Common use of Underutilization and Early Termination Charges Clause in Contracts

Underutilization and Early Termination Charges. If Customer's Total Service Charges do not meet or exceed the TVC at the expiration of the Initial Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the TVC and Customer's Total Service Charges during the Initial Term. If Customer’s Total Service Charges do not meet or exceed the Extended Term Commitment at the expiration of the Extended Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the Extended Term Commitment and Customer's Total Service Charges during the Extended Term. If: (a) Customer terminates this Agreement before the end of the Initial Term for reasons other than Cause; or (b) Company terminates this Agreement for Cause, then Customer will pay, within 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 twenty-five percent (25%) of the unsatisfied TVC remaining in the Initial Term, plus (iii) a pro rata portion of any and all credits received by Customer other than credits for refunds of overcharges, reimbursements or credits for service level failures. Credits: One Time Credits: Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $215,000 which will be applied against Customer's Interstate Total Service Charges. Customer will receive a credit equal to $75,000 to be applied against Customer's designated Service Charges incurred for Interstate Services. Customer will receive a credit equal to $10,500 to be applied against Customer's designated Service Charges incurred for Interstate and International Services. Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $60,000 which will be applied against Customer's Interstate and International Total Service Charges. Customer will receive a credit equal to $10,000 to be applied against Customer's Total Service Charges incurred for interstate and international services.

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 any Contract Year during the Term, Customer shall pay an “Underutilization Charge” equal to 50% of the difference between the AVC for that Contract Year and Customer’s Total Service Charges during that Contract Year. In addition, if, in any monthly billing period during the Extended Term, Customer's Total Service Charges do not meet or exceed the TVC at the expiration of the Initial TermExtended Term Volume Commitment, then Customer shall pay: (ai) all accrued but unpaid charges incurred under this Agreement; and (bii) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the TVC and Customer's Total Service Charges during the Initial Term. If Customer’s Total Service Charges do not meet or exceed the Extended Term Commitment at the expiration of the Extended Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) 50% of the difference between the Extended Term Volume Commitment and Customer's Total Service Charges during the Extended Termsuch monthly billing period. If: (ai) Customer terminates this Agreement before the end of the Initial Term for reasons other than Cause; or (bii) Company terminates this Agreement for Cause, Cause pursuant to the Section entitled “Termination; Disconnection Notice,” then Customer will pay, within thirty (30) days after such termination an amount equal to 50% of the unsatisfied AVC remaining during the year of termination: (i) all accrued but unpaid charges incurred through , and for each subsequent Contract Year remaining in the date of such terminationinitial Term, plus (ii) an amount equal to twenty-five percent (25%) of the unsatisfied TVC remaining in the Initial Term, plus (iii) a pro rata portion of any and all credits received by Customer. In the event that Customer other than credits terminates the Agreement prior to the end of the Term and is to be assessed both an Early Termination Charge and an Underutilization Charge for refunds of overchargesthe current Contract Year, reimbursements or credits the Underutilization Charge owed by Customer for service level failuresthe current Contract Year will be deducted from the Early Termination Charge and documented in writing. Credits: One . One-Time Credits: Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $215,000 which will be applied against Customer's Interstate Total Service Charges. Customer will receive a credit credit, equal to $75,000 to be applied against Customer's designated Service Charges incurred for Interstate Services. Customer will receive a credit equal to $10,500 to be 750, applied against Customer's designated Service Charges incurred for Interstate and International Services. Provided that Customer executes Services and delivers the Agreement to the Company no later than an any other services mutually agreed upon date, by the Customer shall receive a credit equal to $60,000 which will be applied against Customer's Interstate and International Total Service Chargesthe Company. Customer will receive a credit credit, equal to $10,000 to be 8,574, applied against Customer's Total Service Charges incurred for interstate and international servicesCharges.

Appears in 1 contract

Samples: enterprise.verizon.com

Underutilization and Early Termination Charges. If Customer's Total Service Charges do the Agreement has not meet or exceed the TVC at the expiration of the Initial Term, then been terminated by Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; for Cause and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the TVC and Customer's Total Service Charges during the Initial Term. If Customer’s Total Service Charges do not meet or exceed reach the Extended Term Commitment at TVC during the expiration Initial Term, Customer shall pay an “Underutilization Charge” equal to 25% of the Extended Term, then unmet TVC. Payment of such Underutilization Charge will relieve Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of any further TVC obligation for the difference between the Extended Term Commitment and Customer's Total Service Charges during the Extended Initial Term. If: (a) Customer terminates this Agreement before the end of the Initial Term for reasons other than Cause; or (b) Company terminates this the Agreement for Cause, Cause pursuant to the Section entitled “Termination; Disconnection Notice,” then Customer will pay, within 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 twenty-five percent (25%) % of the unsatisfied TVC remaining in the Initial Term, plus (iiiii) a pro rata portion of any and all credits received by Customer. Payment of such Early Termination Charge will relieve Customer other than credits of any further TVC obligation for refunds of overcharges, reimbursements or credits for service level failuresthe Initial Term. Credits: One Time Credits: Provided that Customer executes and delivers If the Agreement to has not been terminated by Customer for Cause and if Customer’s Total Service Charges do not reach the Company no later than an agreed upon dateAVC in any Contract Year during the First or Second Extended Term, Customer shall receive a credit pay an “Underutilization Charge” equal to $215,000 which 25% of the unmet AVC. Payment of such Underutilization Charge will be applied against Customer's Interstate Total Service Chargesrelieve Customer of any further AVC obligation for the First or Second Extended Term as applicable. If: (a) Customer terminates this Agreement before the end of the First or Second Extended Term for reasons other than Cause or (b) Company terminates this Agreement for Cause pursuant to the Section entitled “Termination; Disconnection Notice,” then Customer will receive a credit pay, within thirty (30) days after such termination: (i) an amount equal to $75,000 to be applied against 25% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the First or Second Extended Term, plus (ii) a pro rata portion of any and all credits received by Customer's designated Service Charges incurred . Payment of such Early Termination Charge will relieve Customer of any further AVC obligation for Interstate Servicesthe First or Second Extended term as applicable. For avoidance of doubt, if Customer terminates the Agreement for reasons other than Cause or Company terminates the Agreement for Cause, Customer will receive a credit equal to $10,500 to pay the applicable Early Termination fee as set forth above and would not be applied against Customer's designated Service Charges incurred liable for Interstate an Underutilization Charge repayable only if the termination occurs during the first 12 months following the Effective Date, pro-rated based on 12 months; (c) repayment of the Usage Credits shall be pro-rated based on 12 months, and International Services. Provided that Customer executes and delivers only the Agreement to Usage Credit paid in the Company no later than an agreed upon date, Customer year of termination shall receive a credit equal to $60,000 which will be applied against Customer's Interstate and International Total Service Charges. Customer will receive a credit equal to $10,000 to be applied against Customer's Total Service Charges incurred for interstate and international services.repayable.. Credits:

