Document:

EX-10.26

 

INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT

between

SARA LEE CORPORATION

and

HANESBRANDS INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I MUTUAL RELEASES; INDEMNIFICATION
	 	 	1	 
	Section 1.1 Release Of Pre-Distribution Date Claims
	 	 	1	 
	Section 1.2 Indemnification By HBI
	 	 	3	 
	Section 1.3 Indemnification By Sara Lee
	 	 	4	 
	Section 1.4 Indemnification With Respect To Environmental Actions And Conditions
	 	 	4	 
	Section 1.5 Reductions For Insurance Proceeds And Other Recoveries
	 	 	5	 
	Section 1.6 Procedures For Defense, Settlement And Indemnification Of Third Party Claims
	 	 	6	 
	Section 1.7 Additional Matters
	 	 	7	 
	Section 1.8 Survival Of Indemnities
	 	 	8	 
	 
	 	 	 	 
	ARTICLE II INSURANCE MATTERS
	 	 	8	 
	Section 2.1 Cooperation; Payment Of Insurance Proceeds To HBI; Agreement Not To Release Carriers
	 	 	8	 
	Section 2.2 HBI Insurance Coverage After The Distribution Date
	 	 	9	 
	Section 2.3 Responsibilities For Deductibles And/Or Self-Insured Obligations
	 	 	10	 
	Section 2.4 Procedures With Respect To Insured HBI Liabilities
	 	 	10	 
	Section 2.5 Insufficient Limits Of Liability For Sara Lee Liabilities And HBI Liabilities
	 	 	10	 
	Section 2.6 Cooperation
	 	 	12	 
	Section 2.7 No Assignment Or Waiver
	 	 	12	 
	Section 2.8 No Liability
	 	 	12	 
	Section 2.9 Further Agreements
	 	 	12	 
	Section 2.10 Workers’ Compensation Claims
	 	 	12	 
	Section 2.11 Matters Governed By Employee Matters Agreement
	 	 	13	 
	Section 2.12 Other Agreements Evidencing Indemnification Obligations
	 	 	13	 
	 
	 	 	 	 
	ARTICLE III MISCELLANEOUS
	 	 	13	 
	Section 3.1 Entire Agreement; Incorporation Of Schedules And Exhibits
	 	 	13	 
	Section 3.2 Amendments And Waivers
	 	 	13	 
	Section 3.3 No Implied Waivers; Cumulative Remedies; Writing Required
	 	 	13	 
	Section 3.4 Parties In Interest
	 	 	14	 
	Section 3.5 Assignment; Binding Agreement
	 	 	14	 
	Section 3.6 Notices
	 	 	14	 
	Section 3.7 Severability
	 	 	14	 
	Section 3.8 Governing Law
	 	 	15	 
	Section 3.9 Submission To Jurisdiction
	 	 	15	 
	Section 3.10 Waiver Of Jury Trial
	 	 	15	 
	Section 3.11 Amicable Resolution
	 	 	15	 
	Section 3.12 Arbitration

	 	 	16	 
	Section 3.13 Construction
	 	 	16	 

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	 	 	Page	 
	Section 3.14 Counterparts
	 	 	16	 
	Section 3.15 Limitation On Damages
	 	 	16	 
	Section 3.16 Delivery By Facsimile Or Other Electronic Means
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV DEFINITIONS
	 	 	17	 

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INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT

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

RECITALS

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

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

     WHEREAS, the Parties desire to set forth certain agreements regarding indemnification and
insurance as described herein.

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

ARTICLE I

MUTUAL RELEASES; INDEMNIFICATION

     Section 1.1 Release Of Pre-Distribution Date Claims.

          (a) HBI Release. Except as provided in Section 1.1(c), effective as of the
Distribution Date, HBI does hereby, for itself and each other member of the HBI Group, their
respective Affiliates (other than the Sara Lee Group), successors and assigns, and all Persons who
at any time prior to the Distribution Date have been directors, partners, managers, managing
members, officers, agents or employees of any member of the HBI Group (in each case, in their
respective capacities as such), remise, release and forever discharge the Sara Lee Indemnitees from
any and all Liabilities whatsoever, whether at law or in equity (including any right of
contribution), whether arising under any contract or agreement, by operation of law or otherwise,
existing or arising from any acts or events occurring or failing to occur or alleged to have
occurred or to have failed to occur on or before the Distribution Date or any conditions existing
or alleged to have existed on or before the Distribution Date, including in connection with the
transactions and all other activities to implement any of the Separation and the Distribution.

          (b) Sara Lee Release. Except as provided in Section 1.1(c), effective as of
the Distribution Date, Sara Lee does hereby, for itself and each other member of the Sara Lee
Group,
their respective Affiliates (other than the HBI Group), successors and assigns, and all
Persons who at any time prior to the Distribution Date have been directors, partners, managers,
managing

 

 

members, officers, agents or employees of any member of the Sara Lee Group (in each case,
in their respective capacities as such), remise, release and forever discharge the HBI Indemnitees
from any and all Liabilities whatsoever, whether at law or in equity (including any right of
contribution), whether arising under any contract or agreement, by operation of law or otherwise,
existing or arising from any acts or events occurring or failing to occur or alleged to have
occurred or to have failed to occur on or before the Distribution Date or any conditions existing
or alleged to have existed on or before the Distribution Date, including in connection with the
transactions and all other activities to implement any of the Separation and the Distribution.

          (c) No Impairment. Nothing contained in Section 1.1(a) or Section
1.1(b) shall limit or otherwise affect any Party’s rights or obligations pursuant to or
contemplated by the Separation Agreement or any Ancillary Agreement (including this Agreement), in
each case in accordance with its terms, including, without limitation, (1) the obligation of HBI to
assume and satisfy the HBI Liabilities, (2) the obligations of Sara Lee and HBI to perform their
obligations and indemnify each other under the Separation Agreement and the Ancillary Agreements
and (3) any Business Guarantees not replaced or terminated pursuant to Section 4.10 of the
Separation Agreement. Notwithstanding anything in this Agreement or the Separation Agreement to
the contrary, (1) Sara Lee shall continue to honor its existing obligations to indemnify any
director or officer of HBI or any member of the HBI Group who also served as a director or officer
of Sara Lee or any member of the Sara Lee Group at or before the Distribution Date with respect to
Liabilities incurred by any such individual in his or her activities on behalf of Sara Lee which do
not relate to the Branded Apparel Business (“Unrelated Activities”), such indemnification to be
provided under and subject to the terms of Sara Lee’s Bylaws, (2) the HBI Group shall be
responsible for indemnification obligations to any director, officer or employee of any member of
the HBI Group or the Sara Lee Group at or before the Distribution Date with respect to Liabilities
incurred by any such individual in his or her activities which relate to the Branded Apparel
Business (“Related Activities”), (3) individuals who were directors or officers of Sara Lee or any
member of the Sara Lee Group at or prior to the Distribution Date shall retain their rights to
indemnification from Sara Lee under and subject to the terms of Sara Lee’s Bylaws with respect to
Related Activities prior to the Separation Date; provided that (i) any claim for indemnification
from Sara Lee with respect to Related Activities shall be an HBI Liability and (ii) HBI shall
defend, indemnify and hold harmless Sara Lee against any Liabilities incurred by Sara Lee in
connection with any claim for indemnification with respect to Related Activities; and (4) the HBI
Group shall retain the ability to make claims in respect of Related Activities and Unrelated
Activities under Sara Lee’s Insurance Policies in accordance with Article II of this Agreement.

          (d) No Actions As To Released Pre-Distribution Date Claims. HBI agrees, for itself
and each other member of the HBI Group, not to make, and to not permit any other member of the HBI
Group to make, any claim or demand, or commence any Action asserting any claim or demand, including
any claim of contribution or any indemnification, against Sara Lee or any member of the Sara Lee
Group, or any other Person released pursuant to Section 1.1(a), with respect to any
Liabilities released pursuant to Section 1.1(a). Sara Lee agrees, for itself and each other
member of the Sara Lee Group, not to make, and to not permit any other member of the Sara Lee Group
to make, any claim or demand, or commence any Action
asserting any claim or demand, including any claim of contribution or any indemnification,

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against HBI or any member of the HBI Group, or any other Person released pursuant to Section
1.1(b), with respect to any Liabilities released pursuant to Section 1.1(b).

          (e) Intent; Further Instruments. It is the intent of Sara Lee and HBI by virtue of
the provisions of this Section 1.1 to provide for a full and complete release and discharge of all
Liabilities existing or arising from all acts and events occurring or failing to occur or alleged
to have occurred or to have failed to occur and all conditions existing or alleged to have existed
on or before the Distribution Date, between or among HBI or any member of the HBI Group, on the one
hand, and Sara Lee or any member of the Sara Lee Group, on the other hand (including any
contractual agreements or arrangements existing or alleged to exist between or among any such
members on or before the Distribution Date), except as expressly set forth in Section
1.1(c). In furtherance of the foregoing, at any time, at the request of any other Party, each
Party shall cause each member of its respective Sara Lee Group or HBI Group, as applicable, to
execute and deliver releases reflecting the provisions hereof.

     Section 1.2 Indemnification By HBI. Except as otherwise provided in this Agreement or
any Ancillary Agreement, HBI shall, for itself and each other member of the HBI Group, indemnify,
defend (or, where applicable, pay the defense costs for) and hold harmless the Sara Lee Indemnitees
from and against, and shall reimburse such Sara Lee Indemnitees with respect to, any and all Losses
that any third party seeks to impose upon the Sara Lee Indemnitees, or which are imposed upon the
Sara Lee Indemnitees, and that result from, relate to or arise, whether prior to or following the
Distribution Date, out of any of the following items (without duplication):

          (i) the failure of HBI or any other member of the HBI Group or any other Person to pay,
perform or otherwise promptly discharge, or if applicable, comply with any HBI Liability in
accordance with its terms;

          (ii) the Branded Apparel Business (or the conduct or operation thereof), any HBI Asset
or any HBI Liability;

          (iii) the matters set forth in Section 3.5(b) of the Separation Agreement;

          (iv) any breach by HBI or any other member of the HBI Group of the Separation Agreement
or any of the Ancillary Agreements (including this Agreement); and

          (v) any untrue statement of a material fact or omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, with respect to all
information contained in any Registration Statement or Information Statement (other than the
Sara Lee Portion).

In the event that any member of the HBI Group makes a payment to the Sara Lee Indemnitees
hereunder, and the Liability of the Sara Lee Indemnitees on account of which such payment was made
is subsequently reduced, either directly or through a third-party recovery (other than a
recovery indirectly from Sara Lee), Sara Lee will promptly repay (or will procure a Sara Lee
Indemnitee to promptly repay) such member of the HBI Group the amount by which the

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payment made by
such member of the HBI Group exceeds the actual cost of the associated indemnified Liability. This
Section 1.2 shall not apply to any Liability indemnified under Section 1.4.

