Document:

2005 Callaway Golf Company Executive Deferred Compensation Plan

 Exhibit 10.30 
  
 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  
 Callaway Golf Company 
 2180 Rutherford Road 
 Carlsbad, CA 92008 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 Purpose
	  	 	  	1
			
	 ARTICLE 1
	  	Definitions	  	1
			
	 ARTICLE 2
	  	Selection/Enrollment/Eligibility	  	7
			
	 2.1
	  	Selection by Committee	  	7
	 2.2
	  	Enrollment Requirements	  	7
	 2.3
	  	Eligibility; Commencement of Participation	  	7
	 2.4
	  	Termination of Participation and/or Deferrals	  	8
			
	 ARTICLE 3
	  	Deferral Commitments/Company Matching Amounts/Company Contribution Amounts//Vesting/Crediting/Taxes	  	8
			
	 3.1
	  	Minimum Deferrals	  	8
	 3.2
	  	Maximum Deferral	  	9
	 3.3
	  	Election to Defer; Effect of Election Form	  	9
	 3.4
	  	Withholding of Annual Deferral Amounts	  	10
	 3.5
	  	Annual Company Matching Amount	  	10
	 3.6
	  	Annual Company Contribution Amount	  	11
	 3.7
	  	Investment of Trust Assets	  	11
	 3.8
	  	Vesting	  	11
	 3.9
	  	Crediting/Debiting of Account Balances	  	12
	 3.10
	  	FICA and Other Taxes	  	14
	 3.11
	  	Distributions	  	15
			
	 ARTICLE 4
	  	Short-Term Payout/Unforeseeable Financial Emergencies/Change in Control Withdrawal Elections	  	15
			
	 4.1
	  	Short-Term Payout	  	15
	 4.2
	  	Other Benefits Take Precedence Over Short-Term	  	15
	 4.3
	  	Withdrawal Payouts for Unforeseeable Financial Emergencies	  	15
	 4.4
	  	Distributions Upon a Change in Control	  	16
			
	 ARTICLE 5
	  	Survivor Benefit	  	16
			
	 5.1
	  	Survivor Benefit	  	16

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

					
			
	 ARTICLE 6
	  	Termination Benefit	  	16
			
	 6.1
	  	Termination Benefit	  	16
	 6.2
	  	Payment of Termination Benefit	  	16
			
	 ARTICLE 7
	  	Disability Waiver and Benefit	  	17
			
	 7.1
	  	Disability Waiver	  	17
	 7.2
	  	Continued Eligibility; Disability Benefit	  	18
			
	 ARTICLE 8
	  	Beneficiary Designation	  	18
			
	 8.1
	  	Beneficiary	  	18
	 8.2
	  	Beneficiary Designation; Change; Spousal Consent	  	18
	 8.3
	  	Acknowledgement	  	18
	 8.4
	  	No Beneficiary Designation	  	18
	 8.5
	  	Doubt as to Beneficiary	  	19
	 8.6
	  	Discharge of Obligations	  	19
			
	 ARTICLE 9
	  	Reserved	  	19
			
	 ARTICLE 10
	  	Cessation of Contributions Amendment or Modification	  	19
			
	 10.1
	  	Cessation of Contributions	  	19
	 10.2
	  	Amendment	  	19
	 10.3
	  	Plan Agreement	  	19
	 10.4
	  	Effect of Payment	  	20
			
	 ARTICLE 11
	  	Administration	  	20
			
	 11.1
	  	Committee Duties	  	20
	 11.2
	  	Administration Upon Change In Control	  	20
	 11.3
	  	Agents	  	21
	 11.4
	  	Binding Effect of Decisions	  	21
	 11.5
	  	Indemnity of Committee	  	21
	 11.6
	  	Employer Information	  	21
			
	 ARTICLE 12
	  	Other Benefits and Agreements	  	21
			
	 12.1
	  	Coordination with Other Benefits	  	21

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

					
			
	 ARTICLE 13
	  	Claims Procedures	  	21
			
	 13.1
	  	Presentation of Claim	  	21
	 13.2
	  	Notification of Decision	  	22
	 13.3
	  	Review of a Denied Claim	  	22
	 13.4
	  	Decision of Review	  	23
	 13.5
	  	Mediation	  	23
	 13.6
	  	Binding Arbitration	  	23
			
	 ARTICLE 14
	  	Trust	  	23
			
	 14.1
	  	Establishment of the Trust	  	23
	 14.2
	  	Interrelationship of the Plan and the Trust	  	23
	 14.3
	  	Distributions From the Trust	  	24
			
	 ARTICLE 15
	  	Miscellaneous	  	24
			
	 15.1
	  	Status of Plan	  	24
	 15.2
	  	Unsecured General Creditor	  	24
	 15.3
	  	Employer’s Liability	  	24
	 15.4
	  	Nonassignability	  	24
	 15.5
	  	Not a Contract of Employment	  	24
	 15.6
	  	Furnishing Information	  	25
	 15.7
	  	Terms	  	25
	 15.8
	  	Captions	  	25
	 15.9
	  	Governing Law	  	25
	 15.10
	  	Notice	  	25
	 15.11
	  	Successors	  	26
	 15.12
	  	Spouse’s Interest	  	26
	 15.13
	  	Validity	  	26
	 15.14
	  	Incompetent	  	26
	 15.15
	  	Court Order	  	26
	 15.16
	  	Distribution in the Event of Taxation	  	26
	 15.17
	  	Insurance	  	27
	 15.18
	  	Legal Fees To Enforce Rights After Change in Control	  	27
	 15.19
	  	Disclaimer	  	28

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

 2005 CALLAWAY GOLF COMPANY EXECUTIVE DEFERRED COMPENSATION PLAN 
  
 Effective January 1, 2005 
  
 Purpose 
  
 The purpose of this Plan is to provide specified benefits to a select group
of management and highly compensated Employees and Directors who contribute materially to the continued growth, development and future business success of Callaway Golf Company, a Delaware corporation, and its subsidiaries, if any, that sponsor this
Plan. This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA. 
  
 ARTICLE 1 
 Definitions 
  
 For purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the
following indicated meanings: 
  

	1.1	“Account Balance” shall mean, with respect to a Participant, a credit on the records of the Employer equal to the sum of (i) the Deferral Account balance,
(ii) the vested Company Matching Account balance, and (iii) the vested Company Contribution Account balance. The Account Balance, and each other specified account balance, shall be a bookkeeping entry only and shall be utilized solely as a
device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan. 

  

	1.2	“Annual Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, whether or not paid in such calendar year or included
on the Federal Income Tax Form W-2 for such calendar ear, excluding bonuses, commissions, overtime, fringe benefits, stock options, restricted stock, relocation expenses, unused and unpaid excess vacation days, incentive payments, non-monetary
awards, directors fees and other fees, automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee’s gross income). Annual Base Salary shall be calculated
before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or non-qualified plans of any Employer and shall be calculated to include amounts not otherwise included in the Participant’s
gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the
amount would have been payable in cash to the Employee. 

  

	1.3	 “Annual Bonus” shall mean any compensation, in addition to Annual Base Salary, relating to 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
services performed during any calendar year, whether or not paid in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year,
payable to a Participant as an Employee under any Employer’s annual bonus and cash incentive plans, excluding stock options and restricted stock. 

  

	1.4	“Annual Company Contribution Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.6. 

  

	1.5	“Annual Company Matching Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.5. 

  

	1.6	“Annual Deferral Amount” shall mean that portion of a Participant’s Annual Base Salary, Annual Bonus, Commissions and Directors Fees that a Participant elects to
have, and is deferred, in accordance with Article 3, for any one Plan Year. In the event of a Participant’s Disability (if deferrals cease in accordance with Section 7.1), death, or a Termination of Employment prior to the end of a
Plan Year, such year’s Annual Deferral Amount shall be the actual amount withheld prior to such event. 

  

	1.7	“Annual Installment Method” shall be an annual installment payment over the number of years (not to exceed 10) selected by the Participant in accordance with this Plan,
calculated as follows: The Account Balance of the Participant shall be calculated as of the most recent Valuation Date. The annual installment shall be calculated by multiplying this balance by a fraction, the numerator of which is one, and the
denominator of which is the remaining number of annual payments due the Participant. By way of example, if the Participant elects a 10-year Annual Installment Method, the first payment shall be 1/10 of the Account Balance as of the most recent
Valuation Date. The following year, the payment shall be 1/9 of the Account Balance as of the most recent Valuation Date. Each annual installment shall be paid as soon as practicable after the amount is calculated, but not later than thirty days
after the Valuation Date. 

  

	1.8	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 8, that are entitled to receive benefits under
this Plan upon the death of a Participant. 

  

	1.9	“Beneficiary Designation Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries. 

  

	1.10	“Board” shall mean the board of directors of the Company or a committee of the Board. 

  

	1.11	“Change in Control” shall mean the first to occur of any of a change in the ownership of the Company, a change in the effective control of the Company, or a change in the
ownership of a substantial portion of the assets of the Company (as these events are defined in Prop. Reg. § 1.409A-3(g), or as these definitions may later be modified by final regulation or other regulatory pronouncement).

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	1.12	“Claimant” shall have the meaning set forth in Section 13.1. 

  

	1.13	“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. 

  

	1.14	“Commissions” shall mean any compensation in addition to Annual Base Salary and Annual Bonus relating to services performed during any calendar year, whether or not paid
in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year, payable to a Participant as an Employee under any Employer’s commission agreement. 

  

	1.15	“Committee” shall mean the committee described in Article 11. 

  

	1.16	“Company” shall mean Callaway Golf Company, a Delaware corporation, and any successor to all or substantially all of the Company’s assets or business.

  

	1.17	“Company Contribution Account” shall mean (i) the sum of the Participant’s Annual Company Contribution Amounts, plus (ii) amounts credited (net of amounts
debited) in accordance with all the applicable crediting provisions of this Plan that relate to the Participant’s Company Contribution Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this
Plan that relate to the Participant’s Company Contribution Account. 

  

	1.18	“Company Matching Account” shall mean (i) the sum of all of a Participant’s Annual Company Matching Amounts, plus (ii) amounts credited (net of amounts
debited) in accordance with all the applicable provisions of this Plan that relate to the Participant’s Company Matching Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that
relate to the Participant’s Company Matching Account. 

  

	1.19	 “Deduction Limitation” shall mean the following described limitation on a benefit that may otherwise be distributable pursuant to the provisions of this
Plan. Except as otherwise provided, this limitation shall be applied to all distributions that are “subject to the Deduction Limitation” under this Plan. If an Employer determines in good faith prior to a Change in Control that there is a
reasonable likelihood that any compensation paid to a Participant for a taxable year of the Employer would not be deductible by the Employer solely by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by
the Employer to ensure that the entire amount of any distribution to the Participant pursuant to this Plan prior to the Change in Control is deductible, the Employer may defer all or any portion of a distribution under this Plan. Any amounts
deferred pursuant to this limitation shall continue to be credited/debited with additional amounts in accordance with Section 3.9 below, even if such amount is being paid out in installments. The amounts so deferred and amounts credited thereon
shall be distributed to the Participant or his or her Beneficiary (in the event of the Participant’s death) at the earliest possible date, as determined by the Employer in good faith, on which the deductibility of 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
compensation paid or payable to the Participant for the taxable year of the Employer during which the distribution is made will not be limited by
Section 162(m), or if earlier, the effective date of a Change in Control. Notwithstanding anything to the contrary in this Plan, the Deduction Limitation shall not apply to any distributions made after a Change in Control.

  

	1.20	“Deferral Account” shall mean (i) the sum of all of a Participant’s Annual Deferral Amounts, plus (ii) amounts credited in accordance with all the
applicable crediting provisions of this Plan that relate to the Participant’s Deferral Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to his or her Deferral
Account. 

  

	1.21	“Director” shall mean any member of the board of directors of the Employer. 

  

	1.22	“Director Fees” shall mean the annual fees paid by any Employer, including retainer fees and meeting fees, as compensation for serving on the board of directors.

  

	1.23	“Disability” (or, where the context requires, “Disabled”) shall mean a period of disability during which a Participant is receiving income replacement benefits
for a period of not less than 3 months under an accident and health plan sponsored by his or her Employer by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, as determined in the sole discretion of the Committee. In addition, Disability shall mean the inability to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, as determined by the Committee in its sole discretion. 

  

	1.24	“Disability Benefit” shall mean the benefit set forth in Article 7. 

  

	1.25	“Election Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make an election
under the Plan. A Participant may determine, with respect to each year’s Annual Deferral Amount, the time and manner in which such amounts shall be distributed. 

  

	1.26	“Employee” shall mean a person who is an employee of any Employer. 

  

	1.27	“Employer(s)” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been selected by the Board to participate
in the Plan and have adopted the Plan as a sponsor. 

  

	1.28	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 

  

	1.29	“Identification Date” shall mean the 12-month period ending each December 31. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	1.30	“Participant” shall mean any Employee or Director (i) who is selected to participate in the Plan, (ii) who elects to participate in the Plan, (iii) who
signs a Plan Agreement, an Election Form and a Beneficiary Designation Form, (iv) whose signed Plan Agreement, Election Form and Beneficiary Designation Form are accepted by the Committee, (v) who commences participation in the Plan, and
(vi) whose Plan Agreement has not terminated. A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan or have an account balance under the Plan, even if he or she has an interest in the Participant’s
benefits under the Plan as a result of applicable law or property settlements resulting from legal separation or divorce. 

