Common use of Classifications, Practices and Regulations Clause in Contracts

Classifications, Practices and Regulations. Underutilization Charges: If Customer's aggregate purchases are less than the applicable Minimum Purchase Requirement (such difference being the “Shortfall”) at the end of the last year of the Initial Term, or, if applicable, at the end of any Renewal Year, Customer may, at its sole option, (i) continue to purchase Service from Company at the rates and charges and subject to the terms and conditions set forth in the agreement (with the exception of a Minimum Purchase Requirement) until Customer’s purchases during the extension period equal the Shortfall or 12 months have passed, whichever first occurs (such period being the “Work Off Period”), or (ii) pay Company, as underutilization charge, an amount equal to fifty percent (50%) of the Shortfall (the “Shortfall Charge”). If Customer invokes its right to a Work Off Period and at the end of the Work Off Period, Customer’s Aggregate Purchases are still less than the Minimum Purchase Requirement (the “Final Shortfall”), Customer shall pay Company, as underutilization charges, a Shortfall Charge in an amount equal to fifty percent (50%) of the Final Shortfall.