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to Section 13 or 15(d) of the</font></div>
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of Report (Date of earliest event reported): January 29, 2009</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><a href="#Item101">ITEM 1.01&#160;
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT</a></font></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><a href="#Signature">SIGNATURES</a></font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a name="Item101">Item&#160;1.01<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Entry Into a Material
Definitive Agreement.</a></font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On January 29, 2009, SanDisk
Corporation and several wholly owned SanDisk subsidiaries (collectively,
&#8220;SanDisk&#8221;) entered into definitive agreements with Toshiba Corporation
(&#8220;Toshiba&#8221;), under which SanDisk and Toshiba restructured two of their
semiconductor manufacturing joint ventures, each of which equips and operates a
300-millimeter NAND wafer fabrication facility, to provide for the acquisition
by Toshiba of certain production capacity in connection with the production of
NAND flash memory products at the facilities.&#160;&#160;Flash Partners, Ltd., a
Japanese <font style="DISPLAY: inline; FONT-STYLE: italic">tokurei </font><font style="DISPLAY: inline; FONT-STYLE: italic">yugen kaisha</font> formed in
September 2004 (&#8220;Flash Partners&#8221;), owned 49.9% by SanDisk and 50.1% by Toshiba
equips and operates a 300-millimeter NAND wafer fabrication facility (&#8220;Fab 3&#8221;),
located in Yokkaichi, Japan, to supply wafers to each of SanDisk and
Toshiba.&#160;&#160;Flash Alliance, Ltd., a Japanese <font style="DISPLAY: inline; FONT-STYLE: italic">tokurei yu</font><font style="DISPLAY: inline; FONT-STYLE: italic">g</font><font style="DISPLAY: inline; FONT-STYLE: italic">en kaisha</font> (together with
Flash Partners, the &#8220;Joint Ventures&#8221;)formed in July 2006, owned 49.9% by SanDisk
and 50.1% by Toshiba equips and operates a 300-millimeter NAND wafer fabrication
facility (&#8220;Fab 4&#8221;), located in Yokkaichi, Japan, to supply wafers to each of
SanDisk and Toshiba.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>In connection with the restructuring,
SanDisk and Toshiba entered into a Joint Venture Restructure Agreement and an
Equipment Purchase Agreement, each dated as of January 29, 2009.&#160;&#160;In
addition, SanDisk and Toshiba entered into a Foundry Agreement, dated as of
January 29, 2009 (the Foundry Agreement, together with the Joint Venture
Restructure Agreement and the Equipment Purchase Agreement, the
&#8220;Agreements&#8221;).&#160;&#160;The Agreements amend the terms of the existing
agreements governing each Joint Venture.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Joint
Venture Restructure Agreement</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Joint Venture Restructure Agreement
sets forth the terms and conditions under which each Joint Venture has agreed to
sell to Toshiba more than 20% of its current production capacity through the
acquisition by Toshiba of certain owned and leased equipment pursuant to the
terms of an Equipment Purchase Agreement described below.&#160;&#160;SanDisk and
Toshiba will continue to be equal partners for the remaining capacity of each of
the Joint Ventures.&#160;&#160;The Joint Venture Restructure Agreement further
provides that SanDisk retains the option to continue to invest on a fifty-fifty
basis for all future expansions of NAND memory production capacity of Fab 3 and
Fab 4.&#160;&#160;In addition, the parties will continue their existing joint
technology development in advanced NAND and 3D read/write memory.&#160;&#160;The
Joint Venture Restructure Agreement also contains<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>standard
representations, warranties and covenants for a transaction of this
type.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
Purchase Agreement</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Equipment Purchase Agreement sets
forth the terms and conditions of Toshiba&#8217;s acquisition of the owned and leased
equipment.&#160;&#160;Of the equipment acquired by Toshiba from the Joint
Ventures pursuant to the Agreements, (i) approximately 1/3 is owned equipment
and will be paid for in cash by Toshiba and (ii) approximately 2/3 is leased by
the Joint Ventures and the leases associated with that equipment will be
transferred to Toshiba.&#160;&#160;The total value of the restructuring
