Document:

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                                                                   EXHIBIT 10.55

                            INDEMNIFICATION AGREEMENT

               THIS INDEMNIFICATION AGREEMENT is made as of the 7th day of June,
2001, by and between Callaway Golf Company, a Delaware corporation (the
"Company"), and Ronald S. Beard ("Indemnitee"), a director of the Company.

               WHEREAS, the Company and Indemnitee recognize the increasing
difficulty in obtaining liability insurance covering directors, the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance;

               WHEREAS, although the Company currently has directors liability
insurance, the coverage of such insurance is such that many claims which may be
brought against Indemnitee may not be covered, or may not be fully covered, and
the Company may be unable to maintain such insurance;

               WHEREAS, the Company and the Indemnitee further recognize the
substantial increase in corporate litigation subjecting directors to expensive
litigation risks at the same time that liability insurance has been severely
limited;

               WHEREAS, the current protection available may not be adequate
given the present circumstances, and Indemnitee may not be willing to serve as a
director without adequate protection;

               WHEREAS, the Company desires to attract and retain the services
of highly qualified individuals, such as Indemnitee, to serve as directors of
the Company and to indemnify its directors so as to provide them with the
maximum protection permitted by law;

               NOW, THEREFORE, the Company and Indemnitee hereby agree as
follows:

        1. DEFINITIONS. The following terms, as used herein, have the following
meaning:

               1.1 Affiliate. "Affiliate" means, (i) with respect to any
corporation, any officer, director or 10% or more shareholder of such
corporation, or (ii) with respect to any individual, any partner or immediate
family member of such individual or the estate of such individual, or (iii) with
respect to any partnership, trust or joint venture, any partner, co-venturer or
trustee of such partnership, trust of joint venture, or any beneficiary or owner
having 10% or more interest in the equity, property or profits of such
partnership, trust or joint venture, or (iv) with respect to any Person, any
other Person which, directly or indirectly, controls, is controlled by, or is
under common control with such Person or any Affiliate of such Person.

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               1.2 Agreement. "Agreement" shall mean this Indemnification
Agreement, as the same may be amended from time to time hereafter.

               1.3 DGCL. "DGCL" shall mean the Delaware General Corporation Law,
as amended.

               1.4 Person. "Person" shall mean any individual, partnership,
corporation, joint venture, trust, estate, or other entity.

               1.5 Subsidiary. "Subsidiary" shall mean any corporation of which
the Company owns, directly or indirectly, through one or more subsidiaries,
securities having more than 50% of the voting power of such corporation.

        2. INDEMNIFICATION

               2.1 Third Party Proceedings. The Company shall indemnify
Indemnitee if Indemnitee is or was a party or witness or other participant in,
or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than action by or in the right of the Company) by reason of
the fact that Indemnitee is or was a director of the Company or any subsidiary
of the Company, by reason of any action or inaction on the part of Indemnitee
while a director of the Company or any Subsidiary, and/or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against all expense, liability and loss (including
attorneys' fees), judgments, fines and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be
unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such action, suit or proceeding if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful
and provided, further, that the Company has determined that such indemnification
is otherwise permitted by applicable law.

               The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its
equivalent shall not, of itself, create a presumption that Indemnitee did not
act in good faith and in a manner which Indemnitee reasonably believed to be in
the best interests of the Company or that Indemnitee had reasonable cause to
believe that Indemnitee's conduct was unlawful.

               2.2 Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee if Indemnitee was or is a party or a witness or other
participant in or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Company or any Subsidiary to
procure a judgment in its favor by reason of the fact that Indemnitee is or was
a director of the Company or any Subsidiary, by reason of any action or inaction
on the part of

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Indemnitee while a director of the Company or a Subsidiary or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against all expense, liability and loss
(including attorneys' fees) and amounts paid in settlement (if such settlement
is court-approved) actually and reasonably incurred by Indemnitee in connection
with the defense or settlement of such action or suit if Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company and its shareholders and provided,
further, that the Company has determined that such indemnification is otherwise
permitted by applicable law. No indemnification shall be made in respect of any
claim, issue or matter as to which Indemnitee shall have been adjudged to be
liable to the Company in the performance of Indemnitee's duties to the Company
and its shareholders, unless and only to the extent that the court in which such
proceeding is or was pending shall determine upon application that, in view of
all the circumstances of the case, Indemnitee is fairly and reasonably entitled
to indemnity for expenses and then only to the extent that the court shall
determine.

               2.3 Mandatory Payment of Expenses. To the extent that Indemnitee
has been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in Section 2.1 or 2.2 or the defense of any claim, issue
or matter therein, Indemnitee shall be indemnified against expenses (including
attorneys' fees) actually and reasonably incurred by Indemnitee in connection
therewith.

               2.4 Enforcing the Agreement. If Indemnitee properly makes a claim
for indemnification or an advance of expenses which is payable pursuant to the
terms of this Agreement, and that claim is not paid by the Company, or on its
behalf, within ninety days after a written claim has been received by the
Company, the Indemnitee may at any time thereafter bring suit against the
Company to recover the unpaid amount of the claim and if successful in whole or
in part, the Indemnitee shall be entitled to be paid also all expenses actually
and reasonably incurred in connection with prosecuting such claim.

