Document:

Supplement Employee Retirement Plan

 Exhibit 10.6 
 HANESBRANDS INC. 
 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN 
 (Effective as of January 1, 2006) 

 CERTIFICATE 
 I hereby certify that the attached document is the official version of the Hanesbrands Inc. Supplemental Employee Retirement Plan adopted by the Board of Directors of the Company by resolution dated June 26, 2006
and subsequently finalized by the duly authorized officers of the Company effective as of January 1, 2006. 
 Dated this 1st
day of September, 2006. 
  

			
	 HANESBRANDS INC.

		
	 By
	 	 /s/ Kevin Oliver

	 Its
	 	Senior Vice President, Human Resources

 TABLE OF CONTENTS 

							
	 	  	PAGE
	 SECTION 1
	  	1
	         Introduction
	  	1
		  	1.1	  	Purpose	  	1
		  	1.2	  	Effective Date and Plan Year	  	1
		  	1.3	  	Employers	  	2
		  	1.4	  	Plan Administration	  	2
		  	1.5	  	Plan Supplements	  	2
		  	1.6	  	Plan Benefits for Participants who Terminated Employment	  	2
	 SECTION 2
	  	3
	         Definitions
	  	3
		  	2.1	  	2006 Special Election	  	3
		  	2.2	  	A&B Level Transition Credit	  	3
		  	2.3	  	Account	  	4
		  	2.4	  	Annual Company Credit	  	4
		  	2.5	  	Beneficiary	  	4
		  	2.6	  	Code	  	5
		  	2.7	  	Committee	  	5
		  	2.8	  	Controlled Group Member	  	5
		  	2.9	  	Corporation	  	5
		  	2.10	  	Default Payment Date	  	5
		  	2.11	  	Deferred Vested Participant	  	5
		  	2.12	  	Determination Date	  	5
		  	2.13	  	Effective Date	  	6
		  	2.14	  	Election Period	  	6
		  	2.15	  	Employee	  	6
		  	2.16	  	Employer	  	6
		  	2.17	  	ERISA	  	6
		  	2.18	  	Matching Credit	  	7
		  	2.19	  	Normal Retirement Date	  	7
		  	2.20	  	Participant	  	7

 TABLE OF CONTENTS 
 (continued) 

							
	 	  	PAGE
		  	2.21	  	Pension Plan	  	7
		  	2.22	  	Pension SERP Benefit	  	7
		  	2.23	  	Pension SERP Interest Rate	  	7
		  	2.24	  	Plan	  	7
		  	2.25	  	Plan Year	  	8
		  	2.26	  	Plan Year RSSERP Credit	  	8
		  	2.27	  	Present Value	  	8
		  	2.28	  	Residual Credit	  	8
		  	2.29	  	Retired Participant	  	9
		  	2.30	  	Retirement Savings Plan	  	9
		  	2.31	  	RSSERP Benefit	  	9
		  	2.32	  	Salaried Employee Transition Credit	  	9
		  	2.33	  	Sara Lee SERP	  	9
		  	2.34	  	Separation from Service	  	10
		  	2.35	  	SERP Benefit	  	10
		  	2.36	  	Specified Employee	  	10
		  	2.37	  	Supplemental Compensation	  	10
		  	2.38	  	Transferred Participant	  	11
		  	2.39	  	Total Disability	  	11
		  	2.40	  	Other Definitions	  	11
	SECTION 3	  	12
	        Participation	  	12
		  	3.1	  	Eligibility	  	12
		  	3.2	  	Period of Participation	  	12
		  	3.3	  	Reemployed Participants	  	12
	SECTION 4	  	14
	        SERP Benefits	  	14
		  	4.1	  	RSSERP Benefit	  	14
		  	4.2	  	Pension SERP Benefit	  	16
		  	4.3	  	Vesting of Benefits	  	16

  

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 TABLE OF CONTENTS 
 (continued) 

							
	 	  	PAGE
		  	4.4	  	Payment of Benefits	  	17
		  	4.5	  	Payments Upon Death	  	21
		  	4.6	  	Payment of FICA Tax on Pension SERP Benefit	  	22
		  	4.7	  	Benefits Provided by Employers	  	23
		  	4.8	  	Other Employment	  	23
	SECTION 5	  	24
	        General	  	24
		  	5.1	  	Committee	  	24
		  	5.2	  	Interests Not Transferable	  	24
		  	5.3	  	Facility of Payment	  	25
		  	5.4	  	Gender and Number	  	25
		  	5.5	  	Controlling Law	  	25
		  	5.6	  	Successors	  	25
		  	5.7	  	Rights Not Conferred by the Plan	  	25
		  	5.8	  	Litigation by Participants	  	26
		  	5.9	  	Uniform Rules	  	26
		  	5.10	  	Action by Employers	  	26
		  	5.11	  	Tax Effects	  	26
	SECTION 6	  	27
	        Amendment and Termination	  	27
	SUPPLEMENT A	  	
	 Provisions Relating to Transferred Participants Previously Participating in the Earthgrains Company Supplemental Executive Retirement
Plan
	  	

  

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 HANESBRANDS INC. 
 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN 
 (Effective as of January 1, 2006) 
 SECTION 1 
 Introduction

 1.1 Purpose 
 The Hanesbrands Inc.
Supplemental Employee Retirement Plan (the “Plan”) is maintained by the Corporation to provide retirement benefits that are otherwise limited under the Retirement Savings Plan. In addition, the accrued benefits of any Transferred
Participant shall be transferred from the Sara Lee SERP to the Plan as of the Effective Date. On and after the Effective Date, all benefits previously accrued by Transferred Participants under the Sara Lee SERP shall be provided under the Plan, and
Transferred Participants shall accrue no additional benefits under the Sara Lee SERP. 
 The Plan shall constitute a top hat plan within the
meaning of Section 201(2) of ERISA. Notwithstanding any provision of the Plan to the contrary, the Plan is subject to the provisions of Section 409A of the Code and at all times shall be interpreted and administered so that it is
consistent with such Code section; provided, however, that the vested benefits of each Transferred Participant who terminated employment with Sara Lee Corporation and all of its Controlled Group Members prior to January 1, 2005 shall be
determined in accordance with Subsection 1.6 (and shall not be subject to Code Section 409A), except as otherwise provided in Subsection 3.3. 
 1.2
Effective Date and Plan Year 
 The Plan is effective as of January 1, 2006. The Plan is administered on the basis of a Plan Year.

 1.3 Employers 
 The Corporation and each other Controlled Group Member that is a participating employer under the Retirement Savings Plan shall be deemed to have adopted the Plan and shall be treated as an Employer hereunder. 
 1.4 Plan Administration 
 As described in Subsection
5.1, the Committee shall be the administrator (as defined in Section 3(16)(A) of ERISA) of the Plan; provided, however, that the Committee may delegate all or any part of its powers, rights, and duties under the Plan to such person or persons
as it may deem advisable. 
 1.5 Plan Supplements 
 The provisions of the Plan may be modified by supplements to the Plan. The terms and provisions of each supplement are a part of the Plan and supersede the other provisions of the Plan to the extent necessary to eliminate inconsistencies
between such other Plan provisions and such supplement. 
 1.6 Plan Benefits for Participants who Terminated Employment 
 The benefits provided under the Plan with respect to any Participant whose employment with the Employers has terminated shall, except as otherwise
specifically provided in the Plan, be governed in all respects by the terms of the Plan in effect as of the date of the Participant’s termination of employment (or in the case of a Transferred Participant who Separated from Service prior to the
Effective Date, pursuant to the Sara Lee SERP). 
  