  

	1.31	“Plan” shall mean the 2005 Callaway Golf Company Executive Deferred Compensation Plan, which shall be evidenced by this instrument and by each Plan Agreement, as they may
be amended from time to time. 

  

	1.32	“Plan Agreement” shall mean a written agreement, as may be amended from time to time, which is entered into by and between an Employer and a Participant. Each Plan
Agreement executed by a Participant and the Participant’s Employer shall provide for the entire benefit to which such Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan Agreement bearing the latest
date of acceptance by the Employer shall supersede all previous Plan Agreements in their entirety and shall govern such entitlement. The terms of any Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional
benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or benefit limitations must be agreed to by both the Employer and the Participant.

  

	1.33	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year. 

 

	1.34	“401(k) Plan” shall be that certain Callaway Golf Company defined contribution plan intended to satisfy the requirements of Sections 401(a), 401(k), 401(m), and 414(i) of
the Code, as adopted by the Company. 

  

	1.35	“Separation from Service” shall mean the Participant’s termination of employment from the Company, subject to the following conditions: 

  

	 	a)	 If the Participant takes a leave of absence from the Company for purposes of military leave, sick leave, or other bona fide leave of absence, the Participant’s
employment will be deemed to continue for the first six months of the leave of absence, or if longer, for so long as the Participant’s right to reemployment is provided by either by statute or by contract. If the period of the leave exceeds six
months and the Participant’s right to reemployment is 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
not provided by either statute or contract, the Participant will be considered to have incurred a Separation from Service on the first day of the seventh
month of the leave of absence. 

  

	 	b)	If the Participant provides insignificant services to the Company, the Participant will be deemed to have incurred a Separation from Service. For this purpose, the Participant is
considered to be providing insignificant services if he provides services at an annual rate that is less than twenty percent of the services rendered by such individual, on average, during the immediately preceding three calendar years of employment
(or such lesser period of employment) or the annual remuneration for such services is less than twenty percent of the average annual remuneration earned during the final three full calendar years of employment (or such less period of employment).

  

	 	c)	If the Participant continues to provide services to the Company in a capacity other than as an employee, the Participant will not be deemed to have a Separated from Service if the
Participant is providing services at an annual rate that is at least fifty percent of the services rendered by such individual, on average, during the immediately preceding three calendar years of employment (or such lesser period of employment) and
the annual remuneration for such services is at least fifty percent of the average annual remuneration earned during the final three full calendar years of employment (or such less period of employment). 

  

	1.36	“Short-Term Payout” shall mean the payout set forth in Section 4.1. 

  

	1.37	“Survivor Benefit” shall mean the benefit set forth in Article 5. 

  

	1.38	“Termination Benefit” shall mean the benefit set forth in Article 6. 

  

	1.39	“Termination of Employment” or “Terminate” shall mean the severing of employment with all Employers, or service as a Director of all Employers, voluntarily or
involuntarily, for any reason other than Disability, death or an authorized leave of absence. If a Participant is both an Employee and a Director, a Termination of Employment shall occur only upon the termination of the last position held.
Notwithstanding the foregoing, a Termination of Employment shall only occur under this Plan if such Termination of Employment constitutes a “Separation from Service” under Code Section 409A (as defined above).

  

	1.40	 “Trust” shall mean one or more trusts established pursuant to that certain Master Trust 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
Agreement, dated as of May 6, 2002 between the Company and the Trustee named therein, as amended from time to time. 

  

	1.41	“Unforeseeable Financial Emergency” shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in severe
financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant’s property due to casualty, or (iii) such
other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Committee. 

  

	1.42	“Years of Service” shall mean the total number of years in which a Participant has been employed by one or more Employers. For purposes of this definition, a year of
employment shall be a 365 day period (or 366 day period in case of a leap year) that, for the first year of employment, commences on the Employee’s date of hiring and that, for any subsequent year, commences on an anniversary of that hiring
date. The Committee shall make a determination as to the number of Years of Service a Participant shall be deemed to have completed, including whether any partial year of employment shall be counted, and any such determination may, in the sole
discretion of the Committee, take into account any similar definitions or provisions contained in the Qualified Plan. 

  
 ARTICLE 2 
 Selection/Enrollment/Eligibility 
  

	2.1	Selection by Committee. Participation in the Plan shall be limited to a select group of management and highly compensated Employees and Directors of the Employers, as
determined by the Committee in its sole discretion. From that group, the Committee shall select, in its sole discretion, Employees and Directors to participate in the Plan. 

  

	2.2	Enrollment Requirements. As a condition to participation, each selected Employee or Director shall complete, execute and return to the Committee a Plan Agreement, an
Election Form and a Beneficiary Designation Form, all within thirty (30) days after he or she is selected to participate in the Plan. In addition, the Committee shall establish from time to time such other enrollment requirements as it
determines in its sole discretion are necessary. 

  

	2.3	 Eligibility; Commencement of Participation. Provided an Employee or Director selected to participate in the Plan has met all enrollment requirements
set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period, that Employee or Director shall commence participation in the Plan on the first day of the month
following the month in which the Employee or Director completes all enrollment requirements. If an Employee or a Director fails to meet all such requirements within the period 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
required, in accordance with Section 2.2, that Employee or Director shall not be eligible to participate in the Plan until the first day of the Plan
Year following the delivery to and acceptance by the Committee of the required documents. 

  

	2.4	Termination of Participation and/or Deferrals. If the Committee determines in good faith that a Participant no longer qualifies as a member of a select group of
management or highly compensated employees, as membership in such group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its sole discretion, to (i) terminate any
deferral election the Participant has made for the remainder of the Plan Year in which the Participant’s membership status changes, and (ii) prevent the Participant from making future deferrals. 

  
 ARTICLE 3 
 Deferral Commitments/Company Matching Amounts/Company Contribution Amounts/Vesting/Crediting/Taxes 
  

	3.1	Minimum Deferrals. 

  

	 	(a)	Annual Base Salary, Annual Bonus and Director Fees. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Annual Base Salary,
Annual Bonus, Commissions and/or Director Fees in the following minimum amount: 

  

				
	 Deferral

	  	Minimum Amount

	 Annual Base Salary, Commissions and/or Annual Bonus
	  	$	5,000 aggregate
	 Director Fees
	  	$	0

  
 If an election is
made for less than such minimums or if no election is made, the amount deferred shall be zero. 
  

	 	(b)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum Annual Deferral Amount
shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	3.2	Maximum Deferral. 

  

	 	(a)	Annual Base Salary, Annual Bonus and Directors Fees. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Annual Base Salary,
Annual Bonus and/or Director Fees up to the following maximum percentages for each deferral elected: 

  

				
	 Deferral

	  	Maximum Amount

	 
	 Annual Base Salary
	  	75	%
	 Commissions
	  	100	%
	 Annual Bonus
	  	100	%
	 Director Fees
	  	100	%

  

	 	(b)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, or in the case of the First Plan Year
of the Plan itself, the maximum Annual Deferral Amount with respect to Annual Base Salary, Annual Bonus and/or Director Fees shall be limited to the amount of compensation not yet earned by the Participant as of the date the Participant submits a
Plan Agreement and Election Form to the Committee for acceptance. 

  

	3.3	Election to Defer; Effect of Election Form. 

  

	 	(a)	First Plan Year. In connection with a Participant’s commencement of participation in the Plan, the Participant shall make an irrevocable deferral election of
future compensation for the Plan Year in which the Participant commences participation in the Plan, along with such other elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form must
be completed and signed by the Participant, timely delivered to the Committee (in accordance with Section 2.2 above) and accepted by the Committee. Notwithstanding the foregoing, with respect to the 2005 Plan Year, Participants are required to
submit the Election Form for the deferral of Annual Base Salary earned after March 15, 2005, prior to March 15, 2005. The deadline for submitting the Election Form for the 2005 Annual Bonus is June 30, 2005. 

 

	 	(b)	Subsequent Plan Years. For each succeeding Plan Year, an irrevocable deferral election for that Plan Year, and such other elections as the Committee deems necessary or
desirable under the Plan, shall be made by timely delivering to the Committee, in accordance with its rules and procedures, before the end of the Plan Year preceding the Plan Year for which the election is made, a new Election Form. If no such
Election Form is timely delivered for a Plan Year, the Annual Deferral Amount shall be zero for that Plan Year. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	(c)	Revocation of 2005 Elections. On or before December 31, 2005, a Participant may cancel his or her deferral election that was effective for the 2005 Plan Year. All
amounts subject to the cancellation will be included in the Participant’s taxable income in 2005. 

  

	3.4	Withholding of Annual Deferral Amounts. For each Plan Year, the Annual Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly
scheduled Annual Base Salary payroll in equal amounts over each pay period, as adjusted from time to time for increases and decreases in Annual Base Salary. The Commissions, Annual Bonus and/or Director Fees portion of the Annual Deferral Amount
shall be withheld at the time the Commissions, Annual Bonus or Director Fees are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. 

  

	3.5	Annual Company Matching Amount. For each Plan Year, the Company, at its sole discretion, shall determine whether to credit Participants with an Annual Company Matching
Amount. A Participant’s Annual Company Matching Amount, if any, shall be a sum not to exceed all Pay Period Company Matching Contributions, if any, for the Plan Year. For this purpose, a Pay Period Company Matching Contribution shall mean an
amount which, when added to the matching contribution allocated to the Participant’s account under the 401(k) Plan for the same pay period, equals the match the Participant would have received under the 401(k) Plan during the corresponding plan
year of the 401(k) Plan, if the portion of Annual Base Salary elected to be deferred had instead been elected and contributed as a salary deferral contribution under the 401(k) Plan (determined as if the 401(k) Plan was not subject to the
limitations imposed under Code Sections 401(a)(17), 401(k)(3), 402(g) and 415). The Company shall, at its discretion, determine when to credit any Plan Year’s Annual Company Matching Amount. Notwithstanding any provision of this Plan to the
contrary, the Company shall have the right, in its sole and absolute discretion, to alter the manner in which the Annual Company Matching Amount is calculated. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	3.6	Annual Company Contribution Amount. For each Plan Year, an Employer, in its sole discretion, may, but is not required to, credit any amount it desires to any
Participant’s Company Contribution Account under this Plan, which amount shall be for that Participant the Annual Company Contribution Amount for that Plan Year. The amount so credited to a Participant may be smaller or larger than the amount
credited to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants receive an Annual Company Contribution Amount for that Plan Year. The Annual Company Contribution
Amount, if any, shall be credited as of any date within the Plan Year as selected by the Company. If a Participant is not employed by an Employer as of such date, other than by reason of his or her death while employed, the Annual Company
Contribution Amount for that Plan Year shall be zero. 

  

	3.7	Investment of Trust Assets. The Trustee of the Trust shall be authorized, upon written instructions received from the Committee or investment manager appointed by the
Committee, to invest and reinvest the assets of the Trust in accordance with the applicable Trust Agreement. 

  

	3.8	Vesting. 

  

	 	(a)	A Participant shall at all times be 100% vested in his or her Deferral Account. 

  

	 	(b)	The Committee, in its sole discretion, will determine over what period of time and in what percentage increments a Participant shall vest in his or her Company Contribution Account.
The Committee may credit some Participants with larger or smaller vesting percentages than other Participants, and the vesting percentage credited to any Participant for a Plan Year may be zero, even though one or more other Participants have a
greater vesting percentage credited to them for that Plan Year. Absent the exercise of such discretion, a Participant shall be fully vested upon attainment of age 62. 

  

	 	(c)	A Participant shall be vested in his or her Annual Company Matching Amount in accordance with the following schedule: 

  

			
	 Years of Service on Date
of Termination of Employment

	  	Vested Percentage
of Annual Company
Matching Account

	 Less than 1 year
	  	0%
	 1 year
	  	25%
	 2 years
	  	50%
	 3 years
	  	75%
	 4 or more years
	  	100%

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

 Regardless of the number of Years of Service, a Participant shall be fully vested upon attainment of
age 62. 
  

	 	(d)	Notwithstanding anything in this Section to the contrary, except as provided in subsection (e) below, in the event of a Change in Control, a Participant’s Company
Contribution Account and Company Matching Account shall immediately become 100% vested (without regard to whether it is already vested in accordance with the above vesting schedules). 

  

	 	(e)	Notwithstanding subsection (d) above, the vesting schedule for a Participant’s Company Contribution Account and/or Company Matching Account shall not be accelerated to the
extent that the Committee determines that such acceleration would cause the deduction limitations of Section 280G of the Code to become effective. In the event that all of a Participant’s Company Contribution Account is not vested pursuant
to such a determination, the Participant may request independent verification of the Committee’s calculations with respect to the application of Section 280G. In such case, the Committee must provide to the Participant within thirty
(30) business days of such a request an opinion from a nationally-recognized accounting firm selected by the Committee (the “Accounting Firm”). The opinion shall state the Accounting Firm’s opinion that any limitation in the
vested percentage hereunder is necessary to avoid the limits of Section 280G and contain supporting calculations. The cost of such opinion shall be paid for by the Company. 

