Customer-Friendly SaaS Subscription Agreement Template
SAAS SUBSCRIPTION AGREEMENT
This SaaS Subscription Agreement (the "Agreement") is entered into and made effective as of [Effective Date] (the "Effective Date") by and between:
[Provider Legal Name], a company duly organized and existing under the laws of [Country], having its registered office at [Provider Address], represented by [Provider Representative Name], acting in the capacity of [Title] (hereinafter referred to as the "Provider");
and
[Customer Legal Name], a company duly organized and existing under the laws of [Country], having its registered office at [Customer Address], represented by [Customer Representative Name], acting in the capacity of [Title] (hereinafter referred to as the "Customer").
The Provider and the Customer are hereinafter referred to individually as a "Party" and collectively as the "Parties".
WHEREAS, the Provider is engaged in the business of developing, operating, and making available a proprietary software-as-a-service solution known as [Service Name] (the "Service"), hosted and delivered via the internet on a subscription basis;
WHEREAS, the Customer, being a commercial entity, desires to procure subscription access to the Service for its internal business purposes, upon the terms and conditions set forth herein;
WHEREAS, the Provider is willing to grant such subscription access to the Customer, strictly in accordance with the covenants, terms, and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants, representations, and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows.
Definitions and Interpretation
In this Agreement, the following capitalized terms shall bear the meanings ascribed to them below, save where the context otherwise manifestly requires.
"Authorized User" shall mean any employee, agent, contractor, or representative of the Customer or any of its Affiliates who has been duly authorized by the Customer to access and utilize the Service pursuant to the terms of this Agreement, and in respect of whom valid login credentials have been issued, and whose use remains at all times subject to the usage parameters set forth in this Agreement.
"Customer Data" shall mean any and all data, content, information, text, files, records, documents, databases, metadata, communications, and other materials, in any form or medium, that are submitted, uploaded, transmitted, stored, generated, derived, or otherwise processed by, for, or on behalf of the Customer or any Authorized User through, in connection with, or as a result of the use of the Service.
"Documentation" shall mean the then-current user manuals, technical specifications, operating instructions, online help files, and other written or electronic materials made generally available by the Provider that describe the functionality, features, operation, and permitted use of the Service.
"Service" shall mean the software-as-a-service solution identified as [Service Name], including all associated software applications, platforms, interfaces, modules, functionalities, updates, upgrades, enhancements, bug fixes, and Documentation, made accessible to the Customer by the Provider on a hosted basis via the internet pursuant to this Agreement.
"Subscription Term" shall mean the initial subscription period commencing on the Effective Date and any subsequent renewal periods thereof, during which the Customer is entitled to access and use the Service in accordance with the terms of this Agreement.
"Confidential Information" shall mean any and all non-public information disclosed by one Party (the "Disclosing Party") to the other Party (the "Receiving Party"), whether orally, in writing, electronically, or by any other means, which is identified as confidential or proprietary at the time of disclosure, or which by its nature or the circumstances surrounding its disclosure ought reasonably to be regarded as confidential.
The headings and captions used in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of any provision hereof. References to the singular include the plural and vice versa; references to any gender include all genders; and the words "including", "includes", and "include" shall be construed as being followed by the phrase "without limitation".
Grant of Access and Subscription Rights
Subject to the Customer's continuing compliance with the terms and conditions of this Agreement, including the timely payment of all Subscription Fees when due, the Provider hereby grants to the Customer a non-exclusive, non-transferable, non-sublicensable, worldwide right to access and use the Service during the Subscription Term, solely for the Customer's internal business purposes.
The right of access granted hereunder shall extend to the Customer's Authorized Users, provided that the Customer shall at all times remain fully responsible and liable for all acts, omissions, and conduct of its Authorized Users in connection with the Service, as if such acts, omissions, and conduct were those of the Customer itself.
The Customer shall be entitled, upon reasonable written notice to the Provider, to designate, add, substitute, or remove Authorized Users from time to time during the Subscription Term, subject to any applicable user-count limitations expressly agreed between the Parties.
