Callaway 1999 Annual Report Download - page 39

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37CALLAWAY GOLF COMPANY
NOTE 8
STOCK OPTIONS AND RIGHTS
Options
The Company had the following fixed stock option plans, under which shares were available for grant at December 31, 1999: the
1991 Stock Incentive Plan (the “1991 Plan”), the 1995 Employee Stock Incentive Plan (the “1995 Plan”), the 1996 Stock Option Plan
(the “1996 Plan”), the 1998 Stock Incentive Plan (the “1998 Plan”), the Promotion, Marketing and Endorsement Stock Incentive Plan
(the “Promotion Plan”) and the Non-Employee Directors Stock Option Plan (the “Directors Plan”).
The 1991 Plan, the 1996 Plan and the 1998 Plan permit the granting of options or other stock awards to the Company’s offi-
cers, employees and consultants. Under the 1991 Plan, option prices may be less than the market value at the date of grant, while
under the 1996 Plan and the 1998 Plan options may not be granted at option prices that are less than fair market value at the date
of grant. The 1995 Plan permits the granting of options or other stock awards to only employees and consultants of the Company at
option prices that may be less than market value at the date of grant. The 1995 Plan was amended in 1999 to increase the maximum
number of shares of Common Stock to be issued upon exercise of an option to 7,100,000 shares.
During 1996 and 1995, the Company granted options to purchase shares to two key officers, under separate plans, in con-
junction with terms of their initial employment (the “Key Officer Plans”). The 1990 Amended and Restated Stock Option Plan (the
“1990 Plan”) permitted the granting of options to officers, employees and consultants. No shares are available for grant under the
Key Officer Plans or the 1990 Plan.
Under the Promotion Plan, shares of Common Stock may be granted in the form of options or other stock awards to golf pro-
fessionals and other endorsers at prices that may be less than the market value of the stock at the grant date. The Directors Plan
permits the granting of options to purchase shares of Common Stock to Directors of the Company who are not employees, at prices
based on a non-discretionary formula, which may not be less than the market value of the stock at the date of grant.
The following table presents shares authorized, available for future grant and outstanding under each of the Company’s plans
as of December 31, 1999:
(in thousands)
Plan Authorized Available Outstanding
1990 Plan 4,920 100
1991 Plan 10,000 188 2,693
Promotion Plan 3,560 879 1,006
1995 Plan 7,100 1,647 5,249
1996 Plan 6,000 575 5,395
1998 Plan 500 500
Key Officer Plans 1,100 820
Directors Plan 840 64 484
Total 34,020 3,853 15,747
Under the Company’s stock option plans, outstanding options vest over periods ranging from zero to five years from the grant
date and expire up to ten years after the grant date.