Sara Lee is responsible under Section 2.1, and if such adjustment results in both (i) a Tax Detriment to Sara Lee or one or more of its Affiliates for any taxable period and (ii) a Tax Benefit to HBI or one or more of its Affiliates
for any Post-Distribution Tax Period (or portion of a Straddle Period allocable to HBI), then HBI shall pay to Sara Lee an amount equal to the lesser of such Tax Benefit and such Tax Detriment. 
 (b) If as a result of any Final Determination there is an adjustment to any Tax Return relating, in whole or in part, to Tax for which HBI
is responsible under Section 2.1, and if such adjustment results in both (i) a Tax Detriment to HBI or one or more of its Affiliates for any Post-Distribution Tax Period (or portion of a Straddle Period allocable to HBI) and (ii) a
Tax Benefit to Sara Lee or one or more of its Affiliates for any taxable period, then Sara Lee shall pay to HBI an amount equal to the lesser of such Tax Benefit and such Tax Detriment. 
 (c) Payments provided for under this Section 2.7 shall be made the later of (i) the date of the Final Determination giving rise
to the adjustment, and (ii) at the earlier of such time or times that (A) a party realizes the Tax Benefit, whether by way of a reduction in Taxes, refund, offset against other Taxes, or otherwise, or (B) such Tax Benefit causes an
increase in a party’s Deferred Tax Assets. If a payment to be made pursuant to this Section 2.7 has been deferred because the party entitled to a Tax Benefit has not yet realized such Tax Benefit or such Tax Benefit has not yet increased
that party’s Deferred Tax Assets, then such party shall provide the other party on an annual basis a certification by an appropriate officer of such first party that such Tax Benefit has not yet been realized and that such Tax Benefit has not
yet increased that party’s Deferred Tax Assets, or a computation of the amount of such Tax Benefit realized in the prior year or the amount such Tax Benefit increased that party’s Deferred Tax Assets, together with information reasonably
necessary to support the statements contained in the certification. Failure of such party to provide such certification within 30 days after receiving written notice requesting such notification from the other party shall be deemed conclusive
evidence that the entire amount of such Tax Benefit has been realized as of such date. 
 2.8 Timing of Certain Payments.

 (a) Any payment required to be made pursuant to Article II shall be made by the party obligated to make such payment
(i) in the case of a refund of Tax, within fourteen (14) days after receipt (whether by way of payment, credit, or offset against any payments due or otherwise) of such refund or (ii) in the case of a payment of Tax, the later of
(x) fourteen (14) days prior to the due date for payment of such Tax and (y) the delivery of written demand for the payment hereunder to the party obligated to make such payment hereunder. 
 (b) All payments and demands for payment shall be accompanied by a calculation setting forth in reasonable detail the basis for the amount
paid or demanded. 
 2.9 Treatment of Restricted Stock, Stock Options, and Deferred Compensation. 
 (a) To the extent permitted by law, Sara Lee (or the appropriate Sara Lee Affiliate) shall claim all Tax deductions arising by reason of
the grant or vesting of Employee Restricted Stock, and by reason of exercises of Employee Stock Options, at the time such Tax 

  

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deduction can be claimed, provided that such Employee Restricted Stock or Employee Stock Option is then held by a Sara Lee Employee. To the extent permitted
by law, HBI (or the appropriate HBI Affiliate) shall claim all Tax deductions arising by reason of the grant or vesting of Employee Restricted Stock, and by reason of exercises of Employee Stock Options, at the time such Tax deduction can be
claimed, provided that such Employee Restricted Stock or Employee Stock Option is then held by an HBI Employee. To the extent permitted by law, HBI (or the appropriate HBI Affiliate) shall claim all Tax deductions arising by reason of the payment
(or inclusion in income) of compensation the receipt of which was deferred by an HBI Employee prior to the Distribution Date, the payment of which will occur after the Distribution Date, and the obligation to make such payment is assumed by HBI in
connection with the Restructuring and Distribution. 
 (b) If, pursuant to a Final Determination, all or any part of a Tax
deduction claimed by a party (or Affiliate thereof) pursuant to Section 2.9(a) is disallowed, then, to the extent permitted by law, the other party (or Affiliate thereof) shall claim such Tax deduction. If such other party (or Affiliate
thereof) realizes a Tax Benefit from the claiming of such Tax deduction, such other party (or Affiliate) shall pay the amount of such Tax Benefit (net of any Tax Detriment suffered by the payor) to the party who originally claimed the Tax deduction.

 (c) The party (or Affiliate thereof) initially claiming the Tax deduction described in Section 2.9(a) shall withhold
applicable Taxes and satisfy applicable Tax reporting obligations with respect to the taxation of the Restricted Stock, Option, or deferred compensation with respect to which the Tax deduction is claimed. The parties to this Agreement shall
cooperate so as to permit the party initially claiming such deduction to discharge any applicable Tax withholding and Tax reporting obligations. 
 2.10 True-Up Payment for Deferred Taxes. 
 (a) On or before the Distribution Date, Sara Lee shall
provide to HBI a computation of the estimated Deferred Taxes attributable to the United States and Canadian operations of HBI and its Affiliates that would be included on the HBI Opening Balance Sheet (“Estimated Deferred Taxes”).
HBI shall have the right to participate in the computation of the Estimated Deferred Taxes. 
 (b) Within 180 days following
the filing of the final Tax Return for the Sara Lee Consolidated Group that includes the Distribution Date, Sara Lee shall deliver to HBI a computation of the amount of Deferred Taxes attributable to the United States and Canadian operations of HBI
and its Affiliates that would be included on the HBI Opening Balance Sheet, as finally determined by Sara Lee in consultation with its independent financial auditors (“Final Deferred Taxes”). HBI shall have the right to participate
in the computation of the Final Deferred Taxes. 
 (c) If the substitution of the amount of Final Deferred Taxes for Estimated
Deferred Taxes on the HBI Opening Balance sheet causes a decrease in the net book value of the HBI Opening Balance Sheet, then Sara Lee shall pay HBI the amount of such decrease as provided in Section 2.8(a). If the substitution of the amount
of Final Deferred Taxes for Estimated Deferred Taxes on the HBI Opening Balance sheet causes an increase in the net book 

  

