Clearwire 2008 Annual Report Download - page 41

r
equ
i
res perm
i
ts an
d
approva
l
s
f
rom numerous governmenta
lb
o
di
es,
i
nc
l
u
di
ng mun
i
c
i
pa
li
t
i
es an
d
zon
i
ng
b
oar
d
s.
S
uch entities often limit the expansion of transmission towers and other construction necessar
y
for our network
.
Failure to receive approvals in a timely fashion can delay new market deployments and upgrades in existing market
s
an
d
ra
i
se t
h
e cost o
f
comp
l
et
i
ng construct
i
on pro
j
ects. In a
ddi
t
i
on, we o
f
ten are requ
i
re
d
to o
b
ta
i
nr
i
g
h
ts
f
rom
l
an
d
,
buildin
g
and tower owners to install the antennas and other equipment that provide our service to our subscribers
.
W
e may not
b
ea
bl
etoo
b
ta
i
n, on terms accepta
bl
etousorata
ll
,t
h
er
i
g
h
ts necessary to construct our networ
k
an
d
e
xpan
d
our serv
i
ces
.
We a
l
so ma
yf
ace c
h
a
ll
en
g
es
i
n mana
gi
n
g
an
d
operat
i
n
g
our networ
k
.T
h
ese c
h
a
ll
en
g
es cou
ld i
nc
l
u
d
e ensur
i
n
g
th
eava
il
a
bili
t
y
o
f
su
b
scr
ib
er
d
ev
i
ces t
h
at are compat
ibl
ew
i
t
h
our networ
k
an
d
mana
gi
n
g
sa
l
es, a
d
vert
i
s
i
n
g,
c
ustomer support, and billin
g
and collection functions of our business while providin
g
reliable network service tha
t
m
eets our su
b
scr
ib
ers’ expectat
i
ons. Our
f
a
il
ure
i
nanyo
f
t
h
ese areas cou
ld
a
d
verse
l
ya
ff
ect customer sat
i
s
f
act
i
on,
i
ncrease su
b
scr
ib
er c
h
urn
,i
ncrease our costs
,d
ecrease our revenues an
d
ot
h
erw
i
se
h
ave a mater
i
a
l
a
d
verse e
ff
ect on
our business,
p
ros
p
ects, financial condition and results of o
p
erations.
Sprint, Eagle River and the Investors are our largest stockholders, and as a result they together effectivel
y
h
ave contro
l
over us an
d
ma
yh
ave actua
l
or
p
otentia
l
interests t
h
at ma
yd
iverge
f
rom
y
ours.
Sprint, Ea
g
le River and the Investors own a ma
j
orit
y
of the votin
g
power of Clearwire Class A Common Stock.
S
pr
i
nt, Eag
l
eR
i
ver an
d
t
h
e Investors may
h
ave
i
nterests t
h
at
di
verge
f
rom t
h
ose o
f
ot
h
er
h
o
ld
ers o
f
our cap
i
ta
l
stoc
k.
Eac
h
o
f
Spr
i
nt, Eag
l
eR
i
ver an
d
t
h
e Investors are a party to t
h
e Equ
i
ty
h
o
ld
ers’ Agreement, w
hi
c
h
requ
i
res, amon
g
other thin
g
s, the approval of
:
•7
5
% of the votin
g
power of all outstandin
g
stock of Clearwire for certain actions, includin
g
an
y
mer
g
er,
c
onsolidation, share exchange or similar transaction and any issuance of capital stock that would constitute a
ch
an
g
eo
f
contro
l
o
f
C
l
earw
i
re or an
y
o
fi
ts su
b
s
idi
ar
i
es
;
• eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e representat
i
ve
f
or t
h
e Investors, as a
g
roup, so
l
on
g
as eac
h
o
f
Spr
i
nt, Inte
l
an
d
the Investors, as a
g
roup, respectivel
y
, owns securities representin
g
at least 5% of the outstandin
g
votin
g
p
ower of Clearwire, in order to:
•
amend our Amended and Restated Certificate of Incor
p
oration, which we refer to as the Clearwire
Ch
arter, t
h
e
b
y
l
aws o
f
C
l
earw
i
re, w
hi
c
h
we re
f
er to as t
h
eC
l
earw
i
re By
l
aws, or t
h
e amen
d
e
d
an
d
restated Operatin
g
A
g
reement
g
overnin
g
Clearwire Communications, which we refer to as the
Operatin
g
A
g
reement
;
•
chan
g
e the size of the board of directors of Clearwire;
•
liquidate Clearwire or Clearwire Communications or declare bankruptc
y
of Clearwire or it
s
su
b
s
idi
ar
i
es
;
•
e
ff
ect any mater
i
a
l
cap
i
ta
l
reorgan
i
zat
i
on o
f
C
l
earw
i
re or any o
fi
ts mater
i
a
l
su
b
s
idi
ar
i
es, ot
h
er t
h
an a
fi
nanc
i
a
l
transact
i
on (
i
nc
l
u
di
n
g
secur
i
t
i
es
i
ssuances)
i
nt
h
eor
di
nar
y
course o
fb
us
i
ness
;
•
ta
k
ean
y
act
i
on t
h
at cou
ld
cause C
l
earw
i
re Commun
i
cat
i
ons or an
y
o
fi
ts mater
i
a
l
su
b
s
idi
ar
i
es to
b
e
t
axed as a cor
p
oration for federal income tax
p
ur
p
oses; and
•
sub
j
ect to certain exceptions, issue an
y
Clearwire Class B Common Stock or an
y
equit
y
interests of
C
learwire Communications
;
•
Eagle River, for so long as Eagle River owns at least
5
0% of the shares of the Common Stock received
b
y
i
t
i
nt
h
e Transact
i
ons, an
d
t
h
e propose
d
act
i
on wou
ld di
sproport
i
onate
l
yan
d
a
d
verse
l
ya
ff
ect Eag
l
e
R
i
ver, t
h
epu
bli
c stoc
kh
o
ld
ers o
f
C
l
earw
i
re or C
l
earw
i
re
i
n
i
ts capac
i
t
y
as a mem
b
er o
f
C
l
earw
i
r
e
C
ommunications, in order to amend the Clearwire Charter, the Clearwire Bylaws or the Operating
Agreement or to change the size of the board of directors of Clearwire; an
d
•
eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e Investors, as a group, so
l
ong as eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e Investors, as a
g
roup, respectively, owns both (1) at least 50% of the number of shares of Common Stock received by it
in the Transactions and (2) securities representin
g
at least
5
% of the outstandin
g
votin
g
power of
29