When you start RulePoint, the grid manager checks for the validity of the license present in the configuration directory, before it proceeds with any operation.
If the license check succeeds, RulePoint starts up. Else, the grid manager brings down the system, and sends an email notification to the administrator.
The grid manager also schedules a periodic check for validating the license, every 24 hours. If the license reaches its expiration time, the grid manager sends an email to the administrator.