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value of the HBI Opening Balance Sheet, then HBI shall pay Sara Lee the amount of such increase as provided in Section 2.8(a). 
 (d) No further payments with respect to Deferred Taxes shall be made beyond that provided for in this Section 2.10. 
 2.11 Successor Employer Status. Sara Lee and HBI shall, to the extent permitted by law, (i) treat HBI and its Affiliates (as
applicable) as a “successor employer” and Sara Lee and its Affiliates (as applicable) as a “predecessor,” within the meaning of sections 3121(a)(1) and 3306(b)(1) of the Code, with respect to employees of the HBI Business that
were employed by HBI and its Affiliates starting on January 1, 2006 for purposes of Taxes imposed under the United States Federal Unemployment Tax Act or the United States Federal Insurance Contributions Act and (ii) cooperate with each
other to avoid the filing of more than one IRS Form W-2 with respect to each such employee for the calendar year in which the Distribution occurs. 
 2.12 Subpart F Income. 
 (a) Notwithstanding anything to the contrary in this Agreement, if
(i) HBI or any of its Affiliates receive a distribution of cash or other property from any CFC during any Straddle Period or Post-Distribution Tax Period of that CFC, (ii) some or all of that distribution is excluded from the gross income
of the HBI Group by operation of Section 959(a) of the Code (any amount so excluded called the “959 Dividend Exclusion”), and (iii) some or all of the 959 Dividend Exclusion occurred because the earnings and profits of the CFC
supporting the distribution, if any, were allocable (within the meaning of Section 959(c) of the Code) to earnings and profits that (a) occurred during a Pre-Distribution Tax Period of that CFC, and (b) were included in the gross
income of the Sara Lee Consolidated Group by reason of its ownership of that CFC’s stock on the last day of that Pre-Distribution Tax Period (any amounts so allocable called the “Subpart F Pre-Distribution Inclusion”), then HBI shall
pay an amount to Sara Lee equal to the lesser of the Tax Detriment to Sara Lee of the Subpart F Pre-Distribution Inclusion and the Tax Benefit to HBI of the 959 Dividend Exclusion. 
 (b) Within 30 days after a Straddle Period Tax Return is filed for any HBI Affiliate that is a CFC, Sara Lee shall provide to HBI a
schedule (which may be amended from time to time) containing a good faith estimate of the total amount of earnings and profits of that CFC that has been included in the gross income of a United States shareholder (as that term is defined in
Section 951(b) of the Code) under Section 951(a) of the Code as of the last day of that Straddle Period, but has yet to be allocated (within the meaning of Section 959(c) of the Code) to any distributed amounts. 
  

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 ARTICLE III 
 TAX RETURNS AND INFORMATION EXCHANGE 
 3.1 Tax Return Preparation Responsibility; Payment of
Taxes Shown Thereon. 
 (a) Sara Lee shall prepare and file all (i) Income Tax Returns for the Sara Lee
Consolidated Group and Sara Lee Group, and all Combined Returns in any Combined Jurisdiction, (ii) all other United States federal, state, and local Income Tax Returns for Sara Lee and its Affiliates (including HBI and its Affiliates) for
Pre-Distribution Tax Periods, (iii) Canadian federal, provincial, and local Income Tax Returns for Sara Lee and its Affiliates (including HBI and its Affiliates) for Pre-Distribution Tax Periods, (iv) Puerto Rican local Income Tax Returns
for Sara Lee and its Affiliates (including HBI and its Affiliates) for Pre-Distribution Tax Periods, (v) Income Tax Returns for Sara Lee and its Affiliates for Post-Distribution Tax Periods, and (vi) Tax Returns pertaining to Other Taxes
for which Sara Lee is responsible pursuant to Section 2.1. 
 (b) HBI shall prepare and file all (i) Income Tax
Returns for the HBI Group, (ii) Income Tax Returns for HBI and its Affiliates for Pre-Distribution Tax Periods for all jurisdictions other than those for which Sara Lee is responsible for preparation and filing under Section 3.1(a),
(iii) Income Tax Returns for HBI and its Affiliates for Post-Distribution Tax Periods, and (iv) Tax Returns pertaining to Other Taxes for which HBI is responsible pursuant to Section 2.1. HBI shall not file (or allow any HBI Affiliate
to file) any amended Income Tax Return or refund claim for any Pre-Distribution Tax Period or for any Straddle Period. 
 (c)
HBI shall prepare and file all Income Tax Returns for HBI and its Affiliates for Straddle Periods of such companies; provided, however, that Sara Lee shall prepare and file any Income Tax Returns for HBI and its Affiliates for Straddle
Periods of such companies if Sara Lee provides notice to HBI within 45 days after the end of such Straddle Period that Sara Lee is exercising its right to prepare such Tax Return. 
 (d) Sara Lee and its Affiliates shall be responsible for the remitting of payment of any Taxes shown on a Tax Return for which it is
responsible for the preparation and filing thereof pursuant to Section 3.1(a), or has assumed the responsibility for the preparation and filing of pursuant to Section 3.1(c). HBI and its Affiliates shall be responsible for the payment of
any Taxes shown on a Tax Return for which it is responsible for the preparation and filing thereof pursuant to Section 3.1(b) or 3.1(c). 
 (e) If Sara Lee remits a Tax payment pursuant to Section 3.1(d), but HBI is responsible pursuant to Article II for all or a portion of the Tax shown on the applicable Tax Return, then HBI shall pay to Sara Lee
that portion of the Tax shown on such Tax Return for which HBI is responsible pursuant to Article II. If HBI remits a Tax payment pursuant to Section 3.1(d), but Sara Lee is responsible pursuant to Article II for all or a portion of the Tax
shown on the applicable Tax Return, then Sara Lee shall pay to HBI that portion of the Tax shown on such Tax Return for which Sara Lee is responsible pursuant to Article II. Nothing in this Section 3.1(e) shall affect the allocation of
responsibility for Taxes as set forth in Article II. 
 3.2 Review of Tax Returns. Sara Lee, with respect to those Income Tax
Returns prepared by Sara Lee described in Sections 3.1(a)(ii), 3.1(a)(iii), and 3.1(a)(iv), HBI, with respect to those Income Tax Returns prepared by HBI described in Section 3.1(b)(ii), and the party responsible for preparing and filing
Straddle Period Income Tax Returns pursuant to Section 3.1(c) (in each case, the “Filing Party”, and such other party the “Non-filing Party”) shall prepare and file such Tax Returns in a manner consistent with
past Tax reporting practices with 

  