  

	3.9	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its
sole discretion, amounts shall be credited or debited to a Participant’s Account Balance in accordance with the following rules: 

  

	 	(a)	 Election of Measurement Funds. A Participant, in connection with his or her initial deferral election in accordance with Section 3.3(a) above,
shall elect, on the Election Form, one or more Measurement Fund(s) to be used to determine the additional amounts to be credited to his or her Account Balance for the first business day in which the Participant commences participation in the Plan
and continuing thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the next sentence. Commencing with the first business day that follows the Participant’s commencement of
participation in the Plan and continuing thereafter for each subsequent day in which the Participant participates in the Plan, the Participant may (but is not required to) elect, by submitting an Election Form to the Committee that is accepted by
the Committee, to add or delete one or more Measurement Fund(s) to be used to determine the additional amounts to be credited to his or her Account Balance, or 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
to change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. If an election is made in accordance with
the previous sentence, it shall apply to the next business day and continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence. 

 

	 	(b)	Proportionate Allocation. In making any election described in Section 3.10(a) above, the Participant shall specify on the Election Form, in increments of five
percentage points (5%), the percentage of his or her Account Balance to have gains and losses measured by a Measurement Fund. 

  

	 	(c)	Measurement Funds. From time to time, the Committee in its sole discretion shall select and announce to Participants its selection of mutual funds, insurance company
separate accounts, indexed rates or other methods (each, a “Measurement Fund”), for the purpose of providing the basis on which gains and losses shall be attributed to Account Balances under the Plan. The Committee may, in its sole
discretion, discontinue, substitute or add a Measurement Fund at any time. Each such action will take effect as of the first day of the calendar quarter that follows by thirty (30) days the day on which the Committee gives Participants advance
written notice of such change. 

  

	 	(d)	Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) will be determined by the Committee, in its reasonable
discretion, based on available reports of the performance of the Measurement Funds. A Participant’s Account Balance shall be credited or debited on a daily basis based on the performance of each Measurement Fund selected by the Participant, as
determined by the Committee in its sole discretion, as though (i) a Participant’s Account Balance were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such day, as of the close of business
on such day, at the closing price on such date; (ii) the portion of the Annual Deferral Amount that was actually deferred during any day were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such
day, no later than the close of business on the first business day after the day on which such amounts are actually deferred from the Participant’s Annual Base Salary through reductions in his or her payroll, at the closing price on such date;
and (iii) any distribution made to a Participant that decreases such Participant’s Account Balance ceased being invested in the Measurement Fund(s), in the percentages applicable to such day, no earlier than one business day prior to the
distribution, at the closing price on such date. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	(e)	No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement
purposes only, and a Participant’s election of any such Measurement Fund, the allocation to his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account
Balance shall not be considered or construed in any manner as an actual investment of his or her Account Balance in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its own
discretion, decides to invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s Account Balance shall at all times be a
bookkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company. 

  

	3.10	FICA and Other Taxes. 

  

	 	(a)	Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is being withheld from an Employee Participant, the Participant’s Employer(s) shall
withhold from that portion of the Participant’s Annual Base Salary, Annual Bonus and/or Commissions that is not being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such
Annual Deferral Amount. If necessary, the Committee may reduce the Annual Deferral Amount in order to comply with this Section. 

  

	 	(b)	Company Matching Amounts. When a participant becomes vested in a portion of his or her Company Matching Account, the Participant’s Employer(s) shall withhold from
the Participant’s Annual Base Salary, Annual Bonus and/or Commissions that is not deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes. If necessary, the Committee may reduce the
vested portion of the Participant’s Company Matching Account in order to comply with this Section. 

  

	 	(c)	Other Amounts. When an Employee Participant becomes vested in a portion of his or her Annual Company Contribution Amounts, the Participant’s Employer(s) shall
withhold from the Participant’s Annual Base Salary, Annual Bonus and/or Commissions that is not deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes. If necessary, the Committee
may reduce the vested portion of the Participant’s aforementioned amounts in order to comply with this Section. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	3.11	Distributions. The Participant’s Employer(s), or the Trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal,
state and local income, employment and other taxes required to be withheld by the Employer(s), or the Trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and
the Trustee of the Trust. The Employer(s) and the Trustee of the Trust shall also be authorized to withhold any amount validly owed to the Employer for which the Employer has previously requested but not received payment. 

 
 ARTICLE 4 
 Short-Term Payout/Unforeseeable Financial Emergencies/Change in Control Withdrawal Elections 
  

	4.1	Short-Term Payout. In connection with each election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a future “Short-Term
Payout” from the Plan with respect to such Annual Deferral Amount. Subject to the Deduction Limitation, the Short-Term Payout shall be a lump sum payment in an amount that is equal to the Annual Deferral Amount plus amounts credited or debited
in the manner provided in Section 3.9 above on that amount, determined at the time that the Short-Term Payout becomes payable (rather than the date of a Termination of Employment). Subject to the Deduction Limitation and the other terms and
conditions of this Plan, each Short-Term Payout elected shall be paid out during a sixty (60) day period commencing immediately after the last day of any Plan Year designated by the Participant that is at least three Plan Years after the end of
the Plan Year in which the Annual Deferral Amount is actually deferred. By way of example, if a three year Short-Term Payout is elected for Annual Deferral Amounts that are deferred in the Plan Year commencing January 1, 2006, the three year
Short-Term Payout would become payable during a sixty (60) day period commencing January 1, 2010. 

  

	4.2	Other Benefits Take Precedence Over Short-Term. Should an event occur that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral Amount, plus amounts
credited or debited thereon, that is subject to a Short-Term Payout election under Section 4.1 shall not be paid in accordance with Section 4.1 but shall be paid in accordance with the other applicable Article. 

  

	4.3	 Withdrawal Payouts for Unforeseeable Financial Emergencies. If the Participant experiences an Unforeseeable Financial Emergency, the Participant may
petition the Committee to receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant’s Account Balance, calculated as if such Participant were receiving a Termination Benefit, or the amount
reasonably needed to satisfy the Unforeseeable Financial Emergency, taking into account any additional compensation that would be available if the Participant terminated his deferral election. Notwithstanding the irrevocability of the elections
described in subsections 3.3(a) and (b), a Participant’s deferral elections shall be cancelled for the balance of 

  

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Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
the current Plan Year if the Participant receives a hardship distribution under the Employer’s 401(k) Plan or a distribution due to an unforeseeable
emergency under this Plan. If, subject to the sole discretion of the Committee, the petition for a payout is approved, any payout shall be made within sixty (60) days of the date of approval. The payment of any amount under this
Section 4.3 shall not be subject to the Deduction Limitation. 

  

	4.4	Distributions Upon a Change in Control. Notwithstanding any other election made by Participants regarding when Plan benefits shall be distributed, Participants may
elect annually whether they wish to receive a lump sum payout following a Change in Control with respect to amounts subject to that year’s election. If such an election is made, distributions following a Change in Control shall be paid as soon
as practicable and in a lump sum cash distribution. The Change in Control must relate to the Company or the Participant’s employer if the Company owns a majority of the total fair market value and total voting power of the stock of the
Participant’s employer. 

  
 ARTICLE 5

 Survivor Benefit 
  

	5.1	Survivor Benefit. Subject to the Deduction Limitation, if the Participant dies before he or she experiences a Termination of Employment, the Participant’s
Beneficiary shall be entitled to receive the Termination Benefit described in Section 6.2 as if Participant Terminated his or her employment with the Company and the Election Form on file with the Company shall control the manner in which
Termination Benefit is paid. Should the Participant die after the Termination of Employment, but before the Termination Benefit is paid in full, the unpaid balance shall continue to be paid to the Beneficiary according to the Annual Installment
Method previously selected by the Participant. 

  
 ARTICLE 6 
 Termination Benefit 
  

	6.1	Termination Benefit. Subject to the Deduction Limitation, a Participant shall receive a Termination Benefit, which shall be equal to the Participant’s Account
Balance if a Participant experiences a Termination of Employment prior to his or her death or Disability. 

  

	6.2	 Payment of Termination Benefit. A Participant, in connection with his or her commencement of participation in the Plan, shall elect on an Election
Form to receive the Termination Benefit in a lump sum or pursuant to the Annual Installment Method. The Termination Benefit will be paid not later than 60 days after the end of the Plan Year in which the Participant terminates his or her employment;
provided, however, that distribution may not be made within 6 months of the 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
Termination of Employment of a key employee (as defined in Code Section 416(i) without regard to paragraph 5 thereof except that the compensation taken
into account to determine key employee status shall be the compensation paid to the Participant during the 12 month period ending on the Identification Date). The Participant may change his or her election, to the extent such change does not
accelerate the time of any scheduled payment under the Plan or fail to comply with the provisions of Code Section 409A(a)(4)(C), to an allowable alternative payout period by submitting a new Election Form to the Committee, provided that any
such Election Form is accepted by the Committee, in its sole discretion. The Election Form most recently accepted by the Committee shall govern the payout of the Termination Benefit. If a Participant does not make any election with respect to the
payment of the Termination Benefit, then such benefit shall be payable in a lump sum. Any payment made shall be subject to the Deduction Limitation. Notwithstanding the foregoing or anything in this Plan to the contrary, to the extent a
Participant’s Account Balance is less than $25,000 at the time of Termination of Employment, the Committee shall cause the Termination Benefit to be paid in a lump sum. 

  
 ARTICLE 7 
 Disability Waiver and Benefit 
  

	7.1	Disability Waiver. 

  

	 	(a)	Waiver of Deferral. A Participant who is determined by the Committee to be suffering from a Disability shall be (i) excused from fulfilling that portion of the
Annual Deferral Amount commitment that would otherwise have been withheld from a Participant’s Annual Base Salary, Annual Bonus, Commissions and/or Directors Fees for the Plan Year during which the Participant first suffers a Disability. During
the period of Disability, the Participant shall not be allowed to make any additional deferral elections, but will continue to be considered a Participant for all other purposes of this Plan. 

  

	 	(b)	Return to Work. If a Participant returns to employment, or service as a Director, with an Employer, after a Disability ceases, the Participant may elect to defer an
Annual Deferral Amount for the Plan Year following his or her return to employment or service and for every Plan Year thereafter while a Participant in the Plan; provided such deferral elections are otherwise allowed and an Election Form is
delivered to and accepted by the Committee for each such election in accordance with Section 3.3 above. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	7.2	Continued Eligibility; Disability Benefit. A Participant determined by the Committee to be Disabled shall be deemed to have experienced a Termination of Employment and
shall receive a lump sum Disability Benefit equal to his or her Account Balance at the time of the Committee’s determination. Any payment made shall be subject to the Deduction Limitation. 

  
 ARTICLE 8 
 Beneficiary Designation 
  

	8.1	Beneficiary. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits
payable under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant
participates. A Participant’s designation of a spouse as a Beneficiary shall automatically be revoked following the issuance of a final judgment of divorce between the parties. 

  

	8.2	Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Committee or its designated agent. A Participant shall have the right to change a Beneficiary by completing, signing, and otherwise complying with the terms of the Beneficiary Designation Form and the Committee’s rules and
procedures, as in effect from time to time. If the Participant names someone other than his or her spouse as a Beneficiary, a spousal consent, in the form designated by the Committee, must be signed by that Participant’s spouse (with such
signature witnessed either by a notary public or a member of the Committee) and returned to the Committee. Upon the acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled.
The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death. 

  

	8.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or its
designated agent. 

  

	8.4	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 8.1, 8.2, and 8.3 above or, if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse,
the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	8.5	Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right,
exercisable in its discretion, to cause the Participant’s Employer to withhold such payments until this matter is resolved to the Committee’s satisfaction. 

  

	8.6	Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further
obligations under this Plan with respect to the Participant, and that Participant’s Plan Agreement shall terminate upon such full payment of benefits. 

  
 ARTICLE 9 
 Reserved 
  
 ARTICLE 10 

Cessation of Contributions Amendment or Modification 
  

	10.1	Cessation of Contributions. Although each Employer anticipates that it will continue contributing to the Plan for an indefinite period of time, there is no guarantee
that any Employer will continue making contributions to the Plan indefinitely. Accordingly, each Employer reserves the right to discontinue funding contributions to the Plan (including the Participant’s Annual Deferral Amount, the Annual
Company Matching Amount, and the Annual Company Contribution Amount), by action of its board of directors. Notwithstanding the cessation of future contributions, payment of a Participant’s Account Balance shall be in accordance with the
person’s Election Form. 

  

	10.2	Amendment. The Employer’s Board delegates to the Chief Executive Officer, or his designee(s), the authority to modify, amend, or restate the Plan as appropriate
in their discretion, as well as the authority to act on behalf of the Employer in discharging the duties of the Employer in administering the Plan; provided, however, that no amendment or modification shall be effective to decrease or restrict the
value of a Participant’s Account Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Employment as of the effective date of the amendment or modification. The
amendment or modification of the Plan shall not affect any Participant or Beneficiary who has become entitled to the payment of benefits under the Plan as of the date of the amendment or modification. 

