Underutilization Charges Sample Clauses
The Underutilization Charges clause establishes a fee or penalty that applies when a party fails to use a contracted service, resource, or facility to the agreed minimum level. For example, if a company reserves a certain amount of storage space or equipment time but does not use the full allocation, it may still be required to pay for the unused portion according to the terms set out in the contract. This clause ensures that the service provider is compensated for reserved capacity and discourages inefficient or speculative booking, thereby protecting the provider from revenue loss due to underuse.
POPULAR SAMPLE Copied 1 times
Underutilization Charges. During any period of the Service Term in which Customer's usage of the Service is less than any minimum commitment made by Customer for that period, Customer will pay, in addition to all other applicable charges, Customer's actual usage charges, plus an underutilization charge (which Customer agrees is reasonable) equal to the difference between Customer's actual usage charges and the minimum commitment.
Underutilization 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 the Agreement; and (b) an “Underutilization Charge” in an amount equal to fifty percent (50%) of the difference between the AVC and Customer’s Total Service Charges during such contract year.
Underutilization Charges. If, at the end of the Term, Customer's Total Service Charges do not meet or exceed the TVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to fifty percent (50%) of the difference between the TVC and Customer's Total Service Charges during the Term.
Underutilization Charges. If, in any Contract Year during the Initial Term, Customer's Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to 100% of the difference between the AVC and Customer's Total Service Charges during such Contract Year. If the Shortfall is less than 20% of the AVC, Customer shall not be responsible for nay “Underutilization Charges” for that Contract Year, provided that such Shortfall is made up during the next Contract Year or within six (6) months following the expiration of this Agreement as set forth in Section 2. Such Shortfall shall be in addition to the AVC for that Contract Year or extension, as may be applicable. If, in any monthly billing period during the Extended Term, Customer's Total Service Charges do not meet or exceed 1/12 of the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement, and (b) an "Underutilization Charge" equal to the difference between 1/12 of the AVC and Customer's Total Service Charges during such monthly billing period.
Underutilization Charges. If Customer’s Total Service Charges do not reach the TVC during the Initial Term, Customer shall pay an “Underutilization Charge” equal to 25% of the unmet TVC. If Customer’s Total Service Charges do not reach the TVC because the Agreement is terminated early by Customer without Cause or by Company with Cause, Customer shall pay an “Early Termination Charge” equal to 25% of the unmet TVC plus a pro rata portion of any credits received by Customer. The Customer will receive three credits, each equal to $2,700, applied against the Customer’s Company service usage. The Customer will receive a one-time credit of $17,000. The Customer will receive three one-time credits totaling $85,000. The Customer will receive a credit of $28,000 usage in Month 18 of the Term, $28,000 in month 30 of the Term and $29,000 in month 42 of the Term. The Customer will receive three credits, each equal to $4,000, applied against Customer's designated Service Charges incurred for Interstate Services and International Services. The Customer will receive a one-time credit equal to $250,000, applied against Customer's designated Service Charges incurred for Interstate Services and International Services and any other services mutually agreeable by Company and Customer. The Customer will receive three credits, each equal to $42,023, applied against Customer's Total Service Charges incurred for Interstate Services and International Services. The Customer will receive a credit equal to $26,000, applied against Customer’s interstate and international Total Service Charges.
Underutilization Charges. If Customer’s Eligible Usage Charges during the Initial Term are less than the TVC, then Customer will pay: (1) all accrued but unpaid charges incurred by Customer; and (2) an underutilization charge (which Customer hereby agrees is reasonable) equal to 50% of the difference between Customer’s Eligible Usage Charges during the Initial Term and the TVC.
Underutilization Charges. If, after expiration of the Initial Term, Customer's Contributing Charges are less than the Minimum Volume Commitment, then Customer shall pay: (1) all accrued, Resolved Charges incurred by Customer; and (2) an underutilization charge (which Customer hereby agrees is reasonable) equal to the difference between the Minimum Volume Commitment, as reduced pursuant to Section 1 of this Schedule One, if applicable, and the amount actually paid by Customer and any Resolved Charges. For the purposes of this provision, “Resolved Charges” shall mean those charges that are either: (i) unpaid and undisputed by Customer; or (ii) unpaid and disputed by Customer, pending an agreement by the Parties, in accordance with the Agreement or as otherwise agreed in writing, as to an agreed to be paid by Customer to Company.
Underutilization Charges. If, in any contract year, the Customer’s Usage Charges are less than the Annual Minimum, the Customer will pay: (1) all accrued but unpaid Usage Charges and other charges incurred by Customer, and (2) an underutilization charge equal to during the Term, the Customer’s Total Service Charges do not meet or exceed the MVR, the Customer shall pay (a) all accrued but unpaid charges incurred under the agreement and (b) an underutilization charge in an amount equal to seventy-five percent (75%) of the difference between the applicable Annual Minimum and Customer’s Usage Charges during such contract year.
Underutilization Charges. If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid usage and other charges incurred under this Agreement; and (b) an “Underutilization Charge” in an amount equal to [ * ] the difference between the AVC and Customer’s Total Service Charges during such Contract Year. If in any Annual Extended Term, Customer’s Total Service charges do not meet or exceed the AVC then Customer shall pay: (a) all accrued but unpaid usage and other charges turned under this Agreement, and (b) an “Underutilization Charge” equal to the difference between the AVC and Customer’s Total Service Charges during such period.
Underutilization Charges. Where applicable, if, in any Contract Year, Customer’s Eligible Usage Charges are less than the Annual Minimum, then Customer will pay: (1) all accrued but unpaid charges incurred by Customer; and (2) an underutilization charge (which Customer hereby agrees is reasonable) equal to the difference between Customer’s Eligible Usage Charges during such Contract Year and the Annual Minimum. If, in any Contract Year, Customer’s Eligible Usage Charges for designated Services are less than the applicable Subminimum, if any, then Customer will pay: (1) all accrued but unpaid charges incurred by Customer; and (2) an underutilization charge (which Customer hereby agrees is reasonable) equal to the difference between Customer’s Eligible Usage Charges for the relevant designated Services during such Contract Year and the applicable Subminimum. 6.0