The Provider shall provide the Customer with the credentials, access codes, and administrative controls reasonably necessary to enable the Customer to access, configure, and administer the Service, and the Provider shall ensure that such access is provisioned no later than [Provisioning Period] following the Effective Date.
The Customer and its Affiliates shall be permitted to access and use the Service for the benefit of the Customer's internal operations, including any corporate restructurings, divestitures, or acquisitions, provided that any extension of use to a successor entity shall be subject to the terms of this Agreement.
The Provider reserves the right, exercised in a commercially reasonable manner and without diminishing the material functionality of the Service, to modify, enhance, update, or improve the Service from time to time, provided that any such modifications shall not materially degrade the Service or materially reduce the rights granted to the Customer hereunder.
Nothing in this Agreement shall be construed as granting the Customer any ownership right, title, or interest in or to the Service, save for the limited rights of access and use expressly granted in this section.
Service Availability and Service Credits
The Provider warrants and covenants that the Service shall be available for access and use by the Customer and its Authorized Users with a monthly uptime percentage of not less than [Uptime Percentage]% (the "Service Level"), measured on a calendar-month basis in accordance with the methodology set forth in this section.
For the purposes of calculating the Service Level, "Monthly Uptime Percentage" shall mean the total number of minutes in a given calendar month, less the number of minutes of Downtime in such month, divided by the total number of minutes in such month, expressed as a percentage.
"Downtime" shall mean any period during which the Service is not available for access or use by the Customer, excluding only: (i) scheduled maintenance of which the Provider has given the Customer not less than [Notice Period] prior written notice; and (ii) unavailability caused by a force majeure event as defined in this Agreement.
In the event that the Provider fails to meet the Service Level in any given calendar month, the Customer shall be entitled, as a non-exclusive remedy, to receive service credits (the "Service Credits") calculated as a percentage of the monthly Subscription Fee attributable to the affected month, in accordance with the following schedule: for a Monthly Uptime Percentage of less than [Threshold 1]% but greater than or equal to [Threshold 2]%, [Credit 1]%; for less than [Threshold 2]% but greater than or equal to [Threshold 3]%, [Credit 2]%; and for less than [Threshold 3]%, [Credit 3]%.
Service Credits shall be applied against future Subscription Fees payable by the Customer, or, at the Customer's election, refunded in cash in the event that no further Subscription Fees are anticipated or in the event of termination of this Agreement.
The Customer shall notify the Provider of any claim for Service Credits within [Claim Period] following the end of the calendar month in which the alleged failure to meet the Service Level occurred, and the Provider shall respond to any such claim within [Response Period] of receipt.
The right to receive Service Credits shall be in addition to, and shall not limit or waive, the Customer's rights to terminate this Agreement for material breach, to seek damages, or to pursue any other remedies available under this Agreement or at law in the event of persistent or material failures of the Service Level.
The Provider shall provide to the Customer, upon request and in any event not less frequently than quarterly, written reports documenting the actual Monthly Uptime Percentage achieved during each month of the reporting period.
Usage Limits and Permitted Use
The Customer and its Authorized Users shall be entitled to use the Service in accordance with the usage parameters set forth in this Agreement, including the maximum number of Authorized Users, the volume of data storage, the volume of transactions, and any other quantitative limits expressly agreed between the Parties and recorded in writing from time to time.
The Customer undertakes that it shall not, and shall not permit any Authorized User or third party to: (i) copy, modify, reverse engineer, decompile, disassemble, or otherwise attempt to derive the source code or underlying structure of the Service; (ii) rent, lease, sublicense, resell, distribute, or otherwise commercially exploit the Service to or for the benefit of any third party; or (iii) use the Service to build or support any competing product or service.
The Customer shall not use the Service in any manner that: (i) violates any applicable law or regulation; (ii) infringes the intellectual property rights or privacy rights of any third party; (iii) transmits any material that is unlawful, defamatory, obscene, or malicious; or (iv) interferes with or disrupts the integrity, security, or performance of the Service.
In the event that the Customer anticipates that it may exceed any applicable usage limit, the Customer shall so notify the Provider in advance, and the Parties shall negotiate in good faith a reasonable adjustment to the applicable limits and corresponding Subscription Fees, provided that no overage charges shall be imposed retroactively without the Customer's prior written consent.
