Common use of Underutilization Clause in Contracts

Underutilization. If during an annual period of the term of service the Customer fails to satisfy the TVC, the Customer will pay the following charges: (1) all accrued but unpaid Total Eligible Usage Charges and other charges incurred by Customer; and (2) and underutilization charge (which Customer hereby agrees is reasonable) equal to 50 % of the difference between the TVC and Customer’s Total Service Charges

Appears in 2 contracts

Samples: Service Agreement, Service Agreement

AutoNDA by SimpleDocs

Underutilization. If If, during an annual period of the term of service the Customer fails to satisfy Term, Customer’s Total Service Charges do not meet or exceed the TVC, the then Customer will shall pay the following charges: (1a) all accrued but unpaid Total Eligible Usage Charges and other charges incurred by Customer; under the agreement and (2b) and an underutilization charge (which Customer hereby agrees is reasonable) in an amount equal to 50 50% of the difference between the TVC and the Customer’s Total Service ChargesCharges during the Term.

Appears in 2 contracts

Samples: Service Agreement, Service Agreement

AutoNDA by SimpleDocs

Underutilization. If during an annual period of the term of service the The Customer fails to satisfy the TVC, the Customer will shall pay the following charges: (1a) all accrued but unpaid Total Eligible Usage Charges and other charges incurred by Customer; under this agreement, and (2b) and underutilization charge (which Customer hereby agrees is reasonable) an amount equal to 50 75% of the difference between the TVC and Customer’s Total Service Charges.

Appears in 2 contracts

Samples: Service Agreement, Service Agreement

Draft better contracts in just 5 minutes Get the weekly Law Insider newsletter packed with expert videos, webinars, ebooks, and more!