Underutilization and Early Termination Charges Clause Samples

Underutilization and Early Termination Charges. If, in any Contract Year during the Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement, and (b) an "Underutilization Charge" in an amount equal to 25% of the difference between the AVC and Customer’s Total Service Charges for the Contract Year. If, in any monthly billing period during the Extended Term, Customer’s Total Service Charges do not meet or exceed 1/12th of the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement, and (b) an “Underutilization Charge” equal to 25% of the difference between 1/12th of the AVC and Customer’s Total Service Charges during such monthly billing period. If, (A) Customer terminates this Agreement before the end of the Term for reasons other than Cause, or (b) Company terminates this Agreement for Cause, then Customer shall pay, within 30 after such termination: (i) all accrued but unpaid charges incurred through the date of such termination, plus (ii) an amount equal to 25% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the term, plus (iii) a pro rata portion of any and all credits received by the Customer.

Underutilization and Early Termination Charges. 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 50% of the unmet AVC for the Contract Year unless otherwise provided in the Agreement. If before the expiration of the Initial Term: (a) Customer terminates the Agreement and all Services for Convenience, or (b) Company terminates the Agreement or all Services for Cause; then Customer will pay, within thirty (30) days after such termination and receipt of an invoice from Company, an amount equal to fifty percent (50%) of the unmet AVC, if any, that would otherwise be due and payable for the Contract Year(s) left in the Initial Term,(“Early Termination Charge”). Upon the expiration of the Initial Term and during any Renewal Term, Customer shall not be liable for Underutilization Charges or Early Termination Charges (except to the extent a termination charge is expressly identified in a Service Attachment or SLA in the event of termination by Customer of a specific service. Installation Waiver: Company will waive the one-time installation charges associated with Network Access Service within the 48 contiguous States of the U.S. Usage charges, monthly recurring charges, expedite charges, change charges, surcharges, charges for an unlisted or non-published number, any charges imposed by third parties (including access, egress, jack, or wiring charges), taxes or tax-like surcharges, or other Governmental Charges will not be waived.\ Payment Arrangements: Customer agrees to pay all the Company charges (except disputed amounts) within thirty (30) days of Customer’s receipt of the invoice. Promotions: The Customer is eligible for the following promotions as set forth in the Guide: General Installation Waiver Promotion – v5.0 Initial Term: 12 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates the Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term”). The terms of the Agreement will continue to apply during any service-specific commitments that extend beyond the Term. Annual Volume Commitment (“AVC”): $0.00 in Total Service Charges (“AVC”) during each contract year of the Term.

Underutilization and Early Termination Charges. If, in any Contract Year during the Term, Customer's Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to 25% of the difference between the AVC and Customer's Total Service Charges during that Contract Year. If: (a) Customer terminates this Agreement before the end of the Term for reasons other than Cause; or (b) Company terminates this Agreement for Cause pursuant to the Section entitled “Termination,” then Customer will pay, within thirty (30) days after such termination: (i) all accrued but unpaid charges incurred through the date of such termination, plus (ii) an amount equal to 20% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (iii) a pro rata portion of any and all credits received by Customer.

Underutilization and Early Termination Charges. 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 75% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the Term for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within thirty (30) days of such termination: (i) an amount equal to 75% of the unmet AVC remaining during the year of termination, and for each subsequent contract year remaining in the Term, plus a pro rata portion of any and all credits received by Customer.

Underutilization and Early Termination Charges. If Customer’s Total Service Charges do not reach the AVC in any Contract Year during the Term, Customer shall pay an “Underutilization Charge” equal to 75% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the Term for reasons other than Cause; or (b) Company terminates the Agreement for Cause then Customer will pay, within thirty (30) days after such termination: (i) an amount equal to 50% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus (ii) a pro rata portion of any and all credits received by Customer.

Underutilization and Early Termination Charges. 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 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 Company with Cause, Customer shall pay an “Early Termination Charge” equal to 40% of the unmet AVC for the year of termination and each subsequent Contract Year remaining in the Term plus a pro rata portion of any credits received by Customer. Term: 24 months following the expiration of the Ramp Period Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates this Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term”). During the Extended Term, either party may terminate this Agreement upon at least sixty (60) days prior written notice.

Underutilization and Early Termination Charges. If Customer’s Total Service Charges do not reach the AVC in any contract year during the Term, Customer shall pay an “Underutilization Charge” equal to 100% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the Term for reasons other than Cause; or Company terminates the Agreement for Cause, then Customer will pay, within thirty (30) days after such termination: (i) an amount equal to 100% of the unsatisfied AVC remaining during the year of termination, and for each subsequent contract year remaining in the Term, plus (ii) a pro rata portion of any and all credits received by Customer. Promotion: The Customer is eligible for the following promotion as set forth in the Guide: General Installation Waiver Promotion – v5.0 OPTION NO 328877 Initial Term: 36 months Month-to-Month Term: Upon expiration of the Initial Term or the Ramp Down Period, as applicable, the Agreement is automatically extended (“Month-to-Month Term”) on a month-to-month basis until either party terminates it upon 60 days' prior written notice Annual Volume Commitment (“AVC”): Customer agrees to pay Company no less than the following amounts (the “AVC”) in Total Service Charges in each twelve-month period during the Initial Term (“Contract Year”): Contract Year 1: $2,600,000 Contract Year 2: $3,250,000 Contract Year 3: $3,250,000

Underutilization and Early Termination Charges. 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 75% of the unmet AVC. If: (a) Customer terminates the Agreement before the end of the Term for reasons other than Cause; or (b) Company terminates the Agreement for Cause, then Customer will pay, within thirty (30) days after such termination: (i) an amount equal to 75% of the unsatisfied AVC remaining during the year of termination, and for each subsequent Contract Year remaining in the Term, plus a pro rata portion of any and all credits received by Customer. Initial Term: 36 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates the Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term”). Minimum Annual Volume Commitment (“AVC”): Customer agrees to pay Company no less than $200,000 in Total Service Charges (“AVC”) in each twelve-month period during the Initial Term (“Contract Year”)...

Underutilization and Early Termination Charges. 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 75% 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 75% of the unmet AVC plus a pro rata portion of any credits received by Customer. Promotions: The Customer is eligible for the following promotions as set forth in the Guide: Local Voice - PRI / T1 Flat Rate Promotion Install Waiver – Digital T1 Access General Installation Waiver Promotion v6.0 Flat Rate T1 Access Promotion V2.0 (New/Renewing Customers) Initial Term: 24 months Upon expiration of the Term, the Agreement will be automatically extended on a month-to-month basis unless either party terminates the Agreement upon at least sixty (60) days written notice prior to the end of the Initial Term (“Extended Term”). During the Extended Term, either party may terminate the Agreement upon at least sixty (60) days prior written notice. Minimum Annual Volume Commitment (“AVC”): Customer agrees to pay Company no less than $30,000 in Total Service Charges (“AVC”) in each twelve-month period during the Initial Term (“Contract Year”).