               2.5 Subrogation. In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to bring
suit to enforce such rights.

        3. EXPENSES; INDEMNIFICATION PROCEDURE

               3.1 Advancement of Expenses. The Company shall advance all
expenses incurred by Indemnitee in connection with the investigation, defense,
settlement or appeal of any civil or criminal action, suit or proceeding
referenced in Section 2.1 or 2.2 hereof. Indemnitee hereby undertakes to repay
such amounts advanced only if, and to the extent that, it shall ultimately be
determined that Indemnitee

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is not entitled to be indemnified by the Company as authorized hereby or that
such indemnification is not otherwise permitted by applicable law. The advances
to be made hereunder shall be paid by the Company to Indemnitee within thirty
(30) days following delivery of a written request therefor or by Indemnitee to
the Company.

               3.2 Determination of Conduct. Any indemnification (unless ordered
by a court) shall be made by the Company only as authorized in the specified
case upon a determination that indemnification of Indemnitee is proper under the
circumstances because Indemnitee has met the applicable standard of conduct set
forth in Sections 2.1 or 2.2 of this Agreement. Such determination shall be made
by any of the following: (1) the Board of Directors (or by an executive
committee thereof) by a majority vote of directors (or committee members) who
are not parties to such action, suit or proceeding, even though less than a
quorum, (2) if there are no such disinterested directors, or if such
disinterested directors so direct, by independent legal counsel in a written
opinion, (3) by the shareholders, with the shares owned by Indemnitee not being
entitled to vote thereon, or (4) the court in which such proceeding is or was
pending upon application made by the Company or Indemnitee or the attorney or
other person rendering services in connection with the defense, whether or not
such application by Indemnitee, the attorney or the other person is opposed by
the Company.

               3.3 Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to Indemnitee's right to be indemnified under this
Agreement, give the Company notice in writing as soon as practicable of any
claim made against Indemnitee for which indemnification will or could be sought
under this Agreement. Notice to the Company shall be given in the manner set
forth in Section 10.3 hereof and to the address stated therein, or such other
address as the Company shall designate in writing to Indemnitee. In addition,
Indemnitee shall give the Company such information and cooperation as it may
reasonably require and as shall be within Indemnitee's power.

               3.4 Notice to Insurers. If, at the time of the receipt of a
notice of a claim pursuant to Section 3.3 hereof, the Company has director
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable actions to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

               3.5 Selection of Counsel. In the event the Company shall be
obligated under Section 3.1 hereof to pay the expenses of any proceeding against
Indemnitee, the Company shall be entitled to assume the defense of such
proceeding, with counsel approved by Indemnitee, upon the delivery to Indemnitee
of written notice of its election so to do. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the
Company, the Company will not be liable to Indemnitee under this Agreement for
any fees of counsel subsequently incurred by Indemnitee with respect to the same
proceeding, provided that (a) Indemnitee shall have the right to

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employ separate counsel in any such proceeding at Indemnitee's expense; and (b)
if (i) the employment of counsel by Indemnitee has been previously authorized by
the Company, (ii) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee in the conduct of any
such defense, or (iii) the Company shall not, in fact, have employed counsel to
assume the defense of such proceeding, then the fees and expenses of
Indemnitee's counsel shall be at the expense of the Company (subject to the
provisions of this Agreement).

        4. ADDITIONAL INDEMNIFICATION RIGHTS; NON-EXCLUSIVITY

               4.1 Application. The provisions of this Agreement shall be deemed
applicable to all actual or alleged actions or omissions by Indemnitee during
any and all periods of time that Indemnitee was, is, or shall be serving as a
director of the Company or a Subsidiary.

               4.2 Scope. The Company hereby agrees to indemnify Indemnitee to
the fullest extent permitted by law (except as set forth in Section 8 hereof),
notwithstanding that such indemnification is not specifically authorized by the
other provisions of this Agreement, the Company's Certificate of Incorporation,
the Company's Bylaws or by statute. In the event of any changes, after the date
of this Agreement, in any applicable law, statute, or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors,
such changes shall be, ipso facto, within the purview of Indemnitee's rights and
the Company's obligations under this Agreement. In the event of any change in
any applicable law, statute, or rule which narrows the right of a Delaware
corporation to indemnify a member of its board of directors, such changes,
except to the extent otherwise required by such law, statute or rule to be
applied to this Agreement shall have no effect on this Agreement or the parties'
rights and obligations hereunder.

               4.3 Non-Exclusivity. The indemnification provided by this
Agreement shall not be deemed exclusive of any rights to which an Indemnitee may
be entitled under the Company's Certificate of Incorporation, its Bylaws, any
agreement, any vote of shareholders or disinterested directors, the DGCL, or
otherwise, both as to action in Indemnitee's official capacity and as to action
in another capacity while holding such office. The indemnification provided
under this Agreement shall continue as to Indemnitee for an action taken or not
taken while serving in an indemnified capacity even though he may have ceased to
serve in such capacity at the time of any action, suit or other covered
proceeding.

