Audited by PwC

Note 27 - Commitments and contingent liabilities

2008 2007
    DKK million  DKK million  
Commitments
Rental commitments expiring within the following periods from the balance sheet date:
Within 1 year 46  38 
Between 1 and 2 years 37  32 
Between 2 and 3 years 32  27 
Between 3 and 4 years 29  24 
Between 4 and 5 years 25  19 
After 5 years   62  65   
Rental commitments at December 31 231  205 
Of which commitments to subsidiaries at December 31, 2008, amount to DKK 37 million, compared to DKK 42 million at December 31, 2007. 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 66  64 
Other liabilities
Contractual obligations to third parties relating to capital expenditure, etc. 173  72 
 
Other guarantees
 
Other guarantees and commitments to subsidiaries 80  79 
 
Other guarantees and commitments 113  71 
 
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 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 proportionally between the two companies.