     Section 1.3 Indemnification By Sara Lee. Except as otherwise provided in this
Agreement or any Ancillary Agreement, Sara Lee shall, for itself and for each other member of the
Sara Lee Group, indemnify, defend (or, where applicable, pay the defense costs for) and hold
harmless the HBI Indemnitees from and against, and shall reimburse such HBI Indemnitee with respect
to, any and all Losses that any third party seeks to impose upon the HBI Indemnitees, or which are
imposed upon the HBI Indemnitees, and that result from, relate to or arise, whether prior to or
following the Distribution Date, out of any of the following items (without duplication):

          (i) the failure of Sara Lee or any other member of the Sara Lee Group or any other
Person to pay, perform or otherwise promptly discharge, or if applicable, comply with any
Liability of the Sara Lee Group other than the HBI Liabilities;

          (ii) the Sara Lee Business (or the conduct or operation thereof) or any Liability of
the Sara Lee Group other than the HBI Liabilities;

          (iii) any breach by Sara Lee or any other member of the Sara Lee Group of the
Separation Agreement or any of the Ancillary Agreements (including this Agreement); and

          (iv) any untrue statement of a material fact or omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, with respect to the
Sara Lee Portion of any Registration Statement or Information Statement.

In the event that any member of the Sara Lee Group makes a payment to the HBI Indemnitees
hereunder, and the Liability of the HBI Indemnitees on account of which such payment was made is
subsequently reduced, either directly or through a third-party recovery (other than a recovery
indirectly from HBI), HBI will promptly repay (or will procure a HBI Indemnitee to promptly repay)
such member of the Sara Lee Group the amount by which the payment made by such member of the Sara
Lee Group exceeds the actual cost of the indemnified Liability. This Section 1.3 shall not
apply to any Liability indemnified under Section 1.4.

     Section 1.4 Indemnification With Respect To Environmental Actions And Conditions.

          (a) Indemnification By HBI. HBI shall, for itself and each other member of the HBI
Group, indemnify, defend and hold harmless the Sara Lee Indemnitees from and against
any and all Environmental Actions relating to, arising out of or resulting from any of the
following items (“HBI Environmental Actions”):

          (i) Environmental Conditions arising out of operations at any of the HBI Facilities,
whether occurring before, on or after the Distribution Date;

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          (ii) Environmental Conditions existing on, under, about or in the vicinity of any of
the HBI Facilities (including any Release of Hazardous Materials occurring before, on or
after the Distribution Date that has migrated, is migrating or in the future migrates to any
of the HBI Facilities);

          (iii) the violation of Environmental Law as a result of the operation of any of the HBI
Facilities, whether occurring before, on or after the Distribution Date; and

          (iv) Environmental Conditions at any third-party site to the extent liability arises
from Hazardous Materials generated at any HBI Facility, whether occurring before, on or
after the Distribution Date.

          (b) Indemnification By Sara Lee. Sara Lee shall, for itself and each other member of
the Sara Lee Group, indemnify, defend and hold harmless the HBI Indemnitees from and against any
and all Environmental Actions other than HBI Environmental Actions.

          (c) Agreement Regarding Payments To Indemnitee. In the event an Indemnifying Party
makes any payment to or on behalf of an Indemnitee with respect to an Environmental Action for
which the Indemnifying Party is obligated to indemnify under this Section 1.4, and the
Indemnitee subsequently receives any payment from a third party on account of the same financial
obligation covered by the payment made by the Indemnifying Party for that Environmental Action or
otherwise diminishes the financial obligation, the Indemnitee will promptly pay the Indemnifying
Party the amount by which the payment made by the Indemnifying Party exceeds the actual cost of the
financial obligation.

     Section 1.5 Reductions For Insurance Proceeds And Other Recoveries.

          (a) Insurance Proceeds. The amount that any Indemnifying Party is or may be required
to provide indemnification to or on behalf of any Indemnitee pursuant to Sections 1.2,
1.3 or 1.4, as applicable, shall be reduced (retroactively or prospectively) by any
Insurance Proceeds or other amounts actually recovered from third parties by or on behalf of such
Indemnitee in respect of the related Loss. The existence of a claim by an Indemnitee for monies
from an insurer or against a third party in respect of any indemnifiable Loss shall not, however,
delay any payment pursuant to the indemnification provisions contained herein and otherwise
determined to be due and owing by an Indemnifying Party. Rather, the Indemnifying Party shall make
payment in full of the amount determined to be due and owing by it against an assignment by the
Indemnitee to the Indemnifying Party of the entire claim of the Indemnitee for Insurance Proceeds
or against such third party. Notwithstanding any other provisions of this Agreement, it is the
intention of the Parties that no insurer or any other third party shall be (i) entitled to a
“wind-fall” or other benefit it would not be entitled to receive in the absence of the foregoing
indemnification provisions or otherwise have any subrogation rights with respect thereto, or
(ii) relieved of the responsibility to pay any claims for which it is obligated. If an Indemnitee
has received the payment required by this Agreement from an Indemnifying Party in respect of any
indemnifiable Loss and later receives Insurance Proceeds or other amounts in respect of such
indemnifiable Loss, then such Indemnitee shall hold such Insurance Proceeds or other amounts in
trust for the benefit of the Indemnifying Party (or Indemnifying Parties) and shall pay to the
Indemnifying Party, as promptly as practicable after receipt, a sum equal to the amount of such

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Insurance Proceeds or other amounts received, up to the aggregate amount of any payments received
from the Indemnifying Party pursuant to this Agreement in respect of such indemnifiable Loss (or,
if there is more than one Indemnifying Party, the Indemnitee shall pay each Indemnifying Party, its
proportionate share (based on payments received from the Indemnifying Parties) of such Insurance
Proceeds).

          (b) Tax Detriment/Tax Benefit. The amount that any Indemnifying Party is or may be
required to provide indemnification to or on behalf of any Indemnitee pursuant to Sections
1.2, 1.3 or 1.4, as applicable, shall be (i) increased to take account of any
Tax Detriment incurred by the Indemnitee arising from the receipt or accrual of an indemnification
payment hereunder (grossed up for such increase) and (ii) reduced to take account of any Tax
benefit realized by the Indemnitee arising from incurring or paying such loss or other liability.
Any indemnification payment hereunder shall initially be made without regard to this Section
1.5(b) and shall be increased or reduced to reflect any such Tax Detriment (including gross-up)
or Tax benefit only upon the earlier of such time or times that (A) the Indemnitee realizes such
Tax Benefit or Tax Detriment, whether by way of an increase or reduction in Taxes, refund, offset
against other Taxes, or otherwise, as the case may be, or (B) such Tax Benefit or Tax Detriment
causes an increase or decrease in the Indemnitee’s Deferred Tax Assets, as the case may be. The
amount of any increase or reduction hereunder shall be adjusted to reflect any Final Determination
with respect to the Indemnitee’s liability for Taxes, and payments between such indemnified parties
to reflect such adjustment shall be made if necessary.

     Section 1.6 Procedures For Defense, Settlement And Indemnification Of Third Party
Claims.

          (a) Notice Of Claims. If an Indemnitee shall receive notice or otherwise learn of the
assertion by a Person (including any Governmental Authority) who is not a member of the Sara Lee
Group or the HBI Group of any claim or of the commencement by any such Person of any Action
(collectively, a “Third Party Claim”) with respect to which an Indemnifying Party may be
obligated to provide indemnification, Sara Lee and HBI (as applicable) will ensure that such
Indemnitee shall give such Indemnifying Party prompt written notice thereof but in any event within
10 calendar days after becoming aware of such Third Party Claim. Any such notice shall describe the
Third Party Claim in reasonable detail. Notwithstanding the foregoing, the delay or failure of any
Indemnitee or other Person to give notice as provided in this Section 1.6(a) shall not
relieve the related Indemnifying Party of its obligations under this Article I, except to
the extent that such Indemnifying Party is actually and substantially prejudiced by such delay or
failure to give notice.

          (b) Defense By Indemnifying Party. Except in the case of a Third Party Claim which
seeks injunctive relief, declaratory judgment or other non-monetary relief, an Indemnifying Party
may elect, at its cost, risk and expense, to assume the defense of such Third Party Claim, with
counsel reasonably satisfactory to the Indemnitee seeking indemnification. After timely notice from
the Indemnifying Party to the Indemnitee of such election to assume the defense of a Third Party
Claim, such Indemnitee shall have the right to employ separate counsel and to participate in (but
not control) the defense, compromise, or settlement thereof, but the Indemnifying Party shall not
be liable to such Indemnitee for any legal or other expenses incurred by Indemnitee in connection
with the defense thereof. The Indemnitee agrees to

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cooperate in all reasonable respects with the
Indemnifying Party and its counsel in the defense against any Third Party Claim. The Indemnifying
Party, the Indemnitee and their respective counsels shall cooperate in good faith with any
insurance carriers which are providing, or may provide, them with coverage with respect to such
Third Party Claim. The Indemnifying Party shall be entitled to compromise or settle any Third Party
Claim as to which it is providing indemnification, which compromise or settlement shall be made
only with the written consent of the Indemnitee, such consent not to be unreasonably withheld or
delayed.

          (c) Defense By Indemnitee. If an Indemnifying Party fails to assume the defense of a
Third Party Claim within 25 calendar days after receipt of notice of such claim or if the
Indemnifying Party does not have the right to assume the defense of such claim, Indemnitee will,
upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the
defense, compromise or settlement of such Third Party Claim on behalf of and for the account of the
Indemnifying Party subject to the limitations as set forth in this Section 1.6; provided,
however, that such Third Party Claim shall not be compromised or settled without the written
consent of the Indemnifying Party, which consent shall not be unreasonably withheld or delayed. If
the Indemnitee assumes the defense of any Third Party Claim, it shall keep the Indemnifying Party
reasonably informed of the progress of any such defense, compromise or settlement. The Indemnifying
Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately
determined that the Indemnifying Party is obligated to indemnify the Indemnitee with respect to
such Third Party Claim. In no event shall an Indemnifying Party be liable for any settlement
effected without its consent, which consent will not be unreasonably withheld or delayed.

     Section 1.7 Additional Matters.

          (a) Cooperation In Defense And Settlement. With respect to any Third Party Claim that
implicates both HBI and Sara Lee in a material fashion due to the allocation of Liabilities,
responsibilities for management of defense and related indemnities set forth in the Separation
Agreement, this Agreement or any of the Ancillary Agreements, the Parties agree to cooperate fully
and maintain a joint defense (in a manner that will preserve the attorney-client privilege, joint
defense or other privilege with respect thereto) so as to minimize such Liabilities and defense
costs associated therewith. The party that is not responsible for managing the defense of such
Third Party Claims shall, upon reasonable request, be consulted with respect to significant matters
relating thereto and may retain counsel to monitor or assist in the defense of such claims at its
own cost.

          (b) Certain Actions. Notwithstanding anything to the contrary set forth in
Section 1.6, Sara Lee may, in its sole discretion, elect to have exclusive authority and
control over the investigation, prosecution, defense and appeal of all Actions pending at the
Distribution Date which in any manner relate to or arise out of the Branded Apparel Business, the
HBI Assets or the HBI Liabilities if Sara Lee or a member of the Sara Lee Group is named as a party
thereto (but excluding any such Actions which solely relate to or solely arise in connection with
the Branded Apparel Business, the HBI Assets or the HBI Liabilities); provided, however, that Sara
Lee must obtain the written consent of HBI, such consent not to be unreasonably withheld or
delayed, to settle or compromise or consent to the entry of judgment with respect to such Action.
After any such compromise, settlement, consent to entry of judgment or entry of judgment, Sara

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Lee
shall reasonably and fairly allocate to HBI and HBI shall be responsible for HBI’s proportionate
share of any such compromise, settlement, consent or judgment attributable to the Branded Apparel
Business, the HBI Assets or the HBI Liabilities, including its proportionate share of the costs and
expenses associated with defending same.

