2.2.0.7falseCommitments and Contingencies0211 - Disclosure - Commitments and Contingenciestruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170$20clwr_CommitmentsAndContingenciesAbstractclwrfalsenadurationCommitments and Contingencies.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringCommitments and Contingencies.false31us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Future minimum payments under obligations listed below (including all optional expected
renewal periods on operating leases) as of June 30, 2010 are as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="4%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Thereafter,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Including All</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2011</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2012</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2013</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2014</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Renewal Periods</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt obligations
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">2,805,456</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8,241</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">10,987</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">11,097</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,637</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,772,494</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest payments
</div></td>
<td> </td>
<td> </td>
<td align="right">1,834,494</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">167,348</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">334,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">333,919</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">333,264</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">332,738</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">332,699</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap">
<div style="margin-left:15px; text-indent:-15px">Operating lease obligations (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">11,103,299</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">134,099</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">340,849</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">357,510</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">363,436</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">367,988</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,539,417</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Spectrum lease obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">5,701,315</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67,836</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">148,661</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">156,107</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">155,399</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">164,177</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,009,135</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Spectrum service credits
</div></td>
<td> </td>
<td> </td>
<td align="right">95,308</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,096</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,460</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,460</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,460</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,460</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">88,372</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital lease obligations (2)
</div></td>
<td> </td>
<td> </td>
<td align="right">20,961</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">710</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,465</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,523</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,584</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,648</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,031</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Signed spectrum agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">20,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Network equipment purchase
obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">182,342</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">182,342</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other purchase obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">212,323</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65,427</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,465</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,564</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,558</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,577</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,732</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">21,975,798</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">639,158</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">881,667</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">899,070</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">890,798</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">881,225</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">17,783,880</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="27" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Includes executory costs of $36.6 million.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Payments include $10.3 million representing interest.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Spectrum and operating lease expense — </i></b>Our commitments for non-cancelable operating leases
consist mainly of leased spectrum license fees, office space, equipment, and leased sites,
including towers and rooftop locations. Certain of the leases provide for minimum lease payments,
additional charges and escalation clauses. Certain of the tower leases specify a minimum number of
new leases to commence by December 31, 2011. Charges apply if these commitments are not satisfied.
Spectrum lease agreements have terms of up to 30 years. Operating leases generally have initial
terms of five years with multiple renewal options for additional five-year terms totaling between
20 and 25 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Expense recorded related to spectrum and operating leases was as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Three Months Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Six Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
<td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>June 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Spectrum lease expense
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">54,192</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">49,563</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">106,733</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">99,290</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Amortization of prepaid spectrum licenses
</div></td>
<td> </td>
<td> </td>
<td align="right">13,960</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,706</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,419</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total spectrum lease expense
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">68,152</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">64,269</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">134,843</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">128,709</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating lease expense
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">118,444</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">52,113</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">210,146</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">101,850</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td> </td>
<td> </td>
<td colspan="15" align="left" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Other spectrum commitments — </i></b>We have commitments to provide Clearwire services to certain
lessors in launched markets, and reimbursement of capital equipment and third-party service
expenditures of the lessors over the term of the lease. We accrue a monthly obligation for the
services and equipment based on the total estimated available service credits divided by the term
of the lease. The obligation is reduced as actual invoices are presented and paid to the lessors.