        5. PARTIAL INDEMNIFICATION

               If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of the expenses,
judgments, fines or penalties actually or reasonably incurred by Indemnitee in
the investigation, defense, appeal or settlement of any civil or criminal
action, suit or proceedings but not, however,

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for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for that portion to which Indemnitee is entitled.

        6. MUTUAL ACKNOWLEDGMENT

               Both the Company and Indemnitee acknowledge that in certain
instances, federal law or public policy may override applicable state law and
prohibit the Company from indemnifying its directors under this Agreement or
otherwise. For example, the Company and Indemnitee acknowledge that the
Securities and Exchange Commission (the "SEC") has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a
determination of the Company's right under public policy to indemnify
Indemnitee.

        7. LIABILITY INSURANCE

               The Company shall, from time to time, make the good faith
determination whether or not it is practicable for the Company to obtain and
maintain a policy or policies of insurance with reputable, insurance companies
providing the directors with coverage for losses from wrongful acts, or to
ensure the Company's performance of its indemnification obligations under this
Agreement. Among other considerations, the Company will weigh the costs of
obtaining such insurance coverage against the protection afforded by such
coverage. In all such policies of liability insurance, Indemnitee shall be named
as an insured in such a manner as to provide Indemnitee the same rights and
benefits as are accorded to the most favorably insured of the Company's
directors. Notwithstanding the foregoing, the Company shall have no obligation,
to obtain or maintain such insurance if the Company determines in good faith
that such insurance is not reasonably available, if the premium costs for such
insurance are disproportionate to the amount of coverage provided, if the
coverage provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or if Indemnitee is covered by similar insurance
maintained by a parent or Subsidiary of the Company.

        8. SEVERABILITY

               Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation of
applicable law. The Company's inability, pursuant to court order, to perform its
obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable as provided in
this Section 8. If this Agreement or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the

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balance of this Agreement not so invalidated shall be enforceable in accordance
with its terms.

        9. EXCEPTIONS

               9.1 Exceptions to Company's Obligations. Any other provision to
the contrary notwithstanding, the Company shall not be obligated pursuant to the
terms of this Agreement for the following:

                      (a) Claims Initiated by Indemnitee. To indemnify or
advance expenses to Indemnitee with respect to proceedings or claims initiated
or brought voluntarily by Indemnitee and not by way of defense, unless said
proceedings or claims were authorized by the board of directors of the Company.

                      (b) Improper Personal Benefit. To indemnify Indemnitee
against liability for any transactions from which Indemnitee, or any Affiliate
of Indemnitee, derived an improper personal benefit, including, but not limited
to, self-dealing or usurpation of a corporate opportunity.

                      (c) Dishonesty. To indemnify Indemnitee if a judgment or
other final adjudication adverse to Indemnitee established that Indemnitee
committed acts of active and deliberate dishonesty, with actual dishonest
purpose and intent, which acts were material to the cause of action so
adjudicated.

                      (d) Insured Claims; Paid Claims. To indemnify Indemnitee
for expenses or liabilities of any type whatsoever (including but not limited
to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in
settlement) which have been paid directly to Indemnitee (i) by an insurance
carrier under a policy of liability insurance maintained by the Company, or (ii)
otherwise by any other means.

                      (e) Claims Under Section 16(b). To indemnify Indemnitee
for an accounting of profits in fact realized from the purchase and sale of
securities within the meaning of Section 16(b) of the Securities Exchange Act of
1934, as amended, or any similar successor statute.

        10. MISCELLANEOUS

               10.1 Construction of Certain Phrases.

                      (a) For purposes of this Agreement, references to the
"Company" shall include any resulting or surviving corporation in any merger or
consolidation in which the Company (as then constituted) is not the resulting or
surviving corporation so that Indemnitee will continue to have the full benefits
of this Agreement.

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                      (b) For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which impose duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the participants and
beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have
acted in a manner "reasonably believed to be in the best interests of the
Company and its shareholders" as referred to in this Agreement.

               10.2 Successors and Assigns. This Agreement shall be binding upon
the Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.
Notwithstanding the foregoing, the Indemnitee shall have no right or power to
voluntarily assign or transfer any rights granted to Indemnitee, or obligations
imposed upon the Company, by or pursuant to this Agreement. Further, the rights
of the Indemnitee hereunder shall in no event accrue to the benefit of, or be
enforceable by, any judgment creditor or other involuntary transferee of the
Indemnitee.

               10.3 Notice. All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed duly
given (i) if mailed by domestic certified or registered mail with postage
prepaid, properly addressed to the parties at the addresses set forth below, or
to such other address as may be furnished to Indemnitee by the Company or to the
Company by Indemnitee, as the case may be, on the third business day after the
date postmarked, or (ii) otherwise notice shall be deemed received when such
notice is actually received by the party to whom it is directed.

