WeightWatchers 2002 Annual Report Download - page 48

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Nellson Co-Pack Agreement
We entered into an agreement with Nellson Nutraceutical, a former subsidiary of Artal
Luxembourg, to purchase snack bar and powder products manufactured by Nellson Nutraceutical for
sale at our meetings. On October 4, 2002, Nellson Nutraceutical was sold by Artal Luxembourg. Under
the agreement, Nellson Nutraceutical agreed to produce sufficient snack bar products to fill our
purchase orders within 30 days of Nellson Nutraceutical’s receipt of these purchase orders, and we are
not bound to purchase a minimum quantity of snack bar products. We purchased $24.4 million, and
$18.7 million, respectively, of products from Nellson Nutraceutical during the fiscal years ended
December 28, 2002 and December 29, 2001. The term of the agreement runs through December 31,
2004, and we have the option to renew the agreement for successive one-year periods by providing
written notice to Nellson Nutraceutical.
Item 14. Controls and Procedures
Based on their evaluation, as of a date within 90 days of the filing of this Annual Report on
Form 10-K, our Chief Executive Officer and Chief Financial Officer have concluded our disclosure
controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange
Act of 1934) are effective. There have been no significant changes in internal controls or in other
factors that could significantly affect these controls subsequent to the date of their evaluation, including
any corrective actions with regard to significant deficiencies and material weaknesses.
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