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respect to the HBI Business. The Filing Party shall provide the Non-Filing Party with a draft of each Income Tax Return with respect to a Straddle Period at
least 15 days prior to the due date for filing thereof, if such draft shows Tax for which the Non-Filing Party is responsible pursuant to this Agreement. The Non-Filing Party shall have the right to review and approve (which approval shall not be
unreasonably withheld) each such Income Tax Return within 7 days following its receipt thereof. The Filing Party and Non-Filing Party shall attempt in good faith mutually to resolve any disagreements regarding such Income Tax Returns prior to the
due date for filing thereof; provided, that the failure to resolve all disagreements prior to such date shall not relieve the Filing Party of its obligation to file (or cause to be filed) any such Income Tax Return. If the draft of any such
Tax Return does not show Tax for which the Non-filing Party is responsible pursuant to this Agreement, the Non-filing Party shall have the right to comment on any such Tax Return within the 7 day period following receipt thereof; provided
that the Filling Party shall not be obligated to prepare the Tax Return in accordance with such comments. 
 3.3 Certain Items Related
to Tax Return Preparation. 
 (a) Unless otherwise required by a Taxing Authority, the parties hereby agree to prepare
and file all Tax Returns, and to take all other actions, in a manner consistent with this Agreement and the Separation Agreement and, to the extent not inconsistent with this Agreement, the Separation Agreement or applicable law, any Tax Ruling,
Ruling Documents, Tax Opinion, or Representation Letter. All Tax Returns shall be filed on a timely basis (taking into account applicable extensions) by the party responsible for filing such Tax Returns under this Agreement; provided, that if
a Tax Return is to be signed by an officer of a company different from the party responsible for filing such Tax Return, each party hereto shall have (or cause its Affiliate to have) the appropriate officer sign such Tax Return promptly after
presentation thereof for signature. 
 (b) Except as otherwise specifically provided for in this Agreement, Sara Lee shall
have the exclusive right, in its reasonable discretion, with respect to any Tax Return for which it is (or has elected to become) responsible for the filing thereof pursuant to this Agreement, to determine (i) the manner in which such Tax
Return shall be prepared and filed, including the accounting methods, positions, conventions and principles of taxation to be used and the manner in which any Tax Item shall be reported; (ii) whether any extensions may be requested;
(iii) the election(s) that will be made by Sara Lee, any Sara Lee Affiliate, HBI, or any HBI Affiliate on such Tax Return; (iv) whether any amended Tax Return(s) shall be filed; (v) whether any claim(s) for refund shall be made;
(vi) whether any refund shall be paid by way of refund or credited against any liability for the related Tax; and (vii) whether to retain outside firms to prepare or review such Tax Returns; provided, that Sara Lee shall prepare all
Tax Returns for which it has (or has assumed) filing responsibility, to the extent such Tax Returns reflect activities of the HBI Business, in a manner consistent with past Tax reporting practices with respect to the HBI Business, except as required
by law or regulation. 
 (c) Within 90 days after filing the U.S. federal Income Tax Return for the Sara Lee Consolidated
Group for the tax year that includes the Distribution Date, at the written request of HBI, Sara Lee shall notify HBI of the Tax attributes associated with HBI and each of its Affiliates, and the Tax bases of the assets and liabilities, transferred
to HBI in connection with the Restructuring and Distribution. Any changes in such Tax attributes or Tax bases arising 

  

 16 

 
thereafter shall be communicated by Sara Lee to HBI within 90 days after such change is made or there is a Final Determination of such change. 
 (d) Sara Lee and HBI agree to take (or refrain from taking) any action reasonably requested by the other that would reasonably be expected
to result in a Tax Benefit or avoid a Tax Detriment to the other, provided that such action does not result in any additional cost not fully compensated for by the requesting party. The parties hereby acknowledge that the preceding sentence
is not intended to limit, and therefore shall not apply to, the rights of the parties with respect to matters otherwise covered by this Agreement. 
 (e) Nothing in this Agreement shall be construed as a guarantee or representation of the existence or amount of any loss, credit, carryforward, basis or other Tax Item or Tax Asset, whether past, present or future, of
Sara Lee, HBI, or their respective Affiliates. 
 3.4 Tax Information Exchanges and Tax Services. 
 (a) In connection with each Tax Return required under this Agreement to be filed by Sara Lee after the date hereof, HBI shall provide Sara
Lee, no later than 90 days after the Distribution Date (provided, however, in the case of any taxable period ending on June 30, 2006, no later than September 15, 2006), a Tax Package for the purpose of preparing such Tax
Return. HBI shall timely furnish to Sara Lee such additional information and documents as Sara Lee may reasonably request. The parties acknowledge that such information may include materials regarding accounting, accounting records, income and
expense, costs and cost production, background, research and development, comparables, marketing, suppliers and customers, and other information regarding the HBI Business related to the Tax treatment of such business. Upon request by Sara Lee, an
appropriate officer of HBI shall provide written certification that, to such officer’s best knowledge and belief, all information provided pursuant to this Section 3.4 is accurate and complete in all material respects. HBI shall also make
available employees and officers of HBI and its Affiliates as Sara Lee may reasonably request in connection with such Tax Return preparation by Sara Lee. HBI shall be responsible for the cost (without reimbursement from Sara Lee) of furnishing to
Sara Lee the Tax Package, additional information, documents and employees and officers provided for in this Section 3.4(a). HBI shall provide the relevant information contained in the Tax Package in the format required by the IRS (or analogous
state, local, or foreign agency) for electronic filing. 
 (b) If HBI fails to provide any information required by
Section 3.4(a) within the time period specified, Sara Lee (i) shall be permitted, upon 48 hours’ notice, to use its own employees or agents to view or obtain the materials contemplated in Section 3.4(a) from HBI’s
facilities, and (ii) may file the applicable Tax Return based on the information available to Sara Lee at the time such Tax Return is due. HBI and its Affiliates shall (i) reimburse Sara Lee for any internal or incremental costs incurred
by Sara Lee in having its employees or agents view or obtain such material, and (ii) be responsible for and shall indemnify and hold harmless Sara Lee and its Affiliates from Taxes or other costs imposed on Sara Lee or any of its Affiliates, to
the extent resulting from HBI’s failure to provide such information in a timely manner. 
  

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 ARTICLE IV 
 TAX TREATMENT OF THE DISTRIBUTION 
 4.1 Representations. 
 (a) Ruling Documents. HBI hereby represents and warrants that (i) it has examined the Ruling Documents (including, without
limitation, the representations to the extent that they relate to the plans, proposals, intentions, and policies of HBI, the HBI Affiliates, or the HBI Business), and (ii) to the extent in reference to HBI, the HBI Affiliates, or the HBI
Business, the facts presented and the representations made therein are true, correct, and complete. 
 (b) Tax-Free
Status. HBI hereby represents and warrants that it has no plan or intention of taking any action, or failing or omitting to take any action, or knows of any circumstance, that could reasonably be expected to (i) cause the Restructuring
and/or the Distribution not to have Tax-Free Status or (ii) cause any representation or factual statement made in this Agreement, the Separation Agreement and the other Ancillary Agreements, the Tax Ruling, the Tax Opinion, or the HBI
Representation Letter to be untrue in a manner that would have an adverse effect on the Tax-Free Status of the Restructuring and/or the Distribution. 
 (c) Plan or Series of Related Transactions. HBI hereby represents and warrants that, to the knowledge of HBI and the management of HBI, neither the Restructuring nor the Distribution are part of a plan (or
series of related transactions) pursuant to which a Person will acquire stock representing a fifty-percent or greater interest (within the meaning of Sections 355(d) and (e) of the Code) in HBI or any successor to HBI. 
 4.2 Covenants. 
 (a) Actions Consistent with Representations and Covenants. HBI shall not (and shall not permit any of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit permission to any other person to) take any
action, and HBI shall not (and shall not permit any of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit permission to any other person to) fail to take any action, where such action or failure to act would be
inconsistent with or cause to be untrue any material, information, covenant, or representation in this Agreement, the Separation Agreement and the other Ancillary Agreements, the Tax Ruling, the Ruling Documents (including, without limitation, the
representations to the extent that they relate to the plans, proposals, intentions, and policies of HBI, the HBI Affiliates, or the HBI Business), the Tax Opinion, or the HBI Representation Letter. 
 (b) Preservation of Tax-Free Status; HBI Business. HBI shall not take any action (including, but not limited to, any cessation,
transfer or disposition of all or any portion of the HBI Business; payment of extraordinary dividends to shareholders; and acquisitions or issuances of stock) or permit any HBI Affiliate to take any such action, and HBI shall not fail to take any
such action or permit any HBI Affiliate to fail to take any such action where such action or failure to act would have an adverse effect on the Tax-Free Status of the Restructuring and/or the Distribution. 
  