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 SECTION 2 
 Definitions 
 2.1 2006 Special Election 
 If the Committee, in its discretion, decides to offer a 2006 Special Election, then the “2006 Special Election” shall mean a Participant’s
valid election, made prior to December 31, 2006 in accordance with rules and procedures established by the Committee, to receive his or her Pension SERP Benefit and/or RSSERP Benefit in a lump sum or in installments over a period of 5 or 10
years (as elected by the Participant) on the Default Payment Date. 
 2.2 A&B Level Transition Credit 
 “A&B Level Transition Credit” means the annual credit, if any, made during the 2006-2010 Plan Years to Participants who had
(a) attained age 45 and (b) completed five or more years of credited service as an A or B level executive as of January 1, 2006; provided, however, that S. Babu, K. McAleer, K. Oliver, and C. Yaroch shall be treated as eligible to
receive the A&B Level Transition Credit.. A&B Level Transition Credits will be calculated as follows: 
  

			
	 Age Plus Years of A&B Level Service
 (as of 1/1/06)
	 	 Credit
 (as a percentage of the Participant’s
 Supplemental
Compensation)

	50 to 54	 	4%
	55 to 59	 	8%
	60 to 64	 	12%
	65 to 69	 	14%
	70 or more	 	15%

 In order to receive the A&B Level Transition Credit for any Plan Year, any Participant who meets the
requirements described herein must be an active Employee as of the last day of the Plan Year or have retired, died, or become a Totally Disabled Participant during the Plan Year. 
  

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 2.3 Account 
 “Account” means the notional accounts and subaccounts maintained for a Participant under the Plan, as described in Subsection 4.1. 
 2.4 Annual Company Credit 
 “Annual Company Credit” means the annual company contribution made on behalf of a
Participant as described in the Retirement Savings Plan. 
 2.5 Beneficiary 
 “Beneficiary” means the person or persons designated by a Participant to receive payment of his or her RSSERP Benefit (“RSSERP
Beneficiary”) or Pension SERP Benefit (“Pension SERP Beneficiary”) upon his or her death in accordance with Subsection 4.5. A beneficiary designation shall be effective only when properly provided to the Committee in accordance with
its rules and procedures while the Participant is alive and, when effective, will cancel all prior beneficiary designations. If the Participant does not have an effective RSSERP Beneficiary and/or Pension SERP Beneficiary designation on the date of
his or her death (because the Participant failed to designate a beneficiary or the Participant’s named beneficiary died before the Participant), the Committee will make the applicable payments described in Subsection 4.5 as follows: 

 

	 	(a)	To the Participant’s surviving spouse; 

  

	 	(b)	If the Participant does not have a surviving spouse, to or for the benefit of the legal representative or representatives of the Participant’s estate; 

 

	 	(c)	If the Participant does not have a surviving spouse and an estate is not opened on behalf of the Participant, to or for the benefit of one or more of the Participant’s
relatives by blood, adoption or marriage in such proportions as the Committee (or its delegate) determines. 

  

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 2.6 Code 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 2.7 Committee 
 “Committee” means the Hanesbrands Inc. Employee Benefits Administrative Committee appointed by the Corporation to administer the Plan.

 2.8 Controlled Group Member 
 “Controlled Group Member” means the Corporation and any affiliated or related corporation which is a member of a controlled group of corporations (within the meaning of Section 1563(a) of the Code) which includes the
Corporation or any trade or business (whether or not incorporated), which is under common control with the Corporation (within the meaning of Section 414(c) of the Code). 
 2.9 Corporation 
 “Corporation” means Hanesbrands Inc., a Maryland corporation. 

2.10 Default Payment Date 
 “Default Payment
Date” means the first business day that occurs 12 months after the end of the Participant’s Election Period. 
 2.11 Deferred Vested Participant

 “Deferred Vested Participant” means a Participant who has Separated from Service, is not a Retired Participant, and is
eligible for a monthly deferred vested pension under the Pension Plan. 
 2.12 Determination Date 
 For purposes of the RSSERP Benefit, “Determination Date” means the date on which the Committee or its delegate receives notification of a
Participant’s Separation from Service. For 
  

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 purposes of the Pension SERP Benefit, “Determination Date” means the date on which the benefit calculation
package is sent to the Participant; provided, however, a Participant’s Determination Date shall be the date that is 6 months after the Participant’s Separation from Service if his or her benefit calculation package has not been sent by
such date. 
 2.13 Effective Date 
 “Effective Date” means January 1, 2006, except as otherwise required to comply with applicable law or as specifically provided herein. 
 2.14 Election Period 
 “Election Period” means the period commencing on the Participant’s Determination Date
and ending on the 60th day thereafter. 
 2.15 Employee 
 “Employee” means a person, including an officer of an Employer, who is in the employ of an Employer. For all purposes of the Plan, an individual shall be an “Employee” of or be “employed”
by an Employer for any Plan Year only if such individual is treated by the Employer for such Plan Year as its employee for purposes of employment taxes and wage withholding for Federal income taxes, regardless of any subsequent reclassification of
such individual as an Employee by an Employer, any governmental agency, court, or other third party. Any such reclassification shall not have a retroactive effect for purposes of the Plan. 
 2.16 Employer 
 “Employer” means the
Corporation and each other Controlled Group Member that is a participating employer under the Retirement Savings Plan. 
 2.17 ERISA 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  

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 2.18 Matching Credit 
 “Matching Credit” means the employer matching contribution made on behalf of a Participant as described in the Retirement Savings Plan. 
 2.19 Normal Retirement Date 
 “Normal Retirement Date” means the first day of the month
coincident with or next following the Participant’s attainment of age 65. 
 2.20 Participant 
 “Participant” means an Employee who satisfies the requirements of Subsection 3.1. 
 2.21 Pension Plan 
 “Pension Plan” means the Hanesbrands Inc. Pension and Retirement Plan,
as amended from time to time. No further benefits shall accrue under the Pension Plan on or after the Effective Date. 
 2.22 Pension SERP Benefit

 “Pension SERP Benefit” means a Participant’s benefit described in Subsection 4.2. 
 2.23 Pension SERP Interest Rate 
 “Pension SERP
Interest Rate” means an interest rate equal to 120% of the annual rate on 30-year Treasury securities published for the month that is 3 months prior to the Determination Date or payment commencement date, as applicable, rounded to the nearest
0.25%. 
 2.24 Plan 
 “Plan”
means the Hanesbrands Inc. Supplemental Employee Retirement Plan, as amended from time to time. 
  

