Underutilization and Early Termination. If, in any Contract Year during the Initial Term, the Customer’s Total Service Charges do not meet or exceed the AVC, the Customer shall pay (a) all accrued but unpaid charges incurred under the agreement and (b) an “Underutilization Charge” in an amount equal to 100 %of the difference between the AVC and the Customer’s Total Service Charges during that Contract Year. If, in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12 of the AVC, then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 100% of the difference between the AVC and the Customer’s Total Service Charges during such monthly billing period. If: (a) Customer terminates this Agreement before the end of the Term for reasons other than Cause, or (b) the Company terminates this Agreement for Cause, then the Customer must pay, within 30 days after such termination: (i) all accrued but unpaid charges incurred through the date of such termination, plus (ii) an amount equal to 100% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (iii) a pro rata portion of any and all credits received by Customer. One-Time Credit: Provided that Customer executes and delivers the Agreement to Company no later than an agreed upon date, Customer shall receive two credits equal to $45,000, which will be applied against Customer's Interstate Total Service Charges.
Appears in 2 contracts
Samples: Service Agreement, Service Agreement
Underutilization and Early Termination. If, in any Contract Year during the Initial Term, the Customer’s 's Total Service Charges do not meet or exceed the AVC, the then Customer shall pay pay: (a) all accrued but unpaid charges incurred under the agreement this Agreement; and (b) an “"Underutilization Charge” " in an amount equal to 100 %50% of the difference between the AVC and the Customer’s 's Total Service Charges during that such Contract Year. If, in any monthly billing period during the Extended Term, Customer’s 's Total Service Charges do not meet or exceed 1/12 of the AVC, AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, ; and (b) an “"Underutilization Charge” " equal to 100% of the difference between 1/12 of the AVC and the Customer’s 's Total Service Charges during such monthly billing period. If: (a) Customer terminates this Agreement before the end of the Term for reasons other than Cause, ; or (b) the Company terminates this Agreement for Cause, Cause then the Customer must will pay, within 30 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 10050% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (iii) a pro rata portion of any and all credits received by Customer. OneThe Customer will receive three (3) one-Time Credit: Provided that Customer executes and delivers the Agreement time credits of $4,896 to Company no later than an agreed upon date, Customer shall receive two credits equal to $45,000, which will be applied against the Customer's Interstate ’s Total Service Charges. Customer will receive a $3,000 credit applied against Customer’s designated Service Charges incurred for Interstate and International Services.
Appears in 2 contracts
Samples: Service Agreement, Service Agreement