  

	10.3	Plan Agreement. Despite the provisions of Sections 10.1 and 10.2 above, if a Participant’s Plan Agreement contains benefits or limitations that are not in
this Plan document, the Employer may only amend or terminate such provisions with the consent of the Participant. 

  

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 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	10.4	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all obligations to a
Participant and his or her designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall terminate. 

  
 ARTICLE 11 
 Administration

  

	11.1	Committee Duties. Except as otherwise provided in this Article 11, this plan shall be administered by a Committee, which shall consist of those persons appointed by
the Chief Executive Officer of the Company. Members of the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (i) make, amend, interpret, and enforce all appropriate rules and
regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a Participant
shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company. 

  

	11.2	 Administration Upon Change In Control. For purposes of this Plan, the Company shall be the “Administrator” at all times prior to the
occurrence of a Change in Control. Upon and after the occurrence of a Change in Control, the “Administrator” shall be an independent third party selected by the Trustee and approved by the individual who, immediately prior to such event,
was the Company’s Chief Executive Officer or, if not available or willing to assume such responsibility, the Company’s highest ranking officer (the “Ex-CEO”). The Administrator shall have the discretionary power to determine all
questions arising in connection with the administration of the Plan and the interpretation of the Plan and Trust including, but not limited to benefit entitlement determinations; provided, however, upon and after the occurrence of a Change in
Control, the Administrator shall have no power to direct the investment of Plan or Trust assets or select any investment manager or custodial firm for the Plan or Trust. Upon and after the occurrence of a Change in Control, the Company must:
(1) pay all reasonable administrative expenses and fees of the Administrator; (2) indemnify the Administrator against any costs, expenses and liabilities including, without limitation, attorney’s fees and expenses arising in
connection with the performance of the Administrator hereunder, except with respect to matters resulting from the gross negligence or willful misconduct of the Administrator or its employees or agents; and (3) supply full and timely information
to the Administrator or all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the Participants, the date of circumstances of the Disability, death or Termination of Employment of the
Participants, and such other pertinent information as the Administrator may reasonably require. Upon and after a Change in Control, the Administrator may be terminated 

  

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Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
(and a replacement appointed) by the Trustee only with the approval of the Ex-CEO. Upon and after a Change in Control, the Administrator may not be
terminated by the Company. 

  

	11.3	Agents. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit
(including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to any Employer. 

  

	11.4	Binding Effect of Decisions. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan. 

  

	11.5	Indemnity of Committee. All Employers shall indemnify and hold harmless the members of the Committee, and any Employee to whom the duties of the Committee may be
delegated, and the Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members,
any such Employee or the Administrator. 

  

	11.6	Employer Information. To enable the Committee and/or Administrator to perform its functions, the Company and each Employer shall supply full and timely information to
the Committee and/or Administrator, as the case may be, on all matters relating to the compensation of its Participants, the date and circumstances of the Disability, death or Termination of Employment of its Participants, and such other pertinent
information as the Committee or Administrator may reasonably require. 

  
 ARTICLE 12 
 Other Benefits and Agreements 
  

	12.1	Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits
available to such Participant under any other plan or program for employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly
provided. 

  
 ARTICLE 13 
 Claims Procedures 
  

	13.1	 Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a
“Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such 

  

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Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days
after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the
Claimant. 

  

	13.2	Notification of Decision. The Committee shall consider a Claimant’s claim within a reasonable time, and shall notify the Claimant in writing:

  

	 	(a)	that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or 

  

	 	(b)	that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to
be understood by the Claimant: 

  

	 	(i)	the specific reason(s) for the denial of the claim, or any part of it; 

  

	 	(ii)	specific reference(s) to pertinent provisions of the Plan upon which such denial was based; 

  

	 	(iii)	a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

  

	 	(iv)	an explanation of the claim review procedure set forth in Section 13.3 below. 

  

	13.3	Review of a Denied Claim. Within sixty (60) days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the
Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. Thereafter, but not later than thirty (30) days after the review procedure began, the Claimant (or the
Claimant’s duly authorized representative): 

  

	 	(a)	may review pertinent documents; 

  

	 	(b)	may submit written comments or other documents; and/or 

  

	 	(c)	may request a hearing, which the Committee, in its sole discretion, may grant. 

  

 -22- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	13.4	Decision on Review. The Committee shall render its decision on review promptly, and not later than sixty (60) days after the filing of a written request for
review of the denial, unless a hearing is held or other special circumstances require additional time, in which case the Committee’s decision must be rendered within 120 days after such date. Such decision must be written in a manner
calculated to be understood by the Claimant, and it must contain: 

  

	 	(a)	specific reasons for the decision; 

  

	 	(b)	specific reference(s) to the pertinent Plan provisions upon which the decision was based; and 

  

	 	(c)	such other matters as the Committee deems relevant. 

  

	13.5	Mediation. Should the parties be unable to resolve the dispute pursuant to these procedures, the claim shall be referred to non-binding mediation, conducted by the San
Diego panel of Judicial Arbitration Mediation Services (“JAMS”), in accordance with JAMS’ standard mediation rules. A mutually agreeable mediator will be selected. The parties shall share all costs of the mediation equally, including
attorney fees. Not sooner than 20 days following the mediator’s final determination, either party may request binding arbitration. 

  

	13.6	Binding Arbitration. Following the expiration of the 20 day period referenced in Section 13.5, either party may initiate binding arbitration by making a written
demand for it on the other party. Such binding arbitration shall be conducted under the applicable rules of the American Arbitration Association using a mutually selected arbitrator in San Diego County. The cost of the arbitration shall be borne by
the non-prevailing party or as otherwise determined by the arbitrator. 

  
 ARTICLE 14 
 Trust 
  

	14.1	Establishment of the Trust. The Company shall establish the Trust, and each Employer shall at least annually transfer over to the Trust such assets as the Employer
determines, in its sole discretion, are necessary to provide, on a present value basis, for its respective future liabilities created with respect to the Annual Company Contribution Amounts, Company Matching Contribution Amounts, and Annual Deferral
Amounts for such Employer’s Participants for all periods prior to the transfer, as well as any debits and credits to the Participants’ Account Balances for all periods prior to the transfer, taking into consideration the value of the
assets in the trust at the time of the transfer. 

  

	14.2	 Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan Agreement shall govern the rights of a Participant to receive
distributions pursuant to the Plan. 

  

 -23- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust.
Each Employer shall at all times remain liable to carry out its obligations under the Plan. 

  

	14.3	Distributions From the Trust. Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and
any such distribution shall reduce the Employer’s obligations under this Plan. 

  
 ARTICLE 15 
 Miscellaneous 
  

	15.1	Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by
an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employee” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and
interpreted to the extent possible in a manner consistent with that intent. 

  

	15.2	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any
property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. An Employer’s obligation
under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future. 

  

	15.3	Employer’s Liability. An Employer’s liability for the payment of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between
the Employer and a Participant. An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement. 

  

	15.4	Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No
part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise. 

  

	15.5	 Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to 

  

 -24- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an “at will” employment
relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement. Nothing in this Plan shall be deemed to give a Participant
the right to be retained in the service of any Employer, either as an Employee or a Director, or to interfere with the right of any Employer to discipline or discharge the Participant at any time. 

  

	15.6	Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and
take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary.

  

	15.7	Terms. Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and
whenever any words are used herein in the singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply. 

  

	15.8	Captions. The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of
any of its provisions. 

  

	15.9	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of Delaware without regard
to its conflicts of laws principles. 

  

	15.10 	Notice. Any notice or filing required or permitted to be given to the Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by
registered or certified mail, to the address below: 

  
 Vice President & Controller 
 Callaway Golf Company 
 2180 Rutherford Road 
 Carlsbad, CA 92008

  
 Such notice shall be deemed given as of the date of delivery
or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. 
  
 Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by
mail, to the last known address of the Participant. 
  

 -25- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	15.11 	Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and
the Participant’s designated Beneficiaries. 

  

	15.12 	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the
Participant and shall not be transferable by such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession. 

  

	15.13 	Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but
this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

  

	15.14 	Incompetent. If the Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person
incapable of handling the disposition of that person’s property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The
Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the
Participant’s Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount. 

  

	15.15 	Court Order. The Committee is authorized to make any payments directed by court order in any action in which the Plan or the Committee has been named as a party. In
addition, if a court determines that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under the Plan in connection with a property settlement or otherwise, the Committee, in its sole discretion, shall
have the right, notwithstanding any election made by a Participant, to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to that spouse or former spouse.

  

	15.16 	Distribution in the Event of Taxation. 

  

	 	(a)	 In General. If, for any reason, all or any portion of a Participant’s benefits under this Plan becomes taxable to the Participant prior to
receipt, a Participant may petition either the Employer or the trustee of the Trust for a distribution in an amount sufficient to pay the employment taxes imposed under Code sections 3101, 3121 and the income taxes imposed under section 3401
attributable to such amounts that have become taxable. Upon the grant of such a petition, a Participant’s Employer or the trustee shall distribute to the Participant immediately available funds in an amount not to exceed the afore-described

  

 -26- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
tax liability (which amount shall not exceed a Participant’s unpaid Account Balance under the Plan). The tax liability distribution shall be made within
thirty (30) days of the date when the Participant’s petition is granted. 

  

	 	(b)	If, for any reason, all or any portion of the Participant’s benefits under this Plan fail to meet the requirements of Code Section 409A or applicable regulations
thereunder, the Company shall pay the Participant an amount equal to the amount included in the Participant’s income as a result of the failure. The distribution shall be made within thirty (30) days of the date the failure is discovered.

  

	 	(c)	Any benefits distributed to a Participant in accordance with subsection (a) or (b) shall reduce the Participant’s benefits under this Plan. 

 

	15.17 	Insurance. The Employers, on their own behalf or on behalf of the trustee of the Trust, and, in their sole discretion, may apply for and procure insurance on the life
of the Participant, in such amounts and in such forms as the Trust may choose. The Employers or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance. The Participant shall have no interest
whatsoever in any such policy or policies, and at the request of the Employers shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Employers
have applied for insurance. 

  

	15.18 	 Legal Fees To Enforce Rights After Change in Control. The Company and each Employer is aware that upon the occurrence of a Change in Control, the
Board or the board of directors of a Participant’s Employer (which might then be composed of new members) or a shareholder of the Company or the Participant’s Employer, or of any successor corporation might then cause or attempt to cause
the Company, the Participant’s Employer or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Company or the Participant’s Employer to institute, or may institute, litigation
seeking to deny Participants the benefits intended under the Plan. In these circumstances, the purpose of the Plan could be frustrated. Accordingly, if, following a Change in Control, it should appear to any Participant that the Company, the
Participant’s Employer or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement hereunder or, if the Company, such Employer or any other person takes any action to declare the Plan void or
unenforceable or institutes any litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then the Company and the Participant’s Employer irrevocably authorize such
Participant to retain counsel of his or her choice at the expense of the Company and the Participant’s Employer (who shall be jointly and severally liable) to represent such Participant in connection with the initiation or defense of any
litigation or other legal action, whether by or against the Company, the Participant’s Employer or any 

  

 -27- 

 

 
  
 2005 Callaway Golf
Company Executive Deferred Compensation Plan 
 Master Plan Document 
 Effective January 1, 2005 
  

	 	 
director, officer, shareholder or other person affiliated with the Company, the Participant’s Employer or any successor thereto in any jurisdiction.
Notwithstanding anything in this Section or the Plan to the contrary, the Company and/or the Participant’s employer shall have no obligation under this Section to the extent there is a judicial determination or final mediation decision that the
litigation or other legal action brought by the Participant is frivolous. 

  

	15.19 	Disclaimer. It is the parties intention that this arrangement comply with the provisions of Code Section 409A. Notwithstanding the foregoing as well as the
provisions of Section 15.16, the Company shall have no liability to any Participant should any provision of the Plan fail to satisfy Code Section 409A. 

  
 IN WITNESS WHEREOF, the Company has signed this Plan document as of
                        , 2005. 
  