The Provider shall provide the Customer with reasonable tools and reporting functionality to enable the Customer to monitor its own usage of the Service against the applicable usage parameters.
The Provider shall not impose any new or additional restrictions on the Customer's permitted use of the Service during the Subscription Term beyond those expressly set forth in this Agreement, save as may be strictly required by applicable law or to protect the integrity and security of the Service.
The Customer shall be solely responsible for ensuring that its Authorized Users comply with the use restrictions set forth in this section, and the Customer shall maintain reasonable internal policies and procedures to that effect.
Subscription Term and Renewal
The initial subscription term shall commence on the Effective Date and shall continue for a period of one (1) month (the "Initial Term"), unless earlier terminated in accordance with the provisions of this Agreement.
Upon expiration of the Initial Term, this Agreement shall automatically renew for successive renewal periods of one (1) month each (each a "Renewal Term"), unless either Party gives written notice of non-renewal to the other Party not less than [Non-Renewal Notice Period] days prior to the end of the then-current Initial Term or Renewal Term, as applicable.
The Customer shall at all times be entitled to issue a notice of non-renewal, and such notice, when duly given, shall result in the termination of this Agreement at the conclusion of the then-current term without any penalty, additional fee, or further obligation on the part of the Customer, save for the payment of any accrued but unpaid Subscription Fees.
The Provider shall not increase the Subscription Fees during any Renewal Term without providing the Customer with not less than [Fee Change Notice Period] days' prior written notice of any proposed increase; in the event that the Customer does not accept such proposed increase, the Customer shall be entitled to terminate this Agreement effective as of the end of the then-current term without penalty.
Each Renewal Term shall be subject to the terms and conditions of this Agreement as in effect at the commencement of such Renewal Term, including any amendments mutually agreed between the Parties in writing.
The Subscription Term shall be deemed to include the Initial Term and all Renewal Terms, and references in this Agreement to the "Subscription Term" shall be construed accordingly.
Neither Party shall be liable to the other for any cost, loss, damage, or expense arising solely from the exercise of a right of non-renewal in accordance with this section.
Intellectual Property Rights
As between the Parties, the Provider shall retain and own all right, title, and interest, including all intellectual property rights, in and to the Service, the Documentation, and all underlying software, platforms, systems, algorithms, methodologies, know-how, and technology used to provide the Service, together with all modifications, improvements, enhancements, and derivative works thereof.
As between the Parties, the Customer shall retain and own all right, title, and interest, including all intellectual property rights, in and to the Customer Data, and nothing in this Agreement shall be construed as transferring, assigning, or granting any ownership right in or to the Customer Data to the Provider.
The Customer hereby grants to the Provider a limited, non-exclusive, royalty-free, worldwide license to access, use, host, store, reproduce, transmit, and process the Customer Data solely to the extent necessary to provide the Service to the Customer and to perform the Provider's obligations under this Agreement, and for no other purpose whatsoever.
In the event that the Customer provides, or any Authorized User provides, any suggestions, comments, enhancement requests, feedback, or ideas relating to the Service ("Feedback"), the Customer grants to the Provider a non-exclusive, royalty-free license to use such Feedback for the improvement of the Service, provided that no Feedback shall be deemed to contain any Confidential Information of the Customer.
The Provider shall not acquire any right, title, or interest in or to any trademarks, service marks, logos, trade names, or other brand identifiers of the Customer by virtue of this Agreement, and shall not use any such identifiers without the prior written consent of the Customer.
The Provider shall not use the Customer's name, logo, or identity for marketing, promotional, or reference purposes without the prior written consent of the Customer, which consent may be withheld or revoked at the Customer's sole discretion.
Nothing in this Agreement shall be construed as granting, by implication, estoppel, or otherwise, any license or right under any intellectual property right of either Party, save as expressly set forth in this Agreement.
Subscription Fees and Payment Terms
In consideration of the rights of access and use granted hereunder, the Customer shall pay to the Provider a flat recurring subscription fee of [Currency] [Amount] per month (the "Subscription Fee"), payable in accordance with the terms of this section.
