These set the timeouts for the initial connection and in between commands to be 1 and 2 minutes respectively. It also disables checking for ident information by setting it to zero. This can easily bog down a server as it takes awhile for the ident check to timeout and most servers aren't running it these days.
If you receive a lot of E-mail on a regular basis or get hit with sudden floods of it, you may want to explore using the following options:
The first setting instructs Sendmail to have at most 20 processes running at any one time. The next two determine at what system load levels Sendmail only queues up E-mail for later processing (confQUEUE_LA) and at what load level it rejects E-mail entirely. These two are useful in preventing a flood of spam from bringing your server to its knees.