Document:

Exhibit 10.1

 

Exhibit 10.1

AGREEMENT AS TO ASHWORTH, INC.

EXECUTIVE EMPLOYMENT AGREEMENT WITH

RANDALL L. HERREL, SR.

     This Agreement is effective as of September 12, 2006 (the “Effective Date”) and pertains to
and confirms certain understandings regarding, and amends, that certain Second Amended and Restated
Executive Employment Agreement dated February 28, 2006 (the “Employment Agreement”) between
ASHWORTH, INC. (the “Company”) and RANDALL L. HERREL, SR. (“Herrel”) and Herrel’s continuing
employment thereunder.

     1. Employment. The Company shall continue to employ Herrel as its Chief Executive
Officer, and Herrel accepts such continued employment, upon the terms and conditions set forth
herein and the Employment Agreement (as modified pursuant to this Agreement). On and after the
Effective Date, Herrel shall no longer serve as Chairman of the Board or President of the Company.

     2. Term. Consistent with the Resignation (attached as Exhibit A hereto) which
Herrel has executed and delivered concurrently with this Agreement, the term of Herrel’s employment
shall continue until, and then automatically terminate, on October 17, 2006, unless earlier
terminated as provided herein (the “Remaining Term”).

     3. Authority and Duties. Herrel shall report directly to the Chairman of the Board
during the Remaining Term. Herrel’s scope of authority and duties during the Remaining Term shall
be as determined in the discretion of the Chairman of the Board (and may be reduced from the scope
of authority and duties of Herrel prior to the Effective Date), but any new or expanded duties of
Herrel shall be consistent with the duties normally associated with the position of a chief
executive officer.

     4. Employment Compensation During Remaining Term. Herrel’s salary and employee
benefits (and executive perquisites to the extent Herrel has the same) shall continue during the
Remaining Term at the same levels as were in effect immediately prior to the Effective Date.
Section 14 (Expenses) of the Employment Agreement also remains in full force and effect.

     5. Severance.

          A. Resignation Effective October 17, 2006 or for Constructive Discharge. If Herrel’s
employment terminates on October 17, 2006 in accordance with the Resignation executed and delivered
concurrently herewith or earlier if Herrel resigns for Constructive Discharge (as defined
hereinbelow), Herrel shall immediately be entitled to receive severance compensation and benefits
as follows, and such severance payments and benefits shall be immediately payable upon termination
(except as may be provided in Section 16 of the Employment Agreement) notwithstanding any other
employment that Herrel may find or have after such termination:

     i. Cash compensation in an amount equal to Six Hundred Twenty Nine Thousand Three
Hundred Forty Nine Dollars ($629,349.00);

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     ii. All stock options owned by Herrel listed on Exhibit B hereto, whether
granted pursuant to the Employment Agreement or otherwise and regardless of their scheduled
vesting dates, will vest immediately upon termination of Herrel’s employment, and will be
exercisable for a period of two years following the date of termination, provided that no
option may be exercised beyond its original expiration date;

     iii. The following employee benefits for one year after the date of termination: (1)
medical insurance (including Exec-u-care), dental insurance, life insurance and disability
insurance, in such forms as exist on the date hereof; (2) an the automobile allowance at the
rate of $1,250.00 per month; (3) a clothing allowance at the rate of $100.00 per month; and
(4) monthly dues for the current country club of which Herrel is a member (but not special
assessments). Herrel shall not receive any other expense reimbursement or any other
benefits after his employment termination, including, without limitation, an office and
secretarial support; and

     iv. Reimbursement for accrued but unpaid vacation and amounts reimbursable under
Section 14 (Expenses) of the Employment Agreement.

          B. Termination Without Cause/Death/Disability. If Herrel’s employment is terminated
without Cause (as defined hereinbelow) by the Company or by death or disability prior to October
17, 2006, Herrel shall be entitled to receive severance compensation and benefits as follows:

     i. Cash compensation in an amount equal to Six Hundred Eight Thousand Nine Hundred
Seventy Three Dollars ($608,973.00) plus Five Hundred Eighty Two Dollars ($582.00) per day
Herrel is employed by the Company after the Effective Date (including weekends and holidays)
until the date of such termination;

     ii. All stock options owned by Herrel, whether granted pursuant to this Agreement or
otherwise and regardless of their scheduled vesting dates, will vest immediately upon
termination of Herrel’s employment, and will be exercisable for a period of two years
following the date of termination, provided that no option may be exercised beyond its
original expiration date;

     iii. The following employee benefits for one year after the date of termination: (1)
medical insurance (including Exec-u-care), dental insurance, life insurance and disability
insurance, in such forms as exist on the date hereof; (2) an the automobile allowance at the
rate of $1,250.00 per month; (3) a clothing allowance at the rate of $100.00 per month; and
(4) monthly dues for the current country club of which Herrel is a member (but not special
assessments). Herrel shall not receive any other expense reimbursement or any other
benefits after his employment termination, including, without limitation, an office and
secretarial support; and

     iv. Reimbursement for accrued but unpaid vacation, and amounts reimbursable under
Section 14 (Expenses) of the Employment Agreement.

