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Professional Services Subscription Agreement

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PROFESSIONAL SERVICES SUBSCRIPTION AGREEMENT

This Professional Services Subscription Agreement (the Agreement) is made and entered into as of , (Effective Date), by and between Service Provider Name: , a organized under the laws of , with principal place of business at (Service Provider), and Client Name: , a organized under the laws of , with principal place of business at (Client).

RECITALS

WHEREAS, Service Provider provides professional subscription-based services, including software-enabled services, technical support and consulting, as set forth in this Agreement; and

WHEREAS, Client desires to obtain and Service Provider desires to provide such services on the terms and conditions set forth herein.

WHEREAS, the parties intend that certain statements of work, exhibits, purchase orders or order forms (each an Order Form) may be executed from time to time and shall be governed by the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Services" means the subscription professional services, deliverables, support and any related services described in an Order Form and performed by Service Provider for Client under this Agreement.

1.2 "Confidential Information" means non-public business, technical or financial information disclosed by a party that is designated as confidential or that reasonably should be understood to be confidential, including pricing, trade secrets and deliverables.

2. SCOPE OF SERVICES

2.1 Service Provider shall perform the Services described in each Order Form executed by the parties. Each Order Form shall include a description of work, deliverables, schedule, fees and acceptance criteria. The description of Services for the initial subscription is set forth below.

2.2 Change Orders. Any changes to the Services shall be set forth in a written change order signed by both parties and shall include adjustments to the Fees and delivery schedule.

3. TERM AND TERMINATION

3.1 Term. The initial term of this Agreement shall commence on the Effective Date and continue for months (Initial Term), and shall automatically renew for successive periods of the same duration unless either party delivers written notice of non-renewal at least days prior to the end of the then-current term.

3.2 Termination for Cause. Either party may terminate this Agreement for material breach if the breaching party fails to cure such breach within days after written notice of the breach.

3.3 Effect of Termination. Upon expiration or termination, Client shall pay Service Provider for all Services performed through the effective date of termination and for any non-cancellable commitments. Service Provider shall deliver to Client all completed deliverables and return or destroy Confidential Information as directed by Client.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay the subscription fees and any additional fees set forth in each Order Form. The initial subscription fee is: $ per .

4.2 Invoicing and Payment. Service Provider will invoice Client in accordance with the billing schedule set forth in the applicable Order Form. Unless otherwise stated, invoices are due and payable within days of the invoice date. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum permitted by law.

4.3 Taxes. Fees are exclusive of taxes, levies or duties imposed by governmental authorities. Client shall be responsible for all applicable taxes, except taxes based on Service Provider's net income.

5. SERVICE LEVELS AND SUPPORT

5.1 Service Provider will provide support in accordance with the support levels stated in the applicable Order Form. Standard support hours are , and response targets are described below.

6. CONFIDENTIALITY

6.1 Confidentiality Obligations. Each party shall protect the other party's Confidential Information with the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care. Confidential Information shall not be used except to perform obligations under this Agreement and shall not be disclosed to third parties except to those employees, contractors, or advisors having a need to know and who are bound by confidentiality obligations no less protective than those herein.

6.2 Exclusions. Confidential Information does not include information that is or becomes generally available to the public other than through breach of this Agreement, was rightfully known prior to disclosure, or is independently developed without use of the other party's Confidential Information.

7. INTELLECTUAL PROPERTY

7.1 Ownership. As between the parties, Service Provider retains ownership of all Service Provider Pre-Existing Materials, software, tools and methodologies used in performing the Services. Client retains ownership of Client Data.

7.2 Deliverables. Subject to Client's payment of all Fees, Service Provider grants Client a non-exclusive, non-transferable license to use the Deliverables solely for Client's internal business purposes as set forth in the applicable Order Form. Service Provider may collect and anonymize usage data for benchmarking and product improvement purposes.

8. WARRANTIES; DISCLAIMER

8.1 Mutual Warranties. Each party represents and warrants that it has the full power and authority to enter into this Agreement and to perform its obligations hereunder.

8.2 Service Provider Warranty. Service Provider warrants that Services will be performed with commercially reasonable skill and care consistent with industry standards. For any breach of this warranty, Service Provider's sole obligation, and Client's exclusive remedy, shall be re-performance of the non-conforming Services or, if Service Provider cannot substantially correct the deficiency, a pro rata refund of fees for the deficient Services.

