Document:

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                                                                   EXHIBIT 10.46

                               GRANTOR STOCK TRUST

                                 AMENDMENT NO. 1
                                       TO
                                 TRUST AGREEMENT

        This Amendment No. 1 to Trust Agreement is made and entered into
effective as of June 29, 2001, by Callaway Golf Company, a Delaware corporation
("Callaway Golf").

                                   BACKGROUND

        A. Effective on or about July 14, 1995, Callaway Golf and Sanwa Bank
California ("Sanwa") entered into a certain Trust Agreement (the "Trust
Agreement") establishing the Callaway Golf Company Grantor Stock Trust.

        B. Effective on or about August 24, 2000, Sanwa assigned to Arrowhead
Trust Incorporated, California, a California trust company ("Arrowhead" or
"Trustee"), all of Sanwa's right, and Arrowhead assumed all of Sanwa's
obligations, under the Trust Agreement.

        C. Callaway Golf, pursuant to Section 14.1 of the Trust Agreement,
desires to amend the Trust Agreement upon the following terms.

                                    AGREEMENT

        In consideration of the foregoing Background, Callaway Golf does hereby
amend the Trust Agreement as follows:

        1. Section 1.1 of the Trust Agreement is hereby deleted in its entirety,
and in lieu thereof, the following shall be inserted:

           1.1 "Administrator" or "Administrators" shall refer to the Committee
           or other person or entity charged with responsibility for overseeing
           and administering the Plans and provisions of Benefits.

        2. Section 1.8 of the Trust Agreement is hereby deleted in its entirety,
and in lieu thereof, the following shall be inserted:

           1.8 "Committee" shall mean such committee as the Board of Directors
           shall appoint from time to time to administer the Trust.

        3. Section 1.11 of the Trust Agreement is hereby deleted in its
entirety, and in lieu thereof, the following shall be inserted:

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           1.11 "Director" shall mean the Senior Vice President of Human
           Resources.

        4. Section 1.12 is hereby deleted in its entirety, and in lieu thereof,
the following shall be inserted:

           1.12. "Eligible Participant" shall mean a Participant who is an
           Employee who as of the dates upon which Eligible Participants are
           determined, either (a) holds an unexercised option with respect to
           Company Stock granted to him or her pursuant to any Stock Option Plan
           or (b) elected to purchase stock pursuant to a Stock Purchase Plan
           within the 12 month period proceeding such date.

        5. Section 1.20 is hereby deleted in its entirety, and in lieu thereof,
the following shall be inserted:

           1.20. "Stock Option Plan" shall mean any plan of the Company listed
           on Schedule A from time to time pursuant to which options to purchase
           the Company's Common Stock have been granted or may be granted.

        6. Section 1.21 is hereby deleted in its entirety, and in lieu thereof,
the following shall be inserted:

           1.21. "Stock Purchase Plan" shall mean the Company's 1999 Employee
           Stock Purchase Plan or such other employee stock purchase plan as may
           be listed on Schedule A from time to time by the Company.

        7. The last sentence of Section 2.1 is hereby deleted in its entirety,
and in lieu thereof, the following shall be inserted:

           2.1 The Trustee, and any Successor Trustee appointed pursuant to
           Section 11 hereof or resulting under Subsection 19.4 hereof, shall at
           all times be a bank, trust company or other financial institution
           that is neither a subsidiary of nor other firm related by direct or
           indirect stock ownership to the Company.

        8. The first sentence of Section 4.1.2 is hereby deleted in its
entirety, and in lieu thereof, the following shall be inserted:

           4.1.2. From time to time, the Trustee shall have the ability, upon
           direction of the Committee, to borrow funds from the Company for the
           purpose of acquiring shares of Company Stock and/or to issue one or
           more notes to the Company (together with such other consideration as
           is required by applicable law) in exchange for shares of Company
           Stock.

