Note 27 - Commitments and contingent liabilities


Audited by PwC
2009 2008
    DKK million  DKK million  
Commitments
Rental commitments expiring within the following periods from the balance sheet date:
Within 1 year 57  46 
Between 1 and 2 years 43  37 
Between 2 and 3 years 34  32 
Between 3 and 4 years 29  29 
Between 4 and 5 years 29  25 
After 5 years   78  62   
Rental commitments at December 31 270  231 
Of which commitments to related companies at December 31, 2009, amount to DKK 33 million, compared to DKK 37 million at December 31, 2008. The above rental commitments relate to non-cancelable operating lease contracts, primarily for buildings and offices.
The following amount has been recognized in the consolidated income statement in respect of rentals 70  66 
Other liabilities
Contractual obligations to third parties relating to capital expenditure, etc. 486  173 
 
Other guarantees
 
Other guarantees and commitments to related companies 76  80 
 
Other guarantees and commitments 149  113 
 
Pending litigation and arbitration
Novozymes is engaged in certain legal proceedings. In the opinion of the Board of Directors and Executive Management, settlement or continuation of these proceedings will not have a material effect on the Group's financial position. A liability has been recognized under Provisions in case the risk of a loss should arise.

Contract conditions
Several of the partnership contracts to which Novozymes is a party could be terminated by the opposite party in the event of significant changes concerning ownership or control of Novozymes. Furthermore, a few contracts contain provisions that restrict Novozymes' licenses to use specific forms of technology in such situations.
          
Liability for the debts and obligations of Novo Nordisk A/S
As a result of the Demerger of Novo Nordisk A/S into two companies, Novo Nordisk A/S and Novozymes A/S are jointly and severally liable in accordance with Section 136, subsection 2 of the Danish Companies Act for debts and obligations arising after January 1, 2000, but relating to the period before January 1, 2000, that cannot be clearly attributed to either Novo Nordisk A/S or Novozymes A/S. Liability will be distributed proportionately between the two companies.
 
 

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