Common use of Underutilization Clause in Contracts

Underutilization. If at the end of any Contract Year, Customer’s Contributing Charges are less than the Annual Minimum, then Customer shall be required to pay Verizon: (i) all incurred but unpaid charges and (ii) an underutilization charge equal to the difference between Customer’s Contributing Charges during such Contract Year and the Annual Minimum.

Underutilization. If at the end of any Contract Year, Customer’s Contributing Charges are less than the Annual Minimum, and then Customer shall be required to pay Verizon: (i) all incurred but unpaid charges and (ii) an underutilization charge equal to the difference between Customer’s Contributing Charges during such Contract Year and the Annual Minimum.