Common use of Cost Increases Clause in Contracts

Cost Increases. In the event of any change in applicable law, regulation, third party price increases (i.e., software license, operating system, etc.) rule, or order or any other change that materially increases the costs or other terms of delivery of products and services under this Agreement, including but not limited to electrical rate increases, SIS and Customer agree to negotiate regarding the rates to be charged to Customer to reflect such increased cost. In the event that the parties are unable to reach an agreement regarding new rates within thirty (30) days after SIS’s delivery of written notice requesting negotiation, then SIS may pass such increased costs through to the Customer. Customer may terminate the specific product or service in question or all services without termination penalty upon sixty (60) days prior written notice, so long as such notice is given within ninety (90) days of the first invoice reflecting the pass through of such increased costs. The Customer’s monthly recurring charges will not increase during the sixty (60) day notification period should they decide to terminate services.