          (c) Substitution. In the event of an Action in which the Indemnifying Party is not a
named defendant, if either the Indemnitee or the Indemnifying Party shall so request, the Parties
shall endeavor to substitute the Indemnifying Party for the named defendant. If such substitution
or addition cannot be achieved for any reason or is not requested, the rights and obligations of
the Parties regarding indemnification and the management of the defense of claims as set forth in
this Article I shall not be altered.

          (d) Subrogation. In the event of payment by or on behalf of any Indemnifying Party to
or on behalf of any Indemnitee in connection with any Third Party Claim, such Indemnifying Party
shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based
upon whether the Indemnifying Party has paid all or only part of the Indemnitee’s Liability, as to
any events or circumstances in respect of which such Indemnitee may have any right, defense or
claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third
Party Claim or against any other Person. Such Indemnitee shall cooperate with such Indemnifying
Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in
prosecuting any subrogated right, defense or claim.

          (e) Not Applicable To Taxes. This Agreement shall not apply to Taxes (which are
solely covered by the Tax Sharing Agreement).

     Section 1.8 Survival Of Indemnities. The rights and obligations of the members of the
Sara Lee Group and the HBI Group under this Article I shall survive the sale or other
transfer by any party of any Assets or businesses or the assignment by it of any Liabilities or the
sale by any member of the Sara Lee Group or the HBI Group of the capital stock or other equity
interests of any Subsidiary to any Person.

ARTICLE II

INSURANCE MATTERS

     Section 2.1 Cooperation; Payment Of Insurance Proceeds To HBI; Agreement Not To Release
Carriers. Each of Sara Lee and HBI will share such information as is reasonably necessary in
order to permit the other to manage and conduct its insurance matters in an orderly fashion. Each
of Sara Lee and HBI shall use reasonable best efforts to give notice on a timely basis to insurance
carriers of claims relating to the Branded Apparel Business in accordance with the terms of the
Sara Lee Insurance Policies. Sara Lee, at the request of HBI, shall cooperate with and use
reasonable best efforts to assist HBI in recovering Insurance Proceeds under Sara Lee Insurance
Policies for claims relating to the Branded Apparel Business, the HBI Assets or the HBI
Liabilities, whether such claims arise under any contract or agreement, by operation of law or
otherwise, existing or arising from any past acts or events occurring or failing to occur or
alleged to have occurred or to have failed to occur on or before the Distribution Date or any
conditions existing or alleged to have existed on or before the Distribution Date, and shall
promptly pay any such recovered Insurance Proceeds to HBI. Neither Sara Lee nor HBI, nor any

8

 

of
their Subsidiaries, shall take any action which would intentionally jeopardize or otherwise
interfere with either Party’s ability to collect any proceeds payable pursuant to any insurance
policy. Except as otherwise contemplated by the Separation Agreement, this Agreement or any
Ancillary Agreement, after the Distribution Date, neither Sara Lee nor HBI shall (and each Party
shall ensure that no member of the such Party’s Group shall), without the consent of the other,
provide any insurance carrier with a release, or amend, modify or waive any rights under any such
policy or agreement, if such release, amendment, modification or waiver would adversely affect any
rights or potential rights of any member of the Sara Lee Group or the HBI Group thereunder.
However, nothing in this Section 2.1 shall (a) preclude any member of the Sara Lee Group or
the HBI Group from presenting any claim or from exhausting any policy limit, (b) require any member
of the Sara Lee Group or the HBI Group to pay any premium or other amount or to incur any Liability
(other than premiums or other amounts for which HBI will reimburse Sara Lee, or Liabilities for
which HBI will indemnify Sara Lee, under the terms of this Agreement), or (c) require any member of
the Sara Lee Group or the HBI Group to renew, extend or continue any policy in force (provided,
however, that before making any decision to decline any insurance policy, Sara Lee shall use
reasonable best efforts to provide HBI with the option, at HBI’s sole expense, of purchasing
extended coverage with respect to claims arising from events during the original policy period, if
extended coverage is available). Each of Sara Lee and HBI shall use reasonable best efforts to
give prompt notice to the other if it is making claims under the Sara Lee Insurance Policies which
it believes may exhaust the limits of one or more of those policies. Nothing in this Agreement is
intended to relieve any insurance carrier or provider of any Liability under any policy.

     Section 2.2 HBI Insurance Coverage After The Distribution Date.

          (a) Generally. From and after the Distribution Date, HBI shall be responsible for
obtaining and maintaining insurance programs for its risk of loss incurred after the
Distribution Date, and such insurance arrangements shall be separate and apart from Sara Lee’s
insurance programs. Upon the request of HBI, Sara Lee shall use reasonable best efforts to assist
HBI in the transition to its own separate insurance programs from and after the Distribution Date,
and shall provide HBI with any information that is in the possession of Sara Lee and is reasonably
available and necessary for HBI to either obtain its own insurance coverages or to assist HBI in
preventing unintended self-insurance, in whatever form.

          (b) Sara Lee Guarantees. HBI agrees that from and after the Distribution Date and for
so long as there is a Sara Lee Guarantee obligation outstanding, HBI (i) will take all actions
necessary and consistent with Sara Lee’s current insurance practices, to purchase and maintain
insurance coverage of substantially the same types and in reasonable amounts on any liability that
is the subject of any Sara Lee Guarantee then in effect and (ii) provide that Sara Lee be an
“additional insured” under those liability policies of HBI which are solely controlled by HBI in
respect of Liabilities that Sara Lee may incur as a result of any Sara Lee Guarantee obligation
with respect to the Branded Apparel Business, the HBI Assets or the HBI Liabilities, at no premium
cost to Sara Lee therefor, such that Sara Lee has rights to coverage thereunder no less than the
rights conferred on any other insured to the extent of its interest therein. During the applicable
period set forth in the first sentence of this Section 2.2(b), HBI will use all reasonable
best efforts to ensure that all of HBI’s liability policies to which the preceding sentence applies
provide that Sara Lee will be given at least 60 days advance written notice by the insurer of any

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cancellation of such policies, a reduction in coverage thereunder, or any deletion of Sara Lee as
an “additional insured,” and HBI shall not cancel any such policy or reduce the coverage available
thereunder in any manner detrimental to Sara Lee, without Sara Lee’s prior written consent, not to
be unreasonably withheld or delayed. Sara Lee agrees to promptly release HBI from its obligations
under this Section 2.2(b) following the date on which there are no Sara Lee Guarantee
obligations outstanding.

     Section 2.3 Responsibilities For Deductibles And/Or Self-Insured Obligations. HBI will
reimburse Sara Lee on a monthly basis for (a) all amounts necessary to exhaust or otherwise satisfy
all applicable self-insured retentions, amounts for fronted policies, deductibles and retrospective
premium adjustments and similar amounts not covered by Insurance Policies in connection with HBI
Liabilities and Insured HBI Liabilities to the extent that Sara Lee is required to pay any such
amounts and (b) the costs of all letters of credit and other collateral required to be maintained
by Sara Lee in connection with HBI Liabilities and Insured HBI Liabilities (or, at Sara Lee’s
option, HBI shall post a letter of credit or other collateral directly with the insurer,
governmental agency or other entity in question if those entities so permit).

     Section 2.4 Procedures With Respect To Insured HBI Liabilities.

          (a) Reimbursement. HBI will reimburse Sara Lee for all amounts incurred to pursue
insurance recoveries from Insurance Policies for Insured HBI Liabilities.

          (b) Management Of Claims. The defense of claims, suits or actions giving rise to
potential or actual Insured HBI Liabilities will be managed (in cooperation with Sara Lee’s
insurers, as appropriate) by the Party that would have had responsibility for managing such claims,
suits or actions had such Insured HBI Liabilities been HBI Liabilities.

     Section 2.5 Insufficient Limits Of Liability For Sara Lee Liabilities And HBI
Liabilities.

          (a) General Principle. Proceeds from Sara Lee’s Insurance Policies shall be available
to HBI and Sara Lee on a “first come, first served” basis; provided that if there are insufficient
limits of liabilities available under Sara Lee’s Insurance Policies to cover the Liabilities of
Sara Lee and/or HBI that would otherwise be covered by such Insurance Policies, then to the extent
other insurance is not available to Sara Lee and/or HBI for such Liabilities an adjusting payment
will be made by one of the Parties in accordance with Section 2.5(b).

          (b) Adjusting Payment. If (i) the proceeds received by one Party under Sara Lee’s
Insurance Policies exceed that Party’s Shared Percentage of the total coverage available under
those Insurance Policies (the “Overallocated Party”), (ii) those Insurance Policies are
exhausted by the claims of one or both of the Parties, and (iii) the other Party has Liabilities
which cannot be paid under those Insurance Policies due to the exhaustion of those policies or
because an insurer becomes insolvent (the “Underallocated Party”), then the Overallocated
Party shall make a payment to the Underallocated Party in an amount which will result in the
Underallocated Party having received, after taking into account actual insurance proceeds received
by the Underallocated Party under the Sara Lee Insurance Policies and any insolvent insurer
distributions or guarantee fund payments and the adjusting payment (and previous

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adjusting payments
made under this Section 2.5), proceeds equal to the lesser of (x) the Underallocated
Party’s Shared Percentage of the total coverage or (y) the amount of Liabilities of the
Underallocated Party. The Parties shall make adjusting payments under this Section 2.5 at
any time and from time to time when there is an Underallocated Party. The requirement to make an
adjusting payment under this Section shall terminate ten years after the Distribution Date, except
with respect to any matters in dispute between the Parties at that time.

          (c) Illustrations. The following illustrations are intended to provide guidance
concerning how this Section 2.5 is intended to apply to claims implicating insurance
policies issued prior to the Distribution Date.

          (i) Illustration No. 1. Ten separate claims are brought arising from ten
separate “occurrences,” each resulting in an HBI Liability of $10 million. The self-insured
retention is $10 million “per occurrence.” Result: This Section 2.5 is inapplicable.

          (ii) Illustration No. 2. Ten separate claims are brought arising from ten
separate “occurrences,” each resulting in an HBI Liability of $40 million, for a total of
$400 million. Fifteen separate claims are brought arising from fifteen separate
“occurrences,” each resulting in a Liability to Sara Lee of $40 million, for a total of $600
million. The limits of liability in the Insurance Policies applicable to the claims is
$200 million. The self-insured retention is $10 million “per occurrence,” leaving a
remaining liability (after the payment of self-insured retentions) of $30 million “per
occurrence,” or $300 million in the aggregate for HBI and $450 million in the aggregate for
Sara Lee. The HBI Liabilities are incurred prior to the Liabilities incurred by Sara Lee,
and paid for by Sara Lee’s Insurance Policies, which are exhausted, by these payments. This
leaves HBI with an additional liability of $100 million (plus its self-insured retentions of
$100 million). Result: The $200 million from the Insurance Policies is split 85/15: $170
million is allocated to Sara Lee and $30 million is allocated to HBI. HBI should pay Sara
Lee $170 million, Sara Lee’s share of the coverage amount.

