Crucial 2011 Annual Report Download - page 188

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37
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(2)
Other payables—related parties arising from other transactions were as follows:
(vii)
Contracts with related parties
The Company signed a “Product Purchase and Capacity Reservation Agreement”
with NTC and Qimonda AG. Under
this agreement, these entities are each entitled to a contracted percentage of the Company’
s production capacity.
Likewise, the Company is committed to sell its production to these entities at a transfer price calculated in accordance
with the formula stated in the agreement. This agreement took effect on July 15, 2003, and will continue to be in effect
until terminated by either party with cause or when the Joint Venture Agreement and/or the License and Technical
Cooperation Agreement between NTC and Qimonda AG are terminated. This agreement was terminated on October 11,
2008.
The Company signed a “Know-How Transfer Agreement”
with NTC and Qimonda AG. Under this agreement, these
entities allowed the Company to utilize their know-
how in the semiconductor manufacturing process. This agreement
took effect on July 15, 2003, and it will continue to be in effect until either of the following conditions has been
fulfilled: 1) both corporations decide to terminate their Joint Venture Agreement or 2) three years after the completion
of the know-how transfer. This agreement was terminated on October 11, 2008.
The Company signed a “Supply Agreement”
with NTC and Micron. Under this agreement, these entities are each
entitled to a contracted percentage of the Company’
s production capacity. Likewise, the Company has committed to sell
its production to these entities at a transfer price calculated in accordance with the formula stated in the agreement.
Also, NTC and Micron have committed to buy all of the Company’
s DRAM production. This agreement took effect on
November 26, 2008, and will continue to be in effect until terminated by either party with cause or when the Joint
Venture Agreement between NTC and Micron is terminated.
The Company signed a “Technology Transfer Agreement”
with NTC and Micron. Under this agreement, these entities
allowed the Company to utilize their technology in the semiconductor manufacturing process. This contract took effect
on November 26, 2008 and it will continue to be in effect until terminated by either party with cause or when the Joint
Venture Agreement between NTC and Micron is terminated.
(Continued)
December 31,
2009
2010
NTC (utility expenses, general administrative expenses, back end cost,
etc.)
$
43,876
14,464
NPC (dormitory expenses, etc.)
3,832
4,222
Micron (technical service fee, etc) -
4,216
$
47,708
22,902