This excerpt taken from the HBI 10-K filed Sep 28, 2006.
The Severance Agreements with our executive officers provide them with severance benefits upon their involuntary termination of employment. Generally, if an executive officers employment is terminated by us for any reason other than for cause, or if an executive officer terminates his or her employment at our request, we will pay them benefits for a period of 12 to 24 months depending on their position and length of service with Hanesbrands and with Sara Lee. The Severance Agreements prohibit our executive officers from working for our competitors, soliciting business from our customers, attempting to hire our employees and disclosing our confidential information while payments under the Severance Agreement are being made. Payments under the Severance Agreement terminate if the terminated executive officer becomes employed by one of our competitors. As a condition of the Severance Agreements, our executive officers must release any claims against us.
The monthly severance benefit that we would pay to each executive officer will be based on the executive officers base salary (and, in limited cases, determined bonus), divided by 12. A terminated executive officer also would receive a pro-rated payment under any incentive plans applicable to the fiscal year in which the termination occurs based on actual full fiscal year performance. The terminated executive officers eligibility to participate in our medical, dental and executive life insurance plans would continue for the same number of months for which he or she receives severance payments. The terminated executive officers participation in all other benefit plans would cease as of the date of termination of employment.