               If to Indemnitee:                   Ronald S. Beard
                                                   Gibson, Dunn & Crutcher LLP
                                                   Jamboree Center, 4 Park Plaza
                                                   Irvine, CA  92614

               If to Company:                      Callaway Golf Company
                                                   2180 Rutherford Road
                                                   Carlsbad, CA  92008
                                                   Attention:  General Counsel

               10.4 Consent to Jurisdiction. The Company and Indemnitee each
hereby irrevocably consent to the jurisdiction of the courts of the State of
California for all purposes in connection with any action or proceeding which
arises out of or related to this Agreement and agree that any action instituted
under this Agreement shall be brought only in the state courts of the State of
California.

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               10.5 Choice of Law. This Agreement shall be governed by and its
provisions construed in accordance with the internal laws of the State of
Delaware, as applied to contracts between Delaware residents entered into and to
be performed entirely within Delaware, and without regard to choice of law
principles.

               10.6 IRREVOCABLE ARBITRATION OF DISPUTES.

                      (a) INDEMNITEE AND THE COMPANY AGREE THAT ANY DISPUTE,
CONTROVERSY OR CLAIM ARISING HEREUNDER OR IN ANY WAY RELATED TO THIS AGREEMENT,
ITS INTERPRETATION, ENFORCEABILITY, OR APPLICABILITY THAT CANNOT BE RESOLVED BY
MUTUAL AGREEMENT OF THE PARTIES SHALL BE SUBMITTED TO BINDING ARBITRATION. THIS
INCLUDES, BUT IS NOT LIMITED TO, ALLEGED VIOLATIONS OF FEDERAL, STATE AND/OR
LOCAL STATUTES, CLAIMS BASED ON ANY PURPORTED BREACH OF DUTY ARISING IN CONTRACT
OR TORT, INCLUDING BREACH OF CONTRACT, BREACH OF THE COVENANT OF GOOD FAITH AND
FAIR DEALING, VIOLATION OF PUBLIC POLICY, AND VIOLATION OF ANY STATUTORY,
CONTRACTUAL OR COMMON LAW RIGHTS. THE PARTIES AGREE THAT ARBITRATION IS THE
PARTIES' ONLY RECOURSE FOR SUCH CLAIMS AND HEREBY WAIVE THE RIGHT TO PURSUE SUCH
CLAIMS IN ANY OTHER FORUM, UNLESS OTHERWISE PROVIDED BY LAW. ANY COURT ACTION
INVOLVING A DISPUTE WHICH IS NOT SUBJECT TO ARBITRATION SHALL BE STAYED PENDING
ARBITRATION OF ARBITRABLE DISPUTES.

                      (b) INDEMNITEE AND THE COMPANY AGREE THAT THE ARBITRATOR
SHALL HAVE THE AUTHORITY TO ISSUE PROVISIONAL RELIEF. INDEMNITEE AND THE COMPANY
FURTHER AGREE THAT EACH HAS THE RIGHT, PURSUANT TO CALIFORNIA CODE OF CIVIL
PROCEDURE SECTION 1281.8, TO APPLY TO A COURT FOR A PROVISIONAL REMEDY IN
CONNECTION WITH AN ARBITRABLE DISPUTE SO AS TO PREVENT THE ARBITRATION FROM
BEING RENDERED INEFFECTIVE.

                      (c) ANY DEMAND FOR ARBITRATION SHALL BE IN WRITING AND
MUST BE COMMUNICATED TO THE OTHER PARTY PRIOR TO THE EXPIRATION OF THE
APPLICABLE STATUTE OF LIMITATIONS.

                      (d) THE ARBITRATION SHALL BE CONDUCTED PURSUANT TO THE
PROCEDURAL RULES STATED IN THE COMMERCIAL RULES OF THE AMERICAN ARBITRATION
ASSOCIATION ("AAA") IN SAN DIEGO. THE ARBITRATION SHALL BE CONDUCTED IN SAN
DIEGO BY A FORMER OR RETIRED JUDGE OR ATTORNEY WITH AT LEAST 10 YEARS EXPERIENCE
IN COMMERCIAL-RELATED DISPUTES, OR A NON-ATTORNEY WITH LIKE EXPERIENCE IN THE
AREA OF DISPUTE, WHO SHALL HAVE THE POWER TO HEAR MOTIONS, CONTROL DISCOVERY,
CONDUCT HEARINGS AND OTHERWISE DO ALL THAT IS NECESSARY TO RESOLVE THE MATTER.
THE PARTIES MUST MUTUALLY AGREE ON THE ARBITRATOR. IF THE PARTIES CANNOT AGREE
ON THE ARBITRATOR AFTER THEIR BEST EFFORTS, AN ARBITRATOR FROM THE AMERICAN
ARBITRATION ASSOCIATION WILL BE SELECTED PURSUANT TO THE AMERICAN ARBITRATION
ASSOCIATION NATIONAL RULES FOR RESOLUTION OF COMMERCIAL/BUSINESS DISPUTES. THE
COMPANY SHALL PAY THE COSTS OF THE ARBITRATOR'S FEES.

