Common use of Minimum Service Charge Clause in Contracts

Minimum Service Charge. The Client agrees to pay the Minimum Service Charge based upon the minimum operating hours as set forth on Exhibit B multiplied times the Hourly Rate, annually. In the event the Client fails to operate the Airframe/Engine(s) for the minimum operating hours in any Agreement Year, AEPC™ shall invoice the Client, and the Client shall pay, for such deficiency. Notwithstanding the foregoing, in the event this Agreement is terminated for any reason prior to the expiration of the term set forth in Subsection IV (A) hereof, the Client shall be required to pay for that number of mini- mum flight hours allocable through the date of the termination and the Client’s Account Balance shall be forfeited.