Common use of Underutilization Charges Clause in Contracts

Underutilization Charges. If Customer’s Eligible Usage Charges during the Initial Term are less than the TVC, then Customer will pay: (1) all accrued but unpaid charges incurred by Customer; and (2) an underutilization charge (which Customer hereby agrees is reasonable) equal to 50% of the difference between Customer’s Eligible Usage Charges during the Initial Term and the TVC.

Appears in 2 contracts

Sources: Service Agreement, Service Agreement