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         9. The following new sentence shall be added to the end of Section
4.2.12:

            "With respect to any shares of Company Stock, the Trustee, in lieu
            of a stock certificate, may elect to establish a book-entry accrual
            with the Company's transfer agent."

        10. Section 4.2.14 is hereby deleted in its entirety, and in lieu
thereof, the following shall be inserted:

            Pursuant to the direction of the Committee as to all aspects of the
            transaction, including, without limitation, interest rate and term,
            to undertake a borrowing sufficient to enable the Trust to acquire
            Company Stock from the Company.

        11. Sections 16.1, 16.2 and 16.3 are hereby deleted in their entirety,
and in lieu thereof, the following shall be inserted:

            Section 16. Communications.

            16.1 To the Company, Board of Directors and Committee.
            Communications to the Company, the Board of Directors and the
            Committee shall be addressed to:

            Callaway Golf Company
            2180 Rutherford Road
            Carlsbad, California 92008-8815
            Attention:  Chief Financial Officer

                   with a copy to:

            Callaway Golf Company
            2180 Rutherford Road
            Carlsbad, California 92008-8815
            Attention:  Chief Legal Officer

            provided, however, that upon the Company's written request, such
            communications shall be sent to such other address as the Company
            may specify.

            16.2 To the Trustee. Communications to the Trustee shall be
            addressed to:

            Arrowhead Trust
            Attention:  Mable Pascascio
                        Trust Officer
            24 Executive Park, Suite 125
            Irvine, Ca 92614

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            provided, however, that upon the Trustee's written request, such
            communications shall be sent to such other address as the Trustee
            may specify.

            16.3 To a Participant. Communications to a Participant or to his or
            her Beneficiaries shall be addressed to the Participant or his or
            her Beneficiaries, respectively, at the address indicated on the
            Company's payroll records at the time of the communication.

        12. Schedule A to the Trust Agreement is hereby deleted in its entirety,
and in lieu thereof, the Schedule A-(R1) attached hereto shall be inserted.

        13. After the date of this Amendment, each reference in the Trust
Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like
import, shall mean and refer to the Trust Agreement as amended hereby. The Trust
Agreement, as amended hereby, shall remain in full force and effect in
accordance with its terms and is hereby ratified and confirmed. In addition,
each reference to "Sanwa" or "Sanwa Bank" shall be deemed to be a reference to
Trustee.

        14. This Amendment may be executed in counterparts, each of which shall
be deemed to be an original, and all such separate counterparts shall together
constitute but one and the same instrument.

        15. This Amendment shall be governed by and construed in accordance with
the laws of the State of California.

        IN WITNESS WHEREOF, the undersigned have executed this Amendment No. 1
to Trust Agreement as of the date first above written.

CALLAWAY GOLF COMPANY:

By:  /s/ RONALD A. DRAPEAU
     ---------------------
Print Name:  Ronald A. Drapeau
Print Title: President and Chief Executive Officer

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                               SCHEDULE A -- (R1)

                                      Plans

1991 Stock Incentive Plan
1995 Employee Stock Incentive Plan
1996 Stock Option Plan
Plan 1998 Stock Incentive Plan
1999 Employee Stock Purchase Plan
401(k) Plan
Executive Deferred Compensation Plan
Medical and Health Insurance Plan
Dental Insurance Plan
Vision Plan
Regular Salary and Overtime
Trust to fund any of the above mentioned Plans.

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                                     Consent

The undersigned, Arrowhead Trust Incorporated, effective as of June 29, 2001,
pursuant to Section 14.1 of that certain Trust Agreement dated July 14, 1995,
does hereby consent to the foregoing Amendment No. 1 to Trust Agreement.

ARROWHEAD TRUST INCORPORATED:

By:  /s/ MABLE PASCASCIO
     -------------------
Print Name:   Arrowhead Trust Inc.
              Mable Pascascio
Print Title:  Trust Officer

                                       6HYBRID NETWORKS, INC.
                        CHANGE OF CONTROL BONUS AGREEMENT

         This  Agreement  (the  "Agreement")  is made August 30,  2001,  between
Hybrid  Networks,  Inc.,  a Delaware  corporation  ("Company"),  and  Michael D.
Greenbaum ("Executive").