          C. Termination For Cause/Earlier Resignation for Other than Constructive Discharge.
In the event that Herrel’s employment is terminated prior to

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October 17, 2006 as a result of (i) a termination for Cause by the Company, or (ii) Herrel’s
earlier resignation for any reason other than Constructive Discharge (as defined hereinbelow),
Herrel’s entitlement (if any) to severance compensation and benefits shall be in accordance with
and governed by the relevant provisions of the Employment Agreement and without any regard
whatsoever to the provisions of Sections 5(A) or 5(B) of this Agreement. Paragraph 15(e) of the
Employment Agreement (regarding Resignation in the Event of Change of Circumstances) and the
definition of a Change in Duties, Compensation or Benefits contained in Exhibit A thereto are
hereby deleted in their entirety, it being the intent of the parties that the provisions herein
regarding Constructive Discharge replace such provisions in their entirety.

          D. Satisfaction of Severance Obligations. Notwithstanding anything to the contrary in
the Employment Agreement, the parties specifically acknowledge and agree that if the Company is
obligated to provide severance compensation and post-termination benefits to Herrel pursuant to
Section 5(A) or Section 5(B) above, the provisions of Section 5(A) or 5(B) of this Agreement, as
relevant, shall constitute the entirety of the Company’s obligations to make severance payments and
provide post-termination benefits, and no separate or additional severance compensation or
post-termination benefits shall be payable or due under the terms of the Employment Agreement or
otherwise; provided, however, that this Section shall in no way limit any and all
of Herrel’s right or the Company’s obligations to defend and indemnify Herrel against a claim
arising out of or relating to Herrel’s service as an employee or Director of the Company.

          E.
Definitions.

          A “termination without Cause” shall be deemed to have occurred if Herrel is terminated for any
reason other than his (i) fraud, (ii) misappropriation of or intentional material damage to the
property or business of the Company (including its subsidiaries), (iii) conviction of a felony or
(iv) the willful and deliberate refusal of Herrel to comply with a lawful, written instruction of
the Chairman of the Board, which refusal is not remedied by Herrel within a reasonable period of
time after his receipt of written notice from the Company identifying the refusal.

          A “Constructive Discharge” shall exist only if both of the following conditions are met:

     i. Herrel is assigned material new or additional responsibilities not consistent with
the position of a chief executive officer; and

     ii. The Chairman of the Ashworth Board of Directors ceases to be one of the following
persons: James Hayes, James O’Connor, Detlef Adler, John Richardson or another person
acceptable to Herrel.

     6. Section 409A Compliance. Section 16 of the Employment
Agreement shall remain in full force and effect.

     7. Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and delivered in person or sent by registered or certified mail to
Herrel’s residence in the case of Herrel or to its principal office in the case of the Company.

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     8. Arbitration. Any dispute arising out of this Agreement shall be resolved by
binding arbitration at San Diego, California pursuant to the rules of the American Arbitration
Association. In any such proceeding, the prevailing party shall be entitled to an award of its
reasonable attorneys fees and expenses.

     9. Waiver. The waiver of any provision of this Agreement shall not operate or be
construed as a waiver of any other provision of this Agreement. No waiver shall be valid unless in
writing and executed by the party to be charged therewith.

     10. Severability/Modification. In the event that any clause or provision of this
Agreement shall be determined to be invalid, illegal or unenforceable, such clause or provision may
be severed or modified to the extent necessary, and, as severed and/or modified, this Agreement
shall remain in full force and effect.

     11. Assignment. The rights and obligations of the Company under this Agreement shall
inure to the benefit of and shall be binding upon the successors and assigns of the Company.
Herrel acknowledges that the services to be rendered under this Agreement are unique and personal.
Accordingly, Herrel may not assign his rights and obligations under this Agreement.