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                      (e) THE ARBITRATION WILL BE DECIDED UPON A WRITTEN
DECISION OF THE ARBITRATOR STATING THE ESSENTIAL FINDINGS AND CONCLUSIONS UPON
WHICH THE AWARD IS BASED. THE ARBITRATOR SHALL HAVE THE AUTHORITY TO AWARD
DAMAGES, IF ANY, TO THE EXTENT THAT THEY ARE AVAILABLE UNDER APPLICABLE LAW(s).
THE ARBITRATION AWARD SHALL BE FINAL AND BINDING, AND MAY BE ENTERED AS A
JUDGMENT IN ANY COURT HAVING COMPETENT JURISDICTION. EITHER PARTY MAY SEEK
REVIEW PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1286, ET SEQ.

                      (f) IT IS EXPRESSLY UNDERSTOOD THAT THE PARTIES HAVE
CHOSEN ARBITRATION TO AVOID THE BURDENS, COSTS AND PUBLICITY OF A COURT
PROCEEDING, AND THE ARBITRATOR IS EXPECTED TO HANDLE ALL ASPECTS OF THE MATTER,
INCLUDING DISCOVERY AND ANY HEARINGS, IN SUCH A WAY AS TO MINIMIZE THE EXPENSE,
TIME, BURDEN AND PUBLICITY OF THE PROCESS, WHILE ASSURING A FAIR AND JUST
RESULT. IN PARTICULAR, THE PARTIES EXPECT THAT THE ARBITRATOR WILL LIMIT
DISCOVERY BY CONTROLLING THE AMOUNT OF DISCOVERY THAT MAY BE TAKEN (E.G., THE
NUMBER OF DEPOSITIONS OR INTERROGATORIES) AND BY RESTRICTING THE SCOPE OF
DISCOVERY ONLY TO THOSE MATTERS CLEARLY RELEVANT TO THE DISPUTE. HOWEVER, AT A
MINIMUM, EACH PARTY WILL BE ENTITLED TO AT LEAST ONE DEPOSITION AND SHALL HAVE
ACCESS TO ESSENTIAL DOCUMENTS AND WITNESSES AS DETERMINED BY THE ARBITRATOR.

                      (g) THE PREVAILING PARTY SHALL BE ENTITLED TO AN AWARD BY
THE ARBITRATOR OF REASONABLE ATTORNEYS' FEES AND OTHER COSTS REASONABLY INCURRED
IN CONNECTION WITH THE ARBITRATION.

                      (h) THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE
EXPIRATION OR TERMINATION OF THE AGREEMENT, AND SHALL BE BINDING UPON THE
PARTIES.

I HAVE READ SECTION 10.6 AND IRREVOCABLY AGREE TO ARBITRATE ANY DISPUTE
IDENTIFIED ABOVE.

----------                                                            ----------
(INDEMNITEE'S INITIALS)                                     (COMPANY'S INITIALS)

               10.7 Entire Agreement. The provisions of this Agreement contain
the entire agreement between the parties. This Agreement may not be released,
discharged, abandoned, changed or modified in any manner except by an instrument
in writing signed by the parties.

               10.8 Counterparts. This Agreement may be executed in
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same instrument.

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               IN WITNESS WHEREOF, the parties hereby have executed this
Agreement to be effective as of the date first above written.

                                      CALLAWAY GOLF COMPANY

                                      ---------------------------------------
                                      Ronald A. Drapeau
                                      President and Chief Executive Officer

                                      INDEMNITEE

                                      ----------------------------------------
                                      Ronald S. Beard

                                       11<PAGE>
                                                                   EXHIBIT 10.1

as of November 14, 2001

Nextera Enterprises, Inc.
343 Congress Street, Suite 2100
Boston, Massachusetts 02210

        Re: Forbearance Agreement ("Agreement")

Gentlemen:

        Reference is made to the Credit Agreement dated December 30, 1999
("Credit Agreement"), as amended by a Fourth Amendment to Credit Agreement dated
as of March 30, 2001 ("Fourth Amendment") and all promissory notes, mortgages,
guaranties, agreements, documents and instruments entered into by Nextera
Enterprises, Inc. ("Borrower") and any other person or obligor pursuant thereto
with or for the benefit of Fleet National Bank, as agent ("Agent") for itself
and the other lenders (collectively "Lender"). Except as otherwise defined
herein, capitalized terms used herein shall have the meanings given them in the
Credit Agreement.

