Subscription, or Term Licenses Clause Samples

Subscription, or Term Licenses. If Provider licenses a Provider Software Product to Customer either on a software as a service (SaaS), a subscription basis, or for a specified term (collectively or individually, a “Subscription License”), as set forth in an Order, the license shall remain in effect for thirty-six (36) months from the effective date of the Order unless a different period is indicated on the Order (the “Initial Subscription Term”) and shall automatically renew for subsequent renewal terms of at least twelve months each, or a longer period as specified in an Order, (each a “Renewal Subscription Term”) unless Customer notifies Provider in writing of its intent not to renew at least sixty days prior to the start of a Renewal Subscription Term. The license is in effect only during the Initial Subscription Term and any applicable Renewal Subscription Terms. If no Initial Subscription Term is specified in the Order, the Initial Subscription Term shall be for a period of twelve months, commencing on the effective date of the Order. Payment of applicable subscription fees is required to use the Provider Software Products during the Initial Subscription Term or Renewal Subscription Term. Subscription fees for Renewal Subscription Terms are subject to an increase not to exceed five percent (5%) over the fees charged for the preceding term, unless a greater increase is required by an escalation of a Third-Party Software Product provider’s rates, in which case Provider shall provide Customer reasonable advance notice of the amount of the proposed increase. Customer understands and agrees that if Customer terminates a Subscription License for Customer’s convenience prior to the end of the Initial Subscription Term or Renewal Subscription Term, Provider will have no obligation to refund any paid but unused subscription fees and Customer shall pay Provider an early termination fee to be calculated as the remaining unpaid months in the term multiplied by the then current monthly fee.