Underutilization. If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an “Underutilization Charge” in an amount equal to 50% of the difference between the AVC and the Customer’s Total Service Charges during that Contract Year. If in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12th of the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12th of the AVC and Customer’s Total Service Charges during such monthly billing period. Non-Recurring Credit(s): Achievement Credits. If during any Contract Year, Customer’s Total Service Charges (excluding Verizon International Internet Service) equals $ 400.000.00, then Customer shall receive a corresponding Achievement Credit of $ 10,000.00. The Achievement Credit will be applied against Customer’s designated Total Service Charges incurred for Interstate and International Verizon Option 2 and Option 3 services and any other services mutually agreed upon by the Customer and Verizon, provided the credit is applied to no more than 10 Customer account numbers per month. Monitoring Conditions: Customer must satisfy the following conditions throughout the Term: Customer average local loop mileage for Dedicated Access Service cannot exceed thirteen (13) miles. If Customer fails to satisfy this requirement at any time during the Term, then Verizon will notify Customer of the noncompliance and customer shall have thirty (30) days to cure such noncompliance. If Customer fails to cure the noncompliance within the cure period, Verizon reserves the right to bill Customer and Customer will pay an additional $ 275.00 per circuit for each monthly period until Customer attains compliance with this requirement. Any additional charges assessed pursuant to this provision will be billed as a lump sum charge to one Customer account number. Term: 36 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term”). During the Extended Term, either party may terminate this Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): $48,000 in Total Service Charges
Appears in 2 contracts
Sources: Service Agreement, Service Agreement
Underutilization. If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid usage and charges incurred under this the Agreement; and (b) an “Underutilization Charge” in an amount equal to 50% twenty-five percent (25%) of the difference between the AVC and the Customer’s Total Service Charges during that such Contract Year. If If, in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12th one-twelfth (1/12) of the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12th one-twelfth (1/12) of the AVC and Customer’s Total Service Charges during such monthly billing period. Non-Recurring Credit(s): Achievement Credits. If Commencing on the 2nd Amendment Effective Date, the Customer’s Underutilization Charges are as follows: Minimum Volume Commitment: If, during any Contract Yearthe Initial Term, Customer’s Total Service Charges (excluding Verizon International Internet Service) equals $ 400.000.00do not meet or exceed the Minimum Volume Commitment, then Customer shall receive a corresponding Achievement Credit of $ 10,000.00. The Achievement Credit will be applied against pay: (a) all accrued but unpaid usage and other charges incurred under the Agreement, and (b) an “Underutilization Charge” calculated as follows: If the Customer’s designated Total Service Charges incurred for Interstate the period beginning with the Second Amendment Effective Date, and International Verizon Option 2 and Option 3 services and any other services mutually agreed upon by the Customer and Verizonending twenty-four (24) months thereafter, provided the credit is applied to no more greater than 10 Customer account numbers per month. Monitoring Conditions: Customer must satisfy the following conditions throughout the Term: Customer average local loop mileage for Dedicated Access Service cannot exceed thirteen (13) miles. If Customer fails to satisfy this requirement at any time during the Term$4,500,000, then Verizon will notify Customer of the noncompliance and customer shall have thirty (30) days to cure such noncompliance. If Customer fails to cure the noncompliance within the cure periodUnderutilization Charge, Verizon reserves the right to bill Customer and Customer will pay an additional $ 275.00 per circuit for each monthly period until Customer attains compliance with this requirement. Any additional charges assessed pursuant to this provision will be billed as a lump sum charge to one Customer account number. Term: 36 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term Term, if applicable, will be an amount equal to twenty percent (20%) of the difference between the Minimum Volume Commitment and Customer’s Total Service Charges during the Initial Term. If the Customer’s Total Service Charges for the period beginning with the Second Amendment Effective Date, and ending twenty-four (24) months thereafter, is greater than $3,500,000 but less than $4,500,000, then the Underutilization Charge, at the end of the Initial Term, if applicable, will be an amount equal to thirty-five percent (35%) of the difference between the Minimum Volume Commitment and Customer’s Total Service Charges during the Initial Term. If the Customer’s Total Service Charges for the period beginning with the Second Amendment Effective Date, and ending twenty-four (24) months thereafter, is greater than $3,500,000, then the Underutilization Charge, at the end of the Initial Term, if applicable, will be an amount equal to fifty percent (50%) of the difference between the Minimum Volume Commitment and Customer’s Total Service Charges during the Initial Term. Commencing on the 15th Amendment Effective Date, the Customer’s Underutilization Charges are as follows: If the Customer’s Total Service Charges do not meet the AVC in any given Contract Year, Company will calculate the qualified revenues from the VBS Agreement between Vanco and Company (“Extended Termthe Vanco Agreement”). During , at such time the Extended TermVanco Agreement is fully executed, either party may terminate this Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): $48,000 in and then add the Total Service ChargesCharges under the Agreement. If the after the calculation, Customer still does not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under the Vanco Agreement, and (b) an “Underutilization Charge” equal to fifty percent (50%) of the difference between (i) the AVC, and (ii) the total of Customer’s Total Service Charges plus the qualified revenues from the Vanco Agreement during such Contract Year.
