Common use of Existing Guaranties Clause in Contracts

Existing Guaranties. Sapient has issued standing letters of credit related to leased real estate in the amount of approximately $3.6 million, which have been issued by the Bank. Further, Sapient has, in a limited number of circumstances, guaranteed the debts of certain non-officer employees, related to certain debts. These guarantees are not material to the business operations of the company, and are further guaranteed by future employee bonus payments and stock options exercises. The company has also entered into certain guarantees in the form of performance bonds related to HWT, Inc. which relate to services contracts entered into between HWT and certain state government entities. These performance bonds can be executed by these state agencies in the case of non performance of duties, which would ultimately result in a financial settlement with Sapient Corporation. The maximum amount represented by these performance bonds is $1.3 million. Sapient has also guaranteed certain customer contracts and leases of its subsidiaries in the ordinary course of business, the amounts of which are not material individually or in the aggregate.