8.3 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 8, THE SERVICES AND DELIVERABLES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

9. LIMITATION OF LIABILITY

9.1 Exclusion of Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

9.2 Liability Cap. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BREACH OF CONFIDENTIALITY OR INDEMNIFICATION OBLIGATIONS, THE AGGREGATE LIABILITY OF SERVICE PROVIDER FOR ANY CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY CLIENT TO SERVICE PROVIDER UNDER THE APPLICABLE ORDER FORM DURING THE MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

10. INDEMNIFICATION

10.1 By Service Provider. Service Provider shall defend, indemnify and hold Client harmless from and against any third-party claims alleging that the Deliverables infringe a third party's issued patent, copyright or trade secret, provided that Client provides prompt written notice of the claim, grants control of the defense to Service Provider, and cooperates reasonably.

10.2 By Client. Client shall defend, indemnify and hold Service Provider harmless from and against any third-party claims arising from Client Data, Client's use of the Services in breach of this Agreement, or Client's negligence or willful misconduct.

11. DATA PROTECTION

11.1 Compliance. Each party shall comply with applicable data protection laws in connection with its processing of personal data. Service Provider shall implement reasonable technical and organizational measures to protect Client Data against unauthorized or unlawful processing and accidental loss, destruction or damage.

12. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses below by personal delivery, certified mail (return receipt requested), or nationally recognized overnight courier, and shall be deemed given upon receipt.

13. MISCELLANEOUS

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflicts of law principles.

13.2 Entire Agreement. This Agreement, together with all executed Order Forms, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings.

13.3 Severability. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be reformed only to the extent necessary to make it valid and enforceable, and the remaining provisions shall remain in full force and effect.

13.4 Amendments and Waiver. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties. The failure of either party to enforce any right shall not constitute a waiver of that right.

13.5 Counterparts. This Agreement may be executed in counterparts, and facsimile or electronic signatures shall be treated as originals for all purposes.

14. ORDER FORM ACKNOWLEDGMENT

Each Order Form executed by the parties is incorporated into this Agreement and is subject to all terms and conditions herein. In the event of a conflict between an Order Form and this Agreement, the terms of this Agreement shall control unless the Order Form expressly states otherwise in writing.

Service Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What a Professional Services Subscription Agreement Covers

A Professional Services Subscription Agreement is a contract that sets out recurring access to professional services, deliverables, and support under a subscription model. It identifies the parties, defines the scope of services, service levels, billing and payment terms, renewal and termination mechanics, intellectual property ownership, confidentiality obligations, and dispute-resolution procedures. These agreements frequently include onboarding, ongoing maintenance or consulting, change-order processes, and metrics for service delivery. The document governs the commercial and operational relationship over the subscription term and any automatic renewal periods.

Why this Agreement Matters for Service Relationships

This agreement clarifies expectations, limits liability, and establishes payment and renewal mechanics for ongoing services. Written terms reduce disputes, set performance and deliverable standards, and provide a clear path for termination, data handling, and IP ownership—crucial for recurring professional engagements.

Why this Agreement Matters for Service Relationships

Who Typically Signs a Professional Services Subscription Agreement

Common signers include service providers, corporate procurement, and customer decision-makers responsible for subscriptions and payments.

  • Service providers and account managers who deliver and invoice recurring professional services.
  • Procurement and vendor managers who review pricing, SLAs, and contract terms on behalf of organizations.
  • Legal or finance approvers who confirm indemnities, payment terms, and signatory authority before execution.

Tailor signatory roles to your organization’s delegation of authority; include countersignatures for finance or legal when required.

Core Sections to Include in the Agreement

A complete Professional Services Subscription Agreement organizes obligations into distinct sections so each party’s rights and duties are clear and enforceable.

Parties

Identify legal entity names, business addresses, and the authorized representatives who may bind each party to the agreement and future amendments.

Services

Describe subscription services, deliverables, acceptance criteria, and service levels, including precisely what is in-scope and what is excluded.

Term

Specify initial term length, automatic renewal provisions, renewal notice periods, and effective date that triggers performance and billing.