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 (c) Sales, Issuances and Redemptions of Equity Securities. Until the first day
after the Restriction Period, neither HBI nor any HBI Affiliate shall, or shall agree to, sell or otherwise issue to any Person, or redeem or otherwise acquire from any Person, any Equity Securities of HBI or any HBI Affiliate; provided,
however, that (i) HBI may repurchase such Equity Securities to the extent that such repurchases meet the requirements of Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to its modification by Revenue Procedure
2003-48), (ii) HBI may issue such Equity Securities to the extent such issuances satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a
retirement plan of an employer) of Treasury Regulation Section 1.355-7(d), and (iii) HBI may issue Equity Securities provided that such issuance, individually or when aggregated with other issuances and any transactions occurring in the
four-year period beginning on the date which is two years before the Distribution Date, and with any other transaction which is part of a plan or series of related transactions (within the meaning of Section 355(e) of the Code) that includes
the Distribution (other than issuances of Equity Securities described in clause (ii) above), results in one or more Persons acquiring, directly or indirectly, (as determined under Section 355(e) of the Code, taking into account applicable
constructive ownership rules) stock representing a 35% or greater interest, by vote or value, in HBI (or any successor thereto). 
 (d) Tender Offers; Other Business Transactions. Until the first day after the Restriction Period, neither HBI nor any HBI Affiliate shall (i) solicit any Person to make a tender offer for, or otherwise acquire or sell, the
Equity Securities of HBI, (ii) participate in or support any unsolicited tender offer for, or other acquisition, issuance or disposition of, the Equity Securities of HBI, or (iii) approve or otherwise permit any proposed business
combination or merger or any transaction which, in the case of clauses (i), (ii) or (iii), individually or when aggregated with any other transactions occurring within the four-year period beginning on the date which is two years before the
Distribution Date, and with any other transaction which is part of a plan or series of related transactions (within the meaning of Section 355(e) of the Code) that includes the Distribution (other than issuances of Equity Securities described
in Section 4.2(c)(ii) above), results in one or more Persons acquiring, directly or indirectly, (as determined under Section 355(e) of the Code, taking into account applicable constructive ownership rules) stock representing a 35% or
greater interest, by vote or value, in HBI (or any successor thereto). In addition, neither HBI nor any HBI Affiliate shall at any time, whether before or subsequent to the expiration of the Restriction Period, engage in any action described in
clauses (i), (ii) or (iii) of the preceding sentence if it is pursuant to an arrangement negotiated (in whole or in part) prior to the first anniversary of the Distribution, even if at the time of the Distribution or thereafter such action
is subject to various conditions. 
 (e) Dispositions of Assets. Until the first day after the Restriction Period,
neither HBI nor any HBI Affiliate shall, or shall agree to, sell, transfer, or otherwise dispose of or agree to dispose of assets (including, for such purpose, any shares of capital stock of a subsidiary and any transaction treated for tax purposes
as a sale, transfer or disposition) that, in the aggregate, constitute more than 50% of the gross assets of HBI, nor shall HBI or any HBI Affiliate sell, transfer, or otherwise dispose of or agree to dispose of assets (including, for such purpose,
any shares of capital stock of a subsidiary and any transaction treated for tax purposes as a sale, transfer or disposition) that, in the aggregate, constitute more than 50% of the consolidated gross assets of the HBI Group. The foregoing sentence
shall not apply to sales, 

  

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transfers, or dispositions of assets in the ordinary course of business. The percentages of gross assets or consolidated gross assets of HBI or the HBI
Group, as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of HBI and the members of the HBI Group as of the Distribution Date. Notwithstanding the foregoing, until the first
day after the Restriction Period HBI shall not (and shall not agree to) cease, transfer, or dispose of all or any portion of the Socks Business (as that term is defined in the Ruling Request) other than sales, transfers, or dispositions of assets in
the ordinary course of business. For purposes of this Section 4.2(e), a merger of HBI or one of its subsidiaries with and into any Person (other than HBI or one of its subsidiaries) shall constitute a disposition of all of the assets of HBI or
such subsidiary. 
 (f) Liquidations, Mergers, Reorganizations. Until the first day after the Restriction Period,
neither HBI nor its subsidiaries shall, or shall agree to, voluntarily dissolve or liquidate or engage in any merger (except for a Cash Acquisition Merger), consolidation or other reorganization; provided, however, mergers of direct or
indirect wholly-owned subsidiaries of HBI solely with and into HBI or with other direct or indirect wholly-owned subsidiaries of HBI, and liquidations of HBI’s subsidiaries, are not subject to this Section 4.2(f) to the extent not
inconsistent with the Tax-Free Status of the Restructuring and the Distribution; provided further that nothing in this Section 4.2(f) shall prohibit any merger involving HBI or an HBI Affiliate not otherwise prohibited by
Section 4.2(d). 
 (g) Gain Recognition Agreements. HBI shall not take any action (including, but not limited to,
the sale or disposition of any stock, securities, or other assets), or permit any HBI Affiliate to take any such action, and HBI shall not fail to take any such action or permit any HBI Affiliate to fail to take any such action that would cause Sara
Lee or any Sara Lee Affiliate to recognize gain under any Gain Recognition Agreement. 
 (h) Changes to Voting Rights.
Until the first day after the Restriction Period, neither HBI nor any HBI Affiliate shall amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise,
affecting the relative voting rights of its separate classes of stock (including, without limitation, through the conversion of one class of stock into another class of stock), but only to the extent such change, if treated as an issuance of Equity
Securities, would be prohibited by Section 4.2(c). 
 (i) Permitted Transactions. Notwithstanding the restrictions
otherwise imposed by Sections 4.2(c) through 4.2(h), during the Restriction Period, HBI may (i) approve, participate in, support or otherwise permit a proposed business combination or transaction that would otherwise breach the covenant set
forth in Section 4.2(d), (ii) sell or otherwise dispose of the assets of the HBI Group in a transaction that would otherwise breach the covenant set forth in Section 4.2(e), (iii) merge HBI or any HBI Affiliate with another
entity without regard to which party is the surviving entity in a transaction that would otherwise breach the covenant set forth in Section 4.2(f), (iv) issue Equity Securities of HBI or any HBI Affiliate in a transaction that would
otherwise breach the covenant set forth in Section 4.2(c), or (v) take any action affecting the relative voting rights of the separate classes of stock of HBI or any HBI Affiliate that would otherwise breach the covenant set forth in
Section 4.2(h), if and only if such transaction or action would not violate Section 4.2(a) or Section 4.2(b) and Section 4.2(j) is satisfied. 
  

