Minimum Annual Charges Clause Samples
The Minimum Annual Charges clause sets a baseline amount that a party, typically the customer, must pay each year under the agreement, regardless of actual usage or consumption. This clause ensures that the supplier receives a guaranteed minimum payment annually, even if the customer's use of goods or services falls below expected levels. Its core function is to provide revenue certainty for the supplier and to incentivize the customer to maximize their use of the contracted services or products.
Minimum Annual Charges. During the first [**] months of the Agreement, ▇▇▇▇▇▇▇ agrees to a [**] ($[**]) US dollar minimum service revenue commitment to Unisys. If the actual charges paid by Egenera to Unisys (including its Local Providers) during that period are less than the minimum revenue commitment for that period, Unisys shall invoice Egenera for the difference between the minimum service revenue commitment 12 <PAGE> and the service revenue actually paid by Egenera to Unisys under this Agreement during such initial [**] month period ("Revenue Commitment Balance"). ▇▇▇▇▇▇▇ agrees to pay the invoice amount for the Revenue Commitment Balance to Unisys within thirty (30) days of the invoice date. The paid Revenue Commitment Balance will be applied as credit for new services, for the remaining term of this Agreement.
Minimum Annual Charges. The Operator may demand Minimum Annual Charges (the “Minimum Annual Charges”) from Users at the rate set forth in the following Table, provided the Operator is providing the collection services from the premises of the Generator/User. The Operator shall adjust such Minimum Annual Charges against Tariff. ▇.▇▇. User Category Minimum Annual Charges (in Rupees) 1 Large Scale Industries 6000 2 Medium Scale Industries 4000 3 Small Scale Industries 3000
Minimum Annual Charges. The Generator shall pay Minimum Annual Charges (the “Minimum Annual Charges”) at the rate set forth in Schedule VII, wherever the Operator is providing the collection services from the premises of the Generator. Minimum Annual Charges relate only to Component A of Tariff. As such Minimum Annual Charges shall be adjustable against Component A of Tariff. Where the Generator opts to send its waste to Transfer Stations at its cost and risk, no Minimum Annual Charges shall be payable. Provided that if the Generator so desires during any time of the year to avail the hazardous waste collection services from the Unit(s), the Generator shall be liable to pay the Minimum Annual Charges for the whole of the financial year.
Minimum Annual Charges. Notwithstanding anything to the contrary in this Agreement or otherwise, F▇▇▇▇▇▇▇ ▇▇▇▇▇ will be obligated to pay EDS each Fiscal Year (pro-rated as necessary to reflect partial Fiscal Years) at least the Minimum Annual Charges (as defined below), even if the application of RRCs would reduce the amount payable by F▇▇▇▇▇▇▇ ▇▇▇▇▇ to EDS during a Fiscal Year to below the Minimum Annual Charges. For each Fiscal Year of this Agreement (as defined below), the “Minimum Annual Charges” shall be: