Common use of Underutilization Charges Clause in Contracts

Underutilization Charges. If Customer’s Total Service Charges do not reach the TVC during the Initial Term, Customer shall pay an “Underutilization Charge” equal to 25% of the unmet TVC. If Customer’s Total Service Charges do not reach the TVC because the Agreement is terminated early by Customer without Cause or by Company with Cause, Customer shall pay an “Early Termination Charge” equal to 25% of the unmet TVC plus a pro rata portion of any credits received by Customer. The Customer will receive three credits, each equal to $2,700, applied against the Customer’s Company service usage. The Customer will receive a one-time credit of $17,000. The Customer will receive three one-time credits totaling $85,000. The Customer will receive a credit of $28,000 usage in Month 18 of the Term, $28,000 in month 30 of the Term and $29,000 in month 42 of the Term. The Customer will receive three credits, each equal to $4,000, applied against Customer's designated Service Charges incurred for Interstate Services and International Services. The Customer will receive a one-time credit equal to $250,000, applied against Customer's designated Service Charges incurred for Interstate Services and International Services and any other services mutually agreeable by Company and Customer. The Customer will receive three credits, each equal to $42,023, applied against Customer's Total Service Charges incurred for Interstate Services and International Services. The Customer will receive a credit equal to $26,000, applied against Customer’s interstate and international Total Service Charges.