THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Callaway Golf Company (ELY)

4/27/2006 Proxy Information

Mr. Baker served as interim Chairman and Chief Executive Officer of Callaway Golf Company from August 2004 and President and Chief Operating Officer from November 2004 until August 2005.

Mr. Beard served as the General Outside Counsel of Callaway Golf Company from 1998 until 2001.

8/1/2005 8K Information

Mr. Baker served as interim Chairman and Chief Executive Officer of Callaway Golf Company from August 2004 and President and Chief Operating Officer from November 2004 until August 2005.

4/15/2005 Proxy Information

Ronald S. Beard served as General Outside Counsel of Callaway Golf Company from 1998 until 2001.

Effective August 2, 2004, the Board appointed Mr. Baker as Chairman and Chief Executive Officer of the Company. Mr. Baker’s appointment as Chief Executive Officer affected the status of Mr. Rosenfield as an independent director due to Mr. Baker’s service on the compensation committee of California Pizza Kitchen, Inc., where Mr. Rosenfield is co-chief executive officer. Mr. Rosenfield therefore resigned from the committee effective August 2, 2004. The committee is currently comprised of Messrs. Armacost, Beard and Thornley, each of whom has been determined to be independent, and there are no compensation committee interlocks.

4/20/2004 Proxy Information

The Company has a policy that the non-employee directors should promote the Company’s products by using the Company’s products whenever they play golf. To assist the directors in complying with this policy, non-employee directors are entitled to receive golf club products of the Company, free of charge, for their own personal use and the use of immediate family members living in the director’s home.

4/24/2003 Proxy Information

Mr. Beard is currently a partner in the Zeughauser Group, consultants to the legal industry. He is also a retired former partner of the law firm of Gibson, Dunn & Crutcher LLP. The Company retained the law firm of Gibson, Dunn & Crutcher to provide certain specialized legal services to the Company during 2002, and has retained Gibson, Dunn & Crutcher to provide similar legal services in 2003 as well. Although Mr. Beard draws retirement compensation from Gibson, Dunn & Crutcher, the amount which he receives does not reflect, and is not affected by, any revenues received by Gibson, Dunn & Crutcher from the Company. Based upon a review of Mr. Beard’s relationship with Gibson, Dunn & Crutcher, the Board has determined that he satisfies the current independence requirements of the New York Stock Exchange. The Board also believes that Mr. Beard would satisfy the independence requirements under the New York Stock Exchange’s proposed new independence standards.

The Company has a policy that the non-employee directors should promote the Company’s products by using the Company’s products whenever they play golf. To assist the directors in complying with this policy, non-employee directors are entitled to receive golf club products of the Company, free of charge, for their own personal use and the use by immediate family members living in the director’s home.