Note 29 - Commitments and contingent liabilities


Audited by PwC
2010 2009
    DKK million  DKK million  
Commitments
Rental commitments expiring within the following periods from the balance sheet date:
Within 1 year 63  57 
Between 1 and 2 years 53  43 
Between 2 and 3 years 42  34 
Between 3 and 4 years 39  29 
Between 4 and 5 years 21  29 
After 5 years   102  78   
Rental commitments at December 31 320  270 
Of which commitments to related companies at December 31, 2010, amount to DKK 29 million, compared to DKK 33 million at December 31, 2009. 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 97  70 
Other liabilities
Contractual obligations to third parties relating to capital expenditure, etc. 347  486 
 
Other guarantees
 
Other guarantees and commitments to related companies 157  76 
 
Other guarantees and commitments 308  149 
 
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.
Novozymes has signed a definite agreement to acquire EMD/Merck Crop BioScience for USD 275 million. The acquisition is subject to customary regulatory approval and is expected to be completed between February and May 2011. Under certain conditions Novozymes may decide not to fulfill the transaction, in which case Novozymes is committed to paying USD 10 million to the seller as compensation.
          
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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