          (iii) Illustration No. 3. Same as Illustration No. 2, except that Sara
Lee’s claims ($200 million) were paid for by Sara Lee’s Insurance Policies in effect prior
to the Distribution Date, which are exhausted by these payments. This leaves HBI with a
liability of $300 million (plus its self-insured retentions of $100 million). Sara Lee
should pay HBI $10 million.

          (iv) Illustration No. 4. Ten separate claims are brought arising from ten
separate “occurrences,” each resulting in an HBI Liability of $40 million, for a total of
$400 million. Five separate claims are brought arising from five separate “occurrences,”
each resulting in a Liability to Sara Lee of $40 million, for a total of $200 million. The
limits of liability in the Insurance Policies applicable to the claims is $200 million. The
self-insured retention is $10 million “per occurrence,” leaving a remaining liability (after
the payment of self-insured retentions) of $30 million “per occurrence,” or $300 million in
the aggregate for HBI and $150 million in the aggregate for Sara Lee. The HBI Liabilities
are incurred prior to the Liabilities incurred by Sara Lee, and paid for by Sara Lee’s
Insurance Policies, which are exhausted, by these payments. This leaves HBI with

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an additional liability of $100 million (plus its self-insured retentions of $100 million).
Result: The $200 million from the Insurance Policies is split 85/15: $170 million is
allocated to Sara Lee and $30 million is allocated to HBI. However, since the Liabilities of
Sara Lee are less than its Shared Percentage of the total coverage, HBI should pay Sara Lee
$150 million, the amount of Sara Lee’s Liabilities.

     Section 2.6 Cooperation. Sara Lee and HBI will cooperate in good faith with each other
in all respects, and they shall execute any additional documents which are reasonably necessary, to
effectuate the provisions of this Article II.

     Section 2.7 No Assignment Or Waiver. This Agreement shall not be considered as an
attempted assignment of any policy of insurance or as a contract of insurance and shall not be
construed to waive any right or remedy of any member of the Sara Lee Group in respect of any
Insurance Policy or any other contract or policy of insurance.

     Section 2.8 No Liability. HBI does hereby, for itself and each other member of the HBI Group, agree that no member of
the Sara Lee Group or any Sara Lee Indemnitee shall have any Liability whatsoever as a result of
the insurance policies and practices of Sara Lee and its Subsidiaries as in effect at any time
prior to the Distribution Date, including as a result of the level or scope of any such insurance,
the creditworthiness of any insurance carrier, the terms and conditions of any policy or otherwise.

     Section 2.9 Further Agreements. The Parties acknowledge that they intend to allocate
financial obligations without violating any laws regarding insurance, self-insurance or other
financial responsibility. If it is determined that any action undertaken pursuant to the Separation
Agreement, this Agreement or any Ancillary Agreement is violative of any insurance, self-insurance
or related financial responsibility law or regulation, the Parties agree to work together to do
whatever is necessary to comply with such law or regulation while trying to accomplish, as much as
possible, the allocation of financial obligations as intended in the Separation Agreement, this
Agreement and any Ancillary Agreement.

     Section 2.10 Workers’ Compensation Claims. HBI shall be responsible for all Liabilities
relating to, arising out of or resulting from all workers’ compensation or similar claims by
current or former employees of the Sara Lee Group based on employment with the Branded Apparel
Business. All such workers’ compensation and similar claims made prior to the Distribution Date
shall be paid under the Sara Lee Workers’ Compensation Plan. Sara Lee shall continue to
administer, or cause to be administered, the Sara Lee Workers’ Compensation Plan in accordance with
its terms and applicable law. HBI shall fully cooperate with Sara Lee and its insurance company in
the reporting and administration of claims under the Sara Lee Workers’ Compensation Plan. HBI
shall be entitled to manage and settle HBI Claims, subject to the terms of the Sara Lee Workers’
Compensation Plan. HBI shall consult and cooperate with Sara Lee and its insurance company in its
claims management and settlement activities. From and after the Distribution Date, HBI shall
maintain with Sara Lee a $400,000 deposit to pay the costs related to HBI’s participation in the
Sara Lee Workers’ Compensation Plan. Sara Lee shall provide HBI with a statement showing the
amount of costs paid out of the deposit during each month and HBI shall, within 15 days following
its receipt of each such statement, deposit with Sara Lee additional funds in an amount sufficient
to return the deposit balance to $400,000

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(giving effect to the payments shown in such monthly
statement). HBI shall maintain such deposit balance of $400,000 with Sara Lee until the date on
which the average HBI Claims paid under the Sara Lee Workers’ Compensation Plan over four
consecutive months is less than $225,000 per month, upon which time the average deposit balance
shall be reduced to $200,000. The requirement to maintain such deposit balance of $200,000 shall
terminate when the average of all HBI Claims paid under the Sara Lee Workers’ Compensation Plan
over four consecutive months is less than $100,000 per month.

     Section 2.11 Matters Governed By Employee Matters Agreement. This Article II
shall not apply to any insurance policies that are the subject of the Employee Matters Agreement.

     Section 2.12 Other Agreements Evidencing Indemnification Obligations. Sara Lee hereby
agrees to execute, for the benefit of any HBI Indemnitee, such documents as may be reasonably
requested by such HBI Indemnitee, evidencing Sara Lee’s agreement that the indemnification
obligations of Sara Lee set forth in this Agreement inure to the benefit of and are enforceable by
such HBI Indemnitee. HBI hereby agrees to execute, for the benefit of any Sara Lee Indemnitee, such
documents as may be reasonably requested by such Sara Lee Indemnitee, evidencing HBI’s agreement
that the indemnification obligations of HBI set forth in this Agreement inure to the benefit of and
are enforceable by such Sara Lee Indemnitee.

ARTICLE III

MISCELLANEOUS

     Section 3.1 Entire Agreement; Incorporation Of Schedules And Exhibits. This Agreement
(including all Schedules and Exhibits referred to herein), the Separation Agreement and the other
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 3.2 Amendments And Waivers. This Agreement may be amended and any provision
of this Agreement may be waived, provided that any such amendment or waiver shall be binding upon a
Party only if such amendment or waiver is set forth in a writing executed by such Party. No course
of dealing between or among any Persons having any interest in this Agreement shall be deemed
effective to modify, amend or discharge any part of this Agreement or any rights or obligations of
any Party under or by reason of this Agreement.

     Section 3.3 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
3.2 and shall be effective only to the extent in such writing specifically set forth.

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     Section 3.4 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 3.5 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 effectuated 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 3.6 Notices. All notices, demands and other communications given under this
Agreement must be in writing and must be either personally delivered, telecopied (and confirmed by
telecopy answer back), mailed by first class mail (postage prepaid and return receipt requested),
or sent by reputable overnight courier service (charges prepaid) to the recipient at the address or
telecopy number indicated below or such other address or telecopy number or to the attention of
such other Person as the recipient party shall have specified by prior written notice to the
sending party. Any notice, demand or other communication under this Agreement shall be deemed to
have been given when so personally delivered or so telecopied and confirmed (if telecopied before
5:00 p.m. Eastern Standard Time on a business day, and otherwise on the next business day), or if
sent, one business day after deposit with an overnight courier, or, if mailed, five business days
after deposit in the U.S. mail.

Sara Lee Corporation

Three First National Plaza

Chicago, Illinois 60602-4260

Attention: General Counsel

Facsimile Number: (312) 419-3187

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105.

Attention: General Counsel

Facsimile Number: (336) 714-7441

     Section 3.7 Severability. The Parties agree that (a) the provisions of this Agreement
shall be severable in the event that for any reason whatsoever any of the provisions hereof are
invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable
provisions shall be replaced
by other provisions which are as similar as possible in terms to such invalid, void or
otherwise unenforceable provisions but are valid and enforceable, and (c) the remaining provisions
shall remain valid and enforceable to the fullest extent permitted by applicable law.

14

 

     Section 3.8 Governing Law. All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by and construed in accordance with the domestic
laws of the State of Illinois, without giving effect to any choice of law or conflict of law
provision (whether of the State of Illinois or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Illinois.

     Section 3.9 Submission To Jurisdiction. SUBJECT TO SECTION 3.12, EACH OF THE PARTIES
IRREVOCABLY SUBMITS (FOR ITSELF AND IN RESPECT OF ITS PROPERTY) TO THE JURISDICTION OF ANY STATE OR
FEDERAL COURT SITTING IN CHICAGO, ILLINOIS, OR FORSYTH COUNTY, NORTH CAROLINA OR GUILDFORD COUNTY,
NORTH CAROLINA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES
THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH
COURT; PROVIDED THAT THE PARTIES MAY BRING ACTIONS OR PROCEEDINGS AGAINST EACH OTHER IN OTHER
JURISDICTIONS TO THE EXTENT NECESSARY TO 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 3.6 ABOVE. NOTHING IN THIS SECTION 3.9, HOWEVER, SHALL AFFECT
THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AT EQUITY.
EACH PARTY AGREES THAT A FINAL 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 3.10 Waiver Of Jury Trial. AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR
EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE
OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY
IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS
CONTEMPLATED HEREBY.

     Section 3.11 Amicable Resolution. The Parties desire that friendly collaboration will
develop between them. Accordingly, they will try to resolve in an amicable manner all disputes and
disagreements connected with their respective rights and obligations under this Agreement in
accordance with Section 6.12 of the Separation Agreement.

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     Section 3.12 Arbitration. Except for suits seeking injunctive relief or specific
performance or in the event of any impleader action arising from any proceeding commenced by a
third party that relates to this Agreement, in the event of any dispute, controversy or claim
arising under or in connection with this Agreement (including any dispute, controversy or claim
relating to the breach, termination or validity thereof), the Parties shall submit any such
dispute, controversy or claim to binding arbitration in accordance with Section 6.13 of the
Separation Agreement.

     Section 3.13 Construction. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be a substantive part of or to affect the
meaning or interpretation of this Agreement. Whenever required by the context, any pronoun used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to
any agreement, document, or instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and if applicable
hereof. The use of the words “include” or “including” in this Agreement shall be by way of example
rather than by limitation. The use of the words “or,” “either” or “any” shall not be exclusive.
The Parties have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the Parties hereto, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement. The Parties agree that prior drafts of this Agreement shall be deemed not to
provide any evidence as to the meaning of any provision hereof or the intent of the Parties hereto
with respect hereto.

     Section 3.14 Counterparts. This Agreement may be executed in multiple counterparts
(any one of which need not contain the signatures of more than one party), each of which shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement.

     Section 3.15 Limitation On Damages. Each Party irrevocably waives, and no Party shall be entitled to seek or receive from the other
Party, 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 , however, that to the extent an Indemnified Party is required
to pay any consequential, special, indirect or incidental damages (including without limitation
damages for loss of profits) or punitive damages to a third party in connection with a Third Party
Claim, such damages shall constitute direct damages and not be subject to the limitations set forth
in this Section 3.15.

     Section 3.16 Delivery By Facsimile Or Other Electronic Means. This Agreement, and any
amendments hereto, to the extent signed and delivered by means of a facsimile machine or other
electronic transmission, shall be treated in all manner and respects as an original contract and
shall be considered to have the same binding legal effects as if it were the original signed
version thereof delivered in person. At the request of any Party, each other Party shall
re-execute 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 IV

DEFINITIONS

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

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

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

     “Employee Matters Agreement” means the Employee Matters Agreement attached as Exhibit
A to the Separation Agreement.