Appears in 1 contract

Samples: enterprise.verizon.com

Underutilization and Early Termination Charges. If Customer's ’s Total Service Charges do not meet or exceed reach the TVC at the expiration of the Initial Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the TVC and Customer's Total Service Charges during the Initial Term; Customer shall pay an “Underutilization Charge” equal to 45% of the unmet TVC. If Customer’s Total Service Charges do not meet or exceed reach the Renewal Term AVC during the Renewal Term, Customer shall pay an “Underutilization Charge” equal to 45% of the unmet Renewal Term AVC. If Customer’s Total Service Charges do not reach the Extended Term Commitment at the expiration MVC during any monthly period of the Extended Term, then Verizon may charge, and Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) , an "Underutilization Charge" in an amount equal to twenty-five percent (25%) 45% of the difference between the unmet Extended Term Commitment and MVC for that monthly period. If Customer's ’s Total Service Charges do not reach the TVC during the Extended Term. If: (a) Customer terminates this Agreement before the end of the Initial Term for reasons other than Cause; because the Agreement is terminated early by Customer without Cause or (b) Company terminates this Agreement for by Verizon with Cause, then Customer will pay, within thirty (30) days after such termination: (i) all accrued but unpaid charges incurred through the date of such termination, plus (ii) shall pay an amount “Early Termination Charge” equal to twenty-five percent (25%) 45% of the unsatisfied unmet TVC remaining in the Initial Term, plus (iii) a pro rata portion of any and all credits received by Customer. If Customer’s Total Service Charges do not reach the Renewal Term AVC during the Renewal Term because the Agreement is terminated early by Customer other than credits for refunds without Cause or by Verizon with Cause, Customer shall pay an “Early Termination Charge” equal to 45% of overchargesthe unmet Renewal Term AVC plus a pro rata portion of any credits, reimbursements or credits for service level failuresif any, received by Customer during the Renewal Term. Credits: One One-Time CreditsCredit: Signing Bonus: Customer will receive a credit of $310,700 which will be applied against Customer's interstate and international Total Service Charges. Customer will receive a credit of $189,300 which will be applied against Customer's interstate and international Total Service Charges. Signing Bonus: Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $215,000 which will be applied against Customer's Interstate Total Service Charges. Customer will receive a credit equal to $75,000 to be applied against Customer's designated Service Charges incurred for Interstate Services. Customer will receive a credit equal to $10,500 to be applied against Customer's designated Service Charges incurred for Interstate and International Services. Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date95,000, Customer shall receive a credit equal to $60,000 which will be applied against Customer's Interstate and International Total Service Charges. Customer will receive a credit equal to $10,000 to be applied against Customer's Total Service Charges incurred for interstate and international services.

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 meet or exceed the TVC at the expiration of the Initial Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the TVC and Customer's Total Service Charges during the Initial Term. If Customer’s Total Service Charges do not meet or exceed the Extended Term Commitment at the expiration of the Extended Term, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to twenty-five percent (25%) of the difference between the Extended Term Commitment and Customer's Total Service Charges during the Extended Term. If: (a) Customer terminates this Agreement before the end of the Initial Term for reasons other than Cause; or (b) Company terminates this Agreement for Cause, then Customer will pay, within 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 twenty-five percent (25%) of the unsatisfied TVC remaining in the Initial Term, plus (iii) a pro rata portion of any and all credits received by Customer other than credits for refunds of overcharges, reimbursements or credits for service level failures. Credits: One Time CreditsCredit: Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $215,000 which will be applied against Customer's Interstate Total Service Charges. Customer will receive a credit equal to $75,000 to be applied against Customer's designated Service Charges incurred for Interstate Services. Customer will receive a credit equal to $10,500 to be applied against Customer's designated Service Charges incurred for Interstate and International ServicesServices and any other services mutually agreeable by Company and Customer. Provided that Customer executes and delivers the Agreement to the Company no later than an agreed upon date, Customer shall receive a credit equal to $60,000 which will be applied against Customer's Interstate and International Total Service Charges. Customer will receive a credit equal to $10,000 to be applied against Customer's Total Service Charges incurred for interstate and international services.

Appears in 1 contract

Samples: enterprise.verizon.com

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