The Provider shall issue invoices to the Customer on a monthly basis in advance of the applicable billing period, and each invoice shall be payable by the Customer within [Payment Period] days of the date of receipt of a valid and undisputed invoice.
All Subscription Fees shall be exclusive of any applicable value-added tax, sales tax, goods and services tax, or similar transaction taxes, which shall be payable by the Customer in addition to the Subscription Fees, save for taxes imposed on the net income, profits, or capital of the Provider, which shall be borne solely by the Provider.
In the event that the Customer disputes in good faith any amount set forth in an invoice, the Customer shall so notify the Provider in writing within [Dispute Period] days of receipt of the disputed invoice, and the Parties shall endeavor in good faith to resolve such dispute promptly; the Customer's withholding of a disputed amount pending resolution shall not constitute a breach of this Agreement.
The Provider shall not be entitled to charge any late payment interest, penalty, or finance charge in respect of any undisputed amount unless and until the Provider has given the Customer written notice of non-payment and a cure period of not less than [Cure Period] days, after which late payment interest may accrue at a rate not exceeding [Interest Rate]% per annum.
All Subscription Fees shall be paid by the Customer by wire transfer or such other payment method as may be mutually agreed in writing between the Parties, and all bank charges and transaction costs incurred by the Provider in receiving payment shall be borne solely by the Provider.
The Provider shall not be entitled to invoice the Customer for any additional or ancillary fees, charges, or expenses that have not been expressly agreed between the Parties in writing in advance.
Confidentiality
Each Party shall treat as strictly confidential, and shall not disclose to any third party, any Confidential Information of the other Party, and shall use such Confidential Information solely for the purposes of performing its obligations and exercising its rights under this Agreement.
The Receiving Party shall apply to the Confidential Information of the Disclosing Party no lesser standard of care than it applies to its own confidential information of similar sensitivity, and in any event not less than a reasonable standard of care.
The obligations of confidentiality set forth in this section shall not apply to information that: (i) is or becomes publicly known through no fault of the Receiving Party; (ii) was known to the Receiving Party prior to its disclosure by the Disclosing Party, without any obligation of confidentiality; (iii) is lawfully received by the Receiving Party from a third party without any obligation of confidentiality; or (iv) is independently developed by the Receiving Party without reference to the Confidential Information of the Disclosing Party.
In the event that the Receiving Party is required by law, regulation, or order of a court or governmental authority of competent jurisdiction to disclose any Confidential Information, the Receiving Party shall, to the extent legally permissible, give prompt written notice to the Disclosing Party to enable the Disclosing Party to seek a protective order or other appropriate remedy.
The Receiving Party may disclose Confidential Information to its officers, directors, employees, agents, professional advisors, and subcontractors on a strict need-to-know basis, provided that each such recipient is bound by obligations of confidentiality no less protective than those set forth herein, and the Receiving Party shall remain fully responsible for any breach by such recipients.
Upon the expiration or termination of this Agreement, or upon the written request of the Disclosing Party at any earlier time, the Receiving Party shall promptly return or, at the Disclosing Party's election, destroy all Confidential Information of the Disclosing Party in its possession or control, save to the extent that retention is required by applicable law.
The obligations of confidentiality set forth in this section shall survive the expiration or termination of this Agreement for a period of [Survival Period] years, and in the case of Confidential Information that constitutes a trade secret, for so long as such information retains its status as a trade secret under applicable law.
Technical Support and Maintenance
The Provider shall, as part of the Subscription Fee and at no additional charge to the Customer, provide technical support services to the Customer during the Subscription Term in accordance with the provisions of this section.
Technical support shall be available during the Provider's standard business hours, being [Support Hours], on business days, and shall be provided via [Support Channels], including email, telephone, and online support portal.
The Provider shall acknowledge receipt of any support request within [Acknowledgment Time] and shall use commercially reasonable efforts to respond to and resolve support requests in accordance with the following severity-based response times: for critical issues (service unavailable), initial response within [Critical Response Time]; for high priority issues, within [High Response Time]; for medium priority issues, within [Medium Response Time]; and for low priority issues, within [Low Response Time].
