Document:

Termination and Transition Agreement

 Exhibit 10.35 
 Portions of this Exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934. Such omissions are designated as ***. 
 Execution Copy 
 TERMINATION AND TRANSITION AGREEMENT 
 This Termination and Transition Agreement
(this “Agreement”) is made and entered into as of this 31st day of October, 2008 (“Effective Date”), by and between Abbott Laboratories, an Illinois corporation with principal offices at 100 Abbott Park Road, Abbott
Park, Illinois 60064-3500 (“Abbott), and OraSure Technologies, Inc., a Delaware corporation with principal offices at 220 East First Street, Bethlehem, Pennsylvania 18015 (“OraSure”). 
 BACKGROUND 
 OraSure and Abbott have previously entered into that certain Supply and Distribution Agreement,
dated as of February 11, 2005, as amended by Amendment No. 1, dated as of July 21, 2005 (as amended, the “Distribution Agreement”), pursuant to which OraSure agreed to supply, and Abbott agreed to distribute, the OraQuick
ADVANCE® Rapid HIV-1/2 Antibody Test. The parties desire to terminate the Distribution Agreement and provide for the transition of Abbott’s Current Customers and New Customers
(such terms are defined below) to OraSure, pursuant to the terms and conditions set forth in this Agreement. 
 AGREEMENT

 NOW THEREFORE, in consideration of the foregoing, and other mutual promises and covenants contained in this Agreement, OraSure and
Abbott, intending to be legally bound, hereby agree as follows: 
 1. Definitions. Capitalized terms not otherwise defined in this
Agreement shall have the meanings set forth in the Distribution Agreement. For purposes of this Agreement, the following terms will have the respective meanings set forth below: 
 1.1 “Assigned Contract” shall have the meaning set forth in Section 3.8. 
 1.2 “Combined Contract” shall mean any written contract pursuant to which Abbott
or its Affiliates supplies OraQuick® Products to a customer in addition to one or more other products. A Combined Contract shall not include any contract which is limited solely to the
provision of OraQuick® Products by Abbott to any customer. 
 1.3 “Current Customer” shall mean any customer that at the time in question is
then purchasing OraQuick® Product from Abbott or its Affiliates pursuant to Abbott’s rights under the Distribution Agreement. 
 1.4 “National Account” shall mean the following customers of Abbott: ***. 

 1.5 “New Customer” shall mean any
customer (other than a Current Customer) who begins to purchase or resumes purchasing OraQuick® Product from Abbott or its Affiliates after the Effective Date. 
 1.6 “OraQuick®
Contract” shall mean any written contract pursuant to which Abbott or its Affiliates supplies OraQuick® Product to any of its customers; provided that the term OraQuick® Contract shall not include any Combined Contract. 
 1.7 “OraQuick® Product” shall mean the OraQuick ADVANCE® Rapid
HIV-1/2 Antibody Test and related positive and negative OraQuick ADVANCE® controls. 
 1.8 “Pending Orders” shall mean customer orders for OraQuick® Product received by Abbott or its Affiliates pursuant to any OraQuick® Contract and which have not been shipped as of the Termination
Date. 
 1.9 “Termination Date” shall mean December 31, 2008. 
 1.10 “Transition Committee” shall have the meaning set forth in Section 3.1. 
 1.11 “Transition Period” shall mean the period beginning on the Effective Date and ending on the Termination Date. 
 1.12 “Post-Termination Period” shall mean the period beginning January 1, 2009 and ending March 31, 2009. 
 2. Termination and Release. 
 2.1
Termination. Subject to the terms and conditions set forth in this Agreement, and except as otherwise provided in this Agreement, the Distribution Agreement shall terminate on the Termination Date. OraSure and Abbott acknowledge and agree
that the termination of the Distribution Agreement is by mutual agreement and not for cause. 
 2.2 Conflicts. In the event of a
conflict or inconsistency between the terms of this Agreement and the terms of the Distribution Agreement, the terms of this Agreement shall control and, to the extent necessary, shall constitute an amendment to the Distribution Agreement.