     12. Amendment. This instrument may not be amended except by an agreement in writing
signed by both parties.

     13. Change in Control Agreement. Nothing contained herein shall have any effect on
the Amended and Restated Agreement re Change in Control dated as of February 28, 2006 by and
between Herrel and the Company, and the parties hereto acknowledge that such agreement is in full
effect and binding on the parties thereto.

     14. Governing Law and Jurisdiction. This Agreement shall be interpreted, construed,
and enforced under the laws of the State of California. The courts and authorities of the State of
California shall have sole jurisdiction and venue for purposes of enforcing the arbitration
agreement above.

     15. Authorization to Sign. The undersigned represents that he is properly authorized
to legally bind Ashworth, Inc., to this Agreement and to sign this Agreement on behalf of Ashworth,
Inc.

[Remainder of page left blank intentionally, signatures on following page]

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                    IN WITNESS WHEREOF, the parties have executed this Agreement the date and year indicated
above.

	 	 	 	 	 
	 	“COMPANY”

ASHWORTH, INC.

 	 
	 	By:  	/s/ James B. Hayes
 	 
	 	 	Name:  	James B. Hayes 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	“HERREL”

RANDALL L. HERREL, SR.

 	 
	 	By:  	/s/ Randall L. Herrel, Sr.
 	 
	 	 	Randall L. Herrel, Sr. 	 
	 	 	 	 

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EXHIBIT A

	 	 	 
	Date:

	 	September 12, 2006
	 
	 	 
	To:

	 	Board of Directors
	 

	 	Ashworth, Inc.
	 
	 	 
	From:

	 	Randall L. Herrel, Sr.
	 
	 	 
	Subject:

	 	Resignation

This letter is to confirm my resignation as a Director and Chief Executive Officer of Ashworth,
Inc. (the“Company”), effective as of October 17, 2006, together with all other
employment and trustee positions held with Ashworth, Inc. and any of its subsidiaries or with their
respective employee plans.

This letter is also to confirm that my resignation is not a result of any material disagreement
with the Company as to the Company’s operations, policies or practices.

	 	 	 
	/s/ Randall L. Herrel, Sr.
	 	 
	 

Randall L. Herrel, Sr.

	 	 

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EXHIBIT B

	 	 	 
	Optionee Statement

	 	Ashworth, Inc.

Exercisable as of 8/31/2006

Randall L. Herrel Sr

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Date	 	 	 	 	 	 
	Grant	 	Expiration	 	 	 	Grant	 	Granted or	 	Grant	 	Transferred	 	 	 	 	 	 
	Date	 	Date	 	Plan ID	 	Type	 	Transferred To	 	Price	 	Out	 	Outstanding	 	Exercisable	 	 
	 
	10/2/1996
	 	12/31/2003	 	3	 	Incentive	 	 	16,666	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	12/31/2003	 	3	 	Non-Qualified	 	 	33,334	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	12/31/2005	 	3	 	Incentive	 	 	16,666	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	12/31/2004	 	3	 	Non-Qualified	 	 	83,334	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	12/31/2004	 	3	 	Incentive	 	 	16,666	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	6/14/2003	 	3	 	Non-Qualified	 	 	33,334	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	6/14/2003	 	3	 	Incentive	 	 	16,666	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	10/2/1996
	 	12/31/2005	 	3	 	Non-Qualified	 	 	83,334	 	 	$	6.0000	 	 	 	 	 	0	 	 	 	0	 	 	current
	2/6/1997
	 	7/31/2002	 	3	 	Non-Qualified	 	 	6,094	 	 	$	5.7500	 	 	 	 	 	0	 	 	 	0	 	 	current
	2/25/1997
	 	12/31/2004	 	3	 	Non-Qualified	 	 	100,000	 	 	$	6.5000	 	 	 	 	 	0	 	 	 	0	 	 	current
	11/11/1997
	 	11/10/2003	 	3	 	Incentive	 	 	204	 	 	$	10.1875	 	 	 	 	 	0	 	 	 	0	 	 	current
	11/11/1997
	 	11/10/2003	 	3	 	Non-Qualified	 	 	19,796	 	 	$	10.1875	 	 	 	 	 	0	 	 	 	0	 	 	current
	11/11/1997
	 	11/10/2004	 	3	 	Non-Qualified	 	 	20,000	 	 	$	10.1875	 	 	 	 	 	0	 	 	 	0	 	 	current
	11/11/1997
	 	11/10/2005	 	3	 	Non-Qualified	 	 	20,000	 	 	$	10.1875	 	 	 	 	 	0	 	 	 	0	 	 	current
	12/11/2000
	 	12/11/2010	 	2KEIP	 	Non-Qualified	 	 	40,865	 	 	$	6.8750	 	 	 	 	 	40,865	 	 	 	40,865	 	 	current
	12/11/2000
	 	12/11/2010	 	2KEIP	 	Incentive	 	 	43,635	 	 	$	6.8750	 	 	 	 	 	43,635	 	 	 	43,685	 	 	current
	12/22/2003
	 	12/22/2013	 	2KEIP	 	Incentive	 	 	17,713	 	 	$	8.0900	 	 	 	 	 	17,713	 	 	 	17,713	 	 	current
	12/21/2004
	 	12/21/2014	 	2KEIP	 	Non-Qualified	 	 	25,980	 	 	$	10.7500	 	 	 	 	 	25,980	 	 	 	25,980	 	 	current
	12/21/2004
	 	12/21/2014	 	2KEIP	 	Incentive	 	 	19,020	 	 	$	10.7500	 	 	 	 	 	19,020	 	 	 	19,020	 	 	current
	 