			
	 “Company”

	
	 Callaway Golf Company, a Delaware corporation

		
	 By:
	 	 
		
	 Title: 
	 	 

  

 -28-Trust Agreement

 Exhibit 10.32 
  
 

 
  
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  
 (As amended and restated, effective January 1, 2005) 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

 TRUST AGREEMENT 
  
 Table of Contents 
  

					
	 Article

	  	 	  	Page

			
	 ARTICLE 1
	  	 Name, Intentions, Irrevocability, Deposit and Definitions
	  	1
			
	 1.1
	  	 Name
	  	1
	 1.2
	  	 Intentions
	  	1
	 1.3
	  	 Irrevocability; Creditor Claims
	  	2
	 1.4
	  	 Initial Deposit
	  	2
	 1.5
	  	 Additional Definitions
	  	2
	 1.6
	  	 Grantor Trust
	  	3
			
	 ARTICLE 2
	  	 General Administration
	  	3
			
	 2.1
	  	 Committee Directions and Administration Before Change in Control
	  	3
	 2.2
	  	 Administration Upon Change in Control
	  	4
	 2.3
	  	 Contributions
	  	4
	 2.4
	  	 Trust Fund
	  	4
	 2.5
	  	 Distribution of Excess Trust Fund to Employers
	  	4
			
	 ARTICLE 3
	  	 Powers and Duties of Trustee
	  	5
			
	 3.1
	  	 Investment Directions
	  	5
	 3.2
	  	 Investment Upon Change In Control
	  	5
	 3.3
	  	 Management of Investments
	  	5
	 3.4
	  	 Duty of Care
	  	8
	 3.5
	  	 Securities
	  	8
	 3.6
	  	 Substitution
	  	8
	 3.7
	  	 Distributions
	  	8
	 3.8
	  	 Trustee Responsibility Regarding Payments on Insolvency
	  	12
	 3.9
	  	 Costs of Administration
	  	13
	 3.10
	  	 Trustee Compensation and Expenses
	  	13
	 3.11
	  	 Professional Advice
	  	14
	 3.12
	  	 Payment on Court Order
	  	14
	 3.13
	  	 Protective Provisions
	  	14
	 3.14
	  	 Indemnifications
	  	14

  

 i 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

					
	 ARTICLE 4
	  	 Insurance Contracts
	  	15
			
	 4.1
	  	 Types of Contracts
	  	15
	 4.2
	  	 Ownership
	  	16
	 4.3
	  	 Restrictions on Trustee’s Rights
	  	16
			
	 ARTICLE 5
	  	 Trustee’s Accounts
	  	16
			
	 5.1
	  	 Records
	  	16
	 5.2
	  	 Annual Accounting; Final Accounting
	  	16
	 5.3
	  	 Valuation
	  	17
	 5.4
	  	 Delegation of Duties
	  	17
			
	 ARTICLE 6
	  	 Resignation or Removal of Trustee
	  	18
			
	 6.1
	  	 Resignation; Removal
	  	18
	 6.2
	  	 Successor Trustee
	  	18
	 6.3
	  	 Settlement of Accounts
	  	18
			
	 ARTICLE 7
	  	 Controversies, Legal Actions and Counsel
	  	18
			
	 7.1
	  	 Controversy
	  	18
	 7.2
	  	 Joinder of Parties
	  	19
			
	 ARTICLE 8
	  	 Insurers
	  	19
			
	 8.1
	  	 Insurer Not a Party
	  	19
	 8.2
	  	 Authority of Trustee
	  	19
	 8.3
	  	 Contract Ownership
	  	19
	 8.4
	  	 Limitation of Liability
	  	19
	 8.5
	  	 Change of Trustee
	  	19
			
	 ARTICLE 9
	  	 Amendment and Termination
	  	20
			
	 9.1
	  	 Amendment
	  	20
	 9.2
	  	 Final Termination
	  	20
			
	 ARTICLE 10
	  	 Miscellaneous
	  	21
			
	 10.1
	  	 Directions Following Change in Control
	  	21
	 10.2
	  	 Taxes
	  	21
	 10.3
	  	 Third Persons
	  	21
	 10.4
	  	 Nonassignability; Nonalienation
	  	21
	 10.5
	  	 The Plans
	  	21

  

 ii 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

					
	 10.6
	  	 Applicable Law
	  	22
	 10.7
	  	 Notices and Directions
	  	22
	 10.8
	  	 Successors and Assigns
	  	22
	 10.9
	  	 Gender and Number
	  	22
	 10.10
	  	 Headings
	  	22
	 10.11
	  	 Counterparts
	  	22
	 10.12
	  	 Beneficial Interest
	  	22
	 10.13
	  	 The Trust and Plans
	  	22
	 10.14
	  	 Effective Date
	  	23

  

 iii 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

 TRUST AGREEMENT 
 FOR THE 
 CALLAWAY GOLF COMPANY 
 EXECUTIVE DEFERRED COMPENSATION PLANS 
 (as amended and restated effective
January 1, 2005) 
  
 THIS AMENDED TRUST AGREEMENT
(“Trust Agreement”) is made and entered into as of January 1, 2005, between Callaway Golf Company, Inc., a Delaware corporation (the “Company”), and U.S. Trust Company, N. A., a national banking association (the
“Trustee”), to evidence the trust (the “Trust”) to be established, pursuant to the 2002 Callaway Golf Company Executive Deferred Compensation Plan (“2002 Plan”) and the 2005 Callaway Golf Company Executive Deferred
Compensation Plan (“2005 Plan”) (each a “Plan” and together, the “Plans”) that require the establishment of a trust, for the benefit of a select group of management, highly compensated employees and/or Directors who
contribute materially to the continued growth, development and business success of the Company and those subsidiaries of the Company, if any, that participate in the Plans (collectively, “Subsidiaries,” or singularly,
“Subsidiary”). 
  
 ARTICLE 1 
 Name, Intentions, Irrevocability, 
 Deposit and Definitions 
  

	1.1	Name. The name of the Trust created by this Agreement (the “Trust”) shall be the: 

  
 TRUST FOR THE 2002 and 2005 CALLAWAY GOLF COMPANY 
 EXECUTIVE DEFERRED COMPENSATION PLANS 
  

	1.2	 Intentions. The Company wishes to establish the Trust and to contribute to the Trust assets that shall be held therein, subject to the claims of the
Company’s and the Subsidiaries’ creditors in the event of their Insolvency (as defined below) until paid to Participants and their Beneficiaries in such manner and at such times as specified in the Plans or until the Trust is terminated as
provided herein. It is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plans as unfunded plans maintained for the purpose of providing supplemental compensation for a
select group of management, highly compensated employees and/or Directors for purposes of Title I of ERISA (as defined below). In addition, it is the intention of the Company and the Subsidiaries to make contributions to the Trust to provide
themselves with a source of funds to assist them in the meeting of their liabilities under the Plans. Finally, it is the intention of the Company to establish a single trust under this Trust Agreement, whether pursuant to the creation of separate
sub-trusts or otherwise, so that the records and accounts attributable to the 2002 Plan and the 2005 Plan can be maintained separately. With respect to the 2005 Plan, the Trust will be 

  

 1 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
maintained within the United States and all assets of the Trust attributable to the 2005 Plan will be located within the United States at all times.

  

	1.3	Irrevocability; Creditor Claims. The Trust hereby established shall be irrevocable. Except as otherwise provided in Sections 2.5 and 9.2, the principal of the Trust,
and any earnings thereon, shall be held separate and apart from other funds of the Company and the Subsidiaries and shall be used exclusively for the uses and purposes of the Participants and their Beneficiaries and the general creditors of the
Company and the Subsidiaries as herein set forth and as provided in the Plans. The Participants and their Beneficiaries shall have no preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the
Plans and this Trust Agreement shall be mere unsecured contractual rights of the Participants and their Beneficiaries against the Company and the Subsidiaries. Any assets held by the Trust will be subject to the claims of the Company’s and the
Subsidiaries’ general creditors under federal and state law in the event of Insolvency as provided in Section 3.8. 

  

	1.4	Initial Deposit. The Company hereby deposits with the Trustee in trust $100, which shall become the principal of the Trust to be held, administered and disposed of by
the Trustee as provided in this Trust Agreement. 

  

	1.5	Additional Definitions. In addition to the definitions set forth above, for purposes hereof, unless otherwise clearly apparent from the context, the following terms
have the following indicated meanings: 

  

	 	(a)	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with a Plan, that are entitled to receive benefits under a Plan
upon the death of a Participant. 

  

	 	(b)	“Board” shall mean the board of directors of the Company. 

  

	 	(c)	“Change in Control” shall having the meaning ascribed in each Plan. 

  

	 	(d)	“Committee” shall mean the administrative committee appointed by the Board or its designees to administer this Trust. 

  

	 	(e)	“Director” shall mean any member of the board of directors of the Company or any Subsidiary. 

  

	 	(f)	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 

  

	 	(g)	“Insolvent” shall have the meaning set forth in Section 3.8(a) below. 

  

	 	(h)	“Insolvent Entity” shall have the meaning set forth in Section 3.8(a) below. 

  

 2 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	(i)	“IRS” shall mean the Internal Revenue Service. 

  

	 	(j)	“Participant” shall mean a person who is a participant in a Plan in accordance with its terms and conditions. 

  

	 	(k)	“Payment Schedule” shall have the meaning set forth in Section 3.7(b) below. 

  

	 	(l)	“Plans” shall mean the 2002 Callaway Golf Company Executive Deferred Compensation Plan and the 2005 Callaway Golf Company Executive Deferred Compensation Plan.

  

	 	(m)	“Plan Year” shall mean the Plan Year chosen for this Trust Agreement by the Board. 

  

	 	(n)	“Trust Fund” shall mean the assets held by the Trustee pursuant to the terms of this Trust Agreement and for the purposes of the Plans. 

  

	1.6	Grantor Trust. The Trust is intended to be a “grantor trust,” of which the Company and the Subsidiaries are the grantors, within the meaning of
subpart E, part I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and the Trust shall be construed accordingly. 

  
 ARTICLE 2 
 General Administration 
  

	2.1	Committee Directions and Administration Before Change in Control. Until a Change in Control has occurred, this Section 2.1 shall be effective and the Committee
shall direct the Trustee as to the administration of the Trust in accordance with the following provisions: 

  

	 	(a)	The Committee members shall be identified to the Trustee by a written notice from the Company’s Chief Executive Officer or Chief Financial Officer appointing the Committee. In
the absence thereof, the Board shall be the Committee. Persons authorized to give directions to the Trustee on behalf of the Committee shall be identified to the Trustee by written notice from the Committee, and such notice shall contain specimens
of the authorized signatures. The Trustee shall be entitled to rely on such written notice as evidence of the identity and authority of the persons appointed until a written cancellation of the appointment, or the written appointment of a successor,
is received by the Trustee. 

  

	 	(b)	Directions by the Committee, or its delegate, to the Trustee shall be in writing and signed by the Committee or persons authorized by the Committee, or may be made by such other
method as is acceptable to the Trustee. 

  

 3 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	(c)	The Trustee may conclusively rely upon directions from the Committee in taking any action with respect to this Trust Agreement, including the making of payments from the Trust Fund
and the investment of the Trust Fund pursuant to this Trust Agreement. The Trustee shall have no liability for actions taken, or for failure to act, on the direction of the Committee. The Trustee shall have no liability for failure to act in the
absence of directions from the Committee where the Committee’s directions are required by this Trust Agreement. 

  

	 	(d)	The Trustee may request instructions from the Committee and shall have no duty to act or liability for failure to act if such instructions are not forthcoming from the Committee. If
requested instructions are not received within a reasonable time, the Trustee may, but is under no duty to, act on its own discretion to carry out the provisions of this Trust Agreement in accordance with this Trust Agreement and the Plans.

  

	2.2	Administration Upon Change in Control. In the event of a Change in Control, the authority of the Committee to administer the Trust and direct the Trustee, as set forth
in Section 2.1 above, shall cease, and the Trustee shall have complete authority to administer the Trust. 

  

	2.3	Contributions. Except as provided in any Plan, the Company and the Subsidiaries, in their sole discretion, may at any time, or from time to time, make additional
deposits of cash or other property in trust with the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Trust Agreement. Neither the Trustee nor any Participant or Beneficiary shall have any
right to compel such additional deposits. The Trustee shall have no duty to collect or enforce payment to it of any contributions or to require that any contributions be made, and shall have no duty to compute any amount to be paid to it nor to
determine whether amounts paid comply with the terms of a Plan; provided, however, that following a Change in Control, the Trustee shall have the right, in its sole and absolute discretion, to compel a contribution to the Trust from the Company and
the Subsidiaries to make-up for any shortfall between (i) the anticipated benefit obligations and administrative expenses that are to be paid under the Plans and the Trust and (ii) the assets of the Trust Fund. 

  

	2.4	Trust Fund. The contributions received by the Trustee from the Company and the Subsidiaries shall be held and administered pursuant to the terms of this Trust
Agreement as a single fund without distinction between income and principal and without liability for the payment of interest thereon except as expressly provided in this Trust Agreement. During the term of this Trust, all income received by the
Trust, net of expenses and taxes, shall be accumulated and reinvested. Notwithstanding the foregoing, the Trust Fund shall be maintained and administered as if separate trusts existed for each Plan. 

  

	2.5	 Distribution of Excess Trust Fund to Employers. Prior to a Change in Control, in the event that the Committee determines that the Trust Fund exceeds
125 percent of the anticipated 

  

 4 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
benefit obligations and administrative expenses that are to be paid under the Plans, the Trustee, at the direction of the Committee shall distribute to the
Company and the Subsidiaries such excess portion of the Trust Fund. 

  
 ARTICLE 3 
 Powers and Duties of Trustee 
  

	3.1	Investment Directions. Except as provided in this Section and Section 3.2 below, the Committee shall provide the Trustee with all investment instructions. The
Trustee shall neither affect nor change investments of the Trust Fund, except as directed in writing by the Committee or as provided in Section 3.2 following a Change in Control, and shall have no right, duty or responsibility to recommend
investments or investment changes; provided, that the Trustee may, pending the Committee’s investment direction or pending disbursement of cash from the Trust, deposit cash on hand from time to time in any bank savings account, certificate of
deposit, or other instrument creating a deposit liability for a bank, including the Trustee’s own banking department, or those of its affiliates if the Trustee is a bank, without such prior direction. 

