Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
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6. ASSETS PLEDGED AS COLLATERAL<br />
December 31,<br />
ASSETS 2009 2008 Subject of collateral<br />
Building $ 510,280 $ 507,316 Short-term debts<br />
Long-term investments accounted<br />
for under the equity method:<br />
Marketable securities 977,749 - Medium-term loans from banks<br />
Marketable securities - 927,016 Bonds payable<br />
Other financial assets:<br />
Time deposits 3,283 - Guarantee deposit for land<br />
leasing in Science Park<br />
Time deposits 1,404 - Guarantee deposit for dorm<br />
leasing in Science Park<br />
Time deposits 9,500 9,500 Guarantee for application for<br />
letters of credit<br />
Time deposits - 24,150 <strong>Letter</strong> for guarantee of sponoring<br />
Expo 2010<br />
Saving account 20,755 - Trading agreement of forward<br />
foreign exchange for hedging<br />
Time deposits - 24,039 Development of Treasure<br />
Mountain, <strong>Letter</strong> for guarantee<br />
of customs duties, and royalty<br />
contract<br />
$ 1,522,971 $ 1,492,021<br />
7. COMMITMENTS AND CONTINGENT LIABILITIES<br />
1) The Company has credit lines for guarantee of customs duties in 2009 and 2008. As<br />
of December 31, 2009 and 2008, the amount of customs duties guaranteed by the<br />
bank was $3,200 and $3,400, respectively.<br />
2) The Company leased certain land (from 2008 to 2026), factories and offices (up to<br />
December 2026 and March 2011) under operating leases. Annual rental payments<br />
are approximately $84,175.<br />
3) Mio International Limited, the Company’s subsidiary, entered into a software<br />
technology transfer agreement with Nav N Go Kft (NNG). Because the two parties<br />
were involved in a dispute about contract termination, NNG filed a separate lawsuit<br />
against the Company’s three subsidiaries, Mio International Limited, Mio<br />
Technology Benelux NV and Mio Technology USA Limited, alleging their violation<br />
of contract and infringement of its copyright. The concerned parties had reached an<br />
agreement and NNG received the settlement money prescribed by the agreement. As<br />
a result, the case was subsequently closed and there is no possibility that the<br />
Company will incur any loss caused by the case.<br />
8. SIGNIFICANT DISASTER LOSS<br />
None.<br />
9. SIGNIFICANT SUBSEQUENT EVENTS<br />
None.<br />
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