	Optionee Totals
	 	 	 	 	 	 	 	 	613,307	 	 	 	 	 	 	 	 	 	147,213	 	 	 	147,213	 	 	 

 7 of 7Exhibit 10.2

 

Exhibit 10.2

PETER WEIL AGREEMENT

     THIS AGREEMENT, dated as of September 12, 2006, is between ASHWORTH, INC., a Delaware
corporation and its successors or assignees (“Ashworth”) and PETER M. WEIL, an individual (“Mr.
Weil”).

     1. ENGAGEMENT OF SERVICES. Ashworth is engaging the services, advice, expertise and counsel
of Mr. Weil on subjects of corporate management and operations and decision-making within the
Office of the Chairman. Subject to the terms of this Agreement, Mr. Weil will, to the best of his
ability, render these duties which, during the term of this Agreement, will essentially require Mr.
Weil’s full-time attention. All assignments to Mr. Weil must be approved by mutual agreement of
Mr. Weil and either the Chairman of the Ashworth Board or the Ashworth Board of Directors (the
“Board”) itself, and the scope of Mr. Weil’s authority and services with respect to such
assignments will be similarly determined by mutual agreement. Mr. Weil agrees to serve as a member
of Ashworth’s Office of the Chairman, which reports directly to the Chairman of the Board of
Directors of the Company. Mr. Weil’s engagement hereunder is at will, and nothing in this
Agreement shall confer any right with respect to the continuation of Mr. Weil’s engagement by
Ashworth. Ashworth will make its employees, facilities and equipment reasonably available to Mr.
Weil in order for him to perform his duties under this Agreement. Mr. Weil may not subcontract or
otherwise delegate his obligations under this Agreement without Ashworth’s prior written consent.

     2. COMPENSATION. In view of the time commitments associated with his duties under this
Agreement as well as his continuing duties a Director on the Board, and until further action of the
Board, Mr. Weil shall be compensated for all services under this Agreement and as a Director for
the duration of service under this Agreement with an aggregate cash retainer of $30,000 per month
(or pro rata portion of each month, as relevant), payable at the end of each month of service. In
this regard and during the term of this Agreement, Mr. Weil shall not receive a separate cash
retainer or per Board Meeting fees for his continuing service as a Director of the Board.

     As additional compensation, Ashworth hereby grants to Mr. Weil a non-qualified stock option
grant covering 25,000 shares of Ashworth’s common stock, with an exercise price equal to 100% of
fair market value of the common stock on the date of grant. The foregoing option shall vest over a
three-month period on a daily basis (inclusive of week-ends and holidays). Vesting shall cease
upon termination of this Agreement, for any reason, and the option shall remain exercisable for a
period of five (5) years after the date of grant. The foregoing option grant, and any future
grants made pursuant to this Section 2, are in addition to, and not in lieu of, any and all stock
option grants to Mr. Weil for his continuing service on the Board.

     If this Agreement is not terminated earlier, a comparable stock option grant covering 25,000
shares of common stock shall be made on each three-month anniversary of the Effective Date with
comparable terms and conditions.

     Mr. Weil will promptly be reimbursed for reasonable out-of-pocket expenses incurred in
connection with the performance of services under this Agreement provided Mr. Weil submits

 

 

verification of such expenses as Ashworth may reasonably require. Upon termination of this
Agreement for any reason, Mr. Weil will be paid fees and expenses earned or accrued through the
date of termination.

