HTC 2010 Annual Report Download - page 98

194 2 0 1 0 H T C A N N U A L R E P O R T 195
FINANCIAL INFORMATION
Service Fees
December 31
2009 2010
Related Party Amount
% to Total Other
Payables Amount
% to Total Other
Payables
NT$ NT$ US$ (Note 3)
HTC Cultural and Educational Foundation $ 300,000 92 $ 150,000 $ 5,150 49
HTC Social Welfare and Charity
Foundation 25,000 7 150,000 5,150 49
$ 325,000 99 $ 300,000 $ 10,300 98
The Company donated NT$325,500 thousand in 2009 and NT$305,500 thousand (US$10,487 thousand) in 2010 to help
disadvantaged minorities, teenagers and other people in need. Of these donations, NT$500 thousand in 2009 and NT$5,500
thousand (US$189 thousand) in 2010 went to unrelated parties (Note 16 has more information).
Property and Investment Transaction
In November 2010, the Company bought land and building for NT$404,000 thousand (US$13,869 thousand) from a related party, VIA
Technologies, Inc. to have more oce space in Xindian. The transaction price had been paid except for NT$20,200 thousand (US$693
thousand), which was accounted for as payable for purchase of equipment.
In January 2009, the Company acquired land from a related party, Syuda Construction Company, for NT$791,910 thousand. It was
about 39 thousand square meters, located near the Company in Taoyuan, and the land price was based on appraisal reports. It will be
used to expand factory area.
Compensation of Directors, Supervisors and Management Personnel
2009 2010
NT$ NT$ US$ (Note)
Salaries $ 94,140 $ 111,318 $ 3,822
Incentives 51,300 349,011 11,981
Special compensation 12 3 -
Bonus 747,834 (Note) (Note)
$ 893,286 $ 460,332 $ 15,803
Note:The appropriation of the 2010 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, 2009 and 2010 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 year ended December 31, 2009 included the bonuses
appropriated from the earnings of 2009, which had been approved by stockholders in their annual meeting in 2010.
27. PLEDGED ASSETS
As of December 31, 2009 and 2010, the Company had provided time deposits of NT$106,252 thousand and NT$95,688 thousand
(US$3,285 thousand), respectively, as collateral for the secured loans, rental deposits and to the National Tax Administration of
Northern Taiwan Province as part of the requirements for the Company to get a certificate stating that it had no pending income tax.
28. COMMITMENTS AND CONTINGENCIES
As of December 31, 2010, unused letters of credit amounted to EUR86 thousand.
The Company provided NT$436,950 thousand (US$15,000 thousand) guarantee for HTC Electronics (Shanghai)'s bank loans. HTC
Electronics (Shanghai) has drawn down NT$78,195 thousand (US$2,684 thousand) from banks within the guarantee amount as of
December 31, 2010.
29. 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 February 1, 2009 - January 31, 2011 Authorization to use embedded operating system; 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.
Authorization to use CDMA technology to manufacture
and sell units; royalty payment based on agreement.
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.
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
TDMA, NARROWBAND CDMA, WIDEBAND CDMA
or TD/CDMA Standards patent license or technology;
royalty payment based on agreement.
b. Any time when the Company is not using any
of Motorola's intellectual property,
ALCATEL LUCENT November 2009 - November 2012 Authorization to use 2G (GSM/GPRS/EDGE/CDMA), 3G
(CDMA2000/WCDMA), HTML, MPEG, AMR 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.
IV International Licensing Netherlands, B.V. November 2010 - June 2020 Authorization to use wireless technology; royalty
payment based on agreement.