Clearwire 2009 Annual Report Download - page 39

O
ur commerc
i
a
l
agreement w
i
t
h
Spr
i
nt an
d
t
h
eot
h
er Investors were eac
h
entere
di
nto concurrent
l
yw
i
t
h
p
urchases of shares of our capital stock b
y
such parties or their affiliates. In addition, our various commercia
l
agreements with Sprint and the other Investors provide for, among other things, access rights to towers that Sprin
t
owns or
l
eases, resa
l
es
b
yusan
d
certa
i
not
h
er Investors o
fb
un
dl
e
d
2G an
d
3G serv
i
ces
f
rom Spr
i
nt, resa
l
es
b
y
Sp
rint and certain other Investors of our 4G services, most favored reseller status with res
p
ect to economic and non-
e
conom
i
c terms o
f
certa
i
n serv
i
ce agreements, co
ll
ect
i
ve
d
eve
l
opment o
f
new 4G serv
i
ces, creat
i
on o
fd
es
k
top an
d
m
o
bil
e app
li
cat
i
ons on t
h
e our networ
k
,t
h
eem
b
e
ddi
ng o
f
mo
bil
eW
i
MAX c
hi
ps
i
nto var
i
ous o
f
our networ
k
d
ev
i
ces an
d
t
h
e
d
eve
l
opment o
f
Internet serv
i
ces an
d
protoco
l
s. Except
f
or t
h
ea
g
reements w
i
t
h
Goo
gl
ean
d
Inte
l,
n
one of these agreements restricts these parties from entering into similar arrangements with other parties, but right
s
c
ould be lost if a party enters into a similar relationship. For additional information regarding these relationships,
s
ee “Certa
i
nre
l
at
i
ons
hi
ps an
d
re
l
ate
d
part
y
transact
i
ons.”
Cl
earwire is a “contro
ll
e
d
company” wit
h
in t
h
e meaning of t
h
e NASDA
Q
Mar
k
etp
l
ace Ru
l
es an
d
re
l
ies
o
n exem
p
tions
f
rom certain cor
p
orate governance re
q
uirements.
Sprint beneficiall
y
owned approximatel
y
56.4% of the outstandin
g
votin
g
power of Clearwire as of Decem
-
b
er 31, 2009. In addition, the Investors collectively owned approximately 29.4% and Eagle River owned
approx
i
mate
l
y 4.1% o
f
t
h
e outstan
di
ng vot
i
ng power o
f
C
l
earw
i
re. For
f
urt
h
er
i
n
f
ormat
i
on, p
l
ease see “Certa
i
n
r
e
l
at
i
ons
hi
ps an
d
re
l
ate
d
part
y
transact
i
ons — Re
l
at
i
ons
hi
ps amon
g
certa
i
n stoc
kh
o
ld
ers,
di
rectors an
d
o
ffi
cers o
f
Clearwire — New equit
y
and debt investments.” The Equit
y
holders’ A
g
reement
g
overns the votin
g
of shares of
C
l
ass A an
d
C
l
ass B Common Stoc
kh
e
ld b
y eac
h
o
f
t
h
e part
i
es t
h
ereto
i
n certa
i
nc
i
rcumstances,
i
nc
l
u
di
ng w
i
t
h
r
espect to t
h
ee
l
ect
i
on o
f
t
h
e
i
n
di
v
id
ua
l
s nom
i
nate
d
to t
h
e
b
oar
d
o
fdi
rectors o
f
C
l
earw
i
re
b
y Spr
i
nt, t
h
e Investors
and Ea
g
le River.
As a result of the combined voting power of Sprint, the Investors and Eagle River and the Equityholders
’
Ag
reement, C
l
earw
i
re re
li
es on exempt
i
ons
f
rom certa
i
n NASDAQ corporate
g
overnance stan
d
ar
d
s. Un
d
er t
he
N
ASDAQ Marketplace Rules, a compan
y
of which more than
5
0% of the votin
g
power is held b
y
sin
g
le person or a
g
roup of people is a “controlled compan
y
” and ma
y
elect not to compl
y
with certain NASDAQ corporat
e
governance requ
i
rements,
i
nc
l
u
di
ng t
h
e requ
i
rements t
h
at:
•ama
j
orit
y
of the board of directors consist of independent directors;
•t
h
e compensat
i
on o
f
o
ffi
cers
b
e
d
eterm
i
ne
d
, or recommen
d
e
d
to t
h
e
b
oar
d
o
fdi
rectors
f
or
d
eterm
i
nat
i
on,
b
y
ama
j
or
i
t
y
o
f
t
h
e
i
n
d
epen
d
ent
di
rectors or a compensat
i
on comm
i
ttee compr
i
se
d
so
l
e
ly
o
fi
n
d
epen
d
ent
d
irectors; an
d
•
di
rector nom
i
nees
b
ese
l
ecte
d
, or recommen
d
e
df
or t
h
e
b
oar
d
o
fdi
rectors’ se
l
ect
i
on,
b
yama
j
or
i
ty o
f
t
he
i
n
d
epen
d
ent
di
rectors or a nom
i
nat
i
ng comm
i
ttee compr
i
se
d
so
l
e
l
yo
fi
n
d
epen
d
ent
di
rectors w
i
t
h
awr
i
tte
n
c
harter or board resolution addressin
g
the nomination process.
I
f Clearwire chooses to no lon
g
er rel
y
on these exemptions in the future it will be sub
j
ect to all of the NASDA
Q
c
orporate governance requ
i
rements
.
T
he corporate opportunity provisions in the Charter could enable certain of Clearwire’s stockholders t
o
b
ene
f
it
f
rom cor
p
orate o
pp
ortunities t
h
at mig
h
tot
h
erwise
b
e avai
l
a
bl
etoC
l
earwire.
Th
eC
h
arter conta
i
ns prov
i
s
i
ons re
l
ate
d
to corporate opportun
i
t
i
es t
h
at may
b
eo
fi
nterest to
b
ot
h
C
l
earw
i
re an
d
c
ertain of its stockholders, includin
g
Sprint, the Investors and Ea
g
le River, who are referred to in the Charter as the
F
oun
di
ng Stoc
kh
o
ld
ers. T
h
ese prov
i
s
i
ons prov
id
et
h
at un
l
ess a
di
rector
i
s an emp
l
oyee o
f
C
l
earw
i
re, suc
h
perso
n
d
oes not
h
ave a
d
uty to present to C
l
earw
i
re a corporate opportun
i
ty o
f
w
hi
c
hh
eors
h
e
b
ecomes aware, excep
t
w
here the corporate opportunit
y
is expressl
y
offered to such person in his or her capacit
y
as a director of Clearwire.
I
n addition, the Charter expressl
y
provides that the Foundin
g
Stockholders ma
y
, and have no dut
y
not to
,
e
ngage
i
nany
b
us
i
nesses t
h
at are s
i
m
il
ar to or compet
i
t
i
ve w
i
t
h
t
h
at o
f
C
l
earw
i
re,
d
o
b
us
i
ness w
i
t
h
C
l
earw
i
r
e
c
ompetitors, customers and suppliers, and emplo
y
Clearwire’s emplo
y
ees or officers. The Foundin
g
Stockholder
s
or their affiliates ma
y
deplo
y
competin
g
wireless broadband networks or purchase broadband services from othe
r
p
rov
id
ers. Furt
h
er, we may a
l
so compete w
i
t
h
t
h
e Foun
di
ng Stoc
kh
o
ld
ers or t
h
e
i
ra
ffili
ates
i
nt
h
e area o
f
emp
l
oye
e
2
9