Crucial 2013 Annual Report Download - page 35

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34
In the first quarter of 2009, we acquired a noncontrolling interest in Inotera, a publicly-traded DRAM manufacturer in
Taiwan. In connection therewith, we entered into a supply agreement with Inotera to purchase 50% of Inotera’s wafer
production capacity and began purchasing substantial quantities of product in the fourth quarter of 2009. On January 17, 2013,
we entered into agreements with Nanya and Inotera to amend the joint venture relationship involving Inotera. The amendments
included a new supply agreement (the "Inotera Supply Agreement"), retroactively effective beginning on January 1, 2013,
between us and Inotera under which we are obligated to purchase for an initial period through January, 2016, substantially all of
Inotera's output at a purchase price based on a discount from market prices for our comparable components. The Inotera
Supply Agreement contemplates annual negotiations with respect to potential successive one-year extensions. As of August 29,
2013, our ownership interest was 35%. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements – Equity Method Investments – Inotera" note.)
(See "Item 1A. Risk Factors" and "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements.")