 3. Transition Period. During the Transition Period, OraSure and Abbott agree to perform the respective obligations set forth in
this Section 3. 
 3.1 Transition Committee. In order to effect the objectives of this Agreement, the parties agree to
establish a transition committee which shall operate as provided below (“Transition Committee”). 
 (a) Composition. The Transition Committee shall consist of representatives (as needed) from each party as each party shall appoint from time to time. Either party may replace its representative(s) for any reason and at
any time upon notice to the other party. 
 (b) Meetings. The Transition Committee shall meet, at a minimum,
at least 

  

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bi-monthly and otherwise as mutually agreed by the parties, either in person, by telephone, or by video conference call. Additional participants may be
invited by any representative to attend meetings where appropriate. 
 (c) Decision-Making. The parties shall
cause their respective representatives on the Transition Committee to use diligent efforts, acting in good faith, to resolve all matters presented to them as expeditiously as possible. If the Transition Committee members are unable to resolve
any such matter presented to them within a reasonable period of time, the matter shall be presented to OraSure’s President and Chief Executive Officer and Abbott’s Executive Vice-President, Diagnostics or their designees for good faith
negotiation of resolution. To the extent any matter or dispute which should arise is not resolved pursuant to the procedures in this section, the procedures set forth in Section 10.13, shall be followed. 
 (d) Duties and Responsibilities. The Transition Committee will be responsible for assisting in and overseeing all of the
activities as set forth in Sections 3 and 4 and for fulfilling their respective responsibilities hereunder. 
 3.2 Business Preservation. The parties agree to cooperate with and assist each other, and use commercially reasonable efforts, to maintain sales of OraQuick®
 Products to all Current Customers and New Customers. It is the intention of the parties to maintain customer satisfaction, preserve customer good will and the reputation of the OraQuick®
 Products, OraSure and Abbott, and to take all actions reasonably necessary to ensure the continued supply of OraQuick® Products to each Current Customer and New Customer, both
before and after the transfer of such Customers by Abbott to OraSure; provided, however, that Abbott makes no representation, warranty or covenant concerning: (a) the likelihood of obtaining New Customers during the Transition Period or
(b) the likelihood that Current Customers or New Customers will purchase OraQuick® Products from OraSure. If, during the Transition Period, any customer in the Hospital Segment is
unable to negotiate a mutually acceptable price or other terms with Abbott for OraQuick Products, the Transition Committee shall discuss alternative solutions and strategies for the customer to minimize any potential loss of sales. The timing and
content of any notice or communication to Abbott’s customers and sales representatives (or to any other third parties) regarding the termination of the Distribution Agreement and transition of customers shall be subject to the prior approval of
both parties. 
 3.3 Customer Information. As soon as practicable after the
Effective Date, Abbott shall use commercially reasonable efforts to provide OraSure with the information listed on Exhibit A to this Agreement for all Current Customers and those customers who have purchased OraQuick® Product from Abbott in the twenty-four (24) months prior to the Effective Date, subject to any confidentiality obligations Abbott may have to such Current Customers and past customers. Abbott shall use
commercially reasonable efforts to provide such customer information in an electronic file and in a format compatible with OraSure’s validated SAP system. All such information shall have been provided no later than October 31, 2008.

 3.4 New Customers. To the extent Abbott obtains any New Customers, Abbott shall, as soon as practicable, supply OraSure with the
information specified in Section 3.3 for each such New Customer, subject to any confidentiality obligations Abbott may have to such New Customers. 
  