Fees

State subscription fees, billing cadence, taxes, invoicing procedures, late-payment interest, and any usage-based charges or overage rates.

IP & Data

Allocate ownership of preexisting IP, work product, and data processing responsibilities, including rights to access customer data upon termination.

Termination

List termination for convenience and for cause conditions, cure periods, post-termination obligations, and any early-termination fees.

Step-by-Step: How to Complete and Execute the Agreement

Follow these steps in order to create an enforceable, cleanly executed subscription agreement.

  • 01
    Draft or upload: Prepare the contract draft or upload the template for editing and review.
  • 02
    Populate fields: Complete all fillable fields, exhibits, and pricing schedules accurately.
  • 03
    Internal approvals: Obtain required signoffs from legal, finance, or procurement as applicable.
  • 04
    Execute and archive: Collect signatures, deliver fully executed copies to parties, and store for retention.

Configuring an Online Signing Workflow

Set up a consistent online process to reduce errors and accelerate completion.

Field Configuration
Signature Authentication Email link or SMS code; choose stronger verification for high-risk transactions.
Conditional Fields Show payment schedules or renewals only when related options are selected.
Template Library Save a vetted agreement version as a template to prevent ad-hoc edits.
API & Notifications Use webhook notifications for executed copies and ERP integration for invoicing.

Where to Send the Agreement and Typical Routing

Determine routing rules for signatures and final delivery to keep the process auditable and timely.

  • Provider to Client: Provider sends finalized agreement to client for review and signature.
  • Internal Review: Legal or procurement reviews then returns for signature when approved.
  • Counter-signature: Client signs and returns; provider countersigns to complete execution.
  • Distribution: Send fully executed PDF copies to document owners and finance.

Digital Signing and File Format Requirements

Choose a platform that supports standard formats and required authentications for your organization.

  • File Formats: PDF and DOCX supported
  • Authentication: Email, SMS, or stronger
  • Integrations: CRM and cloud storage

Key Dates and Timing to Track in the Agreement

Track critical dates to ensure continuous service and proper notice for renewals or terminations.

Effective Date:

Date services and billing commence as specified in the agreement.

Renewal Notice Period:

Typically 30–60 days prior to renewal; check the contract for a specific window.

Invoice Due Date:

Payment due per agreed terms (for example, Net 30) from invoice date.

Service Commencement:

Date when onboarding or service delivery is scheduled to start.

Termination Notice:

Notice period required to end subscription without penalty, often 30 days.

Common Preparation Errors to Avoid

  • Using trade names instead of registered legal entity names, which can create enforceability questions and payment delays.
  • Leaving the effective date blank or inconsistent across exhibits, leading to disputes about when obligations begin.
  • Failing to attach or reference fee schedules and exhibits clearly, which creates ambiguity about what is billable.
  • Omitting signatory authority confirmations or failing to secure internal approvals before execution, risking voidable commitments.

Risks and Potential Consequences of Errors

Contract Disputes: Ambiguous terms can lead to litigation or arbitration.
Payment Delays: Incorrect invoicing terms may cause collection issues.
Voidable Agreement: Improper signatures or authority can render the contract voidable.
Regulatory Exposure: Noncompliance with data rules may trigger fines.
Data Breach Liability: Inadequate data protections increase breach risk.
Lost Records: Poor retention creates audit and legal problems.

Pricing and Feature Comparison: signNow and Competitors

Compare starting price, trial availability, bulk send, audit trail, HIPAA compliance, and envelope limits to assess fit; signNow is listed first per vendor comparison guidelines.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-World Examples of Subscription Agreement Use

These brief examples show how organizations use subscription agreements to standardize recurring services and integrate digital signing.

Optica Ventures (COO)

Optica used a subscription agreement to standardize advisory retainers and billing

  • Saved administrative time on renewals and invoicing
  • The team reported easier customer execution and consistent contract terms across portfolio companies, improving operational consistency.

Xerox (NetSuite Director)

Xerox implemented subscription agreements integrated with NetSuite for recurring services

  • Automated invoicing and signature collection
  • Integration reduced manual data entry and ensured correct billing schedules tied to executed agreements, improving finance accuracy.

FAQs and Troubleshooting for Subscription Agreements

Answers to common questions about validity, signing, revoking, and retaining Professional Services Subscription Agreements.


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