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 (j) Supplemental Ruling; Tax Opinion. Prior to entering into any agreement
contemplating a transaction or action described in clauses (i), (ii), (iii), (iv) or (v) of Section 4.2(i) and prior to consummating any such transaction or action: (A) HBI shall request that Sara Lee obtain a Supplemental Ruling
in accordance with Section 4.3 of this Agreement to the effect that such transaction will not affect the Tax-Free Status of the Restructuring and the Distribution and Sara Lee shall have received such a Supplemental Ruling in form and substance
satisfactory to Sara Lee in its sole and absolute discretion or (B) HBI shall provide Sara Lee with an unqualified Tax Opinion from a nationally recognized independent tax advisor in form and substance satisfactory to Sara Lee in its sole and
absolute discretion (and in determining whether an opinion is satisfactory, Sara Lee may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion)
providing that such transaction or action will not affect the Tax-Free Status of the Restructuring and the Distribution. 
 4.3
Supplemental Rulings and Restrictions on HBI. 
 (a) Supplemental Rulings at Sara Lee Request. Sara Lee
shall have the right to obtain a Supplemental Ruling in its sole and absolute discretion. If Sara Lee determines to obtain a Supplemental Ruling, HBI shall (and shall cause each HBI Affiliate to) cooperate with Sara Lee and take any and all actions
reasonably requested by Sara Lee in connection with obtaining the Supplemental Ruling (including, without limitation, by making any representation or covenant or providing any materials or information requested by any Tax Authority; provided
that HBI shall not be required to make (or cause any HBI Affiliate to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). Sara Lee shall reimburse HBI for
all reasonable costs and expenses incurred by HBI or its Affiliates in obtaining a Supplemental Ruling requested by Sara Lee within ten (10) Business Days after receiving an invoice from HBI therefor. In connection with obtaining a Supplemental
Ruling pursuant to this Section 4.3(a), (A) Sara Lee shall keep HBI informed in a timely manner of all material actions taken or proposed to be taken by Sara Lee in connection therewith; (B) Sara Lee shall (1) reasonably in
advance of the submission of any Supplemental Ruling Request, provide HBI with a draft copy thereof, (2) reasonably consider HBI’s comments on such draft copy, and (3) provide HBI with a final copy of any Supplemental Ruling Request;
and (C) Sara Lee shall provide HBI with notice reasonably in advance of, and HBI shall have the right to attend, any formally scheduled meetings with any Tax Authority (subject to the approval of the Tax Authority) that relate to such
Supplemental Ruling. 
 (b) Supplemental Rulings at HBI’s Request. Sara Lee agrees that at the reasonable request
of HBI pursuant to Section 4.2(j), Sara Lee shall (and shall cause each Sara Lee Affiliate to) cooperate with HBI and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Supplemental Ruling from the IRS for the
purpose of confirming compliance on the part of HBI or an HBI Affiliate with its obligations under Section 4.2 of this Agreement. Further, in no event shall Sara Lee be required to file any Supplemental Ruling Request under this
Section 4.3(a) unless HBI represents that (A) it has reviewed the Supplemental Ruling Documents and (B) all information and representations, if any, relating to HBI or any HBI Affiliate, contained in the Supplemental Ruling Documents
are true, correct and complete in all material respects. HBI shall reimburse Sara Lee for all reasonable costs and expenses incurred by Sara Lee or its Affiliates in obtaining a Supplemental Ruling requested by 

  

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HBI within ten (10) Business Days after receiving an invoice from Sara Lee therefor. HBI hereby agrees that Sara Lee shall have sole and exclusive
control over the process of obtaining a Supplemental Ruling, and that only Sara Lee shall apply for a Supplemental Ruling. In connection with obtaining a Supplemental Ruling pursuant to this Section 4.3(b), (A) Sara Lee shall keep HBI
informed in a timely manner of all material actions taken or proposed to be taken by Sara Lee in connection therewith; (B) Sara Lee shall (1) reasonably in advance of the submission of any Supplemental Ruling Request, provide HBI with a
draft copy thereof, (2) reasonably consider HBI’s comments on such draft copy, and (3) provide HBI with a final copy of any Supplemental Ruling Request; and (C) Sara Lee shall provide HBI with notice reasonably in advance of, and
HBI shall have the right to attend, any formally scheduled meetings with any Tax Authority (subject to the approval of the Tax Authority) that relate to such Supplemental Ruling. 
 (c) Prohibition on HBI. HBI hereby agrees that neither it nor any HBI Affiliate shall seek any guidance from the IRS or any other
Tax Authority (whether written, verbal or otherwise) concerning the Restructuring or the Distribution (or the impact of any transaction on the Restructuring or the Distribution). 
 4.4 Liability for Undertaking Certain Actions. Notwithstanding anything in this Agreement to the contrary, HBI shall be responsible for,
and shall indemnify and hold harmless Sara Lee and each of its Affiliates from and against any liability for Taxes that are attributable to or result from (i) any act or failure to act by HBI or any HBI Affiliate, which action or failure to act
breaches any of the representations or covenants contained in Article IV hereof (without regard to the exceptions or provisos set forth in such provisions), expressly including, for this purpose, any Permitted Transactions and any act or failure to
act that breaches Section 4.2(a) or 4.2(b), regardless of whether such act or failure to act is permitted by Section 4.2(c) through 4.2(h), and (ii) Tax counsel withdrawing all or any portion of the Tax Opinion or any Tax Authority
withdrawing all or any portion of a private letter ruling issued to Sara Lee in connection with the Restructuring and/or the Distribution because of a breach by HBI or any HBI Affiliate of a representation made in this Agreement (or made in
connection with the Tax Opinion or any Supplemental Ruling contemplated by Section 4.3(e)). 
 4.5 Cooperation.

 (a) Without limiting the prohibition set forth in Section 4.3(c), until the first day after the Restriction
Period, HBI shall furnish Sara Lee with a copy of any ruling request that HBI or any HBI Affiliate may file with the IRS or any other Tax Authority and any opinion received that in any respect relates to, or otherwise reasonably could be expected to
have any effect on, the Tax-Free Status of any of the Restructuring and the Distribution. 
 (b) Sara Lee shall reasonably
cooperate with HBI in connection with any request by HBI for an unqualified Tax Opinion pursuant to Section 4.2(j) and shall use its reasonable best efforts to assist HBI in obtaining an unqualified Tax Opinion pursuant to Section 4.2(j).