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 3.5 Customer Transition. As soon as
practicable after the Effective Date, OraSure and Abbott shall cooperate in good faith to develop a mutually agreeable detailed plan for transitioning all Current Customers and New Customers to OraSure, including communication of this transition and
termination of Abbott’s rights to distribute the OraQuick® Products under the Distribution Agreement. Such transition activities shall include, but not be limited to, the development
by the parties of milestones and a list of key customer accounts which receive in-person visits by sales representatives of both parties prior to the Termination Date in order to explain the parties’ transition plans. The parties shall review
each National Account and other top customers (as determined by mutual agreement of the parties) and mutually agree on whether the best method of contact and communication shall be an in-person meeting by the parties, mail or other method. Abbott
personnel shall participate in a maximum of one hundred fifty (150) in-person customer visits. The parties shall cooperate in the timely development of mutually acceptable communications to all customers. The parties will attempt in good faith
to schedule in-person visits with customers, and all customer notifications regarding the transition under this Agreement, during the period beginning eight (8) weeks prior to the Termination Date and ending four (4) weeks thereafter;
provided, that any such meetings and notifications that do not occur within such time period will take place as soon as practicable after the end of such period, but Abbott will not be required to participate in such activities beyond the
expiration of the Post-Termination Period. 
 3.6 Qualification. OraSure shall
be responsible for developing information about OraSure and the OraQuick® Product as may be needed to qualify OraSure as an approved or registered vendor for the OraQuick® Product with each Current Customer and New Customer. 
 3.7 Combined Contracts. As of the Termination Date, Abbott agrees that it shall use commercially reasonable efforts to terminate the right of each of its customers that is a party to a Combined Contract to
purchase any OraQuick® Products thereunder; provided, that “commercially reasonable efforts” shall not require Abbott to pay money, lower prices for other products or offer
other economic incentives to its customers as consideration for terminating their right to purchase OraQuick® Products. 
 3.8 Assignment of OraQuick®
Contracts; Pending Orders. To the extent not otherwise precluded by any contract, pricing letter or other arrangement, Abbott agrees to transfer and assign, and does hereby transfer and assign, as of the Termination Date, all right, title and
interest to each OraQuick® Contract (each, an “Assigned Contract”). The foregoing assignment shall include all right, title and interest to all Pending Orders under an Assigned
Contract, and OraSure agrees to supply OraQuick® Product under all Pending Orders and shall have the exclusive right to receive payment of the purchase price therefore under the applicable
Assigned Contract. To the extent Abbott is precluded from assigning any OraQuick® Contract to OraSure, Abbott agrees that it shall use commercially reasonable efforts to terminate each such
OraQuick® Contract as of the Termination Date; provided, that “commercially reasonable efforts” shall not require Abbott to pay money, lower prices for other products or
offer other economic incentives to its customers as consideration for terminating any OraQuick® Contract. Notwithstanding the foregoing, Abbott shall retain all rights and obligations
including without limitation the right to receive payment of the purchase price under each Assigned Contract with respect to OraQuick® Product shipped prior to the Termination Date.

 3.9 Post-Termination Sales. Beginning January 1, 2009, Abbott shall no
longer have the right to distribute the OraQuick® Products, except as otherwise permitted under Section 13.3.3 

  

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of the Distribution Agreement. Notwithstanding the foregoing, OraSure shall have the option to extend Abbott’s right to distribute OraQuick® Products for a period not to extend beyond January 31, 2009, to the extent OraSure reasonably believes such extension is necessary to facilitate the transition contemplated by this
Agreement and maintain customer satisfaction. In order to exercise this option, OraSure must notify Abbott in writing on or prior to December 1, 2008, in which case Abbott agrees to purchase additional OraQuick® Product and supply such OraQuick® Product to customers as reasonably directed by OraSure. Such supply and continued distribution of OraQuick® Product shall be subject to the terms of the Distribution Agreement, except that Abbott’s distribution rights shall be non-exclusive. 
 3.10 OraSure Decisions. OraSure acknowledges and agrees that it shall have sole
responsibility for making credit decisions or otherwise deciding whether to supply OraQuick® Product to any customer and that Abbott shall have no liability for any such decision made by
OraSure, even if such decision is based on credit or other information provided by Abbott to OraSure under this Agreement. OraSure shall also have sole responsibility for confirming EDI or other specifications for each customer’s product
ordering systems. 
 3.11 Inability to Assign or Terminate. If Abbott is contractually unable to assign any OraQuick Contract to
OraSure pursuant to Section 3.8 or, despite using commercially reasonable efforts, is unable to terminate a customer’s right to purchase OraQuick Products under a Combined Contract pursuant to Section 3.7 or to terminate a
non-assignable OraQuick Contract pursuant to Section 3.8, then the parties shall negotiate in good faith to develop a mutually agreeable plan to address such situations in a manner intended to minimize any loss of customers or sales.

