Common use of Underutilization Clause in Contracts

Underutilization. If, in any annual period during the 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 25 percent of the difference between the AVC and the Customer’s Total Service Charges during such annual period. If during any month of the Extension Term the Customer fails to satisfy the Extension Term AVC, the Customer will be billed and required to pay (a) an underutilization charge equal to the difference between the Customer’s Total Service Charges during such month and the Extension Term AVC and (b) an Underutilization charge equal to the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. From June 1, 2007 through the expiration of the Term, Customer shall not be subject to underutilization charges.

Appears in 2 contracts

Samples: enterprise.verizon.com, enterprise.verizon.com

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Underutilization. If, in any annual period during the 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 25 percent of the difference between the AVC and the Customer’s Total Service Charges during such annual period. If during any month of the Extension Term the Customer fails to satisfy the Extension Term AVC, the Customer will be billed and required to pay (a) an underutilization charge equal to the difference between the Customer’s Total Service Charges during such month and the Extension Term AVC and (b) an Underutilization charge equal to the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. From June 1, 2007 through the expiration of the Term, Customer shall not be subject to underutilization charges.

Appears in 1 contract

Samples: enterprise.verizon.com

Underutilization. If, in any annual period during the 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 25 100 percent of the difference between the AVC and the Customer’s Total Service Charges during such annual period. If during any month of the Extension Term the Customer fails to satisfy the Extension Term AVC, the Customer will be billed and required to pay (a) an underutilization charge equal to the difference between the Customer’s Total Service Charges during such month and the Extension Term AVC and (b) an Underutilization charge equal to 100 percent of the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. From June 1, 2007 through the expiration of the Term, Customer shall not be subject to underutilization charges.

Appears in 1 contract

Samples: enterprise.verizon.com

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Underutilization. If, in any annual period during the 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 25 50 percent of the difference between the AVC and the Customer’s Total Service Charges during such annual period. If during any month of the Extension Term the Customer fails to satisfy the Extension Term AVC, the Customer will be billed and required to pay (a) an underutilization charge equal to the difference between the Customer’s Total Service Charges during such month and the Extension Term AVC and (b) an Underutilization charge equal to 50 percent of the difference between 1/12 of the AVC and the Customer’s Total Service Charges during such monthly billing period. From June 1, 2007 through the expiration of the Term, Customer shall not be subject to underutilization charges.

Appears in 1 contract

Samples: enterprise.verizon.com

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