"This Agreement shall commence on the Effective Date and continue for a period of twenty-four (24) months, unless terminated earlier in accordance with the provisions of Section 12.2."
Supplier Revised Text
"This Agreement shall commence on the Effective Date and continue for a period of thirty-six (36) months, with auto-renewal periods of twelve (12) months each, unless terminated earlier in accordance with the provisions of Section 12.2."
Operational Impact & Rationale
Supplier requested extension to align with their hardware lifecycle capitalization (3 years). Inclusion of auto-renewal is non-standard.
Issue Tracker
3 High Severity Issues
15.5High
ISS-104
Liability Caps Missing
General CounselOpen
8.3Medium
ISS-108
Net-60 Conflict with Global Policy
Finance MgrIn Discovery
Clause Metadata
Clause Code12.1
Legal EntityApex North America
Standard GRC TierTier 2 (Governed)
Last ReviewNov 12, 2024
Risk Guidance
Internal Policy POL-24A mandates that term extensions over 18 months require secondary Finance Partner sign-off.
Stakeholder Comments
David R.2h ago
Extension seems reasonable given hardware lead times.