     “Environmental Actions” means any notice or disclosure to or any, claim, act, cause of
action, order, decree or investigation by any third party (including, without limitation, any
Governmental Authority) alleging potential liability (including potential liability for
investigatory costs, cleanup costs, governmental response costs, natural resources damages, damage
to flora or fauna caused by Environmental Conditions, real property damages, personal injuries or
penalties) arising out of, based on or resulting from the Release of or exposure of any individual
to any Hazardous Materials or any violation of Environmental Laws.

     “Environmental Conditions” means the presence in the environment, including the soil,
groundwater, surface water or ambient air, of any Hazardous Materials at a level which exceeds any
applicable standard or threshold under any Environmental Law or otherwise requires investigation or
remediation (including, without limitation, investigation, study, health or risk assessment,
monitoring, removal, treatment or transport) under any applicable Environmental Laws.

     “Environmental Laws” means all laws and regulations of any Governmental Authority with
jurisdiction that relate to the protection of the environment (including ambient air, surface
water, ground water, land surface or subsurface strata) including laws, regulations, ordinances,
permits, licenses or any other binding legal obligation in effect now or in the future relating to
the Release of Hazardous Materials, or otherwise relating to the treatment, storage, disposal,
transport or handling of Hazardous Materials, or to the exposure of any individual to a Release of
Hazardous Materials.

     “Final Determination” has the meaning set forth in the Tax Sharing Agreement.

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     “Hazardous Materials” means chemicals, pollutants, contaminants, wastes, toxic
substances, radioactive and biological materials, hazardous substances, petroleum and petroleum
products or any fraction thereof, including, without limitation, such substances referred to by
such terms as defined in any Environmental Laws.

     “HBI Covered Parties” has the meaning set forth in Section 2.1(a) of this
Agreement.

     “HBI Facilities” means all of those interests in real estate to be transferred to HBI
under the Real Estate Matters Agreement, and any other facilities owned, leased or operated by or
associated with the Branded Apparel Business, the HBI Group or NT LLC at any time before, on or
after the Distribution Date (including without limitation former facilities) provided, however,
that for the avoidance of doubt the HBI Facilities shall not include the real property and
improvements listed on Schedule 1 hereto.

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

     “Indemnifying Party” means any party which may be obligated to provide indemnification
to an Indemnitee pursuant to Sections 1.2, 1.3 or 1.4 hereof or any other
section of the Separation Agreement or any Ancillary Agreement.

     “Indemnitee” means any party which may be entitled to indemnification from an
Indemnifying Party pursuant to Sections 1.2, 1.3 or 1.4 hereof or any other
section of the Separation Agreement or any Ancillary Agreement.

     “Insurance Policies” means insurance policies pursuant to which a Person makes a true
risk transfer to an insurer.

     “Insurance Proceeds” means those monies: (i) received by an insured from an insurance
carrier; (ii) paid by an insurance carrier on behalf of the insured; or (iii) from Insurance
Policies.

     “Insured HBI Liability” means any HBI Liability to the extent that (i) it is covered
under the terms of Sara Lee’s Insurance Policies in effect prior to the Distribution Date, and (ii)
HBI is not a named insured under, or otherwise entitled to the benefits of, such Insurance
Policies.

     “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
generally accepted principles and accounting policies to be reflected in financial statements or
disclosed in the notes thereto.

     “Loss” and “Losses” mean any and all damages, losses, deficiencies,
Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest,
costs and

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expenses (including, without limitation, the costs and expenses of any and all Actions
and demands, assessments, judgments, settlements and compromises relating thereto and the costs and
expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses
incurred in the investigation or defense thereof or the enforcement of rights hereunder), including
direct and consequential damages, but excluding punitive damages (other than punitive damages
awarded to any third party against an indemnified party); provided, however, that the term “Loss”
as used in this Agreement is not intended to supersede the term “Loss” when used in, or defined by,
the Insurance Policies.

     “NT LLC” means National Textiles, L.L.C., a Delaware limited liability company.

     “Parties” means the parties to this Agreement.

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

     “Release” means any release, spill, emission, leaking, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment,
including, without limitation, the movement of Hazardous Materials through ambient air, soil,
surface water, groundwater, wetlands, land or subsurface strata.

     “Sara Lee Guarantee” means any loan, financing, lease, contract or other obligation in
existence as of the Distribution Date pertaining to the Branded Apparel Business, HBI Assets or HBI
Liabilities for which Sara Lee is or may be liable, as guarantor, original tenant, primary obligor
or otherwise.

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

     “Sara Lee Portion” means all information set forth in, or incorporated by reference in
Registration Statement, to the extent such information relates exclusively to (a) Sara Lee and the
Sara Lee Group (other than the HBI Group), (b) the Sara Lee Business (other than the Branded
Apparel Business), (c) Sara Lee’s intentions with respect to the Separation or the Distribution or
(d) the terms of the Separation or the Distribution, including, without limitation, the form,
structure and terms of any transaction(s) to effect the Separation or the Distribution and the
timing of and conditions to the consummation of the Separation or the Distribution.

     “Separation Agreement” has the meaning set forth in the preamble of this Agreement.

     “Shared HBI Percentage” means 15%.

     “Shared Percentage” means the Shared HBI Percentage or the Shared Sara Lee Percentage,
as the case may be.

19

 

     “Shared Sara Lee Percentage” means 85%.

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

     “Tax Sharing Agreement” means the Tax Sharing Agreement, attached as Exhibit E to the
Separation Agreement.

     “Tax and Taxes” have the meaning set forth in the Tax Sharing Agreement.

     “Tax Benefit” has the meaning set forth in the Tax Sharing Agreement.

     “Tax Detriment” has the meaning set forth in the Tax Sharing Agreement.

     “Third Party Claim” has the meaning set forth in Section 1.6(a) of this
Agreement.

[SIGNATURE PAGE FOLLOWS]

20

 

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

	 	 	 	 	 
	 	SARA LEE CORPORATION

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

	 	 	 	 	 
	 	HANESBRANDS INC.

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

 

 

	 	 	 	 	 

SCHEDULE 1

Excluded Facilities

Current or former facilities of European Branded Apparel, including the following:

	 	•	 	Desseilles Textiles SA, 141 Rue de Four a Chaux, 62100 Calais, France (sold to
Sotexim)
	 
	 	•	 	Penn Elastic Gmbh, An der Talle 20, D-33102 Paderborn, Germany
	 
	 	•	 	Courtaulds Troyes Manufacture, 44 route du Troyes, 10700 Arcis sur Aube, France
	 
	 	•	 	Sara Lee Knit Product (Champion), Ghent, Skaldenstraat, Belgium

22EX-10.27

 

INTELLECTUAL PROPERTY MATTERS AGREEMENT

between

SARA LEE CORPORATION

and

HANESBRANDS INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I TRADEMARK MATTERS
	 	 	1	 
	Section 1.1 Limited  License
	 	 	1	 
	Section 1.2 Ownership and Protection of the Sara Lee Marks
	 	 	2	 
	Section 1.3 Quality Control and Use of the Sara Lee Marks
	 	 	3	 
	Section 1.4 Term and Termination of Trademark License
	 	 	3	 
	Section 1.5 Trademark Ownership Acknowledgement
	 	 	4	 
	Section 1.6 Trademark Database
	 	 	4	 
	Section 1.7 Sara Lee Redirection of URLs, Domain Names and E-mails
	 	 	4	 
	Section 1.8 Further Assurances and Cooperation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II SOFTWARE LICENSE
	 	 	5	 
	Section 2.1 Internal Use License Grant
	 	 	5	 
	Section 2.2 License Restrictions
	 	 	5	 
	Section 2.3 Intellectual Property
	 	 	6	 
	Section 2.4 Confidentiality
	 	 	6	 
	Section 2.5 Notice of Infringement
	 	 	6	 
	Section 2.6 Acknowledgment Regarding No Further Actions
	 	 	6	 
	Section 2.7 Third Party Consents
	 	 	6	 
	Section 2.8 Term and Termination of Software License
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III MISCELLANEOUS
	 	 	7	 
	Section 3.1 Survival; No Cross-Defaults
	 	 	7	 
	Section 3.2 Disclaimer of Warranties
	 	 	7	 
	Section 3.3 Limitation of Liability
	 	 	7	 
	Section 3.4 Conflict with Separation Agreement
	 	 	8	 
	Section 3.5 Independent Contractors
	 	 	8	 
	Section 3.6 Compliance with Laws
	 	 	8	 
	Section 3.7 Entire Agreement
	 	 	8	 
	Section 3.8 Amendments and Waivers
	 	 	8	 
	Section 3.9 No Implied Waivers; Cumulative Remedies; Writing Required
	 	 	8	 
	Section 3.10 Parties In Interest
	 	 	9	 
	Section 3.11 Assignment; Change of Control; Binding Agreement
	 	 	9	 
	Section 3.12 Notices
	 	 	9	 
	Section 3.13 Severability
	 	 	10	 
	Section 3.14 Construction
	 	 	10	 
	Section 3.15 Counterparts
	 	 	10	 
	Section 3.16 Delivery by Facsimile and Other Electronic Means
	 	 	10	 
	Section 3.17 Governing Law
	 	 	10	 
	Section 3.18 Submission to Jurisdiction
	 	 	11	 
	Section 3.19 Waiver of Jury Trial
	 	 	11	 
	Section 3.20 Amicable Resolution
	 	 	11	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 3.21 Arbitration
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV DEFINITIONS
	 	 	11	 

 

 

INTELLECTUAL PROPERTY MATTERS AGREEMENT

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

RECITALS

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

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

     WHEREAS, the Parties desire to set forth in this Agreement certain rights and obligations
related to Intellectual Property matters necessary in order to ensure an orderly transition under
the Separation Agreement.

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

ARTICLE I

TRADEMARK MATTERS

     Section 1.1 Limited License.

          (a) Trademark License Grant. Subject to the terms and conditions of this Agreement,
Sara Lee grants to HBI a fully-paid-up, royalty-free, non-exclusive and non-transferable (except as
expressly provided in Section 3.11 of this Agreement) license, without the right to sublicense
(except as expressly permitted in this Section 1.1(a)), (i) to use the Sara Lee Marks, and (ii) to
permit its Affiliated Companies to use the Sara Lee Marks, in each case in the Territory and solely
in connection with Sara Lee Materials. HBI shall be responsible for causing any of its Affiliated
Companies so licensed hereunder to comply with the terms and conditions of the Trademark License
Agreement. Furthermore, the Parties expressly agree that HBI and its Affiliated Companies may
sublicense the Sara Lee Marks to agents and contractors of HBI and its Affiliated Companies who are
retained to provide services to HBI or its Affiliated Companies to use the Sara Lee Marks solely in
connection with Sara Lee Materials for purposes of providing such services to HBI and its
Affiliated Companies, HBI and its Affiliated Companies being and remaining responsible for
compliance of such third parties with this Trademark License Agreement in such use.

