SEPARATION AND GENERAL RELEASE AGREEMENT

Exhibit 10.4

SEPARATION AND GENERAL RELEASE AGREEMENT

This SEPARATION AND GENERAL RELEASE AGREEMENT (this “Agreement”), dated as of October 24, 2007 (the “Effective Date”), is entered into by and between Ashworth, Inc., a Delaware corporation (the “Company”), and Peter M. Weil (“Weil”).

RECITALS

A. Weil currently serves as the Company’s Chief Executive Officer and a Director of the Company. Pursuant to this Agreement, Weil’s employment by the Company will end, and Weil will resign as a Director of the Company.

B. The Company desires to engage Weil to provide consulting services to the Company pursuant to this Agreement and Weil desires to provide such consulting services to the Company pursuant to this Agreement.

C. The Company and Weil desire to enter into an agreement setting forth various terms and conditions in connection with the ending of Weil’s employment with the Company.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

Consistent with the Resignation (in the form attached hereto as Exhibit A ) that Weil has executed and delivered concurrently with this Agreement, the term of Weil’s employment with the Company and tenure on the Company’s Board of Directors is hereby terminated. Weil shall not receive a bonus for fiscal year 2007, but will be paid for all accrued and unused vacation as of the Effective Date. The Company shall also reimburse Weil for all reasonable business expenses incurred on or before the Effective Date that are reimbursable in accordance with Company policy within 30 days after Weil’s submission of a properly documented request for the same.

After the Effective Date, on reasonable notice and subject to Weil’s availability, Weil shall provide such consulting services as are reasonably requested by the Company and that are commensurate with his prior position with the Company (the “Consulting Services”). The Consulting Services shall include Weil remaining available to work on designated projects and assignments for up to 10 days during the 90 days following the Effective Date. In providing the Consulting Services, Weil shall report to the Chief Executive Officer of the Company and/or such individual or individuals as the Chairman of the Board of Directors shall designate. Weil shall not be entitled to any compensation for the consulting services beyond the payments, if any, pursuant to Section 3 . In providing the Consulting Services, Weil expressly agrees that he is an independent contractor and shall not be considered to be an employee or agent of the Company in any matter under any circumstances or for any purposes whatsoever. The Company shall not provide Weil with any benefits, including pension, retirement, or any kind of insurance benefits, including workers’ compensation insurance, on account of the Consulting Services; provided , however , that the Company will reimburse Weil for all out-of-pocket expenses reasonably incurred (and consistent with Company policies for its executives) in connection with such consulting services.

Provided that Weil signs and delivers to the Company concurrently with this Agreement (and thereafter does not revoke) a Release of Claims in the form set forth on Exhibit B hereto, Weil shall be entitled to receive the severance payment set forth in Section 9 of his employment agreement with the Company dated November 27, 2006 (the “Employment Agreement”), which aggregate severance payment of $400,000 shall be paid as follows: $100,000 on January 2, 2008, with the balance of $300,000 paid in 19 equal semi-monthly installments on the 15th and last day of every month. Applicable tax witholdings shall be made in accordance with law.

(a) If requested as part of the Consulting Services, Weil will cooperate and assist the Company in any and all ongoing matters and in transitioning his duties, and Weil shall use his best efforts to transition his duties and responsibilities to such individual or individuals as the Chairman of the Company’s Board of Directors shall designate.

(b) Weil hereby reaffirms his obligation to adhere to the confidentiality provisions of the Employment Agreement. Weil agrees and acknowledges that said confidentiality provisions will remain in effect during his consulting assignment and thereafter.

(c) On the Effective Date, Weil shall return to the Company all of the Company’s property, documents, books, records, reports, contracts, lists, computer disks (or other computer-generated files or data) or copies thereof created on any medium, prepared or obtained by him in the course of or incident to Weil’s employment with the Company.

(d) Upon the termination of his consulting assignment, Weil agrees to return to the Company all of the Company’s property, documents, books, records, reports, contracts, lists, computer disks (or other computer-generated files or data) or copies thereof created on any medium, prepared or obtained by him in the course of or incident to the provision of the Consulting Services.