 4. Post Termination. During the Post-Termination Period, OraSure and Abbott agree to perform the respective obligations set forth
in this Section 4. 
 4.1 Transition Activities. To the extent any of the activities described in Section 3 are not completed
prior to the Termination Date, OraSure and Abbott shall exercise commercially reasonable efforts to complete such activities as soon as practicable after the Termination Date and in no event no later than end of the Post-Termination Period.

 4.2 Abbott Website. For a period of twelve (12) months after the
Termination Date, Abbott shall retain a listing for the OraQuick® Products on its website (abbottdiagnostics.com) indicating that customers should contact OraSure for the purchase of any
OraQuick® Products. Such website shall include a link to OraSure’s website (subject to Abbott’s standard website policies, including customary notices and disclaimers regarding
redirection of visitors to an external website) and contact information for OraSure’s customer service department, as mutually agreed by the parties and shall not include any reference or link to Abbott’s customer service department. In
addition, during the Post-Termination Period, Abbott shall implement a “pop-up” or other notification in its order entry system to provide assistance to Abbott’s customer service personnel and prompt such personnel with notification
of the Termination Date and how orders for OraQuick® Products should be handled in accordance with this Agreement. 
 4.3 Abbott Inventory. If on the Termination Date (or if OraSure exercises its option under
Section 3.9 to extend Abbott’s distribution rights, the date such rights expire), Abbott has any remaining OraQuick® Product in Abbott inventory not committed to a Pending Order
that has not been assigned to OraSure, then OraSure shall make a payment to cover the cost of all such 

  

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inventory equivalent to the same transfer price Abbott paid to OraSure. Any OraQuick® Product
covered by the payment required under this Section 4.3 shall either be destroyed or donated to one or more entities selected by OraSure, and Abbott shall provide OraSure a written confirmation certifying as to the disposition of such
OraQuick® Product in accordance with this Section 4.3. 
 5. Confidentiality. The confidentiality and non-use obligations set forth in Article 12 of
the Distribution Agreement are hereby incorporated by reference into this Agreement as if fully set forth herein and shall apply to the information exchanged by the parties hereunder. Notwithstanding the foregoing, OraSure shall be permitted to
utilize any information related to Abbott’s customers or any contract, pricing letter or other arrangement between Abbott and its customers in order to establish and expand a commercial relationship between OraSure and such customer and
otherwise provide OraQuick® Product to such customer, subject to any confidentiality obligations Abbott may have to such customers. 
 6. Non-Disparagement. Neither party will make any statements, whether public or private, oral or written, or take any action, that could
reasonably be expected to adversely affect the business or reputation of the other party. 
 7. Competition. During the period
beginning on the Termination Date and ending on December 31, 2009, the business within Abbott commonly known as the Abbott Diagnostic Division (as configured on the Termination Date and excluding the Abbott Point of Care business and the Abbott
Molecular business) shall not import, manufacture, market, promote, distribute or sell in the Territory any rapid, point-of-care test for detecting HIV-1 and/or HIV-2 that: (a) utilizes a visually read, single-use lateral flow immunoassay
format with a non-quantitative result; and (b) has been approved by the FDA for sale in the Territory as of the Termination Date. Abbott represents and warrants to OraSure that as of the date of this Agreement, the Abbott Diagnostic Division
(as defined above) is not importing, manufacturing, marketing, promoting, distributing or selling any product described in the preceding sentence and it currently has no plans to do so. If any provision of this Section 7 shall be deemed
unenforceable because of scope, duration or area of applicability, it shall be deemed modified to the extent necessary to make it enforceable while preserving its intent. 
 8. Solicitation. During the Transition Period and during the twelve (12) months following the Termination Date, neither OraSure nor Abbott shall engage in recruitment or hiring that is specifically
directed or targeted toward any diagnostic product sales employees or representatives of the other party. Notwithstanding the foregoing, this Section 8 shall not preclude any general advertisement or solicitation of employment or any retained
or contingent search by a recruiting firm that is not specifically directed or targeted toward the diagnostic product sales employees or representatives of the other party or the hiring of any individual who responds to such general advertisement,
solicitation or search. If any provision of this Section 8 shall be deemed unenforceable because of scope, duration or area of its applicability, it shall be deemed modified to the extent necessary to make it enforceable while preserving its
intent. 
 9. Termination Payment. 
 9.1 Royalty Obligation. OraSure shall make a one-time payment to Abbott equal to *** on the last day of the Post-Termination Period. After payment is received by Abbott, OraSure shall be released from and shall
not be obligated to pay any royalty obligation set forth in Section 13.1.2 of the Distribution Agreement. 
  

