Common use of Cancellation After Clause in Contracts

Cancellation After. Process Start If Conexant cancels a Purchase Order Release (in whole or in part) after the date the processing of such Wafers has been started, then either, (i) if so instructed by Conexant, Company will not complete the cancelled Wafers and will deliver the incomplete Wafers to a location designated by Conexant, in which case the Wafers will not count against the Wafer Volume Commitment, and Conexant will pay the Pro-Rated Price, as defined below; or (ii) unless otherwise instructed pursuant to clause (i) of this Section, complete the cancelled Wafers and hold the resulting Wafers in finished goods inventory where they will be stored in accordance with Section 5.2 (Storage), in which case the Wafers will count against the Wafer Volume Commitment and Conexant will pay the applicable Price for completed Wafers. The “Pro-Rated Price” means the greater of (A) […***…] percent ([…***…] %) of the price that would have been paid for the completed Wafers (either the Contract Price, the Basic Price, or other applicable price, as the case may be) and (B) such applicable price for completed Wafers multiplied by the ratio obtained by dividing (i) the number of Moves completed with respect to the Lots for which the Purchase Order Release is cancelled as of the time the cancellation notice is received by Company by (ii) the total number of Moves that would have been required to process the Lots in question.