transaction to SanDisk is approximately $890 million based on current exchange
rates.&#160;&#160;Upon the completion of each transfer of leased equipment,
SanDisk will no longer provide a guarantee to the leasing company for the
equipment transferred at that time.&#160;&#160;Once completed, the transfer of
the leased equipment reduces SanDisk&#8217;s outstanding lease obligations by
approximately two-thirds of the total value of the restructuring transaction,
representing approximately 28% of SanDisk&#8217;s total equipment lease
obligations.&#160;&#160;The Joint Ventures will use proceeds from the sale of
the owned equipment in the transaction to repay certain loan obligations to each
of SanDisk and Toshiba, resulting in SanDisk receiving&#160;approximately
one-third of the total value of the restructuring transaction in cash,
less&#160;various fees and costs to be borne by SanDisk that are associated with
the transfer of the leased equipment to Toshiba.&#160;&#160;These fees and costs
include the interest rate spread between Toshiba&#8217;s rates and SanDisk&#8217;s rates for
the leases assumed and guaranteed by Toshiba which were formerly guaranteed by
SanDisk, and other costs, fees and expenses.&#160;The Equipment Purchase
Agreement contemplates that the transfer of the leased equipment and the sale of
the owned equipment will occur at several closings between January 30, 2009 and
March 31, 2009 and that SanDisk will receive its portion of the purchase price
for the owned equipment by late March 2009, subject to certain conditions and
contingencies.&#160;&#160;The closing of the sale of the leased and owned
equipment is subject to certain negotiated terms and conditions described in the
Agreements.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foundry
Agreement</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Under the Foundry Agreement, SanDisk
has the right to purchase certain NAND flash memory products manufactured by
Toshiba using some portion of the capacity and equipment acquired by Toshiba
under the Joint Venture Restructure Agreement and the Equipment Purchase
Agreement.</font></div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The above descriptions of the material
terms of the Joint Venture Restructure Agreement, the Equipment Purchase
Agreement and the Foundry Agreement are qualified in their entirety by reference
to the text of these agreements, redacted versions of which SanDisk intends to
file as exhibits&#160;to a future periodic report.</font></div>
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      <br>(Principal Financial and Accounting
Officer)</font></div>
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form_8-km.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): January 29, 2009
SanDisk
Corporation
(Exact
name of registrant as specified in its charter)
Delaware
000-26734
77-0191793
(State
      or other jurisdiction
of
      incorporation)
(Commission
      File No.)
(I.R.S.
      Employer
Identification
      Number)
601
McCarthy Boulevard, Milpitas, California 95035
(Address
of principal executive offices) (Zip Code)
Registrant's
telephone number, including area code: (408) 801-1000
N/A
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
see
General
Instruction A.2. below):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE
OF CONTENTS
ITEM 1.01 
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
SIGNATURES
Item 1.01
Entry Into a Material
Definitive Agreement.
On January 29, 2009, SanDisk
Corporation and several wholly owned SanDisk subsidiaries (collectively,
"SanDisk") entered into definitive agreements with Toshiba Corporation
("Toshiba"), under which SanDisk and Toshiba restructured two of their
semiconductor manufacturing joint ventures, each of which equips and operates a
300-millimeter NAND wafer fabrication facility, to provide for the acquisition
by Toshiba of certain production capacity in connection with the production of
NAND flash memory products at the facilities.  Flash Partners, Ltd., a
Japanese
tokurei
yugen kaisha
formed in
September 2004 ("Flash Partners"), owned 49.9% by SanDisk and 50.1% by Toshiba
equips and operates a 300-millimeter NAND wafer fabrication facility ("Fab 3"),
located in Yokkaichi, Japan, to supply wafers to each of SanDisk and
Toshiba.  Flash Alliance, Ltd., a Japanese
tokurei yu
g
en kaisha
(together with
Flash Partners, the "Joint Ventures")formed in July 2006, owned 49.9% by SanDisk
and 50.1% by Toshiba equips and operates a 300-millimeter NAND wafer fabrication
facility ("Fab 4"), located in Yokkaichi, Japan, to supply wafers to each of
SanDisk and Toshiba.