          (b) Obligation to Discontinue Use. HBI shall use its reasonable best efforts to
discontinue use of, or to remove the Sara Lee Marks from, all Sara Lee Materials as soon as
possible

 

 

after the Distribution Date. Notwithstanding the foregoing, upon expiration or termination
of the Trademark License Agreement, all rights of HBI to use the Sara Lee Marks shall terminate
immediately and shall revert to Sara Lee, and HBI shall discontinue all use of the Sara Lee Marks
and Sara Lee Materials as soon as is commercially reasonable. In connection with the foregoing,
upon Sara Lee’s written request, a corporate officer of HBI shall certify that, based upon a
reasonable investigation, HBI has either: (i) destroyed the Sara Lee Materials as of the effective
date of such termination or expiration; or (ii) removed the Sara Lee Marks from the Sara Lee
Materials. The obligation to discontinue use described in this Section 1.1(b) shall not apply to
Sara Lee Materials that, as of the date of expiration or termination of the Trademark License
Agreement, HBI or any of its Affiliated Companies has released into the stream of commerce and that
are no longer under HBI’s control.

          (c) Obligation to Cease Ordering Materials. As of the Distribution Date, HBI shall
cease creating and ordering any Materials bearing the Sara Lee Marks.

          (d) Corporate Name. Subject to the terms and conditions of this Agreement, Sara Lee
grants to HBI a fully-paid-up, royalty-free, non-exclusive and non-transferable license, without
the right to sublicense (except as expressly permitted in this Section 1.1(d)), to use, and to
permit its Affiliated Companies to use, the Sara Lee Marks solely as part of the HBI corporate
names set forth on Schedule 4 attached hereto in the same manner such corporate names were
used immediately prior to the Distribution Date, provided, however, that HBI and its Affiliated
Companies shall diligently pursue discontinuation of the use of such corporate names by completing
the name change process as soon as practicable after the Distribution Date, but in no event later
than the applicable name change deadline set forth on Schedule 4.

     Section 1.2 Ownership and Protection of the Sara Lee Marks.

          (a) Sara Lee’s Ownership. HBI shall not directly or indirectly challenge Sara Lee’s
sole and exclusive ownership of all right, title and interest in and to the Sara Lee Marks,
including the goodwill associated therewith. All goodwill arising from HBI’s or its Affiliated
Companies’ use of the Sara Lee Marks shall inure solely to the benefit of Sara Lee. Neither HBI
nor its Affiliated Companies shall acquire any ownership rights in the Sara Lee Marks, variations
thereon, or marks confusingly similar thereto, as a result of exercise of any rights under this
Agreement.

          (b) Prohibited Actions. HBI shall not adopt, use, register or apply for registrations
anywhere in the world for the Sara Lee Marks or any other Trademarks that (i) are confusingly
similar to the Sara Lee Marks; (ii) are variations of the Sara Lee Marks; or (iii) incorporate the
Sara Lee Marks. In using the Sara Lee Marks pursuant to this Agreement, HBI shall in no way
represent that it has any rights, title or interest in the Sara Lee Marks other than those
expressly granted under this Agreement.

          (c) Notice of Infringement. HBI shall give Sara Lee prompt written notice of any
potential infringement of the Sara Lee Marks by any third party that comes to the attention of (i)
an officer of HBI or its Affiliated Companies, (ii) any general manager of or Person holding a
senior management position with any business segment of HBI or any of its Affiliated Companies, or
(iii) an intellectual property administrator or attorney in the intellectual property law
department of HBI

2

 

or any of its Affiliated Companies. Sara Lee shall have the sole and exclusive
right to enforce any rights in the Sara Lee Marks with respect to the potential infringement. HBI
shall provide Sara Lee, at Sara Lee’s written request and expense, all reasonable assistance that
may be required in any action to enforce Sara Lee’s rights in the Sara Lee Marks.

          (d) Protection of Rights in Sara Lee Marks. HBI shall reasonably assist Sara Lee, at
Sara Lee’s written request and expense, to the extent reasonably necessary to protect any of Sara
Lee’s rights in the Sara Lee Marks.

          (e) Reservation of Rights. Any rights not expressly granted to HBI with respect to
the Sara Lee Marks under this Agreement are expressly reserved by Sara Lee.

     Section 1.3 Quality Control and Use of the Sara Lee Marks.

          (a) Quality Control. HBI shall use the Sara Lee Marks only as expressly permitted in
Section 1.1(a) and Section 1.1(d) of this Agreement. HBI shall use the Sara Lee
Marks only in connection with goods or services of a high quality in keeping with the reputation
and goodwill of Sara Lee as of the Distribution Date. HBI shall not, by any act or omission,
tarnish, disparage, or injure the reputation of the Sara Lee Marks or Sara Lee, and the goodwill
associated therewith.

          (b) Inspection. HBI shall reasonably cooperate with Sara Lee in facilitating Sara
Lee’s ability to determine the nature and quality of the activities of HBI and its Affiliated
Companies in connection with the Sara Lee Marks. Upon reasonable advance notice (which shall not
be less than three (3) Business Days) and during regular business hours, HBI shall permit Sara Lee
to inspect the relevant facilities and records related to HBI’s or its Affiliated Companies’ use of
the Sara Lee Marks.

          (c) Required Notices. In using the Sara Lee Marks in connection with the Sara Lee
Materials, HBI shall duly include all notices and legends with respect to the Sara Lee Marks as are
or may be reasonably requested in writing by Sara Lee or required by applicable federal, state or
local trademark laws.

          (d) Compliance. HBI shall comply with all applicable laws and regulations pertaining
to its activities in connection with the Sara Lee Marks.

     Section 1.4 Term and Termination of Trademark License.

          (a) Term. Except as expressly set forth in Section 1.1(d) of this Agreement
and unless earlier terminated in accordance with Section 1.4(b) of this Agreement, the
Trademark License Agreement shall be in effect from the Distribution Date until the first
anniversary of the Distribution Date.

          (b) Termination. The Trademark License Agreement shall automatically terminate upon
HBI’s failure to cure any material breach of this Article I within thirty (30) days after the
receipt of written notice of such material breach from Sara Lee.

3

 

     Section 1.5 Trademark Ownership Acknowledgement. The Parties hereby acknowledge that,
as between the Parties, Sara Lee is the sole and exclusive owner of all right, title and interest
in and to the Sara Lee Marks. Further to Section 4.2(a) of the Separation Agreement, the
Parties hereby acknowledge that, as between the Parties and as of the Distribution Date, HBI is the
sole and exclusive owner of all right, title and interest in and to the HBI Trademarks.

     Section 1.6 Trademark Database.

          (a) Trademark Database Copies. It is the intention of the Parties that, on or before
the Distribution Date, each of Sara Lee and HBI shall possess a copy of the Trademark Database for
each Party’s use. To the extent a Party does not have such a copy, the Parties shall cooperate to
ensure that the Party is able to obtain the copy of the Trademark Database. Each Party shall be
responsible for ensuring that its copy of the Trademark Database and software relating thereto is
properly licensed to such Party by CPi.

          (b) HBI Data Deletion. At such time as the Parties deem appropriate in writing, but
in any event within thirty (30) days of the termination or expiration of the Trademark License
Agreement, HBI shall use its reasonable best efforts to delete all data relating to the Sara Lee
Marks that exists in HBI’s copy of the Trademark Database and all such data relating to such Sara
Lee Marks that is otherwise in HBI’s possession or control. At such time as the Parties deem
appropriate in writing, but in any event within thirty (30) days of notice from Sara Lee, HBI shall
use its reasonable best efforts to delete all data relating to the Sara Lee Trademarks (other than
the Sara Lee Marks) that exists in HBI’s copy of the Trademark Database and all such data relating
to such Sara Lee Trademarks (other than the Sara Lee Marks) that is otherwise in HBI’s possession
or control. Within thirty (30) days after each such deletion, HBI shall use reasonable best
efforts to require CPi to certify to Sara Lee that such deletion has occurred, and HBI shall take
all necessary actions to enable CPi to certify such deletion.

     Section 1.7 Sara Lee Redirection of URLs, Domain Names and E-mails.

          (a) Redirection of URL’s and Domain Names. For a period of twelve (12) months
following the Distribution Date, Sara Lee shall cause all Persons seeking to access or otherwise
utilize the URLs or domain names set forth on Schedule 3 of this Agreement, or the
websites, website content, or web services associated therewith, to be redirected as promptly
and as interruption-free as is reasonably commercially practicable, to the URLs or domain names
designated by, and in accordance with the reasonable instructions of, HBI or its Affiliated
Companies within fifteen (15) days of Sara Lee’s receipt of written notice from HBI designating
such URLs, domain names and providing such instructions, provided that, HBI maintains such
recipient URLs and domain names so that they are current and accessible to the general public.

          (b) Redirection of E-mails. For a period of twelve (12) months following the
Distribution Date, Sara Lee shall cause all e-mail messages addressed to an HBI employee who has an
active e-mail account on Sara Lee’s e-mail system as of the Distribution Date to be redirected as
promptly and as interruption-free as is reasonably commercially practicable to such HBI employee’s
active e-mail account on HBI’s e-mail system, provided that Sara Lee shall only be responsible for
redirecting such e-mail messages (i) that are accurately addressed to the applicable Sara Lee
e-mail account; and (ii) to the extent that the characters preceding the “@” sign in the applicable
HBI

4

 

employee’s HBI e-mail address are identical to, and appear in the same order as, such HBI
employee’s e-mail address prior to the Distribution Date.

     Section 1.8 Further Assurances and Cooperation. Each Party, upon the written request
and at the expense of the other Party, shall provide such reasonable cooperation, shall perform
such further reasonable acts, and shall execute and deliver such reasonable documents and
affidavits that may be necessary to: (i) maintain the registration of the Sara Lee Marks or the HBI
Trademarks, (ii) document and record each Party’s rights in the Sara lee Marks and the HBI
Trademarks that it owns as of the Distribution Date; and (iii) prosecute, enforce or defend the
Sara Lee Marks or the HBI Trademarks and any related registrations. Each Party shall reasonably
cooperate with the other Party at such other Party’s expense, in connection with written requests
made pursuant to and in accordance with this Agreement relating to the requesting Party’s
Trademarks, portions of the Trademark Database relating to the requesting Party’s Trademarks, and
the requesting Party’s obligations to any Person, which shall include, without limitation: (x)
locating and/or providing Trademark-related records pertaining to the Sara Lee Marks or the HBI
Trademarks; (y) ensuring appropriate personnel are available to respond to the requesting Party’s
requests; and (z) producing information that is reasonably requested on a timely basis with respect
to the requesting Party’s Trademarks. The rights and obligations set forth in this Section 1.8
shall be in effect from the Distribution Date until such time as the Parties deem appropriate in
writing, but in any event within thirty (30) days after the termination or expiration of the
Trademark License Agreement.

ARTICLE II

SOFTWARE LICENSE

     Section 2.1 Internal Use License Grant. To the extent Sara Lee has the right to grant
the following licenses and rights, Sara Lee hereby grants to HBI a limited, fully paid-up,
royalty-free, perpetual, non-transferable (except as expressly provided in Section 3.11 of
this Agreement), non-sublicensable (except as expressly provided in this Section 2.1),
non-exclusive license, (i) to use, copy, perform, display, distribute,
execute, modify and make derivative works of (collectively, “Use”) the Licensed Software
(including the source code and documentation to such Licensed Software) and (ii) to permit its
Affiliated Companies to Use the Licensed Software (including the source code and documentation to
such Licensed Software), in each case solely for Internal Use in the Territory. Furthermore, the
Parties expressly agree that HBI and its Affiliated Companies may sublicense the Licensed Software
to agents and contractors of HBI and its Affiliated Companies who are retained to provide services
to HBI or its Affiliated Companies to Use the Licensed Software for purposes of providing such
services, HBI and its Affiliated Companies being and remaining responsible for (i) compliance of
such third parties with this Software License Agreement in such Use; and (ii) requiring and
verifying that such third parties have destroyed any copies of the Licensed Software in their
possession upon termination.