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 2.25 Plan Year 
 “Plan Year” means the 12-month period beginning each January 1 and ending the next following December 31. 
 2.26 Plan Year RSSERP Credit 
 “Plan Year RSSERP Credit” means the credit described in Subparagraph 4.1(b).

 2.27 Present Value 
 “Present
Value” means the present value of a Participant’s Pension SERP Benefit, calculated as if the Pension SERP Benefit were payable as an annuity under the Pension Plan using the Pension Plan’s (a) early payment factors, as
applicable, (b) the mortality table provided under the Pension Plan, and (c) the Pension SERP Interest Rate. For a Retired Participant’s Present Value calculation, the assumed commencement date shall be the date of the
Participant’s retirement and the Present Value will be accumulated with interest at the Pension SERP Interest Rate to the actual payment commencement date. For a Deferred Vested Participant’s Determination Date Present Value calculation,
the assumed commencement date shall be the later of age 55 or the Participant’s age one year after his or her Determination Date, but not later than the Participant’s Normal Retirement Date. For the Present Value calculation at
commencement, the assumed commencement date will be the actual commencement date, but not later than the Participant’s Normal Retirement Date. 
 2.28 Residual Credit 
 “Residual Credit” means a credit to the Participant’s RSSERP Benefit made after the
Participant’s Separation from Service based on the Annual Company Credit, A&B Level Transition Credit, and Salaried Employee Transition Credit. 
  

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 2.29 Retired Participant 
 “Retired Participant” means a Participant who has Separated from Service after attaining age 55 and completing at least 10 years of vesting service (as defined in the Pension Plan) or after age 65.

 2.30 Retirement Savings Plan 
 “Retirement Savings Plan” means the Hanesbrands Inc. Retirement Savings Plan, as amended from time to time; provided, however, that for the period from the Effective Date to the date the Retirement Savings Plan first becomes
effective, the term “Retirement Savings Plan” shall mean the Sara Lee Corporation 401(k) Plan as applied to a Participant and Code limits referenced herein shall be applied as if the Hanesbrands Inc. Retirement Savings Plan, and the Sara
Lee Corporation 401(k) Plan were a single plan for the first Plan Year. 
 2.31 RSSERP Benefit 
 “RSSERP Benefit” means the Participant’s benefit described in Subsection 4.1. 
 2.32 Salaried Employee Transition Credit 
 In
addition, a “Salaried Employee Transaction Credit” will be made on behalf of any employee who (a) had attained age 50; (b) had completed at least 10 years of vesting service (as defined in the Pension Plan) with the Corporation
as of January 1, 2006; and (c) notwithstanding any provision of the Retirement Savings Plan, as the result of the contribution limitations of the Retirement Savings Plan did not receive the full Transaction Contribution in the Retirement
Savings Plan equal to 10% of the employees 2006 Supplemental Compensation reduced by the amount of any Transaction Contribution the employee receives in the Retirement Savings Plan. 
 2.33 Sara Lee SERP 
 “Sara Lee SERP” means the Sara Lee Corporation Supplemental Executive
Retirement Plan. 
  

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 2.34 Separation from Service 
 “Separation from Service” occurs when a Participant’s terminates employment with the Corporation and its Controlled Group Members by reason of a resignation, discharge, retirement, or death. Separation
from Service for purposes of the Plan shall be interpreted consistent with the requirements of Code Section 409A(a)(2)(A)(i) and any IRS guidance issued thereunder. 
 2.35 SERP Benefit 
 “SERP Benefit” means the Participant’s RSSERP Benefit and/or
Pension SERP Benefit, as applicable. 
 2.36 Specified Employee 
 “Specified Employee” means an Employee described in Code Section 409A(a)(2)(B)(i). 
 2.37 Supplemental
Compensation 
 For purposes of the RSSERP Benefit, a Participant’s “Supplemental Compensation” means his or her
compensation as defined in the Retirement Savings Plan but including the following additional amounts: 
  

	 	(a)	Any amounts that cannot be recognized as compensation in the Retirement Savings Plan due to the dollar limitation contained in Code Sections 401(a)(17) of the Code;

  

	 	(b)	Deferred compensation for the Plan Year in which it is deferred; and 

  

	 	(c)	Any compensation required to be included as Supplemental Compensation pursuant to an employment, severance or other written agreement with an Employer; provided, however, that
severance payments to Specified Employees that are delayed six months in compliance with Code Section 409A shall be attributable to the year in which such amounts were earned rather than the year in which they are paid.

  

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 2.38 Transferred Participant 
 “Transferred Participant” means any participant in the Sara Lee SERP who was employed by the Corporation on December 31, 2005 or who was last employed by the Corporation’s predecessor division of
Sara Lee Corporation; provided, however, that L. Chaden, D. Volz, and expatriate employees of the Corporation on January 1, 2006 shall not be considered “Transferred Participants,” so that such individuals’ benefits under the
Sara Lee SERP shall remain payable exclusively by Sara Lee Corporation under the Sara Lee SERP. 
 2.39 Total Disability 
 “Total Disability” means total disability, as defined in the Pension Plan. A “Totally Disabled Participant” means a Participant who is
subject to a Total Disability. 
 2.40 Other Definitions 
 Other defined terms used in the Plan shall have the meanings given such terms elsewhere in the Plan, the Retirement Savings Plan and the Pension Plan. 
  

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 SECTION 3 
 Participation 
 3.1 Eligibility 
 Transferred Participants shall be eligible to participate in the Plan on the Effective Date. In addition, each other Employee of an Employer who is a participant in the Retirement Savings Plan will become a
Participant in the Plan upon the date that the contributions that he or she would otherwise receive under the Retirement Savings Plan are limited by one or more of the following: 
  

	 	(i)	By operation of Code Section 415; 

  

	 	(ii)	Because Supplemental Compensation is not taken into account under the Retirement Savings Plan; or 

  

	 	(iii)	Because a period required to be included as service pursuant to an employment, severance or other written agreement with an Employer is not taken into account under the Retirement
Savings Plan. 

 3.2 Period of Participation 
 Each Employee who becomes a Participant in the Plan shall continue as a Participant until the earlier of the date that all of his or her vested SERP Benefits (if any) have been distributed or his or her death.

 3.3 Reemployed Participants 
  

	 	(a)	In the event a Participant who terminated employment with the Corporation and all Controlled Group Members prior to January 1, 2005 is reemployed by the Controlled Group
Members on or after the Effective Date, the following rules shall apply: 

  

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	 	(i)	The Participant’s SERP Benefits that were earned and vested as of December 31, 2004 and that have been distributed or are in distribution status as of his or her
reemployment date shall continue to be distributed in accordance with the terms of the Sara Lee SERP as in effect on his or her earlier Separation from Service and shall not be subject to the requirements of Code Section 409A; and

  

	 	(ii)	The Participant’s SERP Benefits that either (i) were earned and vested as of December 31, 2004 and (A) have not been distributed, or (B) are not in
distribution status, or (ii) were not earned and vested as of December 31, 2004, shall be subject to the applicable terms of this Plan document and the requirements of Code Section 409A. 

