Crucial 2012 Annual Report Download - page 283

38
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
The Company signed a service contract with NTC. Under this contract, NTC provides transaction support
in the following areas: human resources, finance, engineering and construction, raw material, inventory,
etc. The service fee is charged based on the actual type of service rendered. The contract took effect on
July 15, 2003, and will continue to be in effect until terminated mutually by both parties.
The Company signed a “Technology Transfer Agreement for 68-50 nm Process Nodes” with Micron.
This agreement took effect on October 11, 2008, and will continue to be in effect until terminated mutually
by both parties.
(c) Compensation of board of directors, supervisors and management personnel:
For the years ended December 31, 2009, 2010 and 2011, the compensation of board of directors, supervisors,
president and vice presidents, key management, were as follows:
For years ended December31,
2009 2010 2011
Salaries $ 27,712 24,121 38,204
(21) Pledged Properties
Refer to note 14 for information on the Company's assets pledged to secure loans.
(22) Commitments and Contingencies
As of December 31, 2010 and 2011, the balances of outstanding letters of credit were as follows:
December 31,
Currency 2010 2011
USD $ 24,154 thousand —thousand
JPY $ 433,127 thousand 241,645 thousand
EUR $ 2,742 thousand —thousand
(23) Significant Disaster Loss: None.
(24) Subsequent Events:
On February 22, 2012, the stockholders approved a resolution, during their special stockholders' meeting, for the
private issuance of new common shares of stock and convertible bonds or to for the private issuance of either of
these two securities, then the board of directors likewise approved a resolution for the private issuance of 763,359
thousand new common shares of stock for cash at issuance price of $6.55 per share. On March 7, 2012, the Company
received the cash proceeds of $5,000,000for this private placement.