     3. INDEPENDENT CONTRACTOR RELATIONSHIP. Mr. Weil’s relationship with Ashworth will be that of
an independent contractor and nothing in this Agreement should be construed to create a
partnership, joint venture, or employer-employee relationship. Mr. Weil will not be entitled to
any of the benefits that Ashworth may make available to its employees, such as group insurance,
profit-sharing or retirement benefits. Mr. Weil will be solely responsible for all tax returns and
payments required to be filed with or made to any federal, state or local tax authority with
respect to his performance of services and receipt of fees under this Agreement. Ashworth will
regularly report amounts paid to Mr. Weil by filing Form 1099-MISC with the Internal Revenue
Service as required by law. Because Mr. Weil is an independent contractor, Ashworth will not
withhold or make payments for social security; make unemployment insurance or disability insurance
contributions; or obtain worker’s compensation insurance on Mr. Weil’s behalf. Mr. Weil agrees to
accept exclusive liability for complying with all applicable state and federal laws governing
self-employed individuals, including obligations such as payment of taxes, social security,
disability and other contributions based on fees paid to Mr. Weil , his agents or employees under
this Agreement. Mr. Weil hereby agrees to indemnify and defend Ashworth against any and all such
taxes or contributions, including penalties and interest.

     4. TRADE SECRETS — INTELLECTUAL PROPERTY RIGHTS.

          4.1 Proprietary Information. Mr. Weil agrees that, at all times during the term of this
Agreement and at all times thereafter, he will take all steps necessary to hold all Proprietary
Information (as defined below) in the strictest trust and confidence, will not directly or
indirectly use any Proprietary Information in any manner or for any purpose not expressly set forth
in this Agreement, will not directly or indirectly disclose any Proprietary Information to any
third party, and will not exhibit, demonstrate, or otherwise display Proprietary Information
without first obtaining the express prior written consent of the Chairman of the Board.
“Proprietary Information” means any knowledge, data or other information of or relating to the
Company not lawfully in the public domain, including, without limitation, the following:

          (a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object
codes, data, programs, other works of authorship, know-how, improvements, discoveries,
developments, prototypes, experimental work, computer programs, designs, and techniques
(hereinafter collectively referred to as “Inventions”);

          (b) information regarding development, plans for research, current products, new products,
marketing and selling, business or strategic plans, strategies, budgets, licenses, unpublished
financial statements, prices and costs, other financial information, suppliers and customers; and

          (c) information regarding employees, other consultants and licensees or licensors of Ashworth,
as well as the skills and compensation of such persons.

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          4.2 Third Party Information. Mr. Weil understands that Ashworth may receive from third
parties confidential or proprietary information (“Third Party Information”) subject to a duty on
Ashworth’s part to maintain the confidentiality of such information and use it only for certain
limited purposes. Mr. Weil agrees to hold Third Party Information in confidence and not to
directly or indirectly disclose to anyone (other than Ashworth personnel or authorized
representatives who need to know such information in connection with their work for Ashworth) or to
use, directly or indirectly, except in connection with Mr. Weil’s services for Ashworth, Third
Party Information unless expressly authorized in writing by the Chairman of the Board.

          4.3 No Conflict of Interest. Mr. Weil agrees during the term of this Agreement not to accept
work or enter into a contract or accept an obligation, inconsistent or incompatible with Mr. Weil’s
obligations under this Agreement or the scope of his duties rendered for Ashworth. Mr. Weil
warrants that to the best of his knowledge that there is no existing contract or duty on Mr. Weil’s
part that may conflict with the terms of this Agreement. Mr. Weil further agrees not to disclose
to Ashworth, or bring onto Ashworth’s premises, or induce Ashworth to use any confidential
information that belongs to anyone other than Ashworth or Mr. Weil.

          4.4 Disclosure of Work Product. As used in this Agreement, the term “Work Product” means any
Invention, whether or not patentable, and all related know-how, designs, mask works, trademarks,
formulae, processes, manufacturing techniques, trade secrets, ideas, artwork, prototypes, software
or other copyrightable or patentable works. Mr. Weil agrees to disclose promptly in writing to
Ashworth, or any person designated by Ashworth, all Work Product that is solely or jointly
conceived, made, reduced to practice, or learned by Mr. Weil in the course of any work performed
for Ashworth (“Ashworth Work Product”). Mr. Weil represents that any Work Product relating to
Ashworth’s business or any project that Mr. Weil has made, conceived or reduced to practice at the
time of signing this Agreement (“Prior Work Product”) has been disclosed in writing to Ashworth and
attached to this Agreement as Exhibit A. If disclosure of any such Prior Work Product
would cause Mr. Weil to violate any prior confidentiality agreement, Mr. Weil understands that he
is not to list such Prior Work Product in Exhibit A but he will disclose a cursory name for
each such invention, a listing of the party(ies) to whom it belongs, and the fact that full
disclosure as to such Prior Work Product has not been made for that reason. A space is provided in
Exhibit A for such purpose.