  

	 	(b)	In the event a Participant who Separated from Service with the Corporation and all Controlled Group Members on or after January 1, 2005 is reemployed by the Controlled Group
Members on or after the Effective Date, the SERP Benefits determined as of the Participant’s initial Separation from Service shall be subject to the applicable terms of this Plan document and the requirements of Code Section 409A and
distribution of those amounts shall not be impacted by the Participant’s reemployment. 

  

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 SECTION 4 
 SERP Benefits 
 4.1 RSSERP Benefit 
 Subject to Subsection 4.3, a Participant’s RSSERP Benefit shall be equal to the balance in the Account maintained on behalf of the Participant under
the Plan, which Account balance shall be equal to the sum of (a) plus (b) plus (c) below, and as adjusted pursuant to (d) below: 
  

	 	(a)	Pre-Effective Date Benefit. A Participant’s Account under the Plan shall be credited with the amount of the Participant’s Sara Lee 401(k) SERP Benefit determined under the
Sara Lee SERP, if any, determined as of the date immediately preceding the Effective Date. 

  

	 	(b)	Plan Year RSSERP Credits. A Participant’s Account under the Plan shall be credited with the Plan Year RSSERP Credit equal to (i) plus (ii) plus (iii) below, if
any, as of the last day of each Plan Year: 

  

	 	(i)	Annual Company Credit. The amount equal to (A) minus (B) below: 

  

	 	(A)	The annual company contribution that would have been made on behalf of the Participant (if any) under the Retirement Savings Plan (or, in 2006, under the Sara Lee 401(k) Plan) for
the applicable Plan Year based on the Participant’s Supplemental Compensation and without regard to Code Section 415; minus 

  

	 	(B)	The annual company contribution actually made on behalf of the Participant under the Retirement Savings Plan (or, in 2006, under the Sara Lee 401(k) Plan) for such Plan Year.

  

	 	(ii)	Matching Credit. The amount equal to the Matching Credit that would have been made on behalf of the Participant under the Retirement Savings 

  

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	 	    	Plan for the Plan Year based on his or her Supplemental Compensation less any matching contributions received (or deemed received as described below) by the Participant under the
Retirement Savings Plan for that Plan Year; provided, however, that for purposes of determining the Matching Credit under this Plan, the Participant will be deemed to (A) have made 401(k) contributions (excluding catch-up contributions) of 4%
of the Participant’s Supplemental Compensation, and (B) have received the appropriate matching contribution under the Retirement Savings Plan based upon such deemed 401(k) contribution (regardless of the Participant’s actual
contribution rate). 

  

	 	(iii)	The A&B Level Transition Credit, if any. 

  

	 	(iv)	The Salaried Employee Transition Credit, if any. 

  

	 	(c)	Forfeited Retirement Savings Plan Benefit. To the extent that service under a separation agreement is included in SERP vesting service, a Participant’s Account under the Plan
shall be credited with any amount of the Participant’s Retirement Savings Plan benefit that would be vested under the Retirement Savings Plan recognizing SERP vesting service but that is forfeited due to his or her Separation from Service with
the Controlled Group Members prior to becoming fully vested under the Retirement Savings Plan. 

  

	 	(d)	Adjustment of Account. The Account maintained on behalf of a Participant under the Plan shall be adjusted from time to time to reflect a hypothetical investment in the Hanesbrands
Inc. Common Stock Fund under the Retirement Savings Plan; provided, however, that for as long as the Corporation is a Controlled Group Member of Sara Lee Corporation, the Account maintained on behalf of a Participant under the Plan shall be adjusted
from time to time to reflect a hypothetical investment in the Sara Lee Corporation Common Stock Fund under the Sara Lee Corporation 401(k) Plan. The Committee may establish such rules and procedures relating to the maintenance, adjustment, and
liquidation of 

  

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	 	    	Participants’ Accounts, the crediting of credits and the notional income, losses, expenses, appreciation, and depreciation attributable thereto, as are considered necessary or
advisable. In addition to the Account described above, the Committee may maintain such other Accounts as the Committee considers necessary or desirable. 

 4.2 Pension SERP Benefit 
 Subject to Subsection 4.3, a Transferred Participant’s Pension SERP
Benefit shall be equal to the Transferred Participant’s Sara Lee Pension SERP Benefit determined under the Sara Lee SERP, if any, determined as of the Effective Date. 
 In the case of a Participant in compensation band 3, 4 or 5 who is entitled to receive severance benefits under the Hanesbrands Inc. Severance Pay Plan
(previously known as the Sara Lee Corporation Severance Pay Plan for Employees of Sara Lee Branded Apparel) , and who would satisfy the requirements for early retirement under the Pension Plan if his/her severance period (as defined in the
separation agreement pursuant to which the severance benefits are paid) were a period of actual employment under the Pension Plan, then to the extent provided in the Participant’s separation agreement, the Participant’s SERP Benefit shall
be increased to reflect the difference between (i) the Pension Plan benefit that would be payable if the years of severance period was recognized as years of vesting service as defined in the Pension Plan; and (ii) the actual Pension Plan
benefit; provided, however, that such Participant’s severance period shall not be considered as credited service for purposes of determining the amount of the Participant’s accrued Pension SERP Benefit. 
 4.3 Vesting of Benefits 
 A Participant shall have a
nonforfeitable right to his or her SERP Benefit as provided in Subparagraphs (a) and (b) below, as applicable. 
  

	 	(a)	RSSERP Benefit. A Participant’s RSSERP Benefit shall become nonforfeitable on the same basis and at the same time as his or her employer contributions become nonforfeitable
under the Retirement Savings Plan provided, however, that 

  

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	 	    	an individual who had a Matching Credit balance under the Sara Lee SERP on December 31, 2002 shall be fully vested in his or her RSSERP Benefit on and after January 1,
2003. 

  

	 	(b)	Pension SERP Benefit. A Participant’s Pension SERP Benefit shall become nonforfeitable on the same basis and at the same time as his or her benefit under the Pension Plan.

 In determining whether a Participant is vested in his or her SERP Benefit, any period required to be included as service pursuant to an
employment, severance or other written agreement with an Employer shall be considered service with an Employer under the Plan. 
 4.4 Payment of Benefits

 A Participant’s SERP Benefit shall, subject to the further provisions of this Plan, be payable to or on account of the Participant
as follows: 
  

	 	(a)	RSSERP Benefit. 

  

	 	(i)	If the value of the Participant’s vested RSSERP Benefit (determined without regard to any Residual Credit) is less than $50,000 on the Participant’s Determination Date,
then any 2006 Special Election made by the Participant shall be void, and the Participant’s RSSERP Benefit shall be paid in a lump sum as soon as administratively practicable following the Participant’s Determination Date, but in no event
later than the end of the calendar year after the calendar year of the Participant’s Determination Date. Any Residual Credit to the Participant’s Account after his or her Determination Date shall be paid in a lump sum as soon as
practicable after such credit is made, but in no event later than the end of the calendar year after the calendar year of the Participant’s Determination Date. Notwithstanding the foregoing, in no event shall distribution to a Specified
Employee be made earlier than 6 months following his or her Separation from Service. 