     Section 2.2 License Restrictions. Except as expressly authorized under this Agreement,
HBI shall not knowingly cause or permit the: (i) use, copying, modification, rental, lease,
transfer, sale, assignment, timeshare or distribution of the Licensed Software; or (ii) access to
or Use of the Licensed Software by a third party including in connection with a service bureau,
website or other configuration whereby a third party may have access to and/or Use the Licensed
Software. HBI shall cooperate with Sara Lee in facilitating Sara Lee’s ability to determine the
nature of the

5

 

activities in connection with the Licensed Software. Upon reasonable advance notice
(which shall not be less than three (3) Business Days) and during regular business hours, HBI shall
permit Sara Lee to inspect its relevant operations and records related to HBI’s use of the Licensed
Software.

     Section 2.3 Intellectual Property. As between the Parties, Sara Lee shall retain
ownership of all Intellectual Property rights in the Licensed Software. As between the Parties,
HBI shall own all right, title and interest in and to the HBI Modifications.

     Section 2.4 Confidentiality. HBI acknowledges and agrees that the Licensed Software
shall constitute Confidential Operational Information and, subject to Sections 2.1 and
2.2 of this Agreement, shall be treated accordingly under Section 5.3 of the
Separation Agreement.

     Section 2.5 Notice of Infringement. In the event (a) an officer of a Party or its
Affiliated Companies, (b) any general manager or Person holding a senior management position with
any business segment of a Party or any of its Affiliated Companies , or (c) any intellectual
property administrator of or an attorney in the intellectual property law department of a Party
becomes aware (i) of circumstances reasonably indicating that a Party’s use of the Licensed
Software may infringe or misappropriate a third party’s Intellectual Property rights; (ii) that a
third party may claim or has claimed that a Party’s use of the Licensed Software infringes or
misappropriates such third party’s Intellectual Property rights; or (iii) that a third party may be
infringing or misappropriating Sara Lee’s Intellectual Property rights in the Licensed Software,
such Party shall notify the other Party of the foregoing as applicable.

     Section 2.6 Acknowledgment Regarding No Further Actions. HBI hereby acknowledges that
it possesses a complete and working copy of each Licensed Software program. Notwithstanding
anything to the contrary in this Agreement, the Separation Agreement, or any other Ancillary
Agreements, the Parties hereby acknowledge that Sara Lee shall have no obligation to perform any
actions with respect to the Licensed Software, including, without limitation, to provide delivery,
acceptance testing, custom modifications, training, support, or maintenance (including, without
limitation, providing upgrades, fixes, patches or repairs).

     Section 2.7
Third Party Consents. HBI shall be responsible for obtaining all required
licenses, rights, and Consents, if any, from third parties in connection with HBI’s use of the
Licensed Software, including, without limitation, all licenses, rights and Consents from MLM
Information Services.

     Section 2.8 Term and Termination of Software License.

          (a) Term. The Software License Agreement shall be in effect as of the Distribution
Date and shall remain in effect unless terminated pursuant to this Agreement.

          (b) Termination for Breach. The Software License Agreement shall automatically
terminate upon the earlier of the dates on which (i) HBI fails to commence cure of, and use
reasonable, continuing and diligent efforts to cure, any breach of this Software License Agreement
within thirty (30) days after receipt of written notice of such breach from Sara Lee; or (ii) HBI
fails to cure any breach of this Software License Agreement one hundred and twenty (120) days after
HBI’s receipt of written notice of a such breach from Sara Lee.

6

 

          (c) Termination for Convenience. HBI may terminate the Software License Agreement at
any time, in its sole discretion, upon thirty (30) days written notice to Sara Lee.

          (d) Effect of Termination. Upon termination of the Software License Agreement, all
rights of HBI and permitted third parties to Use the Licensed Software shall terminate immediately.
Upon termination of the Software License Agreement, HBI shall promptly return to Sara Lee or, at
Sara Lee’s option, destroy all copies of the Licensed Software.

ARTICLE III

MISCELLANEOUS

     Section 3.1 Survival; No Cross-Defaults.

          (a) Survival. Section 1.2(a), Section 1.2(b), Section 1.2(e), Section 1.4, Section
1.5, Section 1.6, Section 1.7, Section 2.3, Section 2.4, Section 2.8, Section 3.2, Section 3.3, and
Article IV shall survive any expiration or termination of this Agreement in part or in whole.

          (b) No Cross-Defaults. For the avoidance of doubt, the termination or expiration of
the Trademark License Agreement or the Software License Agreement shall not affect the validity and
maintenance in force of the other license agreement.

     Section 3.2 Disclaimer of Warranties. THE SARA LEE MARKS AND THE LICENSED SOFTWARE
ARE PROVIDED “AS IS.” SARA LEE DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND,
WHETHER ORAL OR WRITTEN, WHETHER EXPRESS, IMPLIED, OR ARISING BY STATUTE, CUSTOM, COURSE OF DEALING
OR TRADE USAGE, WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, IN CONNECTION WITH THIS
AGREEMENT, THE SARA LEE MARKS, OR THE LICENSED SOFTWARE. SARA LEE SPECIFICALLY DISCLAIMS ANY AND
ALL IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
NON-INFRINGEMENT IN CONNECTION WITH THIS AGREEMENT, THE SARA LEE MARKS, AND THE LICENSED SOFTWARE.
SARA LEE MAKES NO REPRESENTATION OR WARRANTY THAT THE LICENSED SOFTWARE WILL BE FREE FROM DEFECTS,
ERRORS OR HARMFUL CODE, OR THAT THE OPERATION OF THE LICENSED SOFTWARE WILL BE UNINTERRUPTED,
ERROR-FREE, OR IN ACCORDANCE WITH ANY DOCUMENTATION OR SPECIFICATIONS, OR THAT DEFECTS IN THE
LICENSED SOFTWARE WILL BE CORRECTED.

     Section 3.3 Limitation of Liability. TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE
LAW, IN NO EVENT WILL SARA LEE BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL,
EXEMPLARY OR PUNITIVE DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING BUT
NOT LIMITED TO DAMAGES FOR LOST DATA, LOST PROFITS OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR
SERVICES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), STATUTE OR OTHERWISE, AND WHETHER OR NOT SARA LEE WAS OR SHOULD HAVE BEEN
AWARE OR ADVISED OF THE POSSIBILITY OF

7

 

SUCH DAMAGE. EXCEPT WITH RESPECT TO HBI’S OBLIGATIONS
UNDER Section 1.1(a), Section 1.2 AND Section 1.3 OF THIS AGREEMENT, AND TO
THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, IN NO EVENT WILL HBI OR ANY OF ITS AFFILIATED
COMPANIES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE
DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO DAMAGES
FOR LOST DATA, LOST PROFITS OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, HOWEVER CAUSED
AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STATUTE
OR OTHERWISE, AND WHETHER OR NOT HBI WAS OR SHOULD HAVE BEEN AWARE OR ADVISED OF THE POSSIBILITY
OF SUCH DAMAGE.

     Section 3.4 Conflict with Separation Agreement. In the event of any conflict between the terms and conditions of this Agreement and the
terms and conditions of the Separation Agreement, the terms and conditions of this Agreement shall
control.

     Section 3.5 Independent Contractors. The Parties each acknowledge that they are
separate entities, each of which has entered into this Agreement for independent business reasons.
The relationships of the Parties hereunder are those of independent contractors and nothing
contained herein shall be deemed to create a joint venture, employer/employee, partnership or any
other relationship.

     Section 3.6 Compliance with Laws. Each Party shall comply with all applicable laws,
rules, regulations and orders of the United States, all other jurisdictions and any agency or court
thereof.

     Section 3.7 Entire Agreement. This Agreement, the Separation Agreement and the
Ancillary Agreements constitutes the entire agreement among the Parties with respect to the subject
matter hereof and thereof and supersedes all prior agreements and understandings, both written and
oral, between 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 3.8 Amendments and Waivers. This Agreement may be amended and any provision
of this Agreement may be waived, provided that any such amendment or waiver shall be binding upon a
Party only if such amendment or waiver is set forth in a writing executed by such Party. No course
of dealing between or among any Persons having any interest in this Agreement shall be deemed
effective to modify, amend or discharge any part of this Agreement or any rights or obligations of
any Party hereto under or by reason of this Agreement.

     Section 3.9 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

8

 

provision of this Agreement must satisfy the conditions set forth in Section
3.12 of this Agreement and shall be effective only to the extent in such writing specifically
set forth.

     Section 3.10 Parties In Interest. Except for the right to use the Licensed Software granted to HBI’s Affiliated Companies,
agents and contractors under Section 2.1 of this Agreement, nothing in this Agreement is
intended to confer on any Person other than the Parties, and their respective successors and
permitted assigns, any rights or remedies of any nature whatsoever under or by virtue of this
Agreement. Notwithstanding anything to the contrary contained in this Agreement, no Person (except
HBI’s Affiliated Companies) shall be deemed a third-party beneficiary of this Agreement.

     Section 3.11
Assignment; Change of Control; Binding Agreement. This Agreement,
including the rights granted hereunder to HBI, are personal to HBI. HBI shall not voluntarily, or
by operation of law or otherwise, assign, transfer, sublicense (except as expressly provided in
Sections 1.1(a) and 2.1 of this Agreement), pledge, encumber or otherwise dispose of all or any
part of HBI’s interest in this Agreement without Sara Lee’s prior written consent, to be granted or
withheld in Sara Lee’s absolute discretion. Any attempted assignment, transfer, sublicense (except
as expressly provided in Sections 1.1(a) and 2.1 of this Agreement), pledge, encumbrance or other
disposal without such consent shall be void and shall constitute a material default and breach of
this Agreement. For purposes of this Agreement, a merger, consolidation, or other corporate
reorganization, or a transfer or sale of a controlling interest in a party’s stock, or of all or
substantially all of its assets shall be deemed to be a prohibited transfer under this Agreement.
Sara Lee may assign this Agreement or any of the rights, interests or obligations under this
Agreement, in whole or in part. Subject to the foregoing, 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 3.12 Notices. All notices, demands and other communications given under this
Agreement must be in writing and must be either personally delivered, telecopied (and confirmed by
telecopy answer back), mailed by first class mail (postage prepaid and return receipt requested),
or sent by reputable overnight courier service (charges prepaid) to the recipient at the address or
telecopy number indicated below or such other address or telecopy number or to the attention of
such other Person as the recipient Party shall have specified by prior written notice to the
sending Party. Any notice, demand or other communication under this Agreement shall be deemed to
have been given when so personally delivered or so telecopied and confirmed (if telecopied before
5:00 p.m. Eastern Standard Time on a business day, and otherwise on the next business day), or if
sent, one business day after deposit with an overnight courier, or, if mailed, five business days
after deposit in the U.S. mail.

Sara Lee Corporation,

Three First National Plaza

Chicago, Illinois 60602-4260

Attention: General Counsel

Facsimile Number: (312) 419-3187

Hanesbrands Inc.

1000 East Hanes Mill Road

Winston-Salem, North Carolina 27105.