During the three and six months ended June 30, 2010 we satisfied $196,000 and $364,000,
respectively, related to these commitments. During the three and six months ended June 30, 2009 we
satisfied $128,000 and $202,000, respectively, related to these commitments. The maximum remaining
commitment at June 30, 2010 is $95.3 million and is expected to be incurred over the term of the
related lease agreements, which generally range from 15-30 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of June 30, 2010, we have signed agreements to acquire approximately $20.3 million in new
spectrum, subject to closing conditions. These transactions are expected to be completed within the
next twelve months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Network equipment purchase obligations </i></b>— We have purchase commitments with take-or-pay
obligations and/or volume commitments for equipment that are non-cancelable and outstanding
purchase orders for network equipment for which we believe delivery is likely to occur.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Other purchase obligations </i></b>— We have purchase obligations that include minimum purchases we
have committed to purchase from suppliers over time and/or unconditional purchase obligations where
we guarantee to make a minimum payment to suppliers for goods and services regardless of whether
suppliers fully deliver them. They include, among other things, agreements for backhaul, customer
devices and IT related and other services. In addition, we are party to various arrangements that
are conditional in nature and create an obligation to make payments only upon the occurrence of
certain events, such as the actual delivery and acceptance of products or services. Because it is
not possible to predict the timing or amounts that may be due under these conditional arrangements,
no such
amounts have been included in the table above. The table above also excludes blanket purchase
order amounts where the orders are subject to cancellation or termination at our discretion or
where the quantity of goods or services to be purchased or the payment terms are unknown because
such purchase orders are not firm commitments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>AMDOCS Agreement — </i></b>We have a Customer Care and Billing Services Agreement, which we refer to
as the AMDOCS Agreement, with AMDOCS Software Systems Limited, which we refer to as AMDOCS, under
which AMDOCS will provide a customized customer care and billing platform, which we refer to as the
Platform, to us. In connection with the provision of these services and the establishment of the
Platform, AMDOCS will also license certain of its software to us.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The initial term of the AMDOCS Agreement is seven years. Under the terms of the AMDOCS
Agreement, we are required to pay AMDOCS licensing fees, implementation fees, monthly subscriber
fees, and reimbursable expenses. In addition, the AMDOCS Agreement contains detailed terms
governing implementation and maintenance of the Platform; performance specifications; acceptance
testing; charges, credits and payments; and warranties. We capitalized $12.9 million and $47.7
million in costs incurred during the application development stage associated with the Platform for
the three and six months ended June 30, 2010, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Legal proceedings </i></b>— As more fully described below, we are involved in a variety of lawsuits,
claims, investigations and proceedings concerning intellectual property, business practices,
commercial and other matters. We determine whether we should accrue an estimated loss for a
contingency in a particular legal proceeding by assessing whether a loss is deemed probable and can
be reasonably estimated. We reassess our views on estimated losses on a quarterly basis to reflect
the impact of any developments in the matters in which we are involved. Legal proceedings are
inherently unpredictable, and the matters in which we are involved often present complex legal and
factual issues. We vigorously pursue defenses in legal proceedings and engage in discussions where
possible to resolve these matters on terms favorable to us. It is possible, however, that our
business, financial condition and results of operations in future periods could be materially and
adversely affected by increased litigation expense, significant settlement costs and/or unfavorable
damage awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 22, 2009, a purported class action lawsuit was filed against Clearwire U.S. LLC in
Superior Court in King County, Washington by a group of five plaintiffs from Hawaii, Minnesota,
North Carolina and Washington (Chad Minnick, et al.). The lawsuit generally alleges that we
disseminated false advertising about the quality and reliability of our services; imposed an
unlawful early termination fee; and invoked unconscionable provisions of our Terms of Service to
the detriment of customers. Among other things, the lawsuit seeks a determination that the alleged
claims may be asserted on a class-wide basis; an order declaring certain provisions of our Terms of
Service, including the early termination fee provision, void and unenforceable; an injunction
prohibiting us from collecting early termination fees and further false advertising; restitution of
any early termination fees paid by our subscribers; equitable relief; and an award of unspecified
damages and attorneys’ fees. On May 27, 2009, an amended complaint was filed and served, adding
seven additional plaintiffs, including individuals from New Mexico, Virginia and Wisconsin. On June
2, 2009, plaintiffs served the amended complaint. We removed the action to the United States
District Court for the Western District of Washington. On July 23, 2009, we filed a motion to
dismiss the amended complaint. The Court stayed discovery pending its ruling on the motion. The
Court granted our motion to dismiss in its entirety on February 2, 2010. Plaintiffs filed a notice
of appeal to the Ninth Circuit Court of Appeals. Plaintiffs filed their opening brief to the Ninth
Circuit Court of Appeals on June 16, 2010. We filed an answering brief on July 30, 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On September 1, 2009, we were served with a purported class action lawsuit filed in King
County Superior Court, brought by representative plaintiff Rosa Kwan. The complaint alleges we
placed unlawful telephone calls using automatic dialing and announcing devices and engaged in
unlawful collection practices. It seeks declaratory, injunctive, and/or equitable relief and actual
and statutory damages under federal and state law. On October 1, 2009, we removed the case to the
United States District Court for the Western District of Washington. On October 22, 2009, the Court
issued a stipulated order granting plaintiff until October 29, 2009 to file an Amended Complaint.
The parties further stipulated to allow a Second Amended Complaint, which plaintiffs filed on
December 23, 2009. We then filed a motion to dismiss that was fully briefed on January 15, 2010. On
February 22, 2010 the Court granted our motion to dismiss in part, dismissing certain claims with
prejudice and granting plaintiff leave to amend the complaint. Plaintiff filed a Third Amended
Complaint adding additional state law claims and joining Bureau of Recovery, a purported collection
agency, as a co-defendant. On May 5, 2010, Clearwire filed an Answer to the Third Amended
Complaint. We recently commenced discovery in the matter.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition to the matters described above, we are often involved in certain other proceedings
which arise in the ordinary course of business and seek monetary damages and other relief. Based
upon information currently available to us, none of these other claims are expected to have a
material adverse effect on our business, financial condition or results of operations.
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<div align="left" style="font-size: 10pt; margin-top: 6pt">     <b><i>Indemnification agreements </i></b>— We are currently a party to indemnification agreements with
certain officers and each of the members of our Board of Directors. No liabilities have been
recorded in the consolidated balance sheets for any indemnification agreements, because they are
not probable or estimable.
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