  

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	 	(ii)	If the value of the Participant’s vested RSSERP Benefit (determined without regard to any Residual Credit) is $50,000 or more on the Participant’s Determination Date, the
Participant’s RSSERP Benefit will be paid as follows: 

  

	 	(A)	Subject to Subparagraph (B) below, the Participant’s RSSERP Benefit shall be paid in a lump sum on or as soon as practicable after the Default Payment Date, but in no
event later than the end of the calendar year after the calendar year of the Participant’s Determination Date. 

  

	 	(B)	In lieu of the payment method described in Subparagraph (A), during the Election Period, the Participant may elect to receive his or her RSSERP Benefit in one of the following
forms, in accordance with rules and procedures established by the Committee: 

  

	 	(1)	In a lump sum paid as of the first business day of the calendar year beginning 5 years after the Default Payment Date (or any calendar year thereafter); or 

 

	 	(2)	In annual installments over a period of 5 or 10 years commencing as of the first business day of the calendar year beginning 5 years after the Default Payment Date (or any calendar
year thereafter). 

  

	 	(C)	If the Participant made a valid 2006 Special Election and does not make an election described in Subparagraph (B), his or her RSSERP Benefit shall be paid in accordance with such
2006 Special Election commencing as soon as administratively practicable following the Participant’s Default Payment Date. 

  

 - 18 - 

	 	    	If a proper election is not made during the Election Period, the Participant shall be deemed to have elected a distribution under Subparagraph (A). 

  

	 	(b)	Pension SERP Benefit. 

  

	 	(i)	If the Present Value of the Participant’s vested Pension SERP Benefit is less than $50,000 on the Participant’s Determination Date or if the Participant does not qualify
as a Retired Participant or a Totally Disabled Participant, then any 2006 Special Election made by the Participant shall be void, and the Present Value of the Participant’s Pension SERP Benefit shall be paid in a lump sum as soon as
administratively practicable following the Participant’s Determination Date, but in no event later than the end of the calendar year after the calendar year of the Participant’s Determination Date. Notwithstanding the foregoing, in
no event shall distribution to a Specified Employee be made earlier than 6 months following his or her Separation from Service. If the Participant’s distribution is suspended due to the waiting period imposed by operation of Code
Section 409A and the related terms of the Plan, it shall be accumulated with interest at the Pension SERP Interest Rate. 

  

	 	(ii)	If the Present Value of the vested portion of the Participant’s Pension SERP Benefit is $50,000 or more on the Participant’s Determination Date and the Participant
qualifies as either a Retired Participant or a Totally Disabled Participant, then the Participant’s Pension SERP Benefit will be paid as follows: 

  

	 	(A)	Subject to Subparagraph (B) below, if the Participant did not make a valid 2006 Special Election, the Participant’s Pension SERP Benefit shall be paid the Present Value of
his or her Pension SERP Benefit shall be paid in a lump sum as soon as administratively practicable following the Default Payment Date but in no event later than the end of the calendar year after the calendar year of the Participant’s
Determination Date. 

  

 - 19 - 

	 	(B)	In lieu of the payment method and timing described in Subparagraph (A), and subject to the timing restrictions in Subparagraph (C), during the Election Period, the Participant may
elect to receive his or her Pension SERP Benefit in one of the following forms, in accordance with rules and procedures established by the Committee: 

  

	 	(1)	The Present Value paid in a lump sum; or 

  

	 	(2)	The Present Value paid in monthly installments over a period of 5 or 10 years (as elected). 

  

	 	(C)	If a Participant makes an election as described in Subparagraph (B) during the Election Period, payments will commence as follows: 

  

	 	(1)	As elected by the Participant, as of the first day of any month following the date that is 5 years after the Default Payment Date. 

  

	 	(2)	The amount of the Participant’s Pension SERP Benefit will be determined as of the date the Participant retires and will be accumulated with interest at the Pension SERP
Interest Rate to the payment date. 

  

	 	(D)	If the Participant made a valid 2006 Special Election and does not make an election described in Subparagraph (B), his or her Pension SERP Benefit shall be paid in accordance with
such 2006 Special Election. 

  

 - 20 - 

 4.5 Payments Upon Death 
 Notwithstanding any provision of Subsection 4.4 to the contrary, the following rules shall apply upon a Participant’s death: 
  

	 	(a)	RSSERP Benefit. If the Participant dies before complete payment of his or her vested RSSERP Benefit under Subparagraph 4.4(a), payment of his or her remaining RSSERP Benefit shall
be made to his or her RSSERP Beneficiary in a lump sum as soon as practicable following the date of the Participant’s death (but in no event later than the end of the calendar year following the calendar year of his or her death).

  

	 	(b)	Pension SERP Benefit. 

  

	 	(i)	Death Before Commencement. 

  

	 	(A)	If a Participant Separates from Service before qualifying as a Retired Participant and dies before commencement of his or her Pension SERP Benefit, the Present Value of the
Participant’s Pension SERP Benefit shall be paid to the Participant’s Pension SERP Beneficiary in a lump sum as soon as practicable following the date of the Participant’s death (but in no event later than the end of the calendar year
following the calendar year of his or her death). 

  

	 	(B)	If a Retired Participant dies before commencement of his or her Pension SERP Benefit payments, then the Present Value of his or her Pension SERP Benefit shall be paid to the
Participant’s Pension SERP Beneficiary in a lump sum as soon as practicable following the date of the Participant’s death (but in no event later than the end of the calendar year following the calendar year of his or her death).

  

 - 21 - 

	 	(C)	Death while Active. If a Participant dies while actively employed by the Corporation, the Present Value of the Participant’s Pension SERP Benefit attributable to the active
death benefit, as determined under the Pension Plan, shall be paid to the Participant’s Pension SERP Beneficiary in a lump sum as soon as practicable following the date of the Participant’s death (but in no event later than the end of the
calendar year following the calendar year of his or her death). If such benefit is payable to the Participant’s surviving spouse, the Present Value shall be determined based on the surviving spouse’s age on the date of the
Participant’s death. If such benefit is payable to a Pension SERP Beneficiary other than the Participant’s surviving spouse, the Present Value shall be determined as if such amount were payable to a spouse the same age as the Participant.

  

	 	(ii)	Death After Commencement. If the Participant dies after commencement of his or her Pension SERP Benefit payments, the Present Value of the unpaid portion of his or her Pension SERP
Benefit shall be paid to his or her Pension SERP Beneficiary in a lump sum as soon as practicable following the date of the Participant’s death (but in no event following the later of the end of the calendar year following the calendar year of
his or her death). 

 4.6 Payment of FICA Tax on Pension SERP Benefit 
 Notwithstanding anything contained in the Plan to the contrary, an initial Pension SERP Benefit payment shall be made on behalf of the Participant in the
amount of the Federal Insurance Contributions Act (“FICA”) tax due from the Participant on his or her Pension SERP Benefit, determined as of the date such FICA tax is due. All later calculations and payments related to the
Participant’s Pension SERP Benefit shall be adjusted to reflect this initial payment. 
  