        WHEREAS, Borrower is engaged in the business of providing relationship
management consulting services and related businesses;

        WHEREAS, Guarantor has a close business relationship with Borrower and
would directly benefit and gain from any accommodation made by Lender to
Borrower;

        WHEREAS, Lender has extended certain credit facilities to Borrower and,
as collateral security therefor, Borrower has granted to Lender liens on and
security interests in all or substantially all of its real and personal property
(collectively, the "Credit Security");

        WHEREAS, Guarantor has unconditionally and fully guarantied the full and
timely payment and performance of all of Borrower's obligations to Lender;

        WHEREAS, Borrower has suffered financial distress and has defaulted with
respect to certain of its obligations to Lender;

        WHEREAS, Borrower has requested that Lender defer collection of certain
obligations owing by Borrower to Lender and to otherwise not enforce certain of
its rights and remedies against Borrower for a certain period of time under
certain terms and conditions, and Guarantor has joined in Borrower's request;
and

        WHEREAS, Lender is willing to defer collection of certain obligations
payable by Borrower, but only on the terms and conditions set forth in this
Agreement;

        NOW, THEREFORE, based on these premises, and in consideration of the
mutual promises contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrower, Guarantor
and Lender hereby agree as follows:

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        1. Specified Events of Defaults. Borrower expressly acknowledges and
agrees that certain Default and/or Events of Default have occurred and are
continuing under the Credit Agreement, as amended by the Fourth Amendment, and
that as a consequence, all Credit Obligations are now due and payable in full.
Such Events of Default (and additional anticipated Events of Default) are as
follows: (i) Borrower's failure to comply with the "Consolidated Pro Forma Debt
to Consolidated Pro Forma EBITDA" and "Consolidated Pro Forma EBITDA minus
Capital Expenditures to Consolidated Pro Forma Interest Expense" covenants set
forth in Sections 6.5.1 and 6.5.2 of the Credit Agreement for the periods ending
September 30, 2000, December 31, 2000, March 31, 2001, June 30, 2001 and
September 30, 2001; and (ii) Borrower's failure to comply with the "Fixed Charge
Coverage Ratio," "Cash Interest Coverage Ratio" and "Minimum Consolidated
EBITDA" covenants set forth in Sections 17 (a), (b) and (c) of the Fourth
Amendment for the periods ending August 31, 2001 and September 30, 2001; and
(iii) Borrower's anticipated failure to comply with the covenants described in
the foregoing clause (ii) with respect to the periods ending October 31, 2001,
November 30, 2001 and December 31, 2001 (the Defaults and/or Events of Default
listed in clauses (i), (ii) and (iii) above are referred to herein as the
"Specified Events of Default"). The Specified Events of Default for the period
through March 31, 2001 have been waived by Lender pursuant to the Fourth
Amendment. The Specified Events of Default for all periods ending June 30, 2001
through and including December 31, 2001, are hereby waived but such waiver is
effective only through January 2, 2002, with Lender reserving all rights and
remedies with respect to the same thereafter. Except for the foregoing Specified
Events of Default, Borrower represents and warrants that as of the date hereof,
no other Default and/or Event of Default exists or has occurred under the Credit
Documents. Borrower acknowledges and agrees that (a) Lender has reserved all of
its rights and remedies with respect to the occurrence of the Specified Events
of Default, and has not waived any of its rights and remedies with respect to
the occurrence of the Specified Events of Default, except on the terms of and
subject to the conditions of this Agreement, and (b) notwithstanding the waivers
set forth herein, there shall continue through the Forbearance Period all
restrictions and prohibitions on the Borrower and its properties (including,
without limitation and by way of example only, restrictions on the sale of
assets outside the ordinary course) that would be applicable if there existed
during such Period one or more non-waived Events of Default.

        2. Forbearance. Only if there shall occur no Default or Event of Default
(other than the Specified Events of Default), and on the terms and conditions
hereof, for a period commencing on the date hereof and continuing to the
Forbearance Termination Date (as defined below) ("Forbearance Period"), the
Lender shall defer the commencement of any enforcement action to recover the
Credit Obligations. The Forbearance Termination Date shall mean the earlier of
(i) January 2, 2002; and (ii) the date on which any Default or Event of Default
(other than Specified Events of Default) occurs under this Agreement or the
Credit Documents. Upon the Forbearance Termination Date, all of the Credit
Obligations shall be immediately paid by Borrower indefeasibly in full in cash
or cash equivalents without notice or demand. Without limiting in any way the
rights and remedies of Lender hereunder, upon the Forbearance Termination Date,
if the Credit Obligations have not been indefeasibly paid in full in cash or
other immediately available funds, Lender may, at its option, and without notice
to Borrower, exercise any or all of Lender's rights and remedies under this
Agreement, the Credit Documents and/or applicable law.

                                       2
<PAGE>

        3. Fourth Amendment; Financial Tests. During the Forbearance Period,
Borrower shall continue to be subject to all of the terms, conditions and
covenants outlined in the Fourth Amendment, including, without limitation, the
"Fixed Charge Coverage," "Cash Interest Coverage" and "Minimum Consolidated
EBITA" tests set forth in Sections 17(a), (b) and (c) of the Fourth Amendment.
However, the "Capital Expenditures" test set forth in Section 17(d) shall be
deleted and replaced with the following financial test:

        "17(d) Capital Expenditures. Borrower shall not make or incur Capital
        Expenditures in excess of $300,000 from and after July 1, 2001 through
        December 31, 2001."