(e) Weil agrees that during the period of his consulting and until and for a period of one year following the Effective Date, he will not, directly or indirectly, provide services, whether as an employee, consultant, director, independent contractor, agent, owner or partner, to any person, company or division that, as its primary business, designs and produces headwear or golf-inspired apparel (such as Cutter & Buck, Adidas Golf, Nike Golf, Fidra, Greg Norman, Perry Ellis Golf, Fairway and Greene, UnderArmour Golf, Sport Haley, E.P. Pro, Gear Golf, Tahama Legends Golf, Antigua, Ben Hogan Apparel, Fila Golf, Oxford Gold, Ahead, Imperial, Pukka Headwear and Titleist); provided , however , that Weil’s passive investment of up to five percent (5%) of the outstanding voting securities or similar equity interest in a publicly held entity shall not be deemed a breach of this Agreement. The parties intend this provision to be enforceable under the “inevitable disclosure” doctrine given Weil’s knowledge of the Company’s future plans.

(f) Weil hereby agrees that, until and for a period of two years following the Effective Date, he will not directly or indirectly (a) solicit, induce, or attempt to influence any person or business that is an account, customer or client of the Company or any subsidiary to restrict or cancel the business of any such account, customer or client with the Company or any subsidiary, or (b) solicit on his behalf, or on behalf of a third party, any then-current employee or sales representative of the Company or its subsidiaries or affiliates, to leave his or her employment with or sales representation of the Company or its subsidiaries or affiliates; provided, however, that nothing herein shall be deemed to prohibit a general employment solicitation directed at the public. This provision does not prohibit Weil, in his capacity as an officer, director or employee of a company, from soliciting business from a customer of the Company.

(g) Weil agrees that he will not make, and will not induce or cause any other person or entity to make, any statement that is disparaging of the Company or any of its affiliates, or any of their respective directors, employees or distributors (except to the extent necessary to respond truthfully to any inquiry from applicable regulatory authorities or to provide information pursuant to legal process).

Provided that Weil signs and delivers to the Company currently with this Agreement (and thereafter does not revoke) a Release of Claims in the form set forth on Exhibit B hereto, (i) Weil’s stock options issued under the Company’s 2000 Equity Incentive Plan (the “Equity Plan”) shall, pursuant to the terms and conditions of the Equity Plan and Weil’s Stock Option Award Agreements, be exercisable by Weil for an extended period of one year following the Effective Date and (ii) all of Weil’s unvested options shall be accelerated and shall vest as of the expiration of the seven-day revocation period described in the Release of Claims. Weil hereby acknowledges and agrees that (i) the extension pursuant to this Section 5 of the exercise period of incentive stock options held by him will cause such incentive stock options to cease to be qualified as such, and such options will thereafter be treated as non-qualified stock options for all purposes, including tax purposes, and (ii) Weil shall have the sole responsibility for additional payments, tax or otherwise, owed by him as a result of such options ceasing to qualify as incentive stock options. Notwithstanding the foregoing, in the event Weil breaches any of his obligations under Section 4(e) or 4(f) prior to the first anniversary of the Effective Date, then, in addition to all other remedies at law available to the Company, the exercise period for Weil’s stock options under the Equity Plan shall automatically end on the later of (a) 180 calendar days after the Effective Date, or (b) one day after Weil’s breach of either of the above-specified Sections.

After the Effective Date, in accordance with federal and state COBRA regulations, if currently enrolled in the Company’s group medical coverage, Weil will be offered the opportunity to continue such coverage at Weil’s own expense. The Company will not pay any COBRA premiums for or on behalf of Weil.

Weil represents that he has not filed any complaints, charges or lawsuits against the Company or against (1) any current or former officers, directors, shareholders, employees and agents of the Company, (2) any current or former affiliate or related entity of the Company (including subsidiaries and divisions), or (3) the current or former officers, directors, shareholders, employees and agents of said affiliates or related entities (including subsidiaries and divisions), that he will not file any lawsuit or claim against any of these entities or persons at any time hereafter for any event occurring prior to the date of this Agreement, and that if any court assumes jurisdiction of any lawsuit or claim against any of these entities or persons on behalf of Weil, he will promptly request that the matter be dismissed with prejudice. This provision does not affect Weil’s right to file a charge or complaint with the Equal Employment Opportunity Commission, nor does it affect his statutory right to indemnification from the Company.

(a) As a material inducement for Company to enter into this Agreement, Weil hereby irrevocably and unconditionally releases, acquits and forever discharges the Company and all of its current and former subsidiaries, affiliates, divisions, successors, predecessors, related entities, assigns, owners, stockholders, partners, directors, officers, employees, agents, representatives, attorneys and all persons acti