Asus 2010 Annual Report Download - page 122

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118
H. Assets Transactions
(A) The Company purchased some equipment from PEGATRON, CASETEK and
CORE-TEK amounting to $219,662 for the year ended December 31, 2010.
(B) The Company purchased 100% ownership of ENERTRONIX from PEGATRON for
$313,785 and purchased 8.64% ownership of AZUREWARE TECHNOLOGIES
from AZUREWAVE CAYMAN for $126,180 in the third quarter of 2009.
I. Guarantees
Endorsements and guarantees provided for a related party are as follows:
2010/12/31 2009/12/31
PEGATRON $ - $ 9,597,000
J. Salaries and remuneration of directors, supervisors and key management
2010/1/1~12/31 2009/1/1~12/31
(Estimated) (Actual)
Salaries $ 104,548 $ 91,914
Bonuses 164,447 22,527
Service execution fees - -
Directors’ and supervisors’ remuneration and
employees’ bonuses
222,930 151,220
$ 491,925 $ 265,661
Note:Please refer to the Company’s annual report for the related information.
6. PLEDGED ASSETS
Book Value
Pledged asset
Item
2
010
/
12
/3
1
2
0
09/
12
/3
1
Purpose
Guarantee deposits
Pledged time
deposit
$
150,025
$
82
,
079
Guarantee for import
duty
7. COMMITMENTS AND CONTINGENCIES
(1) See Note 5 for guarantees made to related party.
(2) Lawsuits for infringement of intellectual property rights
A. In January 2007, a Japanese company filed a lawsuit against the Company and its US
subsidiary for infringement of intellectual property rights. In May and September 2007,
another plaintiff, a US company, also filed a lawsuit against the Company and its US
subsidiary for patent infringement and violation of trade secrets. These lawsuits are
currently under investigation in a Utah court in the US. The outcome of these lawsuits is
not certain. The Company continuously evaluates the possible loss, and a provision has
been estimated and recognized in the books.
B. In September 2008, a US patentee filed a lawsuit against the Company’s US subsidiary
alleging that the subsidiary was engaged in patent infringement. The Company had