CALLAWAY SETTLES WITH SCHMIDT OVER CLUB DEVELOPMENT SUIT
Callaway Golf named GLENN SCHMIDT Assistant to the President for Creative Design. Schmidt served as VP/Research & Development for Callaway from '90-'95. Callaway and Schmidt also "reached a settlement of all former disputes and disagreements" between the two. The settlement restored the value of Glenn's unvested stock options which he lost and he also receives a "one time" payment of $12M. Schmidt was granted options on 600,000 shares of the company common stock (Callaway). Schmidt had claimed that he "introduced Callaway to the concept of large metal woods" and other technology and was to go to trial October 20 after charging Callaway "with unjust enrichment, breach of contract, intentional misrepresentation, fraud and deceit and wrong termination, among other things" (UNION-TRIBUNE, 9/13).