Clearwire 2009 Annual Report Download - page 118

D
ecember 23, 2009. We then filed a motion to dismiss that was fully briefed on January 15, 2010. Prior to the Cour
t
r
u
li
ng on t
h
e mot
i
on to
di
sm
i
ss, p
l
a
i
nt
iff
move
d
t
h
e Court
f
or
l
eave to
fil
ea
f
urt
h
er amen
d
e
d
comp
l
a
i
nt. On
Februar
y
22, 2010 the Court
g
ranted our motion to dismiss in part, dismissin
g
certain claims with pre
j
udice and
grant
i
ng p
l
a
i
nt
iff
20
d
ays to amen
d
t
h
e comp
l
a
i
nt. T
h
e Court
di
sm
i
sse
d
p
l
a
i
nt
iff
’s mot
i
on
f
or
l
eave to amen
d
as
m
oot. T
hi
s case
i
s
i
nt
h
e ear
l
y stages o
fli
t
i
gat
i
on, an
di
ts outcome
i
sun
k
nown.
I
na
ddi
t
i
on to t
h
e matters
d
escr
ib
e
d
a
b
ove, we are o
f
ten
i
nvo
l
ve
di
n certa
i
not
h
er procee
di
ngs w
hi
c
h
ar
i
se
i
nt
he
ordinar
y
course of business and seek monetar
y
dama
g
es and other relief. Based upon information currentl
y
available to us, none of these other claims are ex
p
ected to have a material adverse effect on our business, financia
l
c
on
di
t
i
on or resu
l
ts o
f
operat
i
ons
.
Indemnification agreement
s
— We are current
ly
a part
y
to
i
n
d
emn
ifi
cat
i
on a
g
reements w
i
t
h
certa
i
no
ffi
cers
an
d
eac
h
o
f
t
h
e mem
b
ers o
f
our Boar
d
o
f
D
i
rectors. No
li
a
bili
t
i
es
h
a
v
e
b
een recor
d
e
di
nt
h
e conso
lid
ate
db
a
l
ance
s
heets for an
y
indemnification a
g
reements, because the
y
are not probable nor estimable.
14.
S
hare-Based Payments
I
n connection with the Closin
g
, we assumed the Old Clearwire 2008 Stock Compensation Plan, which we refe
r
t
o as the 2008 Plan, the Old Clearwire 2007 Stock Com
p
ensation Plan, which we refer to as the 2007 Plan, and th
e
Old
C
l
earw
i
re 2003 Stoc
k
Opt
i
on P
l
an, w
hi
c
h
we re
f
er to as t
h
e 2003 P
l
an. S
h
are grants genera
ll
y vest rata
bl
yover
f
our
y
ears an
d
exp
i
re no
l
ater t
h
an ten
y
ears a
f
ter t
h
e
d
ate o
fg
rant. Grants to
b
e awar
d
e
d
un
d
er t
h
e 2008 P
l
an w
ill be
m
ade available at the discretion of the Com
p
ensation Committee of the Board of Directors from authorized but
unissued shares, authorized and issued shares reacquired and held as treasury shares, or a combination thereof. At
D
ecember 31, 2009, there were 62,229,805 shares available for
g
rant under the 2008 Plan, which authorizes us to
g
rant incentive stock options, non-qualified stock options, stock appreciation ri
g
hts, restricted stock, restricted
s
tock units, and other stock awards to our emplo
y
ees, directors and consultants. With the adoption of the 2008 Plan
,
n
oa
ddi
t
i
ona
l
stoc
k
opt
i
ons w
ill b
e grante
d
un
d
er t
h
e 2007 P
l
an or t
h
e 2003 P
l
an
.
S
h
are-
b
ase
d
compensat
i
on expense
i
s
b
ase
d
on t
h
e est
i
mate
d
grant-
d
ate
f
a
i
rva
l
ue o
f
t
h
e awar
d
an
di
s
r
eco
g
nized net of estimated forfeitures on those shares expected to vest over a
g
raded vestin
g
schedule on a strai
g
ht
-
line basis over the requisite service period for each separately vesting portion of the award as if the award was, in
-
s
u
b
stance, mu
l
t
i
p
l
e awar
d
s.
Stoc
k
O
p
tion
s
I
n connection with the Transactions, all Old Clearwire stock options issued and outstandin
g
at the Closin
g
were exc
h
ange
d
on a one-
f
or-one
b
as
i
s
f
or stoc
k
opt
i
ons w
i
t
h
equ
i
va
l
ent terms. Fo
ll
ow
i
ng t
h
eC
l
os
i
ng, we grante
d
options to certain officers and emplo
y
ees under the 2008 Plan. All options vest over a four-
y
ear period. The fai
r
value of option
g
rants was estimated on the date of
g
rant usin
g
the Black-Scholes option pricin
g
model.
108
C
LEARWIRE
CO
RP
O
RATI
O
N AND
SU
B
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)