PART I 47 Properties  Insurance  Employees  Our Pension Plans  Legal Proceedings  Our properties consist mainly of land, land improvements and buildings located throughout Taiwan. We  own approximately 411 hectares of land and 3.5 million square meters of building floor space. In January 2008,  we established Light Era Development Co., Ltd. for the purpose of developing our real estate properties. Until  now, we have transferred six properties to Light Era. Five of these properties are under development. The Wan- Xi project, Li-Shui B project and LightEra-Covent Project are expected to be completed in 2011 and the Guang- Dian project and Li-Shui A project are expected to be completed in 2012. Following the gradual completion of  land rezoning, we have focused our real estate development more towards multiuse and diverse projects. Hence,  besides the six properties we transferred to Light Era, we have developed more properties for commercial use  and participated in government urban redevelopment plans. We expect to receive approximately NT$575 million  (US$19.7 million)] in rental income in 2011 from such properties.  We do not carry comprehensive insurance for our properties or any insurance for business disruptions.  We do, however, maintain in-transit insurance for key materials, such as cables, equipment and equipment  components. We also carry insurance for the ST-1 satellite while it is in orbit. However, we will not carry  insurance for the ST-2 satellite since we only lease the repeaters for our operation instead of owning the ST-2  satellite.  Please refer to “Item 6. Directors, Senior Management and Employees—D. Employees” for a discussion of  our employees.  Currently, we offer two types of employee retirement plans—our defined contributions plan and defined  benefits plan—which are administered in accordance with the Republic of China Labor Standards Act and the  Republic of China Labor Pension Act.  A portion of the land used by us during the period between July 1, 1996 and December 31, 2004 was jointly  owned by us and Chunghwa Post Co., Ltd., Directorate General of Postal Service. In accordance with the claims  process in Taiwan, on July 12, 2005, the Taiwan Taipei District Court sent a claim notice to us requiring us to  reimburse Chunghwa Post Co., Ltd. in the amount of NT$768.0 million for land usage compensation due to the  portion of land usage area in excess of our ownership, along with interest calculated at 5% interest rate from  June 30, 2005 to the payment date. However, we believe that both parties have the right to use co-managed land  without consideration and thus Chunghwa Post Co., Ltd. does not have the right to request land compensation  payments. Furthermore, we also believe that the computation used to derive the land usage compensation amount  is inaccurate because most of the compensation amount has expired as a result of the expiration clause. On  March 30, 2009, the Taiwan Taipei District Court rendered its judgment that we only need to pay approximately  NT$17 million (USS$0.5 million), along with interest calculated at 5% per annum from July 23, 2005, and 4%  of Chunghwa Post Co., Ltd.’s court fees as compensation. Chunghwa Post Co., Ltd. appealed to the Taiwan  High Court on April 22, 2009. We also filed an appeal to the Taiwan High Court within the statutory period.  On April 7, 2010, the Taiwan High Court rendered its judgment, ruling that we need to pay approximately  NT$23 million (US$0.7 million), in addition to the approximately NT$17 million from the Taiwan Taipei District  Court judgment, along with interest calculated at 5% per annum from July 23, 2005, and 12.5% of Chunghwa  Post Co., Ltd.’s court fees from its original suit and subsequent appeal as compensation. We filed an appeal with  the Supreme Court on April 22, 2010 and the case is now going under trial in the Supreme Court.  On September 30, 2008, the Taiwan Kaohsiung Administrative High Court ruled that we are required to pay  NT$428 million in land usage fees to the Kaohsiung City Government. During the quarter ending December 31,  2009, we recognized the maximum possible amount of NT$428 million in connection with this litigation as an  expense under operating costs. On June 22, 2010, the Supreme Administrative Court judged that we should pay  the land usage fees to the Kaohsiung City Government, and we have made the payment accordingly. 