Common use of AVC Underutilization and Termination with Liability Clause in Contracts

AVC Underutilization and Termination with Liability. If Customer's Total Service Charges do not reach the AVC, in any contract year during the Initial Term, Customer shall pay an “Underutilization Charge” equal to 25% of the unmet AVC. If Customer’s Total Service Charges do not reach the AVC in any contract year because the Agreement is terminated early by Customer without Cause or by the Company with Cause, Customer shall pay an “Early Termination Charge” equal to 25% of the unmet AVC plus a pro rata portion of any credits received by Customer.

AVC Underutilization and Termination with Liability. If Customer's Total Service Charges do not reach the AVC, in any contract year during the Initial Term, ; Customer shall pay an “Underutilization Charge” equal to 25% of the unmet AVC. If Customer’s Total Service Charges do not reach the AVC in any contract year because the Agreement is terminated early by Customer without Cause or by the Company with Cause, Customer shall pay an “Early Termination Charge” equal to 25% of the unmet AVC plus a pro rata portion of any credits received by Customer.