 - 22 - 

 4.7 Benefits Provided by Employers 
 Benefits payable under this Plan to a Participant or his or her surviving spouse, beneficiary or estate shall be paid directly by the Participant’s Employer. No Employer shall be required to segregate any assets
to be applied for the payment of benefits under this Plan. 
 4.8 Other Employment 
 A Participant or his or her surviving spouse or beneficiary who is receiving SERP Benefits hereunder will continue to be entitled thereto regardless of
other employment or self-employment. 
  

 - 23 - 

 SECTION 5 
 General 
 5.1 Committee 
 This Plan will be administered by the Committee appointed by the Board of Directors of the Corporation or a committee thereof. The Committee may delegate any of its authority hereunder to a committee or to one or more
individuals provided such delegation is in writing. Any such delegation is incorporated herein by this reference. The Committee, and to the extent applicable its delegates, shall have the discretionary authority to determine factual issues and
eligibility for Plan coverage and benefits, to interpret the provisions and terms of Plan and to decide claims for benefits under the terms of the Plan. Subject to applicable law, any interpretation of the provisions of the Plan (including any
Supplement) and any decision on any matter within the discretion of the Committee, or as applicable its delegates, made by it or them in good faith shall be final and binding on all persons. A misstatement or other mistake of fact shall be corrected
when it becomes known, and the Committee or as applicable its delegates shall make such adjustment on account thereof as it considers equitable and practicable. The Committee shall not be liable in any manner for any determination of fact made in
good faith. Any claim for benefits under the Plan shall be handled by the Committee, or as applicable its delegates, pursuant to the claims procedures under the Retirement Savings Plan or the Pension Plan, as applicable, and such procedures are
incorporated herein by this reference. No action at law or in equity may be brought to recover benefits under the Plan until the Participant has exercised all appeal rights and the Plan benefits requested in such appeal have been denied in whole or
in part. Benefits under the Plan shall be paid only if the Committee, or as applicable its delegates, in its or their discretion, determines that a Participant (or other claimant) is entitled to them. 
 5.2 Interests Not Transferable 
 Except as provided
under an agreement between the Participant and the Corporation or required for purposes of withholding of any tax under the laws of the United States or any State 
  

 - 24 - 

 or locality, the interest of any Participant, his or her spouse or minor children under the Plan is not subject to the
claims of creditors and may not be voluntarily or involuntarily sold, transferred, assigned, alienated or encumbered. 
 5.3 Facility of Payment

 When, in the Committee’s opinion, a Participant or beneficiary is under a legal disability or is incapacitated in any way so as to
be unable to manage his or her financial affairs, the amounts payable to such person may be paid to such person’s legal representative, or to a relative or friend of such person for his or her benefit, or such amounts may be applied for the
benefit of such person in any way the Committee considers advisable. 
 5.4 Gender and Number 
 Where the context admits, words denoting men include women, the plural includes the singular and vice versa. 
 5.5 Controlling Law 
 To the extent not superseded by
the laws of the United States, the laws of North Carolina (without regard to any state’s conflict of law principles) shall be controlling in all matters relating to the Plan. 
 5.6 Successors 
 This Plan is binding on each Employer and will inure to the benefit of any successor
of an Employer, whether by way of purchase, merger, consolidation or otherwise. 
 5.7 Rights Not Conferred by the Plan 
 The Plan is not a contract of employment, and participation in the Plan will not give any Employee the right to be retained in an Employer’s employ,
nor any right or claim to any benefit under the Plan, unless the right or claim has specifically accrued under the Plan. 
  

 - 25 - 

 5.8 Litigation by Participants 
 If a legal action begun against the Committee or any of the Employers by or on behalf of any person results adversely to that person, or if a legal action arises because of conflicting claims to a Participant’s
benefits, the cost to the Committee or any of the Employers of defending the action will be charged to such extent as possible to the sums, if any, involved in the action or payable to or on behalf of the Participant concerned. 
 5.9 Uniform Rules 
 In managing the Plan, the
Committee will apply uniform rules to all Participants similarly situated. 
 5.10 Action by Employers 
 Any action required or permitted under the Plan of an Employer shall be by resolution of its Board of Directors or by a duly authorized Committee of its
Board of Directors, or by a person or persons authorized by resolution of its Board of Directors or such Committee. 
 5.11 Tax Effects 
 The Corporation, the Committee, the Controlled Group Members, and their representatives and delegates do not in any way guarantee the tax treatment of
benefits for any individual, and the Corporation, the Committee, the Controlled Group Members, and their representatives and delegates do not in any way guarantee or assume any responsibility or liability for the legal, tax, or other implications or
effects of the Plan. In the event of any legal, tax, or other change that may affect the Plan, the Corporation, or the Controlled Group Members, the Corporation may, in its sole discretion, take any actions it deems necessary or desirable as a
result of such change. 
  

 - 26 - 

 SECTION 6 
 Amendment and Termination 
 While the Employers expect to continue the Plan indefinitely, the
Corporation reserves the right to amend or terminate the Plan by action of the Board of Directors of the Corporation or by action of a committee or an individual authorized to amend or terminate the Plan, provided that in no event shall any
Participant’s SERP Benefit accrued to the date of such amendment or termination be reduced or modified by such action. 
  

 - 27 - 

 SUPPLEMENT A 
 TO 
 HANESBRANDS INC. 
 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN 
 Provisions Relating to Transferred
Participants Previously Participating in 
 the Earthgrains Company Supplemental Executive Retirement Plan 
 A-1. History and Purpose. The purpose of this Supplement A is to describe the benefits that would have been payable under the Earthgrains SERP to
each Supplement A Participant (defined below) and to describe the benefits payable to each eligible Supplement A Participant under the Plan. This Supplement A is intended to supersede the terms of the Earthgrains SERP as applied to any Supplement A
Participant. Accordingly, any benefit payable to or on behalf of a Supplement A Participant under this Supplement shall be considered to have been provided under the Earthgrains SERP for all purposes. A Supplement A Participant who receives the
benefits described in this Supplement shall be deemed to have received his or her entire Earthgrains SERP benefit. Except as otherwise specifically provided herein, a Supplement A Participant is not intended to receive any rights under this
Supplement A in addition to his or her rights under the Earthgrains SERP. “Supplement A Participant” means each Transferred Participant who was an active participant in the Earthgrains SERP as of December 31, 2002. 
 A-2. Supplement A Pension SERP Benefit. In lieu of a Pension SERP Benefit, a Supplement A Participant shall be entitled to the following:

  

	 	(a)	Amount of Supplement A Pension SERP Benefit. Subject to the requirements set forth below, each Supplement A Participant who retires or terminates employment with all
Controlled Group Members shall be entitled to a benefit equal to the following: 

  

	 	(i)	The benefit which would be payable to the Supplement A Participant under the Earthgrains supplement to the Pension Plan, determined (A) without regard to the limitation of Code
Section 401(a)(17), and (B) using the definition of Earthgrains Formula Compensation (as defined in the Sara Lee SERP); minus  

  

 A-1 

	 	(ii)	The Supplement A Participant’s actual accrued benefit under the Earthgrains supplement of the Pension Plan. 