        4. Disposition of Assets. Notwithstanding Section 6.11.7 of the Credit
Agreement and/or any provision of any Financing Document, Borrower shall not
sell or otherwise dispose of assets outside the ordinary course of business
(unless the entire gross proceeds thereof are used to permanently retire Credit
Obligations owed to Lender in the inverse order of maturity). Notwithstanding
anything contained in this Section 4, Lender has delivered its conditional
consent to the proposed Asset Purchase Agreement by and between Nextera Business
Performance Solutions Group, Inc. and Navint Consulting, LLC (the "TSG Sale") by
separate letter agreement dated as of October 31, 2001, which letter agreement
is not hereby rescinded or otherwise modified (provided, however, that the
parties' execution hereof shall be deemed to satisfy the condition set forth at
Section 2(b)(ii) thereof and the Lender's approval of the disposition of the TSG
Sale proceeds on the terms described in the schedule delivered by Borrower to
Lender on November 9, 2001).

        5. Conditions Precedent. Notwithstanding any other provisions of this
Agreement or any of the other Credit Documents, and without affecting in any
manner the rights of Lender under the other Sections of this Agreement, this
Agreement shall not be effective as to Lender unless and until each of the
following conditions has been and continues to be satisfied:

                (a) Payment of Fees. Payment of $30,000.00 in cash or other
        immediately available funds in satisfaction of all outstanding fees and
        expenses (including, without limitation, attorneys' fees and expenses);

                (b) Leasehold. Borrower shall deliver to Lender an original
        fully executed (by all lessee(s) and lessor(s)) collateral assignment of
        lease and landlord's acknowledgment and consent with respect to
        Borrower's Boston, Massachusetts facility, in form and substance
        previously delivered to Lender;

                (c) Documentation. Lender shall have received, in form and
        substance satisfactory to Lender and its counsel, a duly executed copy
        of this Agreement, together with such additional documents, instruments
        and certificates as Lender and its counsel shall require in connection
        therewith from time to time, all in form and substance satisfactory to
        Lender and its counsel;

                (d) Independent Consultant. Borrower shall have delivered to the
        Lender a final form of engagement letter between Borrower and Resolution
        Capital Corporation ("RCC"), in form and substance satisfactory to
        Lender (including a clarification that RCC

                                       3
<PAGE>

        will also continue to assist with and monitor the implementation of the
        Business Plan referred to below).

        6. Conditions Subsequent. In addition to the foregoing, Obligor hereby
agrees that it shall satisfy all of the conditions set forth in this Section 6.
A failure to satisfy any of the conditions contained in this Section 6 on or
before the dates set forth below shall immediately constitute an Event of
Default under this Agreement:

           (a) Cash Management Arrangements. Immediately upon Agent's request,
Borrower and its Subsidiaries shall enter into cash management arrangements
acceptable to Agent and Lender, and at Agent and Lender's direction Borrower
shall provide that the proceeds of all receivables and other Credit Security
(other than proceeds arising from any Foreign Subsidiary that would result in a
deemed repatriation of foreign earnings under the Internal Revenue Code of 1986,
including the "deemed dividend" provisions of Section 956) shall be paid into a
"concentration account" maintained with the Agent.

           (b) Junior Participation Agreement. On or before November 30, 2001,
Borrower shall deliver to Lender a Junior Participation Agreement, in form and
substance satisfactory to all parties;

           (c) Letters of Credit. If Riggs & Company and EOP Limited Operating
Partnership extend the maturity dates of their respective Letters of Credit, in
the aggregate amount of $1,460,000, to May 15, 2002, then the Letter of Credit
Issuer shall extend such Letters of Credit accordingly, without requiring cash
collateral therefor; provided, however, that if such extension does not occur on
or before December 1, 2001, then on that date the Borrower shall deliver
$1,460,000 in immediately available funds to the Letter of Credit Issuer to
secure Borrower's reimbursement obligations with respect to those Letters of
Credit or make other arrangements with respect to the same satisfactory to the
Lenders in their discretion.

           (d) Additional Leasehold Documents. On or before November 30, 2001,
Borrower shall deliver to Lender the following original fully executed items in
form and substance previously delivered to Borrower: (i) Board Vote with respect
to leasehold documents; and (ii) Memorandum of Lease.

           (e) Warrants. On or before November 30, 2001, Borrower shall deliver
to Lender the warrants described in Section 11 of the Fourth Amendment, in form
and substance satisfactory to all parties.

           (f) Business Plan. On or before November 30, 2001 Borrower shall
deliver to Lender a strategic and financial plan through calendar year 2002
("Business Plan"), including as to the sale, refinancing and/or wind-down of
each of Borrower's business units (which shall include without limitation
contingency plans assuming the sale, and no sale, of the Sibson business,
specified expense reductions, a timeline for implementation of all plan events,

                                       4
<PAGE>

bonus schedule detail and business plan for payment, and other information
reasonably requested by Lender).

