Common use of Underutilization and Early Termination Charges Clause in Contracts

Underutilization and Early Termination Charges. If, in any Contract Year, the Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all undisputed, accrued but unpaid charges incurred under this Agreement; and (b) an “Underutilization Charge” in an amount equal to fifty percent (50%) of the difference between the AVC and Customer’s Total Service Charges during that Contract Year. If: (a) Customer terminates this Agreement before the end of the Term for reasons other than Cause; or (b) Company terminates this Agreement for Cause then Customer will pay, within thirty (30) days after such termination: (i) all accrued but unpaid charges incurred through the date of such termination, plus (ii) an amount equal to 50% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (iii) a pro rata portion of any and all credits received by Customer excluding certain credits and Underutilization charges shall not apply (except for Underutilization Charges incurred prior to termination from the first or second Contract Year and not yet paid) (“Early Termination Charge”). Credits:

Appears in 2 contracts

Samples: enterprise.verizon.com, enterprise.verizon.com

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Underutilization and Early Termination Charges. If, in any Contract YearYear during the Term, the Customer’s 's Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all undisputed, accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to fifty percent (50%) 25% of the difference between the AVC and Customer’s 's Total Service Charges during that Contract Year. IfIf in any monthly billing period during the Extended Term, the Customer’s Total Service Charges do not meet or exceed 1/12 of the AVC then the Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement, and (b) an amount equal to 25% of the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. If (a) the Customer terminates this Agreement before the end of the Term for reasons other than Cause; or (b) the Company terminates this the Agreement for Cause then the Customer will pay, within thirty (30) 30 days after such termination: (i) all accrued but unpaid charges incurred through the date of off such termination, plus (ii) an amount equal to 5025% of the unsatisfied AVC remaining during the year of the termination, and for each subsequent Contract Year remaining in the Termterm, plus (iii) a pro rata portion of any and all credits received by Customer excluding certain credits and Underutilization charges shall not apply (except for Underutilization Charges incurred prior to termination from the first or second Contract Year and not yet paid) (“Early Termination Charge”)Customer. Credits:

Appears in 2 contracts

Samples: enterprise.verizon.com, enterprise.verizon.com

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Underutilization and Early Termination Charges. If, in any Contract YearYear during the Term, the Customer’s 's Total Service Charges do not meet or exceed the AVC, then the Customer shall pay: (a) all undisputed, accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to fifty percent (50%) 35% of the difference between the AVC and the Customer’s 's Total Service Charges during that Contract Year. IfIf in any monthly billing period during the Extended Term, the Customer’s Total Service Charges do not meet or exceed 1/12 of the AVC then the Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. If (a) the Customer terminates this Agreement before the end of the Term for reasons other than Cause; or (b) the Company terminates this the Agreement for Cause then the Customer will pay, within thirty (30) 30 days after such termination: (i) all accrued but unpaid charges incurred through the date of off such termination, plus (ii) an amount equal to 5035% of the unsatisfied AVC remaining during the year of the termination, and for each subsequent Contract Year remaining in the Termterm, plus (iii) a pro rata portion of any and all credits received by Customer excluding certain credits and Underutilization charges shall not apply (except for Underutilization Charges incurred prior to termination from the first or second Contract Year and not yet paid) (“Early Termination Charge”). Credits:Customer.

Appears in 2 contracts

Samples: enterprise.verizon.com, enterprise.verizon.com

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