Julio A. Barea SVP/President and CEO of Russell Corp.’s Activewear segment will end his employment with Russell at the end of the month. Under the Agreement, Mr. Barea will be paid a pro-rated portion of the bonus for which he is eligible for 2006, at the actual rate the bonus is earned based on standards of performance set for the companys Activewear group (or, in the event of a change in control of the company, at 50% of his base salary, based on a target level of performance). He will be paid severance in the gross amount of $210,000, and if he elects health insurance continuation coverage, until December 31, 2006 he will be charged premiums at active employee rates. Mr. Barea also will be considered to have reached minimum retirement age under the companys retirement plans.
15,000 shares of time lapse restricted stock granted to Mr. Barea in 2003 will become fully vested and will be paid to him on December 31, 2006. In addition, Mr. Barea received a grant of performance shares, the vesting of which depends on the degree to which performance goals are achieved during the period January 1 through December 31, 2006. Pursuant to this performance share grant, Mr. Barea is entitled to receive a number of shares ranging from 3,333 shares if threshold goals are achieved to 10,000 shares at target performance, up to a maximum of 20,000 shares. Both the time lapse restricted stock and the target number of performance shares will automatically vest upon a change in control of the company.
