Common use of Underutilization and Early Termination Charges Clause in Contracts

Underutilization and Early Termination Charges. If Customer's Total Service Charges do not reach the AVC in the first (1st) contract year during the Term, Customer shall pay an "Underutilization Charge" equal to 75% of the unmet AVC. If Customer's Total Service Charges do not reach the AVC in the second (2nd) or third (3rd) contract year during the Term, Customer shall pay an "Underutilization Charge" equal to 25% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the first (1st) contract year for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 75% 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. If: (a) Customer terminates the Agreement before the end of the second (2nd) or third (3rd) contract years for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 25% 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. Credits:

Appears in 1 contract

Samples: enterprise.verizon.com

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Underutilization and Early Termination Charges. If If, in any Contract Year during the Term, Customer's Total Service Charges do not reach meet or exceed the AVC in the first (1st) contract year during the TermAVC, then Customer shall pay pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to 75% one hundred percent (100%) of the unmet AVC. If difference between the AVC and Customer's Total Service Charges do not reach the AVC in the second (2nd) or third (3rd) contract year during the Term, Customer shall pay an "Underutilization Charge" equal to 25% of the unmet AVCthat Contract Year. If: (a) Customer terminates the this Agreement before the end of the first (1st) contract year Term for reasons other than Cause; or (b) Company Verizon terminates the this Agreement for Cause, Cause pursuant to the Section entitled “Termination,” then Customer will pay, within 30 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 seventy-five percent (75% %) 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. If: (a) Customer terminates the Agreement before the end of the second (2nd) or third (3rd) contract years for reasons other than Causewaived start-up and/or non-recurring charges; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 25% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (iiiiv) a pro rata portion of any and all credits received by Customer. Credits:.

Appears in 1 contract

Samples: enterprise.verizon.com

Underutilization and Early Termination Charges. If Customer's during the Term, Customers Total Service Charges do not reach meet or exceed the AVC in the first (1st) contract year during the TermTVC, then Customer shall pay pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to 7550% of the unmet AVC. If Customer's difference between the TVC and Customers Total Service Charges do not reach the AVC in the second (2nd) or third (3rd) contract year during the Term, Customer shall pay an "Underutilization Charge" equal to 25% of the unmet AVC. If: (a) Customer terminates the this Agreement before the end of the first (1st) contract year Term for reasons other than Cause; or (b) Company terminates the this Agreement for Cause, Cause pursuant to the Section entitled "Termination," then Customer will pay, within 30 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 7550% of the unsatisfied AVC TVC 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. IfWaivers: (a) AC/COC Charges: The Company will waive all charged for AC/COC. Promotions: The Customer terminates is eligible for the Agreement before the end of the second (2nd) or third (3rd) contract years for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 25% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining following promotions as set forth in the Term, plus (iii) a pro rata portion of any and all credits received by Customer. CreditsGuide:

Appears in 1 contract

Samples: enterprise.verizon.com

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Underutilization and Early Termination Charges. If Customer's Total Service Charges do not reach the AVC in the first (1st) contract year during the Term, ; Customer shall pay an "Underutilization Charge" equal to 75% of the unmet AVC. If Customer's Total Service Charges do not reach the AVC in the second (2nd) or third (3rd) contract year during the Term, Customer shall pay an "Underutilization Charge" equal to 25% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the first (1st) contract year for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 75% 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. If: (a) Customer terminates the Agreement before the end of the second (2nd) or third (3rd) contract years for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within 30 days after such termination: (i) an amount equal to 25% 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. Credits:

Appears in 1 contract

Samples: enterprise.verizon.com

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