Common use of DEFICIENCY CHARGE Clause in Contracts

DEFICIENCY CHARGE. In the event Customer does not maintain Customers Minimum Revenue Commitment in any month during the Commitment Period (regardless of whether Customer has commenced using any or all of the Switched Services described herein), then for those month(s) only, Customer will pay MCI WorldCom, in addition to charges due for Switched Services provided to Customer, the difference between Customer's Minimum Revenue Commitment and Customer's actual Monthly Revenue (as described in Section 2 above) (the "DEFICIENCY CHARGE"). The Deficiency Charge will be due at the same time payment is due for Switched Services provided to Customer for the billing period in which the Deficiency Charge arises, or immediately in an amount equal to Customer's Minimum Revenue Commitment for the unexpired portion of the Service Term, if MCI WorldCom terminates this Agreement based on Customer's default or if Customer terminates this Agreement pursuant to Section 2(A) of the TSA. Further, in the event Customer does not maintain Customer's Total Minimum Revenue Commitment by the end of the Service Term, Customer agrees to pay MCI WorldCom the difference between Customer's Total Minimum Revenue Commitment and Customers actual cumulative Monthly Revenue (which shall include any Monthly Deficiency Charges paid by Customer) during the Total Commitment Period (the "TOTAL DEFICIENCY CHARGE"). The Total Deficiency Charge, if any, will be due within ten (10) days following the end of the Service Term, or immediately in an amount equal to Customer's Total Minimum Revenue Commitment less Customer's actual Monthly Revenue through the effective date of termination if MCI WorldCom terminates this Agreement based on Customer's default. It is agreed that MCI WorldCom's damages in the event Customer fails to maintain Customer's Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment shall be difficult or impossible to ascertain. The provision for a Deficiency Charge and a Total Deficiency Charge in this Section 6 is intended, therefore, to establish liquidated damages in the event Customer fails to maintain Customer's Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment and is not intended as a penalty.

Appears in 2 contracts

Samples: Mci Worldcom (Valor Telecommunications Services Lp), Telecommunications Services Agreement (Valor Telecommunications Southwest LLC)

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DEFICIENCY CHARGE. In the event Customer does not maintain Customers Minimum Revenue Commitment in any month during the Commitment Period (regardless of whether Customer has commenced using any or all of the Switched Services described herein), then for those month(s) only, Customer will pay MCI WorldCom, in addition to charges due for Switched Services provided to Customer, the difference between Customer's Minimum Revenue Commitment and Customer's actual Monthly Revenue (as described in Section 2 above) (the "DEFICIENCY CHARGE"). The Deficiency Charge will be due at the same time payment is due for Switched Services provided to Customer for the billing period in which the Deficiency Charge arises, or immediately in an amount equal to Customer's Minimum Revenue Commitment for the unexpired portion of the Service Term, if MCI WorldCom terminates this Agreement based on Customer's default or if Customer terminates this Agreement pursuant to Section 2(A) of the TSA. Further, in the event Customer does not maintain Customer's Total Minimum Revenue Commitment by the end of the Service Term, Customer agrees to pay MCI WorldCom the difference between Customer's Total Minimum Revenue Commitment and Customers actual cumulative Monthly Revenue (which shall include any Monthly Deficiency Charges paid by Customer) during the Total Commitment Period (the "TOTAL DEFICIENCY CHARGE"). The Total Deficiency Charge, if any, will be due within ten (10) days following the end of the Service Term, or immediately in an amount equal to Customer's Total Minimum Revenue Commitment less Customer's actual Monthly Revenue through the effective date of termination if MCI WorldCom terminates this Agreement based on Customer's default. It is agreed that MCI WorldCom's damages in the event Customer fails to maintain Customer's Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment shall be difficult or impossible to ascertain. The provision for a Deficiency Charge and a Total Deficiency Charge in this Section 6 is intended, therefore, to establish liquidated damages in the event Customer fails to maintain Customer's Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment and is not intended as a penalty. 7.

Appears in 1 contract

Samples: www.sec.gov

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DEFICIENCY CHARGE. In the event Customer does not maintain Customers Customer's First Minimum Revenue Commitment in any month or Customer's Second Minimum Revenue Commitment, whichever is applicable, during the First Commitment Period (regardless of whether Customer has commenced using any or all of the Switched Services described herein)Second Commitment Period, whichever is applicable, then for those month(s) Commitment Periods only, Customer will pay MCI WorldCom, in addition to charges due for Switched Services provided to Customer, the difference between Customer's applicable Minimum Revenue Commitment and Customer's actual cumulative Monthly Revenue (as described in Section 2 above) for the applicable Commitment Period (the "DEFICIENCY CHARGE"). The Deficiency Charge will be due at the same time payment is due for Switched Services provided to Customer for the billing period in which the Deficiency Charge arises, or immediately in an amount equal to Customer's First Minimum Revenue Commitment and Customer's Second Minimum Revenue Commitment, whichever is applicable, for the unexpired portion of the Service Term, if MCI WorldCom terminates this Agreement based on Customer's default or if Customer terminates this Agreement pursuant to Section 2(A) of the TSA. Further, in the event Customer does not maintain Customer's Total Minimum Revenue Commitment by the end of the Service Term, Customer agrees to pay MCI WorldCom the difference between Customer's Total Minimum Revenue Commitment and Customers Customer's actual cumulative Monthly Revenue (which shall include any Monthly Deficiency Charges paid by Customer) during the Total Commitment Period (the "TOTAL DEFICIENCY CHARGE"). The Total Deficiency Charge, if any, will be due within ten (10) days following the end of the Service Term, or immediately in an amount equal to Customer's Total Minimum Revenue Commitment less Customer's actual Monthly Revenue through the effective date of termination if MCI WorldCom terminates this Agreement based on Customer's default. It is agreed that MCI WorldCom's damages in the event Customer fails to maintain Customer's First Minimum Revenue Commitment, Customer's Second Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment shall be difficult or impossible to ascertain. The provision for a Deficiency Charge and a Total Deficiency Charge in this Section 6 is intended, therefore, to establish liquidated damages in the event Customer fails to maintain Customer's First Minimum Revenue Commitment, Customer's Second Minimum Revenue Commitment and Customer's Total Minimum Revenue Commitment and is not intended as a penalty.

Appears in 1 contract

Samples: GTC Telecom Corp

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