The Provider shall provide to the Customer, at no additional charge, all updates, upgrades, patches, bug fixes, and new releases of the Service that are made generally available by the Provider to its customers during the Subscription Term.
Scheduled maintenance shall be performed, to the extent reasonably practicable, outside of the Customer's standard business hours, and the Provider shall give the Customer not less than [Maintenance Notice Period] prior written notice of any scheduled maintenance that may affect the availability of the Service.
Emergency maintenance may be performed by the Provider without prior notice where necessary to protect the integrity, security, or availability of the Service, provided that the Provider shall notify the Customer as promptly as practicable of any such emergency maintenance.
The Provider shall not be entitled to charge the Customer any additional fees for the resolution of any issue, defect, error, or malfunction in the Service, or for the implementation of any updates, upgrades, patches, or bug fixes, save in respect of issues directly and primarily attributable to the Customer's misuse of the Service.
Customer Data and Data Protection
The Customer shall at all times retain all right, title, and interest, including all intellectual property rights, in and to the Customer Data, and the Provider shall acquire no ownership right in or to the Customer Data by virtue of this Agreement.
The Provider shall process the Customer Data solely for the purposes of providing the Service and performing its obligations under this Agreement, strictly in accordance with the Customer's documented instructions, and shall not use, disclose, or otherwise process the Customer Data for any other purpose, including without limitation for marketing, analytics, product development, or sale to any third party.
The Provider shall implement and maintain appropriate technical and organizational measures to protect the Customer Data against unauthorized or unlawful access, use, alteration, disclosure, loss, or destruction, including encryption of Customer Data in transit and at rest, access controls, intrusion detection, regular security testing, and personnel training.
The Provider shall notify the Customer, without undue delay and in any event within [Breach Notification Period] hours, of any actual or reasonably suspected security incident or data breach affecting the Customer Data, and shall provide the Customer with such information, assistance, and cooperation as the Customer may reasonably require in connection with its own notification and remediation obligations.
The Customer shall be entitled at any time during the Subscription Term, and for a period of not less than [Export Period] following the expiration or termination of this Agreement, to export, extract, and retrieve the Customer Data from the Service in a commonly used, machine-readable format, at no additional charge.
Upon the expiration or termination of this Agreement, the Provider shall, within [Deletion Period] following the end of any applicable export period, securely delete or destroy all Customer Data in its possession or control, and shall certify such deletion in writing to the Customer upon request, save to the extent that retention is strictly required by applicable law.
The Provider shall not transfer, store, or process the Customer Data in any jurisdiction other than [Permitted Jurisdictions] without the prior written consent of the Customer, and shall ensure that any sub-processor engaged by the Provider is bound by data protection obligations no less protective than those set forth in this Agreement.
The Provider shall, upon reasonable prior written notice, cooperate with and provide reasonable assistance to the Customer in connection with any audits, assessments, or inquiries conducted by the Customer or its representatives in respect of the Provider's handling of the Customer Data.
Representations and Warranties
Each Party represents and warrants to the other Party that: (i) it is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation; (ii) it has full corporate power and authority to enter into and perform this Agreement; and (iii) this Agreement constitutes a legal, valid, and binding obligation of such Party, enforceable against it in accordance with its terms.
The Provider represents and warrants that the Service shall perform substantially in accordance with the Documentation and shall be free from material defects, errors, and malfunctions throughout the Subscription Term.
The Provider represents and warrants that it has, and shall maintain throughout the Subscription Term, all rights, licenses, consents, and authorizations necessary to grant the rights of access and use set forth in this Agreement, and that the Service, when used by the Customer in accordance with this Agreement, shall not infringe or misappropriate any patent, copyright, trademark, trade secret, or other intellectual property right of any third party.
The Provider represents and warrants that it shall perform its obligations under this Agreement in a professional and workmanlike manner, in accordance with industry best practices applicable to the provision of software-as-a-service solutions, and in compliance with all applicable laws and regulations.
