Minimum Utilization Clause Samples
The Minimum Utilization clause establishes a baseline level of usage or consumption that a party is required to meet under a contract. Typically, this means the customer must pay for a specified minimum amount of goods, services, or capacity, regardless of whether they actually use that amount. For example, in a service agreement, the client may be obligated to pay for at least 1,000 hours of service per year even if they use less. This clause ensures predictable revenue for the provider and protects against underutilization that could undermine the economic basis of the agreement.
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Minimum Utilization. Borrower shall at all times utilize at least 20% of the Maximum Line Amount. The Financing Fees otherwise set forth herein shall be adjusted to reflect such minimum utilization.
Minimum Utilization. Beginning on the 31st day after the date hereof, Borrower shall at all times utilize at least 20% of the Maximum Line Amount. The Financing Fees otherwise set forth herein shall be adjusted to reflect such minimum utilization.
Minimum Utilization. Borrower and Guarantors shall maintain minimum utilization rates for each fiscal quarter, calculated at the end of each such quarter as the average amount during such quarter, and calculated as:
(a) the number of units of the Eligible Container Fleet Inventory of Borrower and the Guarantors which is then subject to valid, current rental or lease agreements between Borrower or a Guarantor and the renters or lessees thereof, divided by the aggregate number of units of the Eligible Container Fleet Inventory of Borrower and the Guarantors, of not less than seventy five percent (75%) in the first fiscal quarter of each year and seventy-seven and one-half percent (77.5%) in each other fiscal quarter; and
Minimum Utilization. The State or any Authorized User, under this Contract, shall not be held liable for any minimum utilization of the Contractor’s services.
Minimum Utilization. The State, under this Contract, shall not be held liable for any minimum utilization of the Contractor’s Consultants.
Minimum Utilization. At all times, the Total Outstandings shall equal or exceed $20,000,000 (subject to the mandatory prepayment provisions set forth in Section 3.2(b)(i) if the Borrowing Base Amount is less than $20,000,000).
Minimum Utilization. Borrower shall at all times cause the aggregate gross value of Accounts purchased hereunder to be equal or greater than the amount set forth in the General Rates and Fees; any violation of the foregoing covenant shall cause the Financing Fees owed hereunder by Borrower to be equal to the fees that would have accrued had Borrower not violated this clause.
Minimum Utilization. The Borrower shall cause the average daily outstanding principal balance of the Advances hereunder for each Utilization Period to equal or exceed $25,000,000 (the “Minimum Utilization Requirement”). If the Minimum Utilization Requirement is not satisfied for any Utilization Period (whether by reason of the failure of the conditions to Advances hereunder to be satisfied or for any other reason whatsoever), then the Borrower shall pay to the Agent the Make-Whole Fee in accordance with the terms of the Fee Letter.
Minimum Utilization. Utilization shall be no less than 40% of the Aggregate Revolving Commitment; provided that the foregoing covenant shall cease to apply for all purposes hereunder following the delivery of the second consecutive compliance certificate pursuant to Section 5.01(d) that contains the certification described in Section 5.01(d)(iv)(A), but in no event earlier than the first anniversary of the Effective Date; provided further, that if at any time the Administrative Agent determines that any such compliance certificate was incorrect in any material respect (whether based on a restatement, fraud or otherwise), notwithstanding the first proviso of this Section 6.12(c), the foregoing covenant shall be deemed to have continued to apply for all purposes hereunder.
(b) [Reserved.]
Minimum Utilization. (a) Borrower and the other Credit Parties shall maintain minimum utilization rates for each fiscal quarter, calculated at the end of each such quarter as the average amount during such quarter, and calculated as the number of units of Eligible Container Fleet Inventory of Borrower and the other Credit Parties which is then subject to valid, current rental or lease agreements between Borrower or a Credit Party and the renters or lessees thereof, divided by the aggregate number of units of Eligible Container Fleet Inventory of Borrower and the other Credit Parties, of not less than seventy-six percent (76%) for any fiscal quarter; and
(i) the number of units of the Eligible Container Fleet Inventory of Borrower and the other Credit Parties which is then subject to valid, current rental or lease agreements between Borrower or a Credit Party and the renters or lessees thereof, divided by (ii) sum of (A) the aggregate number of units of the Eligible Container Fleet Inventory of Borrower and the Guarantors, and (B) the number of units of the Eligible Container Inventory Held For Sale of Borrower and the other Credit Parties, of not less than seventy-one percent (71%) in any fiscal quarter; provided, that for the purposes of calculation of compliance with this Subsection 7.3.3, the aggregate of the number of units of Eligible Container Inventory Held For Sale, as a percentage of the sum of clauses (A) and (B) above, shall not exceed five percent (5%).