Crucial 2012 Annual Report Download - page 282

37
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
collected as of December 31, 2011. As of December 31, 2010, the Company did not collect the
receivable of $14,106 including value added tax, which was classified under other receivables.
(5) In January, 2011, the Company sold its vehicle for $32 (exclusive of value added tax) to NPC. The
gain on disposal thereof amounted to $32, which was classified under gain on disposal of fixed assets.
As of December 31, 2011, the Company has collected all the receivable.
(v) Lease contracts
The Company signed lease contracts with NTC with effective dates commencing from July 1, 2005 and
January 1, 2009. Refer to notes 7 and 9 for details.
(vi) Other significant transactions
Other payables-related parties arising from other transactions were as follows:
December 31,
2010 2011
NTC (examination expenses, rental expenses, utility
expenses, general administrative expenses, etc.) $ 14,464 14,310
NPC (dormitory expenses, etc.) 4,222 2,981
Micron (technical service fee, etc) 4,216 86,995
$ 22,902 104,286
(vii) Contracts with related parties
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.