The Provider represents and warrants that the Service does not and shall not contain any viruses, malware, spyware, trojan horses, back doors, time bombs, or other malicious code, and that the Provider shall employ reasonable measures to ensure that the Service remains free of such harmful components.
The Customer represents and warrants that it shall use the Service in compliance with all applicable laws and regulations, and that it has all rights, licenses, consents, and authorizations necessary to upload the Customer Data to the Service and to permit the processing of the Customer Data by the Provider as contemplated by this Agreement.
In the event of any breach of the warranties set forth in this section by the Provider, the Provider shall, at its own expense and as the Customer's primary remedy, promptly correct or re-perform the non-conforming Service, and if the Provider is unable to do so within a reasonable period, the Customer shall be entitled to terminate this Agreement and receive a refund of all prepaid, unused Subscription Fees, without prejudice to any other remedies available to the Customer under this Agreement or at law.
Indemnification
The Provider shall defend, indemnify, and hold harmless the Customer, its Affiliates, and their respective officers, directors, employees, agents, successors, and assigns from and against any and all third-party claims, demands, actions, suits, proceedings, losses, damages, liabilities, costs, and expenses, including reasonable attorneys' fees, arising out of or in connection with: (i) any allegation that the Service or the Customer's authorized use thereof infringes or misappropriates any intellectual property right of any third party; (ii) any breach by the Provider of its obligations, representations, or warranties under this Agreement; (iii) any breach by the Provider of applicable data protection or privacy laws; (iv) any gross negligence, willful misconduct, or fraud of the Provider; or (v) any security breach or unauthorized disclosure of the Customer Data caused by the Provider's acts or omissions.
In the event of any claim of infringement under the preceding clause, the Provider shall, at its own expense and option: (i) procure for the Customer the right to continue using the Service; (ii) modify or replace the Service so as to render it non-infringing while retaining substantially equivalent functionality; or (iii) if neither of the foregoing is commercially reasonable, terminate the affected portion of the Service and refund to the Customer all prepaid, unused Subscription Fees attributable thereto, without prejudice to the Customer's right to recover damages.
The Customer shall indemnify the Provider from and against any third-party claims to the extent arising out of: (i) the Customer's material breach of its obligations under this Agreement; or (ii) the Customer Data, where such Customer Data, when uploaded and processed in accordance with this Agreement, infringes the intellectual property rights of a third party.
The Party seeking indemnification (the "Indemnified Party") shall give the indemnifying Party (the "Indemnifying Party") prompt written notice of any claim for which indemnification is sought, provided that any delay in providing such notice shall not relieve the Indemnifying Party of its obligations except to the extent that such delay materially prejudices the defense of the claim.
The Indemnifying Party shall have the right to assume and control the defense of any indemnified claim with counsel of its own choosing, provided that: (i) the Indemnified Party may participate in the defense at its own expense with counsel of its choosing; and (ii) the Indemnifying Party shall not settle or compromise any claim in a manner that imposes any liability, obligation, or admission of fault upon the Indemnified Party without the prior written consent of the Indemnified Party.
The indemnification obligations set forth in this section shall survive the expiration or termination of this Agreement.
The Provider's indemnification obligations in respect of intellectual property infringement shall not be subject to the limitation of liability set forth in this Agreement.
Limitation of Liability
Subject to the exceptions set forth in this section, the aggregate liability of either Party arising out of or in connection with this Agreement, whether in contract, tort (including negligence), strict liability, or any other legal or equitable theory, shall not exceed the total Subscription Fees actually paid by the Customer to the Provider during the twelve (12) months immediately preceding the event giving rise to such liability.
Neither Party shall be liable to the other for any indirect, incidental, special, consequential, exemplary, or punitive damages, including loss of profits, loss of revenue, loss of business opportunity, or loss of goodwill, arising out of or in connection with this Agreement, even if such Party has been advised of the possibility of such damages.
Notwithstanding anything to the contrary in this section, the limitations and exclusions of liability set forth herein shall not apply to: (i) the Provider's indemnification obligations under this Agreement; (ii) either Party's breach of its confidentiality obligations; (iii) the Provider's breach of its data protection obligations or any security incident or data breach caused by the Provider; (iv) either Party's gross negligence, willful misconduct, or fraud; (v) the Customer's obligation to pay accrued Subscription Fees; or (vi) any liability that cannot be lawfully excluded or limited under applicable law.