         WHEREAS,  Executive  is  currently  employed  by  the  Company  as  its
President and Chief Executive Officer; and

         WHEREAS,  the Company  desires to provide an incentive for Executive to
continue to perform services for the Company.

         NOW,  THEREFORE,  in consideration of the premises and of the covenants
and agreements set forth below, it is mutually agreed as follows:

         1.  Change of  Control.  In the event  that a Change of  Control of the
Company occurs while  Executive is employed by the Company,  or not more than 90
days  following  Executive's  termination  by the  Company  without  "cause" (as
defined in Executive's  Stock Option Agreement with the Company dated 3/20/2000,
the  Company   shall  pay  Executive  an  amount  equal  to  $500,000  upon  the
consummation of such Change of Control.

              For  purposes  of this  Section  1, a Change of  Control  shall be
              deemed to occur upon:

              (i)     the sale, lease, conveyance or other disposition of all or
                      substantially  all of the Company's  assets as an entirety
                      or substantially  as an entirety to any person,  entity or
                      group of  persons  acting  in  concert  other  than in the
                      ordinary course of business;

              (ii)    a merger of the Company with another entity as a result of
                      which the  stockholders  of Company  immediately  prior to
                      such  merger  own  less  than 50% of the  common  stock of
                      either the surviving  company of such merger or the parent
                      company of such surviving company; or

              (iii)   any sale of stock by the  Company  that is approved by the
                      Board of Directors of the Company,  or the  completion  of
                      any tender offer or exchange offer for the common stock of
                      the  Company,  that  results in any Person (as  defined in
                      Section  13(h)(8)(E) under the Securities  Exchange Act of
                      1934)  becoming the  beneficial  owner (as defined in Rule
                      13d-3 under the Securities Exchange Act of 1934), directly
                      or  indirectly,  of more than 50% of the aggregate  voting
                      power of all  classes  of common  equity  of the  Company,
                      except if such Person is (A) a subsidiary  of the Company,
                      (B) an employee stock  ownership plan for employees of the
                      Company  or
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                      (C) a company  formed to hold the Company's  common equity
                      securities and whose shareholders constituted, at the time
                      such company  became such holding  company,  substantially
                      all the shareholders of the Company.

         2.  Termination.  This Agreement  shall  terminate and be of no further
force and effect on December 31, 2003.

         3. Future  Employment.  Nothing in this  Agreement  shall  confer or be
deemed  to confer  on  Executive  any right to  continue  in the  employ  of, or
continue any other relationship with, the Company.

         4.  Counterparts.  This  Agreement  may be  executed  in any  number of
counterparts,  each of which shall be deemed an original  and all of which taken
together constitutes one and the same instrument.

         5. Entire Agreement.  The parties hereto acknowledge that each has read
this Agreement, understands it, and agrees to be bound by its terms. The parties
further  agree  that this  Agreement  constitutes  the  complete  and  exclusive
statement of the  agreement  between the parties and  supersedes  all  proposals
(oral or written), understandings,  representations,  conditions, covenants, and
all other  communications  between  the parties  relating to the subject  matter
hereof,  provided that this Agreement shall be in addition to, and not supercede
or negate any of the terms of, that certain letter agreement between the Company
and Executive dated January 12, 2000.

         6. Governing  Law. This  Agreement  shall be governed by the law of the
State of California.

                  [Remainder of page left intentionally blank]

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         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement on the
date first above written.

HYBRID NETWORKS, INC.                       EXECUTIVE

By:  /s/ James R. Flach                     /s/ Michael D. Greenbaum
     -------------------------------        --------------------------
                                            Michael D. Greenbaum

Name:  James R. Flach
       -----------------------------

Title:  Chairman of the Board
        ----------------------------

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