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 10. Miscellaneous Provisions. 
 10.1 Currency. All amounts payable under this Agreement shall be paid in U.S. dollars, unless otherwise agreed in writing. 
 10.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding its conflict
of laws principles. 
 10.3 Assignment. Neither party shall assign this Agreement nor any part thereof without the prior written
consent of the other party; provided, however: (i) either party may assign this Agreement, in whole or in part, to any of its Affiliates without such consent; and (ii) either party, without such consent, may assign this
Agreement in connection with the transfer or sale of substantially all of its business to which this Agreement pertains or in the event of its merger or consolidation with another company. Any permitted assignee shall assume all obligations of its
assignor under this Agreement. No assignment shall relieve any party of responsibility for the performance of any accrued obligation that such party then has hereunder. 
 10.4 No Third Party Beneficiaries. Abbott and OraSure intend that only Abbott and OraSure and their permitted assignees will benefit from, and are entitled to enforce the provisions of, this Agreement. No third
party beneficiary is intended under this Agreement. 
 10.5 Modifications; Waiver. No modification to this Agreement shall be
effective unless such modification is in a writing signed by a duly authorized representative of each of Abbott and OraSure. No waiver of any rights or breach or default under this Agreement shall be effective unless assented to in writing by the
party to be charged with such waiver. The waiver of any breach or default shall not constitute a waiver of any other right, breach or default hereunder or any subsequent breach or default. 
 10.6 Severability. If any term or provision of this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other term or provision hereof, and this Agreement shall be interpreted and construed as if such term or provision, to the extent the same shall have been held to be invalid, illegal or
unenforceable, had never been contained herein. 
 10.7 Mutual Release; Covenant Not to Sue. Subject to the performance by each party
of its obligations hereunder, each party, for itself and on behalf of its successors, employees, agents, representatives, officers and directors, hereby releases and discharges the other party, and each of its Affiliates, successors, employees,
directors, officers, stockholders and agents, from any and all claims and liabilities, whether past or present, known or unknown, relating to or arising under the Distribution Agreement or the performance of their respective obligations thereunder.
Notwithstanding the foregoing, the releases set forth in this Section 10.8 shall not include any claims or liabilities relating to or arising out of: (a) any provision of the Distribution Agreement that survives the termination pursuant to
Section 13.3.5 of the Distribution Agreement, or (b) this Agreement. Each party shall not initiate any legal proceedings of any kind (including alternative dispute resolution procedures) against the other party arising out of or related to
the Distribution Agreement, except with respect to provisions that survive termination pursuant to Section 13.3.5 of the Distribution Agreement. 
  