For the avoidance of doubt, the Customer's right to recover Service Credits in accordance with this Agreement shall not be deemed to constitute damages subject to the limitation of liability set forth in this section.
The limitation of liability set forth in this section represents the agreed allocation of risk between the Parties, taking into account the nature of the Service and the Subscription Fees payable hereunder.
In the event of any claim arising under this Agreement, the Parties shall each take reasonable steps to mitigate the losses or damages suffered.
Suspension and Termination
Either Party may terminate this Agreement for cause upon written notice to the other Party in the event that the other Party commits a material breach of this Agreement and fails to cure such breach within [Cure Period] days of receipt of written notice specifying the nature of the breach and demanding its cure.
The Customer may terminate this Agreement for convenience at any time upon not less than [Customer Convenience Notice Period] days' prior written notice to the Provider, in which case the Customer shall receive a refund of any prepaid, unused Subscription Fees attributable to the period following the effective date of termination.
Either Party may terminate this Agreement immediately upon written notice to the other Party in the event that the other Party: (i) becomes insolvent, is unable to pay its debts as they fall due, makes a general assignment for the benefit of creditors, or files or has filed against it any petition in bankruptcy or similar proceeding that is not dismissed within sixty (60) days; or (ii) ceases to conduct its business in the ordinary course.
The Provider may suspend the Customer's access to the Service only in the event of: (i) a material and continuing breach by the Customer of its obligations under this Agreement that has not been cured within the applicable cure period following written notice; (ii) a material and demonstrable security threat posed by the Customer's use of the Service; or (iii) a legal requirement to suspend access, and in each case the Provider shall give the Customer not less than [Suspension Notice Period] prior written notice of any such suspension, save in the case of an immediate security threat.
Any suspension by the Provider shall be limited in scope and duration to that reasonably necessary to address the circumstances giving rise to the suspension, and the Provider shall promptly restore access to the Service upon the resolution of such circumstances.
The Customer may terminate this Agreement upon written notice to the Provider in the event that: (i) the Provider fails to meet the Service Level in any three (3) consecutive months or in any four (4) months during any rolling twelve-month period; (ii) the Provider is subject to a material security incident affecting the Customer Data; or (iii) the Provider proposes a change to the Subscription Fees that the Customer does not accept.
Termination of this Agreement shall be without prejudice to any rights, remedies, or claims that may have accrued to either Party prior to the effective date of termination.
Effects of Termination
Upon the expiration or termination of this Agreement for any reason: (i) all rights of access and use granted to the Customer under this Agreement shall immediately cease; (ii) each Party shall promptly return or destroy all Confidential Information of the other Party in accordance with the terms of this Agreement; and (iii) the Provider shall cooperate with the Customer in the transition of the Customer's operations away from the Service.
The Customer shall be entitled, during the period of [Post-Termination Export Period] following the effective date of termination, to export and retrieve the Customer Data from the Service in a commonly used, machine-readable format, at no additional charge, and the Provider shall provide reasonable assistance to the Customer in connection with such export.
Following the expiration of the post-termination export period, the Provider shall securely delete all Customer Data from its systems in accordance with the data deletion provisions of this Agreement, and shall certify such deletion to the Customer in writing upon request.
In the event of termination by the Customer for cause or termination by the Customer for convenience, the Provider shall refund to the Customer, within [Refund Period] days of the effective date of termination, all prepaid, unused Subscription Fees attributable to the period following the effective date of termination.
In the event of termination by the Provider for cause, the Customer shall pay any accrued but unpaid Subscription Fees attributable to the period up to and including the effective date of termination, provided that no early termination fee, penalty, or other liquidated amount shall be payable by the Customer.
The following provisions shall survive the expiration or termination of this Agreement: provisions relating to definitions, intellectual property rights, confidentiality, customer data (including data return and deletion), indemnification, limitation of liability, effects of termination, governing law and dispute resolution, and miscellaneous provisions, together with any other provisions that by their nature are intended to survive.
