Clearwire 2010 Annual Report Download - page 105

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the Closing, we granted RSUs to certain officers and employees under the 2008 Plan. All RSUs generally vest over a
four-year period. The fair value of our RSUs is based on the grant-date fair market value of the common stock,
which equals the grant date market price.
A summary of the RSU activity for the years ended December 31, 2010, 2009 and 2008 is presented below:
Number of
RSU’s
Weighted-
Average
Grant Price
Restricted stock units outstanding — January 1, 2008 ................ —
Restricted stock units acquired in purchase accounting — November 28,
2008 .................................................. 3,216,500 $13.19
Granted ................................................ 716,000 4.10
Forfeited ............................................... (43,000) —
Released ............................................... (508,098) 5.18
Cancelled .............................................. (108,777) —
Restricted stock units outstanding — December 31, 2008 ............. 3,272,625 $13.19
Granted ................................................ 10,938,677 4.39
Forfeited ............................................... (1,217,857) 5.17
Released ............................................... (1,140,251) 6.95
Cancelled .............................................. — —
Restricted stock units outstanding — December 31, 2009 ............. 11,853,194 $ 4.60
Granted ................................................ 10,523,277 6.71
Forfeited ............................................... (3,613,124) 5.55
Released ............................................... (4,087,694) 4.22
Cancelled .............................................. — —
Restricted stock units outstanding — December 31, 2010 ............. 14,675,653 $ 5.99
The total fair value of grants during 2010, 2009 and 2008 was $70.6 million, $48.0 million and $2.9 million,
respectively. The intrinsic value of RSUs released during the years ended December 31, 2010, 2009 and 2008 was
$29.5 million, $7.9 million and $3.2 million, respectively. As of December 31, 2010, there were 14,675,653 RSUs
outstanding and total unrecognized compensation cost of approximately $50.3 million, which is expected to be
recognized over a weighted-average period of approximately 1.6 years.
For the years ended December 31, 2010, 2009 and 2008, we used a forfeiture rate of 7.15%, 7.75% and 7.50%,
respectively, in determining compensation expense for RSUs.
Stock Options
In connection with the Transactions, all Old Clearwire stock options issued and outstanding at the Closing
were exchanged on a one-for-one basis for stock options with equivalent terms. Following the Closing, we granted
options to certain officers and employees under the 2008 Plan. All options generally vest over a four-year period.
The fair value of option grants was estimated on the date of grant using the Black-Scholes option pricing model.
100
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)