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62 CALLAWAY GOLF COMPANY
The GST does not impact the determination or amount of com-
pensation expense for the benefit plans being settled.
The following table presents shares released from the GST for
the settlement of employee stock option exercises and
employee stock plan purchases for the years ended December
31, 2003, 2002 and 2001:
date of grant, the Company’s practice has been to grant stock
options at exercise prices equal to the market value at the
date of grant. The 1995 Plan was amended in 2001 and the
1996 Plan was amended in 2000 to increase the maximum
number of shares of Common Stock to be issued upon
exercise of an option to 10,800,000 and 9,000,000 shares,
respectively. The 2001 Directors Plan is a shareholder-
approved plan. It provides for automatic grants of stock
options upon a non-employee Director’s initial appointment to
the Company’s Board of Directors and annually on the
anniversary of such appointment. All such grants are made
at prices based on 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, 2003:
(In thousands) Authorized Available Outstanding
1991 Plan 10,000 — 412
Promotion Plan 3,560 — 746
1995 Plan 10,800 1,556 6,473
1996 Plan 9,000 1,598 4,876
1998 Plan 500 250 117
Key Officer Plans 1,100 — 260
2001 Directors Plan 500 374 126
Directors Plan 840 — 228
Total 36,300 3,778 13,238
Under the Company’s stock option plans, outstanding
options generally vest over periods ranging from zero to five
years from the grant date and generally expire up to 12
years after the grant date.
Years Ended December 31,
(In thousands) 2003 2002 2001
Employee stock option exercises 1,041 197 150
Employee stock plan purchases 385 439 223
Total shares released from the GST 1,426 636 373
Options
The Company had the following stock option plans under
which shares were available for grant at December 31,
2003: 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”) and the 2001
Non-Employee Directors Stock Option Plan (the “2001
Directors Plan”).
The 1996 Plan and the 1998 Plan permit the granting of
options or other stock awards to the Company’s officers,
employees and consultants. 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 non-executive officer employees and consultants of the
Company. Although stock option grants under the 1995 Plan
may be made at exercise prices less than market value at the