 (c) Until the first day after the Restriction Period, HBI shall provide adequate advance notice to Sara Lee in accordance
with the terms of Section 4.5(d) of any action 

  

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described in Sections 4.2(a) through 4.2(h) within a period of time sufficient to enable Sara Lee to seek injunctive relief pursuant to Section 4.6 in a
court of competent jurisdiction. 
 (d) Each notice required by Section 4.5(c) shall set forth the terms and conditions
of any such proposed transaction, including, without limitation, (i) the nature of any related action proposed to be taken by the board of directors of HBI, (ii) the approximate number of Equity Securities (and their voting and economic
rights) of HBI or any HBI Affiliate (if any) proposed to be sold or otherwise issued, (iii) the approximate value of HBI’s assets (or assets of any HBI Affiliate) proposed to be transferred, and (iv) the proposed timetable for such
transaction, all with sufficient particularity to enable Sara Lee to seek such injunctive relief. Promptly, but in any event within 30 days, after Sara Lee receives such written notice from HBI, Sara Lee shall notify HBI in writing of Sara
Lee’s decision to seek injunctive relief pursuant to Section 4.6. 
 (e) From and after the date Sara Lee first
requests a Supplemental Ruling pursuant to Section 4.3 until the first day after the two-year anniversary of such date that Sara Lee receives such Supplemental Ruling (pursuant to Section 4.3(a) or 4.3(b)), neither HBI nor any HBI
Affiliate shall take (or refrain from taking) any action to the extent that such action or inaction would have caused a representation given by HBI in connection with any such request for a Supplemental Ruling to have been untrue as of the relevant
representation date, had HBI or any HBI Affiliate intended to take (or refrain from taking) such action on the relevant representation date. 
 4.6 Enforcement. The parties hereto acknowledge that irreparable harm would occur in the event that any of the provisions of this Article IV were not performed in accordance with their specific terms or were otherwise
breached. The parties hereto agree that, in order to preserve the Tax-Free Status of the Restructuring and the Distribution, injunctive relief is appropriate to prevent any violation of the foregoing covenants; provided, however, that
injunctive relief shall not be the exclusive legal or equitable remedy for any such violation. 
 ARTICLE V 
 COOPERATION AND EXCHANGE OF INFORMATION 
 5.1 Cooperation. 
 (a) Notwithstanding anything to the contrary in the Separation Agreement and the
Ancillary Agreements, Sara Lee and HBI shall cooperate (and shall cause each of their respective Affiliates to cooperate) fully at such time and to the extent reasonably requested by the other party in connection with the preparation and filing of
any Tax Return or the conduct of any audit, dispute, proceeding, suit, or Tax action concerning any issues or any other matter contemplated hereunder. Such cooperation shall include, without limitation: 
 i) Compliance with the provisions of Section 3.4; 
 ii) The retention and provision on demand of books, records, documentation, information, or other materials relating to any Tax Return, or
any supplemental 

  

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information necessary or reasonably helpful to support any position taken therein, until the later of (x) the expiration of the applicable statute of
limitation (giving effect to any extension, waiver, or mitigation thereof) and (y) in the event any claim has been made under this Agreement for which such information is relevant, the occurrence of a Final Determination with respect to such
claim; 
 iii) Unless otherwise agreed to by the parties, the retention and provision on demand, of any books, records,
documentation, information, or other materials necessary or reasonably helpful in sustaining any position (including, without limitation, any transfer pricing position) taken with any Taxing Authority including, without limitation, materials
regarding accounting, income and expense, costs and cost production, background, research and development, comparables, marketing, suppliers and customers, and other information regarding the HBI Business related to the Tax treatment of such
business; 
 iv) The retention and provision of additional information with respect to an explanation of the manner in which
any Tax Return or Tax Package was prepared and filed, and any additional information reasonably helpful in explaining the materials provided under clauses (ii) and (iii) of this Section 5.1 until the other party provides written
notice that such material may be destroyed; 
 v) The execution of any document that may be necessary or reasonably helpful in
connection with the filing of any Tax Return by Sara Lee or its Affiliates or HBI or its Affiliates, or in connection with any audit, proceeding, refund claim, suit, or action for any such Tax Return; 
 vi) The use of the parties’ reasonable best efforts to obtain any documentation from a governmental authority or a third party that
may be necessary or helpful in connection with the foregoing; and 
 vii) The retention in good working order, and
maintenance, of all computer systems, computer language, computer code, or any other computer or electronic data, or records necessary (including, without limitation, the Lawson system) for the retrieval and classification of information that could
be requested pursuant to this Section 5.1 or Section 3.4 until the other party provides written notice that such retention and maintenance is not longer required. 
 Each party shall make its employees and facilities available on a mutually convenient basis, without cost to the other party, to facilitate such cooperation. In addition, upon 48 hours’ notice, each party shall
have the option to use its own employees or agents to view or obtain the materials contemplated in this Section 5.1 from the other party’s facilities. 
 (b) Any materials contemplated under Section 5.1(a) and Section 3.4 shall be provided whether or not such material is or may be
confidential or proprietary. If, however, the providing party determines in good faith that any materials are confidential or proprietary, the providing party may require the requesting party to enter into a confidentiality agreement with respect to
such materials, not inconsistent with the purposes for which the party made the request for information. Each party shall be deemed to have satisfied its obligation to hold confidential 

  

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information concerning or supplied by the other party if it exercises the same care as it takes to preserve confidentially for its own similar information.

 (c) Any computer or electronic records or data required to be maintained pursuant to this Section 5.1 must be kept in
the accordance with federal, state, local, and foreign laws including, without limitation, the IRS electronic filing laws. 
 (d) Sara Lee shall advise HBI with respect to any Final Determination of Tax adjustments relating to the Sara Lee Consolidated Group if such Final Determination of Tax adjustments may affect any Tax attribute of any member of the HBI Group
after the Distribution Date. 
 (e) Notwithstanding anything to the contrary in this Agreement, if a party materially fails to
comply with any of its obligations set forth in this Section 5.1, upon reasonable request and notice by the other party, the non-performing party shall (i) reimburse the other party for any internal or incremental costs incurred by such
other party in having its employees or agents view or obtain such material, and (ii) to the extent such failure results in the imposition of additional Taxes be liable in full for such additional Taxes. 
 5.2 Contest Provisions. 
 (a) The party responsible for the Taxes under Section 2.1 (the “Responsible Party”), shall, with respect to a Tax Return, have the exclusive right to control, contest, and represent the interests
of Sara Lee, HBI and their respective Affiliates in any Tax controversy, including (without limitation) any audit, protest, or claim for refund to the Appeals Division of the IRS, competent authority proceeding and litigation in Tax Court or any
other court of competent jurisdiction (a “Tax Controversy”) related to such Tax Return. Subject to Section 5.2(d)(ii) hereof, such exclusive right shall include the right, in the Responsible Party’s reasonable discretion,
to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of any such Tax Controversy. Such control rights shall extend to any matter pertaining to the management and control
of a Tax Controversy, including execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item. Any costs incurred in the handling or contesting of a Tax Controversy shall be borne by the Responsible Party.