  

	3.2	Investment Upon Change in Control. In the event of a Change in Control, the authority of the Committee to direct investments of the Trust Fund shall cease and the
Trustee shall have complete authority to direct investments of the Trust Fund. The person who was the Chief Executive Officer of the Company immediately prior to the Change in Control or, if not available or willing to assume such responsibility,
the Company’s next highest ranking officer prior to the Change in Control (the “Ex-CEO”) shall notify the Trustee in writing when a Change in Control has occurred. The Trustee has no duty to inquire whether a Change in Control has
occurred and may rely on the Ex-CEO’s notification of a Change in Control; provided, however, that if any officer, former officer, director, or former director of the Company or any Subsidiary, or any Participant notifies the Trustee that there
has been or there may be a Change in Control, the Trustee shall have the duty to satisfy itself as to whether a Change in Control has in fact occurred. The Company and the Subsidiaries shall indemnify and hold harmless the Trustee for any damages or
costs (including attorneys’ fees) that may be incurred because of reliance on the former chief executive officer’s notice or lack thereof. 

  

	3.3	 Management of Investments. Subject to Section 3.1 above, the Trustee shall have, without exclusion, all powers conferred on the Trustee by
applicable law, unless expressly provided otherwise herein, and all rights associated with assets of the Trust shall be exercised by the Trustee or the person designated by the Trustee, and shall in no event be exercisable by or rest with
Participants or their Beneficiaries. The Trustee shall have full power and authority to invest and reinvest the Trust Fund in any investment permitted by law, provided that Trust assets deferred pursuant to the 2005 Plan must at all times be located
within the United States, exercising the judgment and care that persons of prudence, discretion and intelligence would 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
exercise under the circumstances then prevailing, considering the probable income and safety of their capital, including, without limiting the generality of
the foregoing, the power: 

  

	 	(a)	To invest and reinvest the Trust Fund, together with the income therefrom, in common stock, preferred stock, convertible preferred stock, mutual funds, bonds, debentures,
convertible debentures and bonds, mortgages, notes, time certificates of deposit, commercial paper and other evidences of indebtedness (including those issued by the Trustee or any of its affiliates), other securities, policies of life insurance,
annuity contracts, options to buy or sell securities or other assets, and other property of any kind (personal, real, or mixed, and tangible or intangible); provided, however, that in no event may the Trustee invest in securities (including stock or
rights to acquire stock) or obligations issued by the Company or the Subsidiaries, other than a de minimis amount held in common investment vehicles in which the Trustee invests; 

  

	 	(b)	To deposit or invest all or any part of the assets of the Trust Fund in savings accounts or certificates of deposit or other deposits which bear a reasonable interest rate in a
bank, including the commercial department of the Trustee, if such bank is supervised by the United States or any State; 

  

	 	(c)	To hold, manage, improve, repair and control all property, real or personal, forming part of the Trust Fund and to sell, convey, transfer, exchange, partition, lease for any term,
even extending beyond the duration of this Trust, and otherwise dispose of the same from time to time in such manner, for such consideration, and upon such terms and conditions as the Trustee shall determine; 

  

	 	(d)	To have, respecting securities, all the rights, powers and privileges of an owner, including the power to give proxies, pay assessments and other sums deemed by the Trustee to be
necessary for the protection of the Trust Fund, to vote any corporate stock either in person or by proxy, with or without power of substitution, for any purpose; to participate in voting trusts, pooling agreements, foreclosures, reorganizations,
consolidations, mergers and liquidations, and in connection therewith to deposit securities with and transfer title to any protective or other committee under such terms as the Trustee may deem advisable; to exercise or sell stock subscriptions or
conversion rights; and, regardless of any limitation elsewhere in this instrument relative to investment by the Trustee, to accept and retain as an investment any securities or other property received through the exercise of any of the foregoing
powers; 

  

	 	(e)	To hold in cash, without liability for interest, such portion of the Trust Fund which, in its discretion, shall be reasonable under the circumstances, pending investments, or
payment of expenses, or the distribution of benefits; 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	(f)	To employ such agents including custodians and counsel as may be reasonably necessary and to pay them reasonable compensation; to settle, compromise or abandon all claims and
demands in favor of or against the Trust assets; 

  

	 	(g)	To cause title to property of the Trust to be issued, held or registered in the individual name of the Trustee, or in the name of its nominee(s) or agents, or in such form that
title will pass by delivery; 

  

	 	(h)	To exercise all of the further rights, powers, options and privileges granted, provided for, or vested in trustees generally under the laws of the State whose laws are applicable to
this Trust Agreement, as provided in Section 10.6 below, so that the powers conferred upon the Trustee herein shall not be in limitation of any authority conferred by law, but shall be in addition thereto; 

  

	 	(i)	To borrow money from any source (including the Trustee) and to execute promissory notes, mortgages or other obligations and to pledge or mortgage any Trust assets as security;

  

	 	(j)	To institute, compromise and defend actions and proceedings; to pay or contest any claim; to settle a claim by or against the Trustee by compromise, arbitration, or otherwise; to
release, in whole or in part, any claim belonging to the Trust to the extent that the claim is uncollectible; 

  

	 	(k)	To use securities depositories or custodians and to allow such securities as may be held by a depository or custodian to be registered in the name of such depository or its nominee
or in the name of such custodian or its nominee; 

  

	 	(l)	To invest the Trust Fund from time to time in one or more investment funds, which funds shall be registered under the Investment Company Act of 1940; and 

 

	 	(m)	To do all other acts necessary or desirable for the proper administration of the Trust Fund, as if the Trustee were the absolute owner thereof. 

  
 Nothing in this section shall be construed to mean the Trustee assumes any
responsibility for the performance of any investment made by the Trustee in its capacity as trustee under the operations of this Trust Agreement; provided that the foregoing shall not relieve the Trustee from liability for breaching its duty of care
in making an investment selection hereunder (other than at the direction of the Committee). Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or to applicable law, the Trustee shall not have any power that could give
this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

 
of section 301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended. 

 

	3.4	Duty of Care. The Trustee shall perform its duties hereunder with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person
acting in like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; provided, however, that the Trustee shall incur no liability to any person for any action taken pursuant to a
direction given by the Committee prior to a Change in Control which is contemplated by, and in conformity with, the terms of each Plan or this Trust. 

  

	3.5	Securities. Voting or other rights in securities shall be exercised by the person or entity responsible for directing such investments, and the Trustee shall have no
duty to exercise voting or proxy or other rights relating to any investment managed or directed by the Committee. If any foreign securities are purchased pursuant to the direction of the Committee, it shall be the responsibility of the person or
entity responsible for directing such investments to advise the Trustee in writing of any laws or regulations, either foreign or domestic, that apply to such foreign securities or to the receipt of dividends or interest on such securities.

  

	3.6	Substitution. Notwithstanding any provision of any Plan or the Trust to the contrary, the Company and/or any Subsidiary shall at all times have the power to reacquire
the Trust Fund by substituting readily marketable securities (other than stock, a debt obligation or other security issued by the Company or any Subsidiary) and/or cash of an equivalent value and such other property shall, following such
substitution, constitute the Trust Fund. Notwithstanding the foregoing, after a Change in Control, the Trustee, the Company and/or any Subsidiary shall have no power to substitute readily marketable securities for the Trust Fund.

  

	3.7	Distributions.

  

	 	(a)	The establishment of the Trust and the payment or delivery to the Trustee of money or other property shall not vest in any Participant or Beneficiary any right, title, or interest
in and to any assets of the Trust. To the extent that any Participant or Beneficiary acquires the right to receive payments under any of the Plans, such right shall be no greater than the right of an unsecured general creditor of the Company and the
Subsidiaries and such Participant or Beneficiary shall have only the unsecured promise of the Company and the Subsidiaries that such payments shall be made. 

  

	 	(b)	 Concurrent with the establishment of this Trust, the Company shall deliver to the Trustee a schedule (the “Payment Schedule”) that indicates the amounts
payable in respect of each Participant (and his or her Beneficiaries), provides a formula or formulas or other instructions acceptable to the Trustee for determining the amounts so payable, specifies the form in which such amount is to be paid (as
provided for or available under each Plan), and the time of commencement for payment of such amounts. The Payment 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
Schedule shall be updated annually and upon a Change in Control and from time to time as is necessary thereafter. Except as otherwise provided herein, prior
to a Change in Control, the Trustee shall make payments to the Participants and their Beneficiaries in accordance with such Payment Schedule. After a Change in Control, the Trustee shall make payments in accordance with the payment schedules
provided by the Administrator (as defined in Section 3.7(i)). The Trustee, at the direction of the Committee or, after a Change in Control, on its own volition, may make any distribution required to be made by it hereunder by delivering:

  

	 	(i)	Its check payable to the person to whom such distribution is to be made, to the person, or, if prior to a Change in Control, to the Company for redelivery to such person; provided
that before a Change in Control, the Committee may direct the Trustee to deliver one or more lump sum checks payable to the Company, and the Company shall prepare and deliver individual checks for each Participant or Beneficiary; or

  

	 	(ii)	Its check payable to an insurer for the benefit of such person, to the insurer, or, if prior to a Change in Control, to the Company for redelivery to the insurer; or

  

	 	(iii)	Contracts held on the life of the Participant to whom or with respect to whom the distribution is being made, to the Participant or Beneficiary, or, if prior to a Change in Control,
to the Company for redelivery to the person to whom such distribution is to be made; or 

  

	 	(iv)	If a distribution is being made, in whole or in part, of other assets, assignments or other appropriate documents or certificates necessary to effect a transfer of title, to the
Participant or Beneficiary, or, if prior to a Change in Control, to the Company for redelivery to such person. 

  
 Notwithstanding the foregoing, if directed by the Committee and upon receipt of such documentation satisfactory to the Trustee, the Trustee shall pay all
or part of a distribution to which a Participant or Beneficiary would otherwise be entitled under the terms of a Plan to the Company or Subsidiary in satisfaction of amounts validly owed by the Participant to the Company or Subsidiary for which the
Company or Subsidiary previously requested but did not receive payment. 
  

	 	(c)	 If the principal of the Trust, and any earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Plans, the Company and
the Subsidiaries shall make the balance of each such payment as it falls due. The Trustee shall notify the Company and the Subsidiaries when principal and earnings are not sufficient. To the extent that the total Trust assets available to make
benefit payments to Participants or Beneficiaries who are currently entitled to payment are less than the 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
liabilities of the Plans, the Trustee shall make benefit payments proportionate to the ratio of assets available to pay benefits to the total values of the
liabilities. 

  

	 	(d)	The Company and the Subsidiaries may make payment of benefits directly to Participants or their Beneficiaries as they become due under the terms of the Plans. The Company and the
Subsidiaries shall notify the Trustee of their decisions to make payment of benefits directly prior to the time amounts are payable to Participants or their Beneficiaries. 

  

	 	(e)	Notwithstanding anything contained in this Trust Agreement to the contrary, if at any time the Sub-Trust established to hold amounts deferred under the 2002 Plan is finally
determined by the IRS not to be a “grantor trust” with the result that the income of the Sub-Trust is not treated as income of the Company or the Subsidiaries pursuant to Sections 671 through 679 of the Internal Revenue Code of 1986,
as amended, or with respect to amounts deferred under both the 2002 Plan and the 2005 Plan, if a federal income tax is finally determined by the IRS to be payable by one or more Participants or Beneficiaries with respect to any interest in a Plan or
the Trust Fund prior to payment of such interest to any such Participant or Beneficiary, the Trustee shall, upon direction by the Committee (or upon application to the Trustee by a Participant or Beneficiary after a Change in Control), distribute
such share in a lump sum to each Participant or Beneficiary entitled thereto, regardless of whether such Participant’s employment has terminated (provided such Participant has a vested interest in his or her accrued benefits under the Plan) and
regardless of form and time of payments specified in or pursuant to the Plan. Any remaining assets (less any expenses or costs due under Sections 3.9 and 3.10 of this Trust Agreement) shall then be paid by the Trustee to the Company and the
Subsidiaries in such amounts, and in the manner instructed by the Committee. If the value of the Trust Fund is less than the benefit obligations under the Plan, the foregoing described distributions will be limited to a Participant’s share of
the Trust Fund, determined by allocating assets to the Participant based on the ratio of the Participant’s benefit obligations under the Plan to the total benefit obligations under the Plan. Prior to a Change in Control, the Trustee shall rely
solely on the directions of the Committee with respect to the occurrence of the foregoing events and the resulting distributions to be made, and the Trustee shall not be responsible for any failure to act in the absence of such direction.

  

	 	(f)	The Trustee shall make provision for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits
pursuant to the terms of the Plans and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by the Company and the Subsidiaries. 

  

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 Trust Agreement for the 
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	 	(g)	Prior to a Change in Control, payments by the Trustee shall be delivered or mailed to addresses supplied by the Committee and the Trustee’s obligation to make such payments
shall be satisfied upon such delivery or mailing. Prior to a Change in Control, the Trustee shall have no obligation to determine the identity of persons entitled to benefits or their mailing addresses. After a Change in Control, the Trustee shall
have such obligations. 

  

	 	(h)	Prior to a Change in Control, the entitlement of a Participant or his or her Beneficiaries to benefits under the Plans shall be determined by the Company and the Subsidiaries or
such party as they shall designate under the Plans, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plans. 