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 10.8 Survival. The provisions of the Distribution Agreement referenced in Section 13.3.5 of
the Distribution Agreement will survive termination in accordance with the terms thereof, except to the extent modified by or released pursuant to this Agreement. 
 10.9 No Admission. This Agreement (including without limitation any consideration contained herein) is not to be construed as an admission of liability of any kind whatsoever by either party, but is in full
settlement of disputed issues. Each party specifically denies any and all claims of wrongdoing. 
 10.10 Counterparts. This Agreement
may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. A facsimile transmission of a signed original shall have the same effect as delivery of the signed
original. 
 10.11 Relationship of the Parties. The relationship of the parties under this Agreement is that of independent
contractors. Nothing contained herein is intended or is to be construed so as to constitute the parties as partners or joint venturers or either party as an agent or employee of the other. Neither party has the express or implied right under this
Agreement to assume or create any obligation on behalf of or in the name of the other, or to bind the other party to any contract, agreement or undertaking with any third party. 
 10.12 Dispute Resolution. Any dispute in connection with this Agreement shall be handled in accordance with the procedures set forth in
Section 14.13 of the Distribution Agreement. 
 10.13 Entire Agreement. This Agreement constitutes the entire and exclusive
agreement and understanding between Abbott and OraSure with respect to the subject matter of this Agreement, and supersedes and cancels all previous negotiations, agreements, and commitments, whether oral or in writing, in respect to the subject
matter of this Agreement. 
  

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 IN WITNESS WHEREOF, the undersigned duly authorized officers of OraSure and Abbott, respectively, hereby
execute this Agreement on the date first above written on behalf of OraSure and Abbott, respectively. 
  

			
	ORASURE TECHNOLOGIES, INC.
		
	By:	 	 /s/ Douglas A. Michels

			
	Print Name:	 	 Douglas A. Michels

	Title:	 	 President and CEO

	
	ABBOTT LABORATORIES

			
		
	By:	 	 /s/ Brian J. Blaser

			
	Print Name:	 	Edward L. Michael
	Title:	 	Executive Vice President, Diagnostics
	
	Brian J. Blaser
	DVP, Global Operations for E. Michael

  

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 Exhibit A 
 Abbott Customer Information 
 (a) customer name and address; 
 (b) with respect to each customer, if such information is available, the name and phone number of
a contact person responsible for technical product decisions and a contact person responsible for procurement or transactional decisions, in each case involving the OraQuick® Products;

 (c) whether the customer is a Current Customer or a National Account; 
 (d) whether such customer previously purchased OraQuick® Product under a contract, pricing letter or other agreement that terminated or expired within the twelve months immediately preceding the Effective Date; 
 (e) pricing under which Abbott is providing or has agreed to provide OraQuick® Product to such customer; 
 (f) any minimum purchase volumes in place or expected to
be in place during the future; 
 (g) whether the customer is purchasing OraQuick® Product pursuant to a contract, pricing letter or other arrangement and the duration and other material terms (to the extent not otherwise described) of each such contract, pricing letter or
other arrangement; and 
 (h) pricing and any minimum volumes in effect with such customer during the twelve-months immediately preceding the
Effective Date; 
 (i) payment terms and payment history of such customer during the twelve months immediately preceding the Effective Date
of this Agreement; and 
 (j) whether the customer places orders through EDI or MetaFax, the applicable EDI specifications used by the
customer and an IT contact at the customer, to the extent such information is available.Indemnification Agreement

 Exhibit 10.51 
 INDEMNIFICATION AGREEMENT 
 THIS
INDEMNIFICATION AGREEMENT is made as of the 4th day of March 2009, by and between Callaway Golf Company, a Delaware corporation (the
“Company”), and John F. Lundgren (“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. 

 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 Indemnitee while a 

  

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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 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. 
  

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 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 employ separate counsel in any such proceeding at Indemnitee’s expense; 

  

 4 

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

 5 

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

 6 

 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. 
  

 7 

 (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:
	  	John F. Lundgren
		  	Chairman and Chief Executive Officer
		  	Stanley Works
		  	1000 Stanley Drive
		  	New Britain, CT 06053
		
	 If to Company:
	  	Callaway Golf Company
		  	2180 Rutherford Road
		  	Carlsbad, CA 92008
		  	Attention: Corporate Secretary

 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. 
  

 8 

 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. 
  

 9 

 (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. 
  

 10 

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

	
	CALLAWAY GOLF COMPANY
	
	/s/ George Fellows
	George Fellows
	President and Chief Executive Officer
	
	INDEMNITEE
	
	/s/ John F. Lundgren
	John F. Lundgren

  

 11

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