 (b) Notwithstanding anything to the contrary in Section 5.2(a), Sara Lee shall be the Responsible Party with respect
to (i) all Tax Returns for the Sara Lee Consolidated Group and Sara Lee Group, and (ii) all Straddle Period Tax Returns and Tax Returns for a Combined Jurisdiction which include a tax period for which Sara Lee is responsible for the Taxes
under Section 2.1. 
 (c) Sara Lee shall use reasonable efforts to keep HBI advised as to the status of Tax audits and
litigation involving any issue that relates to a Tax of HBI or any HBI Affiliate or that could give rise to a liability of HBI or any HBI Affiliate under this Agreement, and HBI shall use reasonable efforts to keep Sara Lee advised as to the status
of Tax audits and litigation involving any issue that related to a Tax of Sara Lee or any Sara Lee Affiliate or could give rise to a liability of Sara Lee or any Sara Lee Affiliate under this Agreement (in each case, a 

  

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“Liability Issue”). Sara Lee and HBI shall promptly furnish each other copies of any inquiries or requests for information from any Taxing
Authority or any other administrative, judicial, or other governmental authority concerning any Liability Issue pertaining to the other party. Without limiting the foregoing, Sara Lee and HBI, as the case may be, shall each promptly furnish to the
other within 30 days of receipt a copy of the relevant section of the revenue agent’s report or similar report, notice of proposed adjustment, or notice of deficiency received by Sara Lee or its Affiliate or by HBI or its Affiliate, as the case
may be, relating to any Liability Issue or any adjustment referred to in this Section 5.2(c). 
 (d) Notwithstanding
Section 5.2(a), 
 i) With respect to any Tax Controversy, to the extent a party may be responsible for Taxes under
Section 2.1 with respect to a given Tax Return or to the extent resolution of the Tax Controversy could give rise to a material Tax Detriment or loss of a material Tax Benefit to such party, but such party is not the Responsible Party, then the
Responsible Party shall provide such other party (at such other party’s expense) reasonable participation rights with respect to so much of the Tax Controversy as relates to Taxes for which such other party may be responsible; and 

ii) A Responsible Party shall not settle or otherwise voluntarily resolve or disclose any Tax Controversy which could give rise to a
material Tax Detriment or loss of a material Tax Benefit to the other party without such other party’s consent, not to be unreasonably withheld. 
 5.3 Information for Shareholders. Sara Lee shall provide each shareholder that receives stock of HBI pursuant to the Distribution with the information necessary for such shareholder to comply with the
requirements of Section 355 of the Code and the Treasury regulations thereunder with respect to statements that such shareholders must file with their federal income tax returns demonstrating the applicability of Section 355 to the
Distribution. 
 ARTICLE VI 
 DISPUTE RESOLUTION 
 6.1 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.

 6.2 Arbitration. 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, provided, however, that this Section 6.2 shall not apply to any (a) suits seeking injunctive relief or specific performance, or (b) dispute, controversy, or claim arising under Article IV of this Agreement
(including any dispute, controversy, or claim relating to the breach, termination, or validity thereof). 
  

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 ARTICLE VII 
 MISCELLANEOUS 
 7.1 Effectiveness. This Agreement shall become effective on the
Distribution Date. 
 7.2 Indemnification for Inaccurate, Incomplete or Untimely Information. 
 (a) HBI and each HBI Affiliate shall indemnify and hold harmless Sara Lee and each Sara Lee Affiliate from and against any liability, cost
or expenses, including, without limitation, any fine, penalty, interest, charge or accountant’s fee, arising out of fraudulent or negligent information, workpapers, documents and other items prepared by HBI or any HBI Affiliate used in the
preparation of any Tax Return or claim for refund filed by Sara Lee or any Sara Lee Affiliate for any period during which HBI or any HBI Affiliate was or has been a member of the Sara Lee Consolidated Group, or arising out of the untimely provision
of information required to provided under this Agreement. 
 (b) Sara Lee and each Sara Lee Affiliate shall indemnify and hold
harmless HBI and each HBI Affiliate from and against any liability, cost or expense, including, without limitation, any fine, penalty, interest, charge or accountant’s fee, arising out of fraudulent or negligent preparation of any Tax Return or
claim for refund filed by Sara Lee or a Sara Lee Affiliate for any period during which HBI or any member of the HBI Group was or has been a member of the Sara Lee Consolidated Group, or arising out of the untimely provision of information required
to provided under this Agreement. 
 7.3 Breach. Sara Lee shall indemnify and hold harmless HBI and each HBI Affiliate, and HBI
shall indemnify and hold harmless Sara Lee and each Sara Lee Affiliate, from and against any payment required to be made under this Agreement as a result of the breach by Sara Lee (or Sara Lee Affiliate) or HBI (or HBI Affiliate), as the case may
be, of any obligation under this Agreement. 
 7.4 Disclaimers. 
 (a) Sara Lee disclaims all knowledge of or responsibility for the content or accuracy of any separate returns or filings made by or on
behalf of HBI or any HBI Affiliate for any taxable period during which such company was not a member of the Sara Lee Consolidated Group. 
 (b) HBI disclaims all knowledge of or responsibility for the content or accuracy of any Tax Returns or filings made by or on behalf of the Sara Lee Consolidated Group or any member thereof for any period except to the
extent such Tax Returns or filings reflect items of the HBI Business. 
 7.5 Payments. In the event that one party (the
“Owing Party”) is required to make a payment to another party (the “Owed Party”) pursuant to this Agreement, then to the extent not otherwise provided for in this Agreement, such payment shall be made according to
this Section 7.5. 
 (a) All payments shall be made to the Owed Party or to the appropriate Taxing Authority as specified
by the Owed Party within the time prescribed for the payment in this Agreement, or if no period is prescribed, within 20 days after delivery of written notice of payment owing together with a computation of the amounts due. 
  

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 (b) Unless otherwise required by any Final Determination, the parties agree that any
payment made by one party to another party (other than payments of interest and payment of After Tax Amounts pursuant to Section 7.5(d)) pursuant to this Agreement shall be treated for all Tax and financial accounting purposes as payments with
respect to stock (dividend distributions or capital contributions, as the case may be) made immediately prior to the Distribution. 
 (c) All actions required to be taken by any party under this Agreement shall be performed within the time prescribed for performance in this Agreement, or if no period is prescribed, such actions shall be performed promptly. 
 (d) If, pursuant to a Final Determination, it is determined that the receipt or accrual of any payment made under this Agreement (other
than payments of interest) is subject to any Tax, the party making such payment shall be liable for (i) the After Tax Amount with respect to such payment, and (ii) interest at the rate described in 7.5(e) on the amount of such tax from the
date such Tax is due through the date of payment of such After Tax Amount. A party making a demand for payment pursuant to this Agreement and for a payment of an After Tax Amount with respect to such payment shall separately specify and compute such
After Tax Amount. However, a party may choose not to specify an After Tax Amount in a demand for payment pursuant to this Agreement without thereby being deemed to have waived its right subsequently to demand an After Tax Amount with respect to such
payment. 
 (e) Any payment that is required to be made pursuant to this Agreement (i) by HBI (or an HBI Affiliate) to
Sara Lee (or a Sara Lee Affiliate) or (ii) by Sara Lee (or a Sara Lee Affiliate) to HBI (or an HBI Affiliate), that is not made on or prior to the date that such payment is required to be made pursuant to this Agreement shall thereafter bear
interest at the rate established for underpayments pursuant to Section 6621(a)(2) of the Code. 
 (f) Any payment
that is required to be made pursuant to this Agreement (i) by HBI (or an HBI Affiliate) to Sara Lee (or a Sara Lee Affiliate) or (ii) by Sara Lee (or a Sara Lee Affiliate) to HBI (or an HBI Affiliate), shall be made by wire transfer of
immediately available funds, provided that if the amount of any payment is less than $10,000, such payment may be made in a form other than a wire transfer. 
 7.6 Changes in Law. Any reference to a provision of the Code, Treasury Regulations, or a law of another jurisdiction shall include a reference to any applicable successor provision or law. If, due to any
change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date specified in the preamble to this Agreement, performance of any provision of this Agreement or any
transaction contemplated hereby shall become impracticable or impossible, the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such provision. 
  