  

	 	(i)	Notwithstanding Section 3.7(h), upon and after the occurrence of a Change in Control, the Plans shall be administered by an independent third party (the
“Administrator”) selected by the Trustee and approved by the Ex-CEO. The Administrator shall have the discretionary power to determine all questions arising in connection with the administration of the Plans and the interpretation of the
Plans and Trust including, but not limited to benefit entitlement determinations; provided, however, upon and after the occurrence of a Change in Control, the Administrator shall have no power to direct the investment of Plan or Trust assets or
select any investment manager or custodial firm for the Plans or this Trust. Upon and after the occurrence of a Change in Control, the Company must: (1) pay all reasonable administrative expenses and fees of the Administrator;
(2) indemnify the Administrator against any costs, expenses and liabilities including, without limitation, attorney’s fees and expenses arising in connection with the performance of the Administrator hereunder, except with respect to
matters resulting from the gross negligence or willful misconduct of the Administrator or its employees or agents; and (3) supply full and timely information to the Administrator or all matters relating to the Plans, the Trust, the Participants
and their Beneficiaries, the Account Balances of the Participants, the date of circumstances of the Retirement, Disability, death or Termination of Employment of the Participants, and such other pertinent information as the Administrator may
reasonably require. Upon and after a Change in Control, the Administrator may be terminated (and a replacement appointed) by the Trustee only with the approval of the Ex-CEO. Upon and after a Change in Control, the Administrator may not be
terminated by the Company. 

  

	 	(j)	If the Committee, the Internal Revenue Service, or any State tax authority shall determine that a Plan fails to meet the requirements of Code section 409A, the Trustee shall
distribute to Participants the amount required to be included in income as a result of such failure. 

  

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 Trust Agreement for the 
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	3.8	Trustee Responsibility Regarding Payments on Insolvency.

  

	 	(a)	The Trustee shall cease payment of benefits to Participants and their Beneficiaries as provided in subsection (b) if the Company, or any Subsidiary, is Insolvent (the
“Insolvent Entity”). The Insolvent Entity shall be considered “Insolvent” for purposes of this Trust Agreement if: 

  

	 	(i)	the Insolvent Entity is unable to pay its debts as they become due, or 

  

	 	(ii)	the Insolvent Entity is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 

  
 For purposes of this Section 3.8, if an entity is determined to be
Insolvent, each Subsidiary in which such entity has an equity interest shall also be deemed to be an Insolvent Entity. However, the insolvency of a Subsidiary will not cause a parent corporation to be deemed Insolvent. 
  

	 	(b)	At all times during the continuance of this Trust, as provided in Section 1.3 above, the principal and income of the Trust shall be subject to claims of the general creditors
of the Company and its Subsidiaries under federal and state law as set forth below: 

  

	 	(i)	The Board and the chief executive officer of the Company shall have the duty to inform the Trustee in writing of the Company’s or any Subsidiary’s Insolvency. If a person
claiming to be a creditor of the Company or any Subsidiary alleges in writing to the Trustee that the Company or any Subsidiary has become Insolvent, the Trustee shall determine whether the Company or any Subsidiary is Insolvent and, pending such
determination, the Trustee shall discontinue payment of benefits to the Insolvent Entity’s Participants or their Beneficiaries. Prior to a Change in Control, the Trustee may conclusively rely on any determination it receives from the Board or
the chief executive officer of the Company with respect to the Insolvency of the Company or any Subsidiary. 

  

	 	(ii)	Unless the Trustee has actual knowledge of the Company’s or a Subsidiary’s Insolvency, or has received notice from the Company, a Subsidiary, or a person claiming to be a
creditor alleging that the Company or a Subsidiary is Insolvent, the Trustee shall have no duty to inquire whether the Company or any Subsidiary is Insolvent. The Trustee may in all events rely on such evidence concerning the Company’s or any
Subsidiary’s solvency as may be furnished to the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company’s or any Subsidiary’s solvency. In this regard, the Trustee may rely upon
a letter from the Company’s or a Subsidiary’s auditors as to the Company’s or any Subsidiary’s financial status. 

  

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 Trust Agreement for the 
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	 	(iii)	If at any time the Trustee has determined that the Company or any Subsidiary is Insolvent, the Trustee shall discontinue payments to the Insolvent Entity’s Participants or
their Beneficiaries, and shall hold the portion of the assets of the Trust allocable to the Insolvent Entity for the benefit of the Insolvent Entity’s general creditors. Nothing in this Trust Agreement shall in any way diminish any rights of
Participants or their Beneficiaries to pursue their rights as general creditors of the Insolvent Entity with respect to benefits due under the Plans or otherwise. 

  

	 	(iv)	The Trustee shall resume the payment of benefits to Participants or their Beneficiaries in accordance with this Article 3 of this Trust Agreement only after the Trustee has
determined that the alleged Insolvent Entity is not Insolvent (or is no longer Insolvent). 

  

	 	(c)	Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 3.8(b) hereof and subsequently resumes such
payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Participants or their Beneficiaries under the terms of the Plans for the period of such discontinuance, without interest thereon to
reflect delayed payment, less the aggregate amount of any payments made to Participants or their Beneficiaries by the Company or any Subsidiary in lieu of the payments provided for hereunder during any such period of discontinuance. Prior to a
Change in Control, the Committee shall instruct the Trustee as to such amounts, and after a Change in Control, the Trustee shall determine such amounts in accordance with the terms and provisions of the Plans. 

  

	3.9	Costs of Administration. The Trustee is authorized to incur reasonable obligations in connection with the administration of the Trust, including attorneys’ fees,
Administrator fees, other administrative fees and appraisal fees. Such obligations shall be paid by the Company and the Subsidiaries. The Trustee is authorized to pay such amounts from the Trust Fund if the Company or the Subsidiaries fail to pay
them within 60 days of presentation of a statement of the amounts due that is not contested by the Company in writing before the expiration of such 60-day period. If any amounts payable hereunder are contested by the Company, the parties hereto
shall cooperate to determine whether such amount should be paid. 

  

	3.10	 Trustee Compensation and Expenses. The Trustee shall be entitled to reasonable compensation for its services as from time to time agreed upon between
the Trustee and the Company. If the Trustee and the Company fail to agree upon a rate of compensation, or following a Change in Control, the Trustee shall be entitled to compensation at a rate equal to the rate charged by the Trustee for similar
services rendered by it during the current fiscal year for other trusts similar to this Trust. The Trustee shall be entitled to reimbursement for expenses incurred by it in the performance of its duties as the Trustee, including reasonable fees

  

 13 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
for legal counsel. The Trustee’s compensation and expenses shall be paid by the Company and the Subsidiaries. The Trustee is authorized to withdraw such
amounts from the Trust Fund if the Company or the Subsidiaries fail to pay them within 60 days of presentation of a statement of the amounts due that is not contested by the Company in writing before the expiration of such 60-day period. If any
amounts payable hereunder are contested by the Company, the parties hereto shall cooperate to determine whether such amount should be paid. 

  

	3.11	Professional Advice. The Company and the Subsidiaries specifically acknowledge that the Trustee and/or the Administrator may find it desirable or expedient to retain
legal counsel (who may also be legal counsel for the Company generally) or other professional advisors to advise it in connection with the exercise of any duty under this Trust Agreement, including, but not limited to, any matter relating to or
following a Change in Control or the Insolvency of the Company or any Subsidiary. 

  

	3.12	Payment on Court Order. To the extent permitted by law, the Trustee is authorized to make any payments directed by court order in any action in which the Trustee has
been named as a party. The Trustee is not obligated to defend actions in which the Trustee is named, but shall notify the Company or Committee of any such action and may tender defense of the action to the Company, Committee, Participant or
Beneficiary whose interest is affected. The Trustee shall defend any action in which the Trustee is named, and for which the Company has refused to provide defense of the action, and any expenses incurred by the Trustee shall be paid by the Company
and the Subsidiaries if required under Section 3.13. The Trustee is authorized to pay such amounts from the Trust Fund if the Company or the Subsidiaries fail to pay them within sixty (60) days of presentation of a statement of the amounts
due that is not contested by the Company in writing before the expiration of such 60-day period. If any amounts payable hereunder are contested by the Company, the parties hereto shall cooperate to determine whether such amount should be paid.

  

	3.13	Protective Provisions. Notwithstanding any other provision contained in this Trust Agreement to the contrary, the Trustee shall have no obligation to
(i) determine the existence of any conversion, redemption, exchange, subscription or other right relating to any securities purchased of which notice was given prior to the purchase of such securities and shall have no obligation to exercise
any such right unless the Trustee is advised in writing by the Committee both of the existence of the right and the desired exercise thereof within a reasonable time prior to the expiration of the right to exercise, or (ii) advance any funds to
the Trust. Furthermore, the Trustee is not a party to any Plan. 

  

	3.14	Indemnifications.

  

	 	(a)	 The Company and the Subsidiaries shall indemnify and hold the Trustee harmless from and against all loss or liability (including expenses and reasonable
attorneys’ fees) to which it may be subject by reason of its execution of its duties under this Trust, or by 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
reason of any acts taken in good faith in accordance with any directions, or acts omitted in good faith due to absence of directions, from the Company, the
Committee or a Participant, except that the Trustee will not be so indemnified if such loss or liability is finally adjudged by a court of competent jurisdiction, or is determined by any other proceeding mutually agreeable to the Company and the
Trustee, to have resulted from the Trustee’s negligence or misconduct, or breach of its duties under this Trust Agreement. The indemnity described herein shall be provided by the Company and the Subsidiaries. 

  

	 	(b)	The Company and the Subsidiaries shall indemnify and hold the Administrator harmless from and against all loss or liability (including expenses and reasonable attorneys’ fees)
to which it may be subject by reason of its execution of its duties under this Trust, or by reason of any acts taken in good faith in accordance with any directions, or acts omitted in good faith due to absence of directions, from the Company, the
Committee or a Participant, unless such loss or liability is due to the Administrator’s negligence or misconduct. The indemnity described herein shall be provided by the Company and the Subsidiaries. 

  

	 	(c)	The Trustee shall indemnify and hold the Company, Subsidiaries and the Committee members harmless from and against all loss or liability (including expenses and reasonable
attorneys’ fees) to which they may be subject by reason of the Trustee’s negligence or misconduct, or breach of its duties under this Trust Agreement, except that the Company, Subsidiaries and the Committee will not be so indemnified if
such loss or liability is finally adjudged by a court of competent jurisdiction or is determined by any other proceeding mutually agreeable to the Trustee and the Company, to have resulted from the Company’s negligence or misconduct, or breach
of its duties under this Trust Agreement. 

  

	 	(d)	All releases and indemnities provided in this Trust Agreement shall survive the termination of this Trust Agreement. 

  
 ARTICLE 4 
 Insurance Contracts 
  

	4.1	Types of Contracts. To the extent that the Trustee is directed by the Committee prior to a Change in Control to invest part or all of the Trust Fund in insurance
contracts, the type and amount thereof shall be specified by the Committee. The Trustee shall be under no duty to make inquiry as to the propriety of the type or amount so specified. 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	4.2	Ownership. Each insurance contract issued shall provide that the Trustee shall be the owner thereof with the power to exercise all rights, privileges, options and
elections granted by or permitted under such contract or under the rules of the insurer. The exercise by the Trustee of any incidents of ownership under any contract shall, prior to a Change in Control, be subject to the direction of the Committee.

  

	4.3	Restrictions on Trustee’s Rights. The Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from
conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy. Despite the foregoing, the Trustee may (i) loan to the Company or any Subsidiary the
proceeds of any borrowing against an insurance policy held in the Trust Fund or (ii) assign all, or any portion, of a policy to the Company or any Subsidiary if under other provisions of this Trust Agreement the Company or any Subsidiary is
entitled to receive assets from the Trust. 

  
 ARTICLE 5 
 Trustee’s Accounts 
  

	5.1	Records. The Trustee shall maintain accurate records and detailed accounts of all investments, receipts, disbursements and other transactions hereunder. The Trustee
shall separately account for the assets contributed by the Company and each of its Subsidiaries. Such records shall be available at all reasonable times for inspection by the Company and Subsidiaries or their authorized representative. The Trustee,
at the direction of the Committee, shall submit to the Committee and to any insurer such valuations, reports or other information as the Committee may reasonably require and, in the absence of fraud or bad faith, the valuation of the Trust Fund by
the Trustee shall be conclusive. The Trustee shall separately account for the assets contributed by the Company and its Subsidiaries for each Plan. 

  

	5.2	Annual Accounting; Final Accounting.

  

	 	(a)	Within 60 days following the end of each Plan Year and within 60 days after the removal or resignation of the Trustee or the termination of the Trust, the Trustee shall
file with the Committee a written account setting forth a description of all properties purchased and sold, all receipts, disbursements and other transactions effected by it during the Plan Year or, in the case of removal, resignation or
termination, since the close of the previous Plan Year, and listing the properties held in the Trust Fund as of the last day of the Plan Year or other period and indicating their values. Such values shall be either cost or market as directed by the
Committee in accordance with the terms of the Plans. 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	(b)	The Committee may approve such account either by written notice of approval delivered to the Trustee or by its failure to express written objection to such account delivered to the
Trustee within 60 days after the date of which such account was delivered to the Committee. 

