HTC 2008 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2008 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

Financial Information
| 105
104 |
2008 Annual Report
The Company shared part of the moving
expenses with Xander International Corp.
because the Company rented the office which
was originally rented by Xander International
Corp.
> Investment Transaction
In July 2008, HTC acquired 100% equity interest
of Wei-Hon Electronics (Shanghai) Ltd. from
Landtek Corporation (BVI) by increasing the
capital amounting to US$5,041 thousand of
High Tech Computer Asia Pacific Pte. Ltd.
> Compensation of Directors, Supervisors
and Management Personnel
2006
2007
2008
NT$
NT$
NT$
US$
(Note 3)
Salaries
$
28,594
$
76,697
$
93,215
$
2,842
Incentives
14,186
33,063
23,026
702
Special compensation
-
12
15
1
Bonus
511,747
714,077
(Note
)
(Note
)
$
554,527
$
823,849
$
116,256
$
3,545
Note:The appropriation of the 2008 earnings is not shown because the Board of Directors had not yet made the related proposal.
The Company’s disclosure of the compensation of
directors, supervisors and management personnel
for the years ended December 31, 2006, 2007 and
2008 was in compliance with Order
VI-0970053275 issued by the Financial
Supervisory Commission under the Executive
Yuan.
The compensation of directors, supervisors and
management personnel for the years ended
December 31, 2006 and 2007 included the
bonuses appropriated from the earnings of 2006
and 2007, which had been approved by
stockholders in their annual meetings in 2007 and
2008, respectively.
28.MORTGAGED OR PLEDGED ASSETS
As of December 31, 2007 and 2008, the Company
had provided time deposits of NT$34,500
thousand and NT$41,465 (US$1,264 thousand) as
collateral for the secured loans.
29.COMMITMENTS AND CONTINGENCIES
An indirect subsidiary of the Company, HTC
Electronics (Shanghai), applied to Citibank for
banking facilities of US$15,000 thousand. For
these banking facilities, the Company signed a
comfort letter in September 2008, assuring
Citibank that the Company would supervise the
management of HTC Electronics (Shanghai) and
oversee the meeting by HTC Electronics
(Shanghai) of its financial obligations. As of
December 31, 2008 the Company wholly owned
HTC Electronics (Shanghai) indirectly.
30.SIGNIFICANT CONTRACTS
> Patent Agreements
To enhance the quality of its products and
manufacturing technologies, the Company has
patent agreements as follows:
Contractor
Contract Term
Description
Microsoft
January 1, 2007-January 31, 2009
Authorization to use embedded operating system;
royalty payment based on agreement.
Texas Instruments France
January 14, 2000-January 13, 2010
Authorization to use GSM system software; royalty
payment based on agreement.
Qualcomm Incorporated
December 20, 2000 to the following dates:
(a)If the Company materially breaches any covenant and fails
to take remedial action within 30 days after Qualcomm’s
issuance of a written notice, the Company will be prohibited
from using Qualcomm’s property or patents.
(b)Any time when the Company is not using any of
Qualcomm’s intellectual property, the Company may
terminate this agreement upon 60 days’ prior written notice
to Qualcomm.
Authorization to use CDMA technology to
manufacture and sell units; royalty payment based
on agreement.
Ericsson Mobile Platform AB
April 2003-March 2011
Authorization to use EDGE reference design license
and support agreement; royalty payment based on
agreement.
Telefonaktiebolaget LM Ericsson
December 15, 2008 -December 14, 2013
Authorization to use platform patent license
agreement; royalty payment based on agreement.
Nokia Corporation
January 1, 2003 to the expiry dates of these patents.
Authorization to use wireless technology, like GSM;
royalty payment based on agreement.
InterDigital Technology Corporation.
December 31, 2003 to the expiry dates of these patents.
Authorization to use TDMA and CDMA technology;
royalty payment based on agreement.
KONINKLIJKE PHILIPS
ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these patents
GSM/DCS 1800/1900 Patent License; royalty
payment based on agreement.
Motorola, Inc.
December 23, 2003 to the latest of the following dates:
(a)Expiry dates of patents
(b)Any time when the Company is not using any of Motorola’s
intellectual property,
TDMA, NARROWBAND CDMA, WIDEBAND CDMA
or TD/CDMA Standards patent license or
technology; royalty payment based on agreement.
ALCATEL/TCL & Alcatel
July 1, 2004-June 30, 2009
Authorization to use GSM, GPRS or EDGE patent
license or technology; royalty payment based on
agreement.
Siemens Aktiengesellschaft
July 1, 2004 to the expiry dates of these patents.
Authorization to use GSM, GPRS or EDGE patent
license or technology; royalty payment based on
agreement.
Lucent Technologies GRL LLC
July 1, 2004-June 30, 2009
Authorization to use GSM, GPRS, EDGE, CDMA or
WCDMA patent license or technology; royalty
payment based on agreement.