Clearwire 2010 Annual Report Download - page 107

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Information regarding stock options outstanding and exercisable as of December 31, 2010 is as follows:
Exercise Prices
Number of
Options
Weighted
Average
Contractual
Life
Remaining
(Years)
Weighted
Average
Exercise
Price
Number of
Options
Weighted
Average
Exercise
Price
Options Outstanding Options Exercisable
$2.25 — $3.00........................ 454,701 1.25 $ 2.86 454,701 $ 2.86
$3.03 ........................... 2,902,000 8.16 3.03 952,000 3.03
$3.53 — $5.45........................ 562,625 6.61 4.34 237,875 4.31
$6.00 ........................... 2,029,238 3.94 6.00 2,029,238 6.00
$6.07 — $7.66........................ 1,940,656 8.64 7.13 410,625 7.24
$7.87 — $15.00 ....................... 2,241,589 5.16 11.78 1,338,283 13.26
$16.02 .......................... 138,625 2.60 16.02 125,875 16.02
$17.11 .......................... 1,768,442 3.55 17.11 1,346,218 17.11
$18.00 — $20.16 ...................... 1,667,621 4.50 18.09 1,663,871 18.08
$23.30 — 25.33 ....................... 2,737,744 5.54 24.25 2,516,086 24.27
Total ......................... 16,443,241 5.69 $11.80 11,074,772 $13.93
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing
model using the following assumptions for the years ended December 31, 2010, 2009 and 2008:
2010 2009 2008
Year Ended December 31,
Expected volatility .......................... 58.80%-62.22% 63.35%-67.65% 66.52%
Expected dividend yield . . .................... — — —
Expected life (in years) . . .................... 6.25 4.75 - 6.25 4.75
Risk-free interest rate........................ 2.00%-3.15% 1.36% - 2.98% 1.93%
Weighted average fair value per option at grant
date ................................... $4.27 $2.63 $ 2.24
The fair value of option grants in 2010 and 2009 was $4.3 million and $18.6 million, respectively. In addition to
options issued in exchange as part of the Transactions, the fair value of option grants during 2008 was $954,000. The
total fair value of options vested during the years ended December 31, 2010, 2009 and 2008 was $9.8 million,
$5.8 million and $815,000, respectively. The total unrecognized share-based compensation costs related to non-
vested stock options outstanding at December 31, 2010 was approximately $5.8 million and is expected to be
recognized over a weighted average period of approximately 1.3 years.
For the years ended December 31, 2010, 2009 and 2008, we used a forfeiture rate of 10.09%, 12.66% and
12.66% respectively, in determining compensation expense for options.
102
CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)