Common use of Underutilization Charges Clause in Contracts

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

Appears in 1 contract

Sources: Service Order Form

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.

Appears in 1 contract

Sources: Service Order Form (Ultimate Software Group Inc)