Attention: General Counsel

Facsimile Number: (336) 714-3638

9

 

     Section 3.13 Severability. The Parties agree that (i) the provisions of this
Agreement shall be severable in the event that for any reason whatsoever any of the provisions
hereof are invalid, void or otherwise unenforceable, (ii) any such invalid, void or otherwise
unenforceable provisions shall be replaced by other provisions which are as similar as possible in
terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable,
and (iii) the remaining provisions shall remain valid and enforceable to the fullest extent
permitted by applicable law.

     Section 3.14 Construction. The descriptive headings herein are inserted for
convenience of reference only and are not intended to be a substantive part of or to affect the
meaning or interpretation of this Agreement. Whenever required by the context, any pronoun used in
this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to
any agreement, document, or instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and if applicable
hereof. The use of the words “include” or “including” in this Agreement shall be by way of example
rather than by limitation. The use of the words “or,” “either” or “any” shall not be exclusive.
The words “hereby,” “herein,” “hereunder” and words of similar import refer to this Agreement as a
whole (including any Schedules, Attachments and Exhibits) and not merely to the specific section,
paragraph or clause in which any such word appears. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties
hereto, and no presumption or burden of proof shall arise favoring or disfavoring any Party by
virtue of the authorship of any of the provisions of this Agreement. The Parties agree that prior
drafts of this Agreement shall be deemed not to provide any evidence as to the meaning of any
provision hereof or the intent of the Parties hereto with respect hereto.

     Section 3.15 Counterparts. This Agreement may be executed in multiple counterparts
(any one of which need not contain the signatures of more than one Party), each of which shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement.

     Section 3.16 Delivery by Facsimile and Other Electronic Means. This Agreement, and
any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other
electronic transmission, shall be treated in all manner and respects as an original contract and
shall be considered to have the same binding legal effects as if it were the original signed
version thereof delivered in person. At the request of any Party, each other Party shall
re-execute original forms thereof and deliver them to the other Party. No Party shall raise the
use of a facsimile machine or other electronic means to deliver a signature or the fact that any
signature was transmitted or communicated through the use of facsimile machine or other electronic
means as a defense to the formation of a contract and each such Party forever waives any such
defense.

     Section 3.17 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.

10

 

     Section 3.18 Submission to Jurisdiction. EACH OF THE PARTIES IRREVOCABLY SUBMITS (FOR
ITSELF AND IN RESPECT OF ITS PROPERTY) TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN
CHICAGO, ILLINOIS, OR GREENSBORO, NORTH CAROLINA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND AGREES THAT ALL CLAIMS IN RESPECT OF THE ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN ANY SUCH COURT. EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY OTHER COURT. 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 3.12 OF THIS AGREEMENT. NOTHING IN THIS SECTION 3.18, HOWEVER, SHALL
AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AT
EQUITY. EACH PARTY AGREES THAT A FINAL JUDGMENT IN ANY ACTION OR PROCEEDING SO BROUGHT SHALL BE
CONCLUSIVE AND MAY BE ENFORCED BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW OR AT
EQUITY.

     Section 3.19 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 3.20 Amicable Resolution. The Parties desire that friendly collaboration will
develop between them. Accordingly, they will try to resolve in an amicable manner all disputes and
disagreements connected with their
respective rights and obligations under this Agreement in accordance with Section 6.12
of the Separation Agreement.

     Section 3.21 Arbitration. Except for suits seeking injunctive relief or specific
performance, in the event of any dispute, controversy or claim arising under or in connection with
this Agreement (including any dispute, controversy or claim relating to the breach, termination or
validity thereof), the Parties agree to submit any such dispute, controversy or claim to binding
arbitration in accordance with Section 6.13 of the Separation Agreement.

ARTICLE IV

DEFINITIONS

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

11

 

     “Business Day” shall mean each weekday (Monday, Tuesday, Wednesday, Thursday and
Friday), excluding all federally mandated holidays in the United States.

     “CPi” shall mean Computer Packages, Inc.

     “HBI Modifications” shall mean any modifications, fixes, improvements, revisions, or
derivative works to the Licensed Software created by or on behalf of HBI or any of its Affiliated
Companies.

     “HBI Trademarks” shall mean all Trademarks constituting HBI Assets under the
Separation Agreement.

     “Internal Use” shall mean the installation, copying or other Use, solely in connection
with conducting the Branded Apparel Business, of the Licensed Software on computers owned, leased
or otherwise controlled by, or used for the benefit of, HBI or its Affiliated Companies and not for
any other purpose, including, without limitation, operation of the Licensed Software for other
entities on a service bureau basis.

     “Licensed Software” shall mean the software programs set forth on Schedule 2
of this Agreement, including all object code and source code for each program and all
documentation, if any exists, for each program.

     “Materials” shall mean packaging, catalogs, brochures, circulars, advertising
materials, point of sale materials, sampling materials, sales collateral materials, publicity and
public relations, signage, websites, website content and all other materials, stationery, business
cards, business forms and similar organizational items that are produced by or on behalf of HBI or
any of its Affiliated Companies and used to operate, market, promote and advertise HBI, any of its
Affiliated Companies, or any of their respective products or services.

     “Parties” shall mean Sara Lee and HBI.

     “Sara Lee Marks” shall mean the Trademarks set forth on Schedule 1.

     “Sara Lee Materials” shall mean any Materials bearing, displaying or otherwise using
the Sara Lee Marks that are owned by, and in the control of, HBI or any of its Affiliated Companies
as of the Distribution Date.

     “Sara Lee Trademarks” shall mean all Trademarks owned by Sara Lee including the Sara
Lee Marks.

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

     “Software License Agreement” shall mean the rights and obligations set forth in
Article III and Article IV of this Agreement.

     “Territory” shall mean all territory throughout the world.

12

 

     “Trademark Database” shall mean CPi Intellectual Property Management System
v.05.04.08 comprised of the follow three applications: Patent Management System, Trademark
Management System and General Matter Management System.

     “Trademarks” shall mean trademarks, service marks, trade names, logos and slogans (and
all applications for registration, translations, adaptations, derivations and combinations of the
foregoing) and Internet domain names, including the goodwill relating to each of the foregoing.

     “Trademark License Agreement” shall mean the rights and obligations set forth in
Article I and Article IV of this Agreement.

     “URL” shall mean a Uniform Resource Locator.

     “Use” has the meaning set forth in Section 2.1.

13

 

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

	 	 	 	 	 
	 	SARA LEE CORPORATION

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

	 	 	 	 	 
	 	HANESBRANDS INC.

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

 

 

	 	 	 	 	 

Schedule 1

Sara Lee Marks

The “Sara Lee Marks” shall include the following three trademarks:

1. SARA LEE (word mark)

2. SARA LEE (Stylized in White with Red or Black Background)

3. SARA LEE (Stylized in Red)

4. Any and all trademarks, trade names and logos, comprised of one or more of the foregoing three
trademarks and additional elements, including, but not limited to the following:

SARA LEE BRANDED APPAREL

SARA LEE CORPORATION

SARA LEE COMPANY

SARA LEE FOUNDATION

SARA LEE LEGAL

SARA LEE LAW

SARA LEE MEXICO

SARA LEE BRAZIL

SARA LEE ARGENTINA

SARA LEE JAPAN

SARA LEE PHILIPPINES

SARA LEE SOUTH AFRICA

SARA LEE INDIA

SARA LEE SHANGHAI

SARA LEE CENTER FOR WOMEN’S HEALTH

SARA LEE SOCCER FIELDS

SARA LEE UNDERWEAR

SARA LEE HOSIERY

SARA LEE SOCKS

SARA LEE INTIMATES

SARA LEE CASUALWEAR

SARA LEE SPORTSWEAR

 

 

Schedule 2

Licensed Software

Sarbanes-Oxley Control Deficiency Tool

GBR Validation

Custom Lease

Property Updates

Global Litigation Administration System (GLAS — Legal Fees)

LRN SSO (Application to allow Single Sign-on to Legal Ez Training)

Global Environmental Performance Measurement (GEPM)

Global Business Practice Annual Report (GBP_AR)

Global Environmental Mgmt System (GEMS)

Single Sign-on Solutions for Extensity, Ariba & InFlight

GDX Schedule Templates

 

 

Schedule 3

Domain Names and URLs

	 	 	 	 	 
	 	 	Corporate	 
	Domain
Name                              	 	    Owner    	 
	saraleedirect.com
	 	SLC/SLBA
	saraleeintimateapparel.com
	 	SLC/SLBA
	saraleeintimateapparel.net
	 	SLC/SLBA
	saraleeintimateapparel.org
	 	SLC/SLBA
	saraleeintimates.com
	 	SLC/SLBA
	saraleeprintables.at
	 	SLC/SLBA
	saraleeprintables.be
	 	SLC/SLBA
	saraleeprintables.ch
	 	SLC/SLBA
	saraleeprintables.co.hu
	 	SLC/SLBA
	saraleeprintables.co.uk
	 	SLC/SLBA
	saraleeprintables.com
	 	SLC/SLBA
	saraleeprintables.com.pt
	 	SLC/SLBA
	saraleeprintables.cz
	 	SLC/SLBA
	saraleeprintables.de
	 	SLC/SLBA
	saraleeprintables.dk
	 	SLC/SLBA
	saraleeprintables.gen.tr
	 	SLC/SLBA
	saraleeprintables.gr
	 	SLC/SLBA
	saraleeprintables.it
	 	SLC/SLBA
	saraleeprintables.lt
	 	SLC/SLBA
	saraleeprintables.lv
	 	SLC/SLBA
	saraleeprintables.net
	 	SLC/SLBA
	saraleeprintables.pl
	 	SLC/SLBA
	saraleeprintables.ro
	 	SLC/SLBA
	saraleeprintables.se
	 	SLC/SLBA
	slbanet.com
	 	SLC/SLBA
	slbasfa.com
	 	SLC/SLBA
	slbasourcing.com
	 	SLC/SLBA
	sldcatalog.com
	 	SLC/SLBA
	sldirect.com
	 	SLC/SLBA
	slh-b2b.com
	 	SLC/SLBA
	slhlink.com
	 	SLC/SLBA
	slhnet.com
	 	SLC/SLBA
	slh-retail.com
	 	SLC/SLBA
	slianet.com
	 	SLC/SLBA
	slianet.net
	 	SLC/SLBA
	slianet.org
	 	SLC/SLBA
	slkp.com
	 	SLC/SLBA
	slouterbanks.com
	 	SLC/SLBA
	slsc.com
	 	SLC/SLBA
	slucpfr.com
	 	SLC/SLBA
	slu-online.com
	 	SLC/SLBA
	slusourcing.com
	 	SLC/SLBA

 

 

Schedule 4

Delayed Named Subsidiaries

	 	 	 	 	 
	Current Name	 	New Name	 	Name Change Deadline
	Sara Lee Moda
Femenina S.A. de C.V

	 	Servicios Rinplay,
S. de R.L. de C.V.
	 	September 30, 2006
	 
	 	 	 	 
	Sara Lee Knit
Products Mexico S.A.
de C.V.

	 	Inmobilaria Rinplay
S. De R.L. de C.V.
	 	September 30, 2006
	 
	 	 	 	 
	Sara Lee Moda
Femenina S.A. de
C.V.

	 	Servicios Rinplay,
S. de R.L. de C.V.
	 	December 31, 2006

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