          4.5 Ownership of Work Product. Mr. Weil agrees that any and all Inventions conceived,
written, created or first reduced to practice in the performance of work under and related to this
Agreement shall be the sole and exclusive property of Ashworth.

          4.6 Assignment of Ashworth Work Product. Mr. Weil irrevocably assigns to Ashworth all right,
title and interest worldwide in and to the Ashworth Work Product and all applicable intellectual
property rights related to the Ashworth Work Product, including without limitation, copyrights,
trademarks, trade secrets, patents, moral rights, contract and licensing rights (the “Proprietary
Rights”). Except as set forth below, Mr. Weil retains no rights to use the Ashworth Work Product
and agrees not to challenge the validity of Ashworth’s ownership in the Ashworth Work Product.

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          4.7 Waiver or Assignment of Other Rights. If Mr. Weil has any rights to the Ashworth Work
Product that cannot be assigned to Ashworth, Mr. Weil unconditionally and irrevocably waives the
enforcement of such rights, and all claims and causes of action of any kind against Ashworth with
respect to such rights, and agrees, at Ashworth’s request and expense, to consent to and join in
any action to enforce such rights. If Mr. Weil has any right to the Ashworth Work Product that
cannot be assigned to Ashworth or waived by Mr. Weil, Mr. Weil unconditionally and irrevocably
grants to Ashworth during the term of such rights, an exclusive, irrevocable, perpetual, worldwide,
fully paid and royalty-free license, with rights to sublicense through multiple levels of
sublicensees, to reproduce, create derivative works of, distribute, publicly perform and publicly
display by all means now known or later developed, such rights.

          4.8 Assistance. Mr. Weil agrees to cooperate with Ashworth or its designee(s), both during
and after the term of this Agreement, in the procurement and maintenance of Ashworth’s rights in
Ashworth Work Product and to execute, when requested, any other documents deemed necessary by
Ashworth to carry out the purpose of this Agreement. Mr. Weil agrees to promptly execute upon
Ashworth’s request a signed transfer of copyright to Ashworth in the form attached to this
Agreement as Exhibit B for all Ashworth Work Product subject to copyright protection,
including, without limitation, computer programs, notes, sketches, drawings and reports.

          4.9 Enforcement of Proprietary Rights. Mr. Weil will assist Ashworth in every proper way to
obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to
Ashworth Work Product in any and all countries. To that end Mr. Weil will execute, verify and
deliver such documents and perform such other acts (including appearances as a witness) as Ashworth
may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and
enforcing such Proprietary Rights and the assignment thereof. In addition, Mr. Weil will execute,
verify and deliver assignments of such Proprietary Rights to Ashworth or its designee. Mr. Weil’s
obligation to assist Ashworth with respect to Proprietary Rights relating to such Ashworth Work
Product in any and all countries shall continue beyond the termination of this Agreement, but
Ashworth shall compensate Mr. Weil at a reasonable rate after such termination for the time
actually spent by Mr. Weil at Ashworth’s request on such assistance.

          4.10 Execution of Documents. In the event Ashworth is unable for any reason, after reasonable
effort, to secure Mr. Weil’s signature on any document needed in connection with the actions
specified in the preceding Sections 4.8 and 4.9, Mr. Weil hereby irrevocably designates and
appoints Ashworth and its duly authorized officers and agents as his agent and attorney-in-fact,
which appointment is coupled with an interest, to act for and on his behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further the purposes of the
preceding paragraph with the same legal force and effect as if executed by Mr. Weil. Mr. Weil
hereby waives and quitclaims to Ashworth any and all claims, of any nature whatsoever, that Mr.
Weil now or may hereafter have for infringement of any Proprietary Rights assigned or attempted to
be assigned hereunder to Ashworth.