  

	 	(b)	Form of Payment. 

  

	 	(i)	The benefit payable to a Supplement A Participant (the Participant’s “Supplement A SERP Benefit”) shall be paid as follows: 

  

	 	(A)	Subject to Subparagraphs (B) and (C) below, if the Participant did not make a valid 2006 Supplement A Special Election (as defined below), the Participant’s
Supplement A SERP Benefit shall be paid in a lump sum as soon as practicable after such Supplement A Participant’s Separation from Service; provided, however, that in no event shall distribution to a Specified Employee be made less than 6
months following his or her Separation from Service. 

  

	 	(B)	If the Supplement A Participant made a valid 2006 Supplement A Special Election, the Participant’s Supplement A Benefit shall be paid in accordance with such election. A
“2006 Supplement A Special Election” means a Supplement A Participant’s valid election, made prior to December 31, 2005 in accordance with rules and procedures established by the Committee, to receive his or her Supplement A
Benefit in actuarially equivalent quarterly installments, semi-annual installments or annual installments (as elected) for a period not to exceed 5 years, commencing as soon as practicable after such Supplement 

  

 A-2 

	 	    	A Participant’s Separation from Service (or, for a Specified Employee, 6 months following his or her Separation from Service). 

  

	 	(C)	In lieu of the payment method and timing described in Subparagraphs (A) or (B), the Participant may elect to receive his or her Supplement A Benefit in actuarially equivalent
quarterly installments, semi-annual installments or annual installments (as elected) for a period not to exceed 5 years, commencing 5 years after the later of (x) the Participant’s Separation from Service, or (y) the date the
Participant otherwise would have commenced payment of his or her Supplement A Benefit under Subparagraphs (A) or (B) above, as applicable; provided, however that an election under this Subparagraph (C) must be made in accordance with
rules and procedures established by the Committee and must be received by the Committee at least 1 year before Participant’s Separation from Service. A new election under this Subparagraph shall revoke all prior elections; provided, however,
that an election received within 1 year of the date of the Participant’s Separation from Service shall be invalid. 

  

	 	(c)	Actuarial Factors. The following actuarial factors shall apply for purposes of this Paragraph A-2: 

  

	 	(i)	Present Value. Present value shall be determined using the factors set forth in the Pension Plan; 

  

	 	(ii)	Early Retirement Reduction. The reduction for early commencement shall be determined using the early retirement reduction factors set forth in the Earthgrains supplement to
the Pension Plan; provided, however, that no reduction shall apply if the Supplement A Participant retires after attaining age 62 with 20 Years of Service. 

  

 A-3 

	 	(iii)	Installment Payments. The actuarial factors for determining installment payments shall be determined using the factors set forth in the Pension Plan.

 A-3. Plan Provisions. All provisions of the Plan, to the extent that they are consistent with the provisions of this
Supplement, shall apply to Supplement A Participants; provided, however, that a Supplement A Participant shall only be entitled to a benefit under the Plan to the extent such benefit is specifically provided under this Supplement A. 
  

 A-4Performance-Based Annual Incentive Plan

 Exhibit 10.7 
 HANESBRANDS INC. 
 PERFORMANCE-BASED ANNUAL INCENTIVE PLAN 

 CERTIFICATE 
 I hereby certify that the attached document is the official version of the Hanesbrands Inc. Performance-Based Annual Incentive Plan adopted by the Board of Directors of the Company by resolution dated June 26,
2006 and subsequently finalized by the duly authorized officers of the Company effective as of July 2, 2006. 
 Dated this 1st
day of September, 2006. 
  

			
	 HANESBRANDS INC.

		
	 By
	 	 /s/ Kevin Oliver

	 Its
	 	Senior Vice President, Human Resources

 HANESBRANDS INC. 
 PERFORMANCE-BASED ANNUAL INCENTIVE PLAN 
 1. Purpose. The purpose of the Hanesbrands
Inc. Performance-Based Annual Incentive Plan (the “Plan”) is to advance the interests of Hanesbrands Inc. and its stockholders by providing certain of its key executives with annual incentive compensation which is tied to the
achievement of pre-established and objective performance goals. The Plan is intended to provide Participants with annual incentive compensation which is not subject to the deduction limitation rules prescribed under Section 162(m)
of the Internal Revenue Code of 1986, as amended (the “Code”), and should be construed to the extent possible as providing for remuneration which is “performance-based compensation” within the meaning of
Section 162(m) of the Code and the regulations promulgated thereunder. 
 2. Definitions. Where the context of the
Plan permits, words in the masculine gender shall include the feminine gender, the plural form of a word shall include the singular form, and the singular form of a word shall include the plural form. Unless the context clearly indicates
otherwise, the following terms shall have the following meanings: 
  

	 	(a)	Board means the Board of Directors of Hanesbrands Inc. 

  

	 	(b)	Committee means the Compensation and Benefits Committee of the Board, a subcommittee thereof, or such other committee as may be appointed by the Board. The
Committee shall be comprised of two or more non-employee members of the Board who shall qualify to administer the Plan as “outside directors” under Section 162(m) of the Code and who shall qualify as
“independent” under the New York Stock Exchange listing requirements. 

  

	 	(c)	Corporation means Hanesbrands Inc., a Maryland corporation, and any successor thereto. 

  

	 	(d)	Incentive Pool Fund means an amount equal to 3.0% of Operating Income. 

  

	 	(e)	Operating Income means the Corporation’s operating income for the applicable Performance Period as reported in the Corporation’s income
statement and as 

 adjusted to eliminate the effects of charges for restructurings, discontinued operations, extraordinary
items, other unusual or non-recurring items, and the cumulative effect of tax or accounting changes, each as determined in accordance with Generally Accepted Accounting Principles and identified in the financial statements, in the notes to the
financial statements or in the Management’s Discussion and Analysis section of the financial statements. 
  

	 	(f)	Participant means (i) a “covered employee,” as defined in Section 162(m) of the Code and the regulations promulgated thereunder, of the
Corporation or its Subsidiaries who has been selected by the Committee to participate in the Plan during a Performance Period and (ii) each other employee of the Corporation or its Subsidiaries
who has been selected by the Committee to participate in the Plan during a Performance Period. 

  

	 	(g)	Performance Award means an award granted pursuant to the terms of section 4 of this Plan. A Participant shall have no right to any Performance Award
until that award is paid. 

  

	 	(h)	Performance Period means the Corporation’s fiscal year, or such other period as designated by the Committee. 

  

	 	(i)	Plan means the Hanesbrands Inc. Performance-Based Annual Incentive Plan, as amended from time to time. 

  

	 	(j)	Pool Fund Allocation means the percentage of the Incentive Pool Fund that is allocated to each Participant with respect to any Performance Period. A
maximum of 40% may be allocated to any single Participant. The total allocation may not exceed 100%. 

  

	 	(k)	Subsidiary or Subsidiaries means any corporation or entity of which the Corporation owns directly or indirectly, at least 50% of the total voting power or in
which it has at least a 50% economic interest, and which is authorized to participate in the Plan. 