        7. Acknowledgment of Credit Obligations. Borrower and Guarantor hereby
reaffirm and ratify all of the representations, warranties, promises,
agreements, covenants and Credit Obligations to Lender under or in respect of
the Credit Documents as amended hereby and acknowledge that they are
unconditionally liable for the punctual and full payment of all Credit
Obligations, including, without limitation, all charges, fees, expenses and
costs (including attorneys' fees and expenses) under the Credit Documents, as
amended hereby, and that they have no defenses, counterclaims or setoffs with
respect to full, complete and timely payment and performance of all Credit
Obligations under the Credit Documents. Borrower further confirms and agrees to
its obligation to pay to Lender all fees and costs which have been incurred by
Lender in connection with the negotiation and preparation of this Agreement and
all other documents and agreements prepared in connection with this Agreement
including, without limitation, all reasonable attorney's fees and disbursements.

        8. Confirmation of Liens. Borrower and Guarantor each acknowledges,
confirms and agrees that the Credit Documents, as amended hereby, are effective
to grant to Lender duly perfected, valid and enforceable first priority security
interests and liens in the Credit Security described therein, except for liens
permitted under the Credit Agreement, and that the locations for such Credit
Security specified in the Credit Agreement have not changed. Borrower and
Guarantor further each acknowledges and agrees that all Credit Obligations of
Borrowers and Guarantor are and shall be secured by the Credit Security.

        9. No Waiver of Rights; Tolling of Statutes of Limitation. No failure to
exercise nor any delay in exercising, on the part of Lender, any right, remedy,
power or privilege under the Credit Documents shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power, or
privilege operate as a waiver of any further or complete exercise thereof. No
waiver shall be effective unless in writing. No waiver or condonation of any
breach on one occasion shall be deemed a waiver or condonation on any other
occasion. In addition, Borrower and Lender hereby agree that, during the
pendency of this Agreement, all statutes of limitation and similar laws, rules
and equitable theories with respect to the time in which Lender may bring any
claim or action against Borrower shall be tolled and that the passage of such
time shall not otherwise operate to the detriment of Lender with respect to such
rights.

        10. Submission to Jurisdiction; Waiver of Trial by Jury. For purposes of
any action or proceeding involving this Agreement or the other Credit Documents
or any other agreement or document referred to therein, Borrower hereby submits
to the jurisdiction of all federal and state courts located in the Commonwealth
of Massachusetts and consents that any order, process, notice of motion or other
application to or by any of said courts or a judge thereof may be served within
or without such court's jurisdiction by registered mail or by personal service,
provided a reasonable time for appearance is allowed (but not less than the time
otherwise afforded by any law or rule), and hereby waives any right to contest
the appropriateness of any action brought within such jurisdiction based on lack
of personal jurisdiction, improper venue or forum non conveniens. LENDER AND
BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE (TO THE EXTENT
PERMITTED BY APPLICABLE LAW) ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY OF ANY
DISPUTE ARISING UNDER

                                       5
<PAGE>

OR RELATING TO THIS AGREEMENT OR ANY OF THE CREDIT DOCUMENTS OR ANY OTHER
AGREEMENT OR DOCUMENT REFERRED TO HEREIN OR THEREIN, AND AGREES THAT ANY SUCH
DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

        11.Miscellaneous. Except as set forth herein, the Borrower confirms that
the Credit Documents remain in full force and effect without amendment or
modification of any kind. The execution and delivery of this Agreement by Lender
shall not be construed as a waiver by Lender of any Event of Default under the
Credit Documents. This Agreement shall be deemed to be a Credit Document and,
together with the other Credit Documents, constitute the entire agreement
between the parties with respect to the subject matter hereof and supersedes all
prior dealings, correspondence, conversations or communications between the
parties with respect to the subject matter hereof. Time is of the essence of
each aspect of this Agreement. This Agreement is executed by each of the
undersigned as an instrument under seal and is governed by the laws of the
Commonwealth of Massachusetts (without regard to conflicts of laws principles).

                                       6
<PAGE>

                                         Very Truly Yours,

                                         FLEET NATIONAL BANK

                                         By: /s/ Michael F. O'Neill
                                            ---------------------------------
                                            Name:  Michael F. O'Neill
                                            Title: Senior Vice President

                                         BANK OF AMERICA, N.A

                                         By: /s/ Michael R. Heredia
                                            ---------------------------------
                                            Name:  Michael R. Heredia
                                            Title: Managing Director

                                         AGREED:

                                         NEXTERA ENTERPRISES, INC.
                                         CE ACQUISITION CORP.
                                         ERG ACQUISITION CORP.
                                         NEONEXT LLC
                                         NEXTERA INTERACTIVE, INC.
                                         SCANADA, INC.
                                         SIBSON & COMPANY, LLC
                                         SIBSON INTERNATIONAL, LLC
                                         SIBSON AP LLC

                                         By: /s/ Michael P. Muldowney
                                            ---------------------------------
                                            Name:  Michael P. Muldowney
                                            Title: Chief Financial Officer

                                       7

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