     5. MR. WEIL’S REPRESENTATIONS AND WARRANTIES. Mr. Weil hereby represents and warrants to
Ashworth that:

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          (a) the Ashworth Work Product will be an original work of Mr. Weil and any third parties will
have executed assignment of rights reasonably acceptable to Ashworth;

          (b) neither the Ashworth Work Product nor any element thereof will infringe the Intellectual
Property Rights of any third party;

          (c) neither the Ashworth Work Product nor any element thereof will be subject to any
restrictions or to any mortgages, liens, pledges, security interests, encumbrances or
encroachments;

          (d) Mr. Weil will not grant, directly or indirectly, any rights or interest whatsoever in the
Ashworth Work Product to third parties;

          (e) Mr. Weil has full right and power to enter into and perform this Agreement without the
consent of any third party; and

          (f) Mr. Weil will take all reasonably necessary precautions to prevent injury to any persons
(including employees of Ashworth) or damage to property (including Ashworth’s property) during the
term of this Agreement.

     6. INDEMNIFICATION. Mr. Weil will indemnify and hold harmless Ashworth, its officers,
directors, employees, sublicensees, customers and agents from any and all claims, losses,
liabilities, damages, expenses and costs (including actual attorneys’ fees and court costs) that
result from a breach or alleged breach of any representation or warranty of Mr. Weil (a “Claim”)
set forth in Section 5 of this Agreement, provided that Ashworth gives Mr. Weil written
notice of any such Claim and Mr. Weil has the right to participate in the defense of any such Claim
at his expense. Notwithstanding this right of participation, Ashworth retains the sole and
exclusive right to select legal counsel for itself. From the date of written notice from Ashworth
to Mr. Weil of any such Claim, Ashworth shall have the right to withhold from any payments due Mr.
Weil under this Agreement the amount of any defense costs, plus additional reasonable amounts as
security for Mr. Weil’s obligations under this Section 6.

     7. TERMINATION.

          7.1 Termination by Ashworth. Ashworth may terminate this Agreement at its convenience and
without any breach by Mr. Weil upon written notice to Mr. Weil. Ashworth may also terminate this
Agreement immediately in its sole discretion upon Mr. Weil’s material breach of Section 4
or any other section of this Agreement.

          7.2 Termination by Mr. Weil. Mr. Weil may terminate this Agreement at any time upon written
notice to Ashworth. Mr. Weil may also terminate this Agreement immediately in his sole discretion
upon Ashworth’s material breach of this Agreement.

          7.3 Return of Ashworth Property. Upon termination of the Agreement for any reason, Mr. Weil
will deliver to Ashworth any and all drawings, notes, computer source or object code, memoranda,
specifications, devices, formulas, and documents, together with all copies thereof, and any other
material containing or disclosing any Ashworth Work Product, Third Party Information or Proprietary
Information of Ashworth. Mr. Weil further agrees that

5

 

any property situated on Ashworth’s premises and owned by Ashworth, including disks and other
storage media, filing cabinets or other work areas, is subject to inspection by Ashworth personnel
at any time with or without notice.

     8. GENERAL PROVISIONS.

          8.1 Governing Law. This Agreement will be governed and construed in accordance with the laws
of the State of California as applied to transactions taking place wholly within California between
California residents, without giving effect to principles of conflict of laws. Mr. Weil hereby
expressly and irrevocably consents to the personal jurisdiction of the state and federal courts
located in San Diego County or Orange County, California for any lawsuit filed arising from or
related to this Agreement and any suit arising from this Agreement shall be brought in those
courts.

          8.2 Severability. In case any one or more of the provisions contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein. Moreover, if any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to
the extent compatible with the applicable law as it shall then appear.

          8.3 No Assignment. This Agreement may not be assigned by Mr. Weil without Ashworth’s prior
written consent, and any such attempted assignment shall be void and of no effect.

          8.4 Notices. All notices, requests and other communications under this Agreement must be in
writing, and must be mailed by registered or certified mail, postage prepaid and return receipt
requested, or delivered by hand to the party to whom such notice is required or permitted to be
given. If mailed, any such notice will be considered to have been given three (3) business days
after it was mailed, as evidenced by the postmark. If delivered by hand, any such notice will be
considered to have been given when received by the party to whom notice is given, as evidenced by
written and dated receipt of the receiving party. The mailing address for notice to either party
will be the address shown on the signature page of this Agreement. Either party may change its
mailing address by notice as provided by this section.

          8.5 Legal Fees. If any dispute arises between the parties with respect to the matters covered
by this Agreement which leads to a proceeding to resolve such dispute, the prevailing party in such
proceeding shall be entitled to receive its actual attorneys’ fees, expert witness fees and
out-of-pocket costs incurred in connection with such proceeding, in addition to any other relief it
may be awarded.

