“Golf is deceptively simple and endlessly complicated”

2. “Golf is deceptively simple and endlessly complicated” Arnold Palmer

3. “We hope to facilitate through our ideas and strategy an increased recognition, appeal and influence for the United States Golf Association and the Royal and Ancient Golf Association”.

4. The 1990’s was a period of excitement and growth for the golfing industry. Golfing brands and equipment names such as “Ping” and “Big Bertha” became household names.

5. Technology was at it’s peak with young entry level golfers on the rise. • The gentlemen’s sport was reaching into young main stream America and was providing fun and a new sophistication for all classes of society. • Technology was providing an easier entry into a very difficult sport.

6. Early successes for new golfers of driving the ball more accurately and further reduced frustration and motivated young players to keep working at the sport. “The harder you work, the luckier you get” Gary Player

7. Golf has always been a sport that takes countless hours of practice to achieve marginal success. No other sport affords a young golfer such a minimal amount of success with such a great amount of an investment of time and money.

8. The technological progress of the 1990’s changed the daunting endeavor of thesport of golf into a fun and exciting sport that enjoyed a renewed national recognition. “There’s no game like golf: you go out with three friends, play eighteen holes, and return with three enemies”

9. The technological progress of golf equipment became a concern to the USGA and the R&A by the late 1990’s. The USGA and R&A placed restrictions on further technological advances on golfing equipment.

10. The result was an immediate and consistent annual decline in the sport of golf on every level.

11. Callaway’s Financial Ratios • Net Profit Margin • Return on Assets • Return on Equity • Debt/Equity • Inventory Turnover • Current Ration • Times-Interest-Earned Ratio • Sales Mix

20. Golf is no longer the thriving sport it once was in the 1990’s.

21. How do we create an appeal for the traditional sport of golf in contemporary times?

22. Callaway Golf would like to propose a solution to the problems faced by the honorary governing bodies and the golf community as a whole. “Resolve never to quit, never to give up, no matter what the situation” Jack Nicklaus

23. Our company asserts: • lifting the restrictions on the advances of golf equipment technology for “particular usages” • co-operative marketing efforts of the golf industry condoning new technology • the “seal of approval” from the USGA and the R&A

24. The proposed changes will pave the way for the sport of golf to achieve a renewed national recognition.

25. Callaway Golf proposes that marketing efforts emphasizing the acquisition of entry level skills thru core golfer status with high-tech golf equipment along with the acceptance of such practices by the golf community will immediately raise the level of awareness and interest in the sport of golf.

27. Callaway Golf proposes that the comprehensive marketing efforts are supported with: • national high tech driving competitions and putting competitions • open club golfing and an associated league supported by the USGA and R&A • categorizing technologically advanced golf equipment into classes and adjusting handicaps commensurate with the classifications • incorporating supplementary pars for equipment classifications.

28. Callaway Golf’s marketing efforts have resulted in international brand recognition. Callaway’s success was the benchmark for the industry for over a decade.

29. The status achieved by our company was the result of our highly differentiated core competencies in research and development, our manufacturing processes and bringing new innovative products to market faster than any of our competitors. “Golf is not a game of great shots. It’s a game of the most misses. The people who win make the smallest mistakes” Gene Littler

30. It is of “urgent” status that we implore you the United States Golf Association and the Royal and Ancient Golf Association to join us and our industry members in our most ambitious goal of elevating the industry and sport of golf to new long-term heights of success.

31. We at Callaway Golf and our industry constituents are certain that our vision and strategy approach will result in: • a renewed interest in golf as a national recreational pastime and sport • a further reaching gentlemen’s sport into all classes of society and the benefits there-of • a greater influence on contemporary societal culture for the USGA and R&A • industry profitability and growth • job creation

32. As long-term leaders in our industry we look forward to moving forward in achieving our mutually beneficial industry, corporate and community goals together.