Appears in 2 contracts
Sources: Service Agreement, Service Agreement
Underutilization. If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an “Underutilization Charge” Charge in an amount equal to 50% of the difference between the AVC and the Customer’s Total Service Charges during that Contract the Contact Year. If in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12th of the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12th of the AVC and Customer’s Total Service Charges during such monthly billing period. Non-Recurring Credit(s): Achievement Credits. If during any Contract Yearthe Extension Term, the Customer’s Total Service Charges do not meet or exceed the ETVC then the Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 50% of the difference between the ETVC and the Customer’s Total Service Charges during such Extended Term.” “If during the Second Extended Term, Customer’s Total Service Charges do not meet or exceed the Second ETVC then Customer shall pay: (excluding Verizon International Internet Servicea) equals $ 400.000.00all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 50% of the difference between the Second ETVC and Customer’s Total service Charges during such Second Extended Term. If, in any month during the Month-to-Month Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12 of the Second ETVC, then Customer shall receive a corresponding Achievement Credit pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12 of $ 10,000.00. The Achievement Credit will be applied against the Second ETVC and Customer’s designated Total Service Charges incurred for Interstate and International Verizon Option 2 and Option 3 services and any other services mutually agreed upon by the Customer and Verizon, provided the credit is applied to no more than 10 Customer account numbers per month. Monitoring Conditions: Customer must satisfy the following conditions throughout the Term: Customer average local loop mileage for Dedicated Access Service cannot exceed thirteen (13) miles. If Customer fails to satisfy this requirement at any time during the Term, then Verizon will notify Customer of the noncompliance and customer shall have thirty (30) days to cure such noncompliance. If Customer fails to cure the noncompliance within the cure monthly billing period, Verizon reserves the right to bill Customer and Customer will pay an additional $ 275.00 per circuit for each monthly period until Customer attains compliance with this requirement. Any additional charges assessed pursuant to this provision will be billed as a lump sum charge to one Customer account number. Term: 36 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term.”). During the Extended Term, either party may terminate this Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): $48,000 in Total Service Charges
Appears in 1 contract
Sources: Service Agreement
Underutilization. Renewal Term: If, in at the end of any Contract Year during in the Initial Renewal Term, Customer’s Total Service Usage Charges do not meet or exceed (net of any credits, except (i) as otherwise provided in the AVCagreement, then and (ii) for SLA credits) for said Contract Year are less than the Renewal Term Annual Minimum (which condition shall be referred to as an “Underutilization”), Customer shall pay: (a1) all accrued due but unpaid Usage Charges and other charges incurred under this Agreementby Customer; and (b2) an “Underutilization Charge” in an amount charge (which Customer hereby agrees is reasonable) equal to 50% of the difference between amount by which the AVC and the Renewal Term Annual Minimum exceeds Customer’s Total Service Usage Charges during that the applicable Contract YearYear (the “Renewal Term Annual Underutilization Charge”). If in Likewise, if at the end of any monthly billing period during month of the Extended Extension Term, Customer’s Total Service Usage Charges do not meet or exceed 1/12th (net of any credits, except (i) as otherwise provided in the AVC then agreement, and (ii) for SLA credits) for said month are less than the Extension Term Monthly Minimum (which condition shall also referred to as an “Underutilization”), Customer shall pay: (a1) all accrued due but unpaid usage Usage Charges and other charges incurred under this Agreement, by Customer; and (b2) an “Underutilization Charge” charge (which Customer hereby agrees is reasonable) equal to the difference between 1/12th of amount by which the AVC and Extension Term Monthly Minimum exceeds Customer’s Total Service Usage Charges during such monthly billing period. Non-Recurring Credit(s): Achievement Creditsthe applicable month (the “Extension Term Monthly Underutilization Charge”). If during any Contract Year, Customeran Underutilization occurs because the agreement is terminated other than due to Company’s Total Service Charges (excluding Verizon International Internet Service) equals $ 400.000.00fault, then in addition to the amounts described in subsections (1) and (2) of this paragraph, Customer shall receive a corresponding Achievement Credit will also pay an additional Underutilization charge (which Customer hereby agrees is reasonable) calculated by multiplying $166,667 times the percentage of $ 10,000.00. The Achievement Credit will be applied against Customer’s designated Total Service Charges incurred Underutilization of the applicable minimum commitment for Interstate and International Verizon Option 2 and Option 3 services and the year of early termination, plus $166,667 per year for any other services mutually agreed upon by remaining years in the Customer and Verizon, provided Renewal Term (the credit is applied to no more than 10 Customer account numbers per month. Monitoring Conditions: Customer must satisfy the following conditions throughout the Term: Customer average local loop mileage for Dedicated Access Service cannot exceed thirteen (13) miles“Additional Underutilization Charge”). If Customer fails to satisfy this requirement at any time during the Term, then Verizon will notify Customer terminates in Year 2 after having attained 75% of the noncompliance and customer shall have thirty (30) days to cure such noncompliance. If Customer fails to cure the noncompliance within the cure periodapplicable minimum commitment, Verizon reserves the right to bill Customer and Customer will pay the charges described in subsections (1) and (2) of this paragraph, plus an additional $ 275.00 per circuit Additional Underutilization Charge of $41,666.75 for each monthly period until Customer attains compliance with this requirement. Any additional charges assessed pursuant to this provision will be billed Year 2 (calculated as a lump sum charge to one Customer account number. Term: 36 months Upon expiration 25% of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60$166,667) days written notice prior to the end of the Initial Term (“Extended Term”). During the Extended Term, either party may terminate this Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): and $48,000 in Total Service Charges166,667 for Year 3.
Appears in 1 contract
Sources: Service Agreement
Underutilization. If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an “Underutilization Charge” Charge in an amount equal to 50% of the difference between the AVC and the Customer’s Total Service Charges during that Contract the Contact Year. If in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12th of the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12th of the AVC and Customer’s Total Service Charges during such monthly billing period. Non-Recurring Credit(s): Achievement Credits. If during any Contract Yearthe Extension Term, the Customer’s Total Service Charges do no meet or exceed the ETVC then the Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 50% of the difference between the ETVC and the Customer’s Total Service Charges during such Extended Term.” “If during the Second Extended Term, Customer’s Total Service Charges do not meet or exceed the Second ETVC then Customer shall pay: (excluding Verizon International Internet Servicea) equals $ 400.000.00all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 50% of the difference between the Second ETVC and Customer’s Total service Charges during such Second Extended Term. If, in any month during the Month-to-Month Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12 of the Second ETVC, then Customer shall receive a corresponding Achievement Credit pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to the difference between 1/12 of $ 10,000.00. The Achievement Credit will be applied against the Second ETVC and Customer’s designated Total Service Charges incurred for Interstate and International Verizon Option 2 and Option 3 services and any other services mutually agreed upon by the Customer and Verizon, provided the credit is applied to no more than 10 Customer account numbers per month. Monitoring Conditions: Customer must satisfy the following conditions throughout the Term: Customer average local loop mileage for Dedicated Access Service cannot exceed thirteen (13) miles. If Customer fails to satisfy this requirement at any time during the Term, then Verizon will notify Customer of the noncompliance and customer shall have thirty (30) days to cure such noncompliance. If Customer fails to cure the noncompliance within the cure monthly billing period, Verizon reserves the right to bill Customer and Customer will pay an additional $ 275.00 per circuit for each monthly period until Customer attains compliance with this requirement. Any additional charges assessed pursuant to this provision will be billed as a lump sum charge to one Customer account number. Term: 36 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term.”). During the Extended Term, either party may terminate this Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): $48,000 in Total Service Charges
Appears in 1 contract
Sources: Service Agreement