          8.6 Injunctive Relief. Mr. Weil agrees that any breach of this Agreement will result in
irreparable and continuing damage to Ashworth for which there may be no adequate remedy at law, and
the Ashworth is therefore entitled to seek injunctive relief in addition to such other and further
relief as may be appropriate. All applicable actions may be taken by the

6

 

Ashworth without bond and without prejudice to any other rights and remedies that the Ashworth
may have for a breach of this Agreement. The failure of the Ashworth to promptly institute legal
action upon any breach of this Agreement shall not constitute a waiver of that or any other breach
hereof.

          8.7 Survival. The following provisions shall survive termination of this Agreement:
Section 4, Section 5, Section 6 and Section 8.

          8.8 Export. Mr. Weil agrees not to export, directly or indirectly, any U.S. source technical
data acquired from Ashworth or any products utilizing such data to countries outside the United
States, which export may be in violation of the United States export laws or regulations.

          8.9 Waiver. No waiver by Ashworth or Mr. Weil of any breach of this Agreement shall be a
waiver of any preceding or succeeding breach. No waiver by Ashworth or Mr. Weil of any right under
this Agreement shall be construed as a waiver of any other right. Neither Ashworth nor Mr. Weil
shall be required to give notice to enforce strict adherence to all terms of this Agreement.

          8.10 Entire Agreement. This Agreement is the final, complete and exclusive agreement of the
parties with respect to the subject matter hereof and supersedes and merges all prior discussions
between us. No modification of or amendment to this Agreement, nor any waiver of any rights under
this Agreement, will be effective unless in writing and signed by the party to be charged. The
terms of this Agreement will govern all duties undertaken by Mr. Weil for Ashworth.

          8.11 Counterparts. Facsimile transmission of any signed original of this Agreement will be
deemed the same as delivery of an original. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and each of which together shall be deemed
one and the same instrument.

[The remainder of this page is intentionally left blank.]

7

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representative as of the 12th day of September, 2006.

	 	 	 	 	 	 	 
	 	 	ASHWORTH, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James B. Hayes	 	 
	 

	 	 	 	 	 	 
	 	 	Name: James B. Hayes	 	 
	 	 	Title: Chairman of the Board	 	 

	 	 	 	 	 
	 	PETER M. WEIL

 	 
	 	/s/ Peter M. Weil
 	 
	 	Peter M. Weil 	 
	 	 	 
	 

For copyright registration purposes only, Mr. Weil needs to provide the following information:

	 	 	 	 	 
	Address:

	 	 	 	Date of Birth:
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	Nationality or Domicile:
	 

	 	 	 	 

8

 

EXHIBIT A

PRIOR WORK PRODUCT DISCLOSURE

     1. Except as listed in Section 2 below, the following is a complete list of all Prior
Work Product that have been made or conceived or first reduced to practice by Mr. Weil alone or
jointly with others prior to the date of this Agreement:

	 	 	 	 	 
	 

	 	þ
	 	No inventions or improvements.
	 
	 	 	 	 
	 

	 	o
	 	See below:
	 
	 	 	 	 
	 

	 	 	 	          List other work product here:
	 
	 	 	 	 
	 

	 	o
	 	Additional sheets attached.

     2. Due to a prior confidentiality agreement, Mr. Weil cannot complete the disclosure under
Section 1 above with respect to inventions or improvements generally listed below, the
proprietary rights and duty of confidentiality with respect to which Mr. Weil owes to the following
party(ies):

	 	 	 	 	 	 	 	 	 
	Invention or Improvement	 	Party(ies)	 	 	Relationship	 
	 
	 	 	 	 	 	 	 	 
	1.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	2.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	3.
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 

	 	o
	 	Additional sheets attached.

9

 

EXHIBIT B

ASSIGNMENT OF COPYRIGHT

     For good and valuable consideration which has been received, the undersigned sells, assigns
and transfers to Ashworth, and its successors and assigns, the copyright in and to the following
work, which was created by the following indicated author(s):

	 	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Author(s):
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Copyright Office Identification No. (if any):

	 	 	 	 
	 

	 	 	 

and all of the right, title and interest of the undersigned, vested and contingent, therein and
thereto.

          
Executed this ___ day of                     , 20___.

	 	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Printed Name:	 	 	 	 
	 

	 	 	 	 

	 	 

10

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