  

 -4- 

 3. Plan Administration. The Committee shall have full discretion, power and authority to
administer and interpret the Plan and to establish rules and procedures for its administration as the Committee deems necessary and appropriate. The Committee may delegate to officers and employees of the Corporation the
authority to manage the day-to-day administration of the Plan including without limitation the discretionary authority to (i) administer and interpret the terms of the Plan, and (ii) amend the Plan only as necessary to
reflect any ministerial, administrative or managerial functions; provided that any such amendment does not increase the Incentive Pool Fund or the Pool Fund Allocation. Pool Fund Allocations shall be established by the
Committee for a Participant (or group of Participants) no later than ninety (90) days after the commencement of each Performance Period (or the date on which 25% of the Performance Period has elapsed, if
earlier). 
 Any interpretation of the Plan or other act of the Committee (or its delegate) in administering the Plan
shall be final and binding upon all Participants. 
 4. Performance Awards. For each Performance Period, the
Committee shall determine the amount of a Participant’s Performance Award as follows: 
  

	 	(a)	General. The maximum amount of a Participant’s Performance Award shall be equal to the Participant’s Pool Fund Allocation of the Incentive Pool
Fund for the Performance Period. The actual amount of a Participant’s Performance Award may be reduced or eliminated by the Committee as set forth in subsection (c) below. 

  

	 	(b)	Allocation of Incentive Pool Fund. The Incentive Pool Fund for each Performance Period shall be allocated among Participants. The maximum award for a
Participant is equal to the Participant’s Pool Fund Allocation. 

  

	 	(c)	Reduction or Elimination of Pool Fund. The Pool Fund Allocation for each Participant may be reduced or eliminated by the Committee in its sole
discretion; provided, however, that under no circumstances may the amount of the Incentive Pool Fund, or the Pool Fund Allocation to any Participant, be increased. Once 

  

 -5- 

 the Committee has determined the amount of a Participant’s Performance Award pursuant
to subsections (a), (b), and (c) in this section 4, and upon the certification required under section 5 hereto, the Committee shall pay the Participant’s Performance Award pursuant to such terms and procedures as the
Committee shall adopt under section 3 hereto. 
 5. Payment of Performance Awards. Subject to any stockholder approval required
by law, payment of any Performance Award to a Participant for any Performance Period shall be made in cash (or in stock or stock-based awards under the Hanesbrands Inc. Omnibus Incentive Plan of 2006 as restated and/or amended
from time to time) after written certification by the Committee that the performance goal for the Performance Period was achieved, and any other material terms of the Performance Award were satisfied. Any Performance
Award may be deferred pursuant to the terms and conditions of the Corporation’s deferred compensation plan or plans then in effect. 
 A Participant is not entitled to any award hereunder for the Performance Period during which Participant breaches any confidentiality, proprietary information, or
non-compete provisions of any agreement or plan then in effect between Corporation and Participant, and shall immediately forfeit his right to any accrued but unpaid amounts attributable to any
Performance Period. Further, if a Participant breaches any confidentiality, proprietary information, or non-compete provisions of any agreement or plan between
Corporation and the Participant in effect after the Participant’s termination of employment, the Participant shall repay to Corporation any
award paid to the Participant under the Plan within one year of such breach (plus the cost of collection and a reasonable rate of interest) and shall immediately forfeit his right to any accrued unpaid
amounts attributable to any Performance Period.  
 The Committee may make retroactive adjustments to and
the Participant shall reimburse to the Corporation any cash or equity based incentive compensation paid to the Participant where such compensation was predicated upon achieving certain financial results that were 
  

 -6- 

 substantially the subject of a restatement, and as a result of the restatement it is determined that the
Participant otherwise would not have been paid such compensation, regardless of whether or not the restatement resulted from the Participant’s misconduct. In each such instance, the Corporation will, to the extent
practicable, seek to recover the amount by which the Participant’s cash or equity based incentive compensation for the relevant period exceeded the lower payment that would have been made based on the restated financial results. The
Corporation will, to the extent permitted by governing law, require reimbursement of any cash or equity based incentive compensation paid to any named executive officer (for purposes of this policy “named executive officers” has the
meaning given that term in Item 402(a)(3) of Regulation S-K under the Securities Exchange Act of 1934) where: (i) the payment was predicated upon the achievement of certain financial results that were subsequently the subject of a
substantial restatement, and (ii) in the Committee’s view the officer engaged in fraud or misconduct that caused or partially caused the need for the substantial restatement. In each instance described above, the Corporation
will, to the extent practicable, seek to recover the described cash or equity based incentive compensation for the relevant period, plus a reasonable rate of interest. 
 6. Plan Amendment and Termination. Except as explicitly provided by law, this Plan is provided at the Corporation’s sole discretion and the Board or the Committee may modify or
terminate it at any time, prospectively or retroactively, without notice or obligation for any reason, subject to obtaining any necessary stockholder approval as required by law, regulation, or listing exchange requirement. In addition, there is no
obligation to extend the Plan or establish a replacement plan in subsequent years. 
 7. Miscellaneous Provisions. 

 

	 	(a)	Employment Rights. The Plan does not constitute a contract of employment and participation in the Plan will not give a Participant the right to continue
in the employ of the Corporation, or any of its subsidiaries or affiliates, on a full-time, part-time, or any other basis. Participation in the Plan will not give any Participant any right or claim to any benefit under the
Plan, unless such right or claim has specifically been granted by the Committee under the terms of the Plan. 

  

 -7- 

	 	(b)	Committee’s Decision Final. Any interpretation of the Plan and any decision on any matter pertaining to the Plan which is made by the Committee in
its discretion in good faith shall be binding on all persons. 

  

	 	(c)	Governing Law. Except to the extent superseded by the laws of the United States, the laws of the State of North Carolina, without regard to any state’s conflict of laws
principles, shall govern in all matters relating to the Plan. Any legal action related to this Plan shall be brought only in a federal or state court located in North Carolina. 

  

	 	(d)	Interests Not Transferable. Any interests of Participants under the Plan may not be voluntarily sold, transferred, alienated, assigned or encumbered, other than
by will or pursuant to the laws of descent and distribution. 

  

	 	(e)	Severability. In the event any provision of the Plan shall be held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provision(s) had never been contained in the Plan. 

  

	 	(f)	Withholding. The Corporation will withhold from any amounts payable under this Plan all federal, state, foreign, city and local taxes as shall be legally
required. 

  

	 	(g)	Effect on Other Plans or Agreements. Payments or benefits provided to a Participant under any stock, deferred compensation, savings, retirement or other employee
benefit plan are governed solely by the terms of such plan. 

 8. Effective Date. This Plan shall be effective as
of July 2, 2006, as approved by Sara Lee Corporation as the sole shareholder of the Corporation. The Plan shall automatically terminate as of the first meeting of shareholders on and after the first anniversary of the date on
which the Corporation first issues equity securities of the Corporation that are required to be registered under Article II of the Securities Exchange Act of 1934, as amended, unless resubmitted to and approved by shareholders prior to
that date. 
  

 -8-

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