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 7.7 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. 
 If to Sara Lee, at: 
 Sara Lee Corporation 
 Three First National Plaza 
 70 West Madison

 Chicago, Illinois 60602-4260 
 Facsimile Number: 312-558-4956 
 Attention: Senior Vice-President - Taxes 
 If to HBI, at: 
 Hanesbrands Inc. 

1000 East Hanes Mill Road 
 Winston-Salem,
North Carolina 27105 
 Facsimile Number: 336-519-7441 
 Attention: Senior Vice-President - Taxes 
 7.8 Entire Agreement; Incorporation of Schedules and
Exhibits. This Agreement, the Separation Agreement, the other Ancillary Agreements and the Exhibits and Schedules attached hereto and thereto, 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. 
 7.9 Authority. Each of the parties hereto represents, on behalf of itself
and its affiliates, to the other that (a) it has the corporate power and authority to execute, deliver, and perform this Agreement, (b) the execution, delivery, and performance of this Agreement by it have been duly authorized by all
necessary corporation or other action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid, and binding obligation, enforceable against it in accordance with its terms subject to
applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights generally and general equity principles. 
  

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 7.10 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. 
 7.11 Successors and Assigns.

 (a) 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 other applicable requirements of this
Agreement, the Separation Agreement, and the Ancillary Agreements). 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. 
 (b) Notwithstanding Section 7.11(a), if it is contemplated that an HBI Affiliate may cease to be such an
Affiliate as a result of a transfer of its stock or other ownership interests to a third party in exchange for consideration in an amount approximately equal to the fair market value of the stock or other ownership interests transferred (other than
consideration consisting of the redemption of equity interests in the entity which is transferring the stock or ownership interests of such Affiliate), and such consideration is not distributed to HBI shareholders, then HBI may request in writing no
later than thirty (30) days prior to such cessation that Sara Lee execute a release of such HBI Affiliate from its obligations under this Agreement effective as of such transfer, and Sara Lee shall promptly execute such release; provided
that (i) HBI shall have confirmed in writing the obligations of HBI and its remaining Affiliates with respect to their own obligations and those of the departing HBI Affiliate and shall succeed to the rights of such HBI Affiliate under this
Agreement; and (ii) such departing HBI Affiliate shall have executed a release of any rights it may have against Sara Lee or any Sara Lee Affiliate by reason of this Agreement. A correlative process shall apply if it is contemplated that a Sara
Lee Affiliate may cease to be such an Affiliate under similar circumstances. 
 7.12 Joint and Several Liability. HBI and each
HBI Affiliate shall have joint and several liability for any obligation of HBI or an HBI Affiliate arising pursuant to this Agreement. Sara Lee and each Sara Lee Affiliate shall have joint and several liability for any obligation of Sara Lee or a
Sara Lee Affiliate arising pursuant to this Agreement. 
 7.13 Parties in Interest. Nothing in this Agreement, express or
implied, is intended to confer on any Person other than the parties, their respective Affiliates, and their respective successors and permitted assigns, any rights or remedies of any nature whatsoever under or by virtue of this Agreement.

  

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 7.14 Legal Enforceability; Waiver of Default. 
 (a) Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective
to the extent of the prohibition or unenforceability without invalidating the remaining provisions. Any prohibition or unenforceability of any provision of this Agreement in any jurisdiction shall not invalidate or render unenforceable the provision
in any other jurisdiction. 
 (b) Waiver by either party of any default by the other party of any provision of this Agreement
shall not be deemed a waiver by the waiving party of any subsequent or other default, nor shall it prejudice the rights of the other party. 
 7.15 Action by Affiliates. To the extent HBI is obligated to take any action under this Agreement, and such action is more properly taken by an HBI Affiliate, then HBI shall cause such Affiliate to take such action. To the
extent HBI is obligated to refrain from taking any action under this Agreement, HBI shall cause each of its Affiliates to refrain from taking such action. Sara Lee shall be subject to similar rules regarding actions to be taken, or to be refrained
from being taken, by it and its Affiliates. 
 7.16 Expenses. Unless otherwise expressly provided in this Agreement, each party
shall bear any and all expenses that arise from their respective obligations under this Agreement. 
 7.17 Confidentiality.

 (a) Each party shall hold and cause its consultants and advisors to hold in strict confidence, unless compelled to
disclose by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, all information written or oral concerning the other parties hereto furnished it by such other party or its representatives pursuant to
this Agreement (except to the extent that such information can be shown to have been (a) previously known by the party to which it was furnished, (b) in the public domain through no fault of such party, or (c) later lawfully acquired
from other sources by the party to which it was furnished), and each party shall not release or disclose such information to any other person, except its auditors, attorneys, financial advisors, bankers and other consultants and advisors who shall
be advised of the provisions of this Section 7.17. Each party shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by the other party if its exercises the same care as it takes to preserve
confidentiality for its own similar information. 
 (b) Notwithstanding Section 7.17(a), the provisions regarding
confidentiality set forth in Section 5.1 shall govern information required to be provided pursuant to Sections 3.4 and 5.1. 
 7.18
Amendments and Waiver. 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. 
 7.19 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 

  

 31 

 
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 7.18 and shall be effective only to the extent in such writing specifically
set forth. 
 7.20 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 Separation Agreement and the Ancillary Agreements. 
 7.21 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 remaining provisions shall remain valid and enforceable to the fullest extent permitted by applicable law. 
 7.22
SUBMISSION TO JURISDICTION. SUBJECT TO SECTION 6.2, 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, 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 7.7 ABOVE. NOTHING IN THIS SECTION 7.22, HOWEVER, SHALL AFFECT THE RIGHT OF ANY PARTY TO
SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW 

  

 32 

 
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. 
 7.23 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. 
 7.24 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, the Separation Agreement, and the Ancillary Agreements. 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.

 7.25 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. 
 7.26 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 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. 
  

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 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above written.

  

			
	Sara Lee Corporation
		
	By:	 	  
	 Title:
	 	  
	
	Hanesbrands Inc.
		
	By:	 	  
	 Title:

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