In connection with the restructuring,
SanDisk and Toshiba entered into a Joint Venture Restructure Agreement and an
Equipment Purchase Agreement, each dated as of January 29, 2009.  In
addition, SanDisk and Toshiba entered into a Foundry Agreement, dated as of
January 29, 2009 (the Foundry Agreement, together with the Joint Venture
Restructure Agreement and the Equipment Purchase Agreement, the
"Agreements").  The Agreements amend the terms of the existing
agreements governing each Joint Venture.
Joint
Venture Restructure Agreement
The Joint Venture Restructure Agreement
sets forth the terms and conditions under which each Joint Venture has agreed to
sell to Toshiba more than 20% of its current production capacity through the
acquisition by Toshiba of certain owned and leased equipment pursuant to the
terms of an Equipment Purchase Agreement described below.  SanDisk and
Toshiba will continue to be equal partners for the remaining capacity of each of
the Joint Ventures.  The Joint Venture Restructure Agreement further
provides that SanDisk retains the option to continue to invest on a fifty-fifty
basis for all future expansions of NAND memory production capacity of Fab 3 and
Fab 4.  In addition, the parties will continue their existing joint
technology development in advanced NAND and 3D read/write memory.  The
Joint Venture Restructure Agreement also contains
standard
representations, warranties and covenants for a transaction of this
type.
Equipment
Purchase Agreement
The Equipment Purchase Agreement sets
forth the terms and conditions of Toshiba's acquisition of the owned and leased
equipment.  Of the equipment acquired by Toshiba from the Joint
Ventures pursuant to the Agreements, (i) approximately 1/3 is owned equipment
and will be paid for in cash by Toshiba and (ii) approximately 2/3 is leased by
the Joint Ventures and the leases associated with that equipment will be
transferred to Toshiba.  The total value of the restructuring
transaction to SanDisk is approximately $890 million based on current exchange
rates.  Upon the completion of each transfer of leased equipment,
SanDisk will no longer provide a guarantee to the leasing company for the
equipment transferred at that time.  Once completed, the transfer of
the leased equipment reduces SanDisk's outstanding lease obligations by
approximately two-thirds of the total value of the restructuring transaction,
representing approximately 28% of SanDisk's total equipment lease
obligations.  The Joint Ventures will use proceeds from the sale of
the owned equipment in the transaction to repay certain loan obligations to each
of SanDisk and Toshiba, resulting in SanDisk receiving approximately
one-third of the total value of the restructuring transaction in cash,
less various fees and costs to be borne by SanDisk that are associated with
the transfer of the leased equipment to Toshiba.  These fees and costs
include the interest rate spread between Toshiba's rates and SanDisk's rates for
the leases assumed and guaranteed by Toshiba which were formerly guaranteed by
SanDisk, and other costs, fees and expenses. The Equipment Purchase
Agreement contemplates that the transfer of the leased equipment and the sale of
the owned equipment will occur at several closings between January 30, 2009 and
March 31, 2009 and that SanDisk will receive its portion of the purchase price
for the owned equipment by late March 2009, subject to certain conditions and
contingencies.  The closing of the sale of the leased and owned
equipment is subject to certain negotiated terms and conditions described in the
Agreements.
Foundry
Agreement
Under the Foundry Agreement, SanDisk
has the right to purchase certain NAND flash memory products manufactured by
Toshiba using some portion of the capacity and equipment acquired by Toshiba
under the Joint Venture Restructure Agreement and the Equipment Purchase
Agreement.
The above descriptions of the material
terms of the Joint Venture Restructure Agreement, the Equipment Purchase
Agreement and the Foundry Agreement are qualified in their entirety by reference
to the text of these agreements, redacted versions of which SanDisk intends to
file as exhibits to a future periodic report.
SIGNATURE
S
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date:
February 2, 2009
SANDISK
      CORPORATION
By:
/s/ Judy Bruner
Name:
Judy
      Bruner
Title:
Executive
      Vice President, Administration  and Chief Financial Officer
(Principal Financial and Accounting
Officer)