Classifications, Practices and Regulations. Underutilization Charges: If, during the Term, the Customer’s Total Service Charges do not meet or exceed the TVC, 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% of the difference between the TVC and the Customer’s Total Service Charges during such Term. If during any Contract Year of the Extended Term the Customer fails to satisfy the Extended Term AVC, the Customer will be billed and required to pay (a) all accrued but unpaid charges incurred under the agreement and (b) an underutilization charge equal to 25% of the difference between the Customer’s Total Service Charges during such Contract Year and the Extension Term AVC.
Appears in 2 contracts
Sources: Service Agreement, Service Agreement