  

	 	(c)	The approval by the Committee of an accounting shall be binding as to all matters embraced in such accounting on all parties to this Trust Agreement and on all Participants and
Beneficiaries, to the same extent as if such accounting had been settled by a judgment or decree of a court of competent jurisdiction in which the Trustee, the Committee, the Company, the Subsidiaries and all persons having or claiming any interest
in any Plan or the Trust Fund were made parties. 

  

	 	(d)	Despite the foregoing, nothing contained in this Trust Agreement shall deprive the Trustee of the right to have an accounting judicially settled, if the Trustee, in the
Trustee’s sole discretion, desires such a settlement. 

  

	5.3	Valuation. The assets of the Trust Fund shall be valued at their respective fair market values on the date of valuation, as determined by the Trustee based upon such
sources of information as it may deem reliable, including, but not limited to, stock market quotations, statistical valuation services, newspapers of general circulation, financial publications, advice from investment counselors, brokerage firms or
insurance companies, or any combination of sources. Prior to a Change in Control, the Committee shall instruct the Trustee as to the value of assets for which market values are not readily obtainable by the Trustee. If the Committee fails to provide
such values, the Trustee may take whatever action it deems reasonable, including employment of attorneys, appraisers, life insurance companies or other professionals, the expense of which shall be an expense of administration of the Trust Fund and
payable by the Company and the Subsidiaries. The Trustee may rely upon information from the Company and the Subsidiaries, the Committee, appraisers or other sources and shall not incur any liability for an inaccurate valuation based in good faith
upon such information. 

  

	5.4	Delegation of Duties. The Company or the Committee, or both, may at any time employ the Trustee as their agent to perform any act, keep any records or accounts and
make any computations that are required of the Company, any Subsidiary or the Committee by this Trust Agreement or the Plans. The Trustee may be compensated for such employment and such employment shall not be deemed to be contrary to the Trust.
Nothing done by the Trustee as such agent shall change or increase its responsibility or liability as Trustee hereunder. 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

 ARTICLE 6 
 Resignation or Removal of Trustee 
  

	6.1	Resignation; Removal. The Trustee may resign at any time by written notice to the Company, which shall be effective 60 days after receipt of such notice unless the
Company and the Trustee agree otherwise. Prior to a Change in Control, the Trustee may be removed by the Company on 60 days notice or upon shorter notice when accepted by the Trustee. After a Change in Control, the Trustee may only be removed by the
Ex-CEO on 60 days notice or upon shorter notice accepted by the Trustee. 

  

	6.2	Successor Trustee. If the Trustee resigns or is removed, a successor shall be appointed by the Company, in accordance with this Section, by the effective date of
the resignation or removal under Section 6.1 above. The successor shall be a bank, trust company, or similar independent third party that is granted corporate trustee powers under state or federal law. After the occurrence of a Change in
Control, a successor Trustee may not be appointed without the consent of the Ex-CEO. If no such appointment has been made by the effective date of the resignation or removal, the Trustee may appoint a successor trustee or may apply to a court of
competent jurisdiction for appointment of a successor or for instructions. All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust. 

  

	6.3	Settlement of Accounts. Upon resignation or removal of the Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the
successor Trustee in cash and/or in kind as directed the Committee, or after a Change of Control, as determined by the Trustee in consultation with the successor trustee. The transfer shall be completed within 90 days after receipt of notice of
resignation, removal or transfer, unless the Company extends the time limit. Upon the transfer of the assets, the successor Trustee shall succeed to all of the powers and duties given to the Trustee in this Trust Agreement. The resigning or removed
Trustee shall render to the Committee an account in the form and manner and at the time prescribed in Section 5.2. The approval of such accounting and discharge of the Trustee shall be as provided in such Section. 

  
 ARTICLE 7  
 Controversies, Legal Actions and Counsel 
  

	7.1	 Controversy. If any controversy arises with respect to the Trust, the Trustee shall take action as directed by the Committee or, in the absence of
such direction or after a Change in Control, as it deems advisable, whether by legal proceedings, compromise or otherwise. The Trustee may retain the funds or property involved without liability pending settlement of the controversy. The Trustee
shall be under no obligation to take any legal action of whatever 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
nature unless there shall be sufficient property in the Trust to indemnify the Trustee with respect to any expenses or losses to which it may be subjected.

  

	7.2	Joinder of Parties. In any action or other judicial proceedings affecting the Trust, it shall be necessary to join as parties the Trustee, the Committee, the Company
and the Subsidiaries. No Participant or other person shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be binding on all persons claiming under the Trust. Nothing in this Trust Agreement
shall be construed as to deprive a Participant or Beneficiary of his or her right to seek adjudication of his or her rights by administrative process or by a court of competent jurisdiction. 

  
 ARTICLE 8 
 Insurers 
  

	8.1	Insurer Not a Party. No insurer shall be deemed to be a party to the Trust and an insurer’s obligations shall be measured and determined solely by the terms of
contracts and other agreements executed by it. 

  

	8.2	Authority of Trustee. An insurer shall accept the signature of the Trustee to any documents or papers executed in connection with such contracts. The signature of the
Trustee shall be conclusive proof to the insurer that the person on whose life an application is being made is eligible to have a contract issued on his or her life and is eligible for a contract of the type and amount requested.

  

	8.3	Contract Ownership. An insurer shall deal with the Trustee as the sole and absolute owner of any insurance contracts and shall have no obligation to inquire whether
any action or failure to act on the part of the Trustee is in accordance with or authorized by the terms of the Plans or this Trust Agreement. 

  

	8.4	Limitation of Liability. An insurer shall be fully discharged from any and all liability for any action taken or any amount paid in accordance with the direction of
the Trustee and shall have no obligation to see to the proper application of the amounts so paid. An insurer shall have no liability for the operation of the Trust or the Plans, whether or not in accordance with their terms and provisions.

  

	8.5	Change of Trustee. An insurer shall be fully discharged from any and all liability for dealing with a party or parties indicated on its records to be the Trustee until
such time as it shall receive at its home office written notice of the appointment and qualification of a successor Trustee. 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

 ARTICLE 9 
 Amendment and Termination 
  

	9.1	Amendment. Subject to the limitations set forth in this Section 9.1, this Trust Agreement may be amended by a written instrument executed by the Trustee and the
Company. Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plans or shall make the Trust revocable after it has become irrevocable in accordance with Section 1.3 above. 

  

	 	(a)	Writing and Consent. Any amendment to this Trust Agreement shall be set forth in writing and signed by the Company and the Trustee. Any amendment may be current, retroactive
or prospective, in each case as provided therein. 

  

	 	(b)	The Company and Trustee. In connection with the exercise of the rights under this Section 9.1(b): 

  

	 	(i)	prior to a Change in Control, the Trustee shall have no responsibility to determine whether any proposed amendment complies with the terms and conditions of the Plans and may
conclusively rely on the directions of the Committee with respect thereto, unless the Trustee has knowledge of a proposed transaction or transactions that would result in a Change in Control; and 

  

	 	(ii)	after a Change in Control, the power of the Company to amend this Trust Agreement shall cease, and the power to amend that was previously held by the Company shall, instead, be
exercised by the Ex-CEO, with the consent of the Trustee. 

  

	 	(c)	Taxation. This Trust Agreement shall not be amended, altered, changed or modified in a manner that would cause the Participants and/or Beneficiaries under any Plan to be
taxed on the benefits under any Plan in a year other than the year of actual receipt of benefits. 

  

	9.2	 Final Termination. The Trust shall not terminate until the date on which (a) Participants and their Beneficiaries are no longer entitled to
benefits pursuant to the terms of the Plans and all of the expenses of the Trust have been paid, or (b) the Company obtains written approval of all Participants and Beneficiaries with benefits accrued under the Plans at such time to forfeit all
benefits under each Plan and to terminate the Trust. Upon termination of the Trust, any assets remaining in the Trust shall be returned to the Company and the Subsidiaries. Such remaining assets shall be paid by the Trustee to the Company and the
Subsidiaries in such amounts and in the manner instructed by the Company, whereupon the Trustee shall be released and discharged from all obligations hereunder. From and after the date of termination and until final distribution of the Trust Fund,
the Trustee shall continue to have all of the powers provided 

  

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 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
herein as are necessary or expedient for the orderly liquidation and distribution of the Trust Fund. 

  
 ARTICLE 10 
 Miscellaneous 
  

	10.1	Directions Following Change in Control. Despite any other provision of this Trust Agreement that may be construed to the contrary, following a Change in
Control, all powers of the Committee, the Company and the Board to direct the Trustee under this Trust Agreement shall terminate, and the Trustee shall act on its own discretion to carry out the terms of this Trust Agreement in accordance with the
Plans and this Trust Agreement. 

  

	10.2	Taxes. The Company and the Subsidiaries shall from time to time pay taxes of any and all kinds whatsoever that at any time are lawfully levied or assessed upon or
become payable in respect of the Trust Fund, the income or any property forming a part thereof, or any security transaction pertaining thereto. To the extent that any taxes lawfully levied or assessed upon the Trust Fund are not paid by the Company
and the Subsidiaries, the Trustee shall have the power to pay such taxes out of the Trust Fund and shall seek reimbursement from the Company and the Subsidiaries. Prior to making any payment, the Trustee may require such releases or other documents
from any lawful taxing authority as it shall deem necessary. The Trustee shall contest the validity of taxes in any manner deemed appropriate by the Company or its counsel, but at the Company’s and the Subsidiaries’ expense, and only if it
has received an indemnity bond or other security satisfactory to it to pay any such expenses. Prior to a Change in Control, the Trustee (i) shall not be liable for any nonpayment of tax when it distributes an interest hereunder on directions
from the Committee, and (ii) shall have no obligation to prepare or file any tax return on behalf of the Trust Fund, any such return being the sole responsibility of the Committee. The Trustee shall cooperate with the Committee in connection
with the preparation and filing of any such return. After a Change in Control, the Trustee shall have such duties and obligations. 

  

	10.3	Third Persons. All persons dealing with the Trustee are released from inquiring into the decisions or authority of the Trustee and from seeing to the application of
any moneys, securities or other property paid or delivered to the Trustee. 

  

	10.4	Nonassignability; Nonalienation. Benefits payable to Participants and their Beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or
in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process. 

  

	10.5	 The Plans. The Trust and the Plans are parts of a single, integrated employee benefit plan system and shall be construed together. In the event of any
conflict between the terms of this 

  

 21 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	 	 
Trust Agreement and the agreements that constitute the Plans, such conflict shall be resolved in favor of this Trust Agreement. 

 

	10.6	Applicable Law. Except to the extent, if any, preempted by ERISA, this Trust Agreement shall be governed by and construed in accordance with the internal laws of the
State of California. Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof. 

  

	10.7	Notices and Directions. Whenever a notice or direction is given by the Committee to the Trustee, it shall be in the form required by Section 2.1. Actions by the
Company shall be by the Board or a duly authorized officer, with such actions certified to the Trustee by an appropriately certified copy of the action taken. The Trustee shall be protected in acting upon any such notice, resolution, order,
certificate or other communication believed by it to be genuine and to have been signed by the proper party or parties. 

  

	10.8	Successors and Assigns. This Trust Agreement shall be binding upon and inure to the benefit of the Company, the Subsidiaries and the Trustee and their respective
successors and assigns. 

  

	10.9	Gender and Number. Words used in the masculine shall apply to the feminine where applicable, and when the context requires, the plural shall be read as the singular
and the singular as the plural. 

  

	10.10	Headings. Headings in this Trust Agreement are inserted for convenience of reference only and any conflict between such headings and the text shall be resolved in
favor of the text. 

  

	10.11	Counterparts. This Trust Agreement may be executed in an original and any number of counterparts, each of which shall be deemed to be an original of one and the same
instrument. 

  

	10.12	Beneficial Interest. The Company and the Subsidiaries are the true beneficiaries hereunder in that the payment of benefits, directly or indirectly to or for a
Participant or Beneficiary by the Trustee, is in satisfaction of the Company’s and the Subsidiaries’ liability therefore under the Plans. Nothing in this Trust Agreement shall establish any beneficial interest in any person other than the
Company and the Subsidiaries. 

  

	10.13	The Trust and Plans. This Trust, the Plans and each Participant’s Plan Agreement are part of and constitute a single, integrated employee benefit plan and trust,
shall be construed together as the entire agreement between the Company, the Trustee, the Participants and the Beneficiaries with regard to the subject matter thereof, and shall supersede all previous negotiations, agreements and commitments with
respect thereto. 

  

 22 

 

 
  
 Trust Agreement for the 
 Callaway Golf Company Executive Deferred Compensation Plans 
  

	10.14  Effective	Date. The effective date of this amended and restated Trust Agreement shall be January 1, 2005. 

  
 IN WITNESS WHEREOF the Company and the Trustee have signed this amended Trust
Agreement as of the date first written above. 
  

									
	 TRUSTEE:
	 	 	 	 THE COMPANY:

			
	 	 	 	 	 Callaway Golf Company

	 	 	 	 	 a Delaware corporation,

				
	 	 	 	 	By:	 	 
					
	 	 	 	 	 	 	Title:	 	 

  

 23

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