Callaway 2004 Annual Report Download - page 19

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its principals. PlaintiÅs sued Callaway Golf Company, Callaway Golf Sales Company and a Callaway Golf
Sales Company sales representative. PlaintiÅs alleged that the Company misappropriated certain alleged trade
secrets and proprietary information of the Perfect Putter Co. and incorporated those purported trade secrets in
the Company's Odyssey White Hot 2-Ball Putter. PlaintiÅs also alleged that the Company made false
statements and acted inappropriately during discussions with plaintiÅs. PlaintiÅs sought compensatory
damages, exemplary damages, attorneys' fees and costs, pre- and post-judgment interest and injunctive relief.
On December 20, 2002, the Company removed the case to the United States District Court for the Southern
District of Florida, Case No. 02-14342. On April 29, 2003, the District Court denied plaintiÅs' motion to
remand the case to state court. The parties have resolved and dismissed this litigation. As part of the
resolution, Callaway Golf has purchased certain putter patents from Perfect Putter. Other terms of the
resolution are conÑdential.
On December 14, 2004, Callaway Golf Sales Company was served with a complaint captioned York v.
Callaway Golf Sales Company, Ñled in the Circuit Court for Dade County, Florida, Case No. 04-25625
CA 11, asserting a purported class action on behalf of all consumers who purchased allegedly defective
HX Red golf balls with cracked covers. The complaint contains causes of action for strict liability, breach of
implied and express warranties, and violation of the Magnuson-Moss Consumer Product Warranty Act.
PlaintiÅ is seeking compensatory damages, attorneys' fees and prejudgment interest according to the proof to
be presented. On January 12, 2005, Callaway Golf removed the case to the United States District Court for
the Southern District of Florida.
The Company and its subsidiaries, incident to their business activities, are parties to a number of legal
proceedings, lawsuits and other claims, including the matters speciÑcally noted above. Such matters are
subject to many uncertainties and outcomes are not predictable with assurance. Consequently, management is
unable to estimate the ultimate aggregate amount of monetary liability, amounts which may be covered by
insurance, or the Ñnancial impact with respect to these matters. Except as discussed above with regard to the
MaxFli litigation and the NPIP cases, management believes at this time that the Ñnal resolution of these
matters, individually and in the aggregate, will not have a material adverse eÅect upon the Company's
consolidated annual results of operations, cash Öows or Ñnancial position.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Executive OÇcers of the Registrant
Biographical information concerning the Company's executive oÇcers is set forth below.
Name Age Position(s) Held
William C. Baker ÏÏÏÏÏÏÏÏÏÏ 71 Chairman and Chief Executive OÇcer
Richard C. Helmstetter ÏÏÏÏÏ 63 Vice Chairman and Senior Executive Vice President,
Strategic Initiatives
Steven C. McCracken ÏÏÏÏÏÏ 54 Senior Executive Vice President, Chief Legal OÇcer and
Secretary
Bradley J. HolidayÏÏÏÏÏÏÏÏÏÏ 51 Senior Executive Vice President and Chief Financial
OÇcer
Robert A. PenickaÏÏÏÏÏÏÏÏÏÏ 42 Senior Executive Vice President and Chief Operating
OÇcer, Equipment
John F. Melican ÏÏÏÏÏÏÏÏÏÏÏ 42 Senior Vice President and Global Marketing OÇcer
William C. Baker is Chairman and Chief Executive OÇcer of the Company and has served in such
capacity since August 2004. Mr. Baker has served as a Director of the Company since January 1994. From
August 1998 to April 2000, Mr. Baker was the President of Meditrust Operating Company. He was President
and Chief Executive OÇcer of the Los Angeles Turf Club, Inc., a subsidiary of Magna International, Inc.,
from December 1998 to June 1999. He was Chairman and Chief Executive OÇcer of The Santa Anita
Companies, Inc., a subsidiary of Meditrust Operating Company, from November 1997 to December 1998.
10