Exhibit 10.1
RELEASE
AGREEMENT
The Release Agreement (this
“Agreement”) is made and entered into as of the 16th
day of November, 2006 by and between Winston E. Hickman
(hereinafter referred to as “Employee”) and Ashworth,
Inc. (hereinafter referred to as “Ashworth”) whereby
the parties agree to terminate their employment relationship on an
amicable basis as follows:
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1.
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Employee has
been employed by Ashworth since February 23, 2006, during
which time he has held the position of Executive Vice President
(EVP) and Chief Financial Officer (CFO).
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2.
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In exchange for
Employee’s assistance with the professional transition of his
functional EVP and CFO responsibilities and the releases contained
herein, Ashworth will provide continued Medical, Dental and
Exec-U-Care insurance coverage for a period of eighteen months
(18 months) as set forth below:
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a.
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Employee’s employment will terminate on
November 17, 2006 and his standard Group Coverage for Medical,
Dental and Exec-U-Care Insurances will end on November 30,
2006.
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b.
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To continue
Employee’s Medical and Dental insurances exactly as he is
enrolled prior to December 1, 2006, Ashworth will pay eighteen
months of COBRA premiums directly to its COBRA Administrator,
Conixis. Said COBRA insurance premiums or payments shall be in the
amount of eight hundred thirty-eight dollars ($838.00) per month
for eighteen months, for a total of fifteen thousand eighty-four
dollars ($15,084).
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c.
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To continue
Employee’s Exec-U-Care coverage exactly as he is enrolled
prior to December 1, 2006, Ashworth will pay for eighteen
months of coverage directly to Exec-U-Care. Said Exec-U-Care
premiums or payments shall be in the amount of sixty-two dollars
and fifty cents ($62.50) per quarter for five (5) quarters,
for a total of three hundred twelve dollars and fifty cents
($312.50).
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d.
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Said payment of
premiums for Medical, Dental and Exec-U-Care Insurances shall cover
the Employee for the periods of December 1, 2006 through
May 31, 2008.
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e.
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Employee will
be kept “whole” if Ashworth should change Group
Medical, Dental, or Exec-U-Care Plans or if the cost of said Plans
should increase during the eighteen month period subsequent to
termination of his employment, such that Employee will be provided
substantially the same level of coverage that he had prior to
December 1, 2006 at no additional cost to the
Employee.
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3.
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In
consideration of the aforementioned compensation, Employee
agrees:
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a.
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He will provide
Ashworth ten (10) full days of consulting services on
reasonable and mutually agreed upon dates between November 20,
2006 and May 30, 2008, to assist with a profession
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