This excerpt taken from the HBI 8-K filed Sep 5, 2006.
1. Purpose. The purpose of this Supplement A to the Hanesbrands Inc. 2006 Employee Stock Purchase Plan is to modify and further specify the terms and conditions of the Plan as applied to employees in the United States and Puerto Rico (the US Program). With respect to employees in the United States, the US Program is intended to qualify as an employee stock purchase plan under section 423 of the Code. Any defined term not defined in section 2 of this Supplement A shall be defined pursuant to the Plan.
2. Contributions. An Eligible Employee may participate in the US Program at any time by completing and filing with the appropriate payroll office an Authorization Form. The Committee, in its discretion, may establish a minimum deduction per payroll period. Such deductions shall commence with the pay period beginning after such Authorization Form is filed and recorded in the appropriate payroll office and shall continue until the Participant terminates participation in the US Program or until the US Program is terminated. Subject to the minimum and maximum deductions set forth in the Plan and this US Program, a Participant may change the amount of his or her payroll deduction no more than twice in each calendar year by filing a new Authorization Form with the appropriate payroll office. The change shall not become effective earlier than the first payroll period in the next succeeding Offering Period after the Authorization Form is received and recorded by the appropriate payroll office. Payroll deductions will be held in the Corporation or Participating Subsidiarys general accounts until the end of the Offering Period at which time they will be applied solely for the purchase of Shares under the US Program. Participants will receive periodic statements of their Plan Account balance.
3. Share Purchases. On each Exercise Date, each Participants Plan Account shall be charged for the amount of the Shares to be purchased on that date. The number of Shares to be purchased on an Exercise Date shall be determined by dividing the balance of the Participants Plan Account (including any balance in the Participants Plan Account after the
immediately prior Exercise Date) by the Exercise Price, and then rounding downward to the nearest whole Share. No fractional Shares shall be purchased, and any balance remaining in the Participants Plan Account after the Shares have been purchased on the Exercise Date shall be carried forward to the next succeeding Offering Period. As soon as practicable after the Exercise Date, a statement shall be delivered to the Participant which shall include the number of Shares purchased on the Exercise Date and the aggregate number of Shares purchased on behalf of such Participant under the US Program. Share ownership shall be kept electronically in the name of the Participant, or if so specified in the Participants Authorization Form, in the Participants name and the name of another person of legal age as joint tenants with right of survivorship.
4. Ceasing Contributions/Rights of Participants Who Leave Service. A Participant whose participation in the US Program has terminated (either upon the Participants request or upon the Participants termination of employment for any reason) may not rejoin the US Program until the third succeeding Offering Period following the date of such termination.
5. Contracts of Employment and Other Employment Rights. The US Program may be terminated at any time at the discretion of the Corporation and no compensation will be due to a Participant as a result. Neither the value of the Shares nor the discount derived from the Purchase Price shall be added to a Participants income for the purpose of calculating any employee benefits. No additional rights arise to a Participant as a result of participating in the US Program or the opportunity to participate. Participation in the US Program does not confer on any Participant any right to future employment. Participation in the US Program is at the discretion of Eligible Employees. No representation or warranty is given by the Corporation or Participating Subsidiaries as to the present or future benefit of participation in the US Program. If a Corporation or a Participating Subsidiary ceases participation in the US Program or the Corporation ceases operation of the Plan, employees will have no right or action against the Participating Subsidiary, the Committee or the Corporation for such termination.
7. Amendments to the US Program. The Corporation may at any time or from time to time amend, suspend or terminate the US Program. No amendment may be made and no suspension or termination may take effect in respect of rights already accrued to a Participant as a holder of Shares. The Corporation may at any time or from time to time amend the US Program to comply with the requirements of legislation or any regulatory body in the United States.
8. Governmental Regulation. The US Program shall be suspended and become inoperative with respect to Shares not theretofore optioned under the US Program during any period in which no registration statement or amendment thereto under the Securities Act of 1933, as amended, is in effect with respect to the Shares so remaining to be purchased under the US Program.