Upon the Customer's reasonable request, the Provider shall provide reasonable transition assistance to the Customer for a period of up to [Transition Period] following the effective date of termination, at the Provider's then-current standard rates, in order to facilitate the orderly transition of the Customer's operations.
Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of [Country/Jurisdiction], without regard to its conflict of laws principles.
The Parties shall endeavor in good faith to resolve amicably any dispute, claim, controversy, or difference arising out of or in connection with this Agreement, through direct negotiation between their respective senior representatives, within a period of [Negotiation Period] days following written notice of the dispute by one Party to the other.
In the event that any dispute is not resolved through good faith negotiation within the aforementioned period, the Parties agree that such dispute shall be finally resolved by binding arbitration administered by [Arbitration Institution] in accordance with its then-prevailing rules of arbitration.
The seat of arbitration shall be [Seat of Arbitration], the language of the arbitration shall be [Language], and the arbitral tribunal shall consist of [Number of Arbitrators] arbitrator(s) appointed in accordance with the rules of the arbitral institution.
The award rendered by the arbitral tribunal shall be final and binding upon the Parties, and judgment thereon may be entered in any court of competent jurisdiction.
Notwithstanding the foregoing, either Party shall be entitled to seek interim, injunctive, or equitable relief in any court of competent jurisdiction for the purpose of protecting its intellectual property rights, confidential information, or similar urgent interests, pending the resolution of the dispute by arbitration.
Each Party shall bear its own costs and expenses incurred in connection with any dispute resolution proceeding, save that the arbitral tribunal shall have the authority to award costs, including reasonable attorneys' fees, to the prevailing Party in its discretion.
Miscellaneous Provisions
This Agreement, together with any documents expressly incorporated herein by reference, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties relating thereto.
No modification, amendment, or waiver of any provision of this Agreement shall be effective unless made in writing and signed by duly authorized representatives of both Parties; no failure or delay by either Party in exercising any right or remedy under this Agreement shall operate as a waiver thereof.
Neither Party shall assign, transfer, or otherwise dispose of any of its rights or obligations under this Agreement without the prior written consent of the other Party, provided that the Customer may assign this Agreement, upon written notice but without the consent of the Provider, to any Affiliate or to any successor by way of merger, consolidation, reorganization, or sale of all or substantially all of its assets or business.
If any provision of this Agreement is held by a court or arbitral tribunal of competent jurisdiction to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired, and the Parties shall negotiate in good faith to replace such invalid provision with a valid provision reflecting as closely as possible the original intent of the Parties.
Neither Party shall be liable for any failure or delay in the performance of its obligations under this Agreement (other than payment obligations) to the extent that such failure or delay results from a force majeure event, being any cause beyond the reasonable control of the affected Party, including acts of God, war, terrorism, civil unrest, pandemic, government action, or failure of public utilities or telecommunications networks.
Nothing in this Agreement shall be construed as creating a partnership, joint venture, agency, employment, or fiduciary relationship between the Parties, and neither Party shall have the authority to bind the other or to incur any obligation on the other's behalf.
All notices, requests, demands, and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given when delivered personally, sent by internationally recognized courier, or sent by email with confirmation of receipt, to the addresses set forth below or such other addresses as a Party may designate by written notice.
This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument; signatures transmitted by electronic means (including PDF or electronic signature platforms) shall be deemed to have the same legal effect as original signatures.
The provisions of this Agreement are for the sole benefit of the Parties and their permitted successors and assigns, and no third party shall have any right to enforce any provision of this Agreement.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized representatives as of the Effective Date first above written.
FOR AND ON BEHALF OF THE PROVIDER:
[Provider Legal Name]
Signature: _______________________________
Name: [Provider Representative Name]
Title: [Title]
Date: [Date]
Address for Notices: [Provider Notice Address]
Email: [Provider Notice Email]
FOR AND ON BEHALF OF THE CUSTOMER:
[Customer Legal Name]
Signature: _______________________________
Name: [Customer Representative Name]
Title: [Title]
Date: [Date]
Address for Notices: [Customer Notice Address]
Email: [Customer Notice Email]