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Evaluation License Agreement

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EVALUATION LICENSE AGREEMENT

This Evaluation License Agreement (the Agreement) is entered into as of Effective Date: by and between Licensor Name: and Licensee Name: .

Parties and Contact Information

WHEREAS

WHEREAS, Licensor develops and owns certain software, hardware, documentation and related materials identified for evaluation in this Agreement (collectively, the Evaluation Materials); and

WHEREAS, Licensee desires to obtain a limited, non-commercial license to evaluate the Evaluation Materials for the sole purpose of internal testing and assessment under the terms and conditions set forth below; and

WHEREAS, Licensor is willing to grant such an evaluation license subject to the restrictions, payment terms (if any), confidentiality obligations, and termination provisions contained herein.

Definitions

"Evaluation Materials" means the software, firmware, documentation, prototypes, APIs, test equipment, and other tangible or intangible materials provided by Licensor for Licensee's evaluation as described in this Agreement.

"Permitted Use" means internal evaluation and testing by Licensee solely to determine whether to enter into a commercial license for the Evaluation Materials; Permitted Use expressly excludes any production use, redistribution, commercial exploitation, or benchmarking public disclosure without prior written consent of Licensor.

Scope of Work

Licensor shall deliver to Licensee the Evaluation Materials described below and shall provide reasonable assistance to enable Licensee to install and evaluate those materials during the Evaluation Period. The parties acknowledge this is an evaluation arrangement and not a sale.

License Grant and Restrictions

Subject to the terms of this Agreement, Licensor grants to Licensee a limited, revocable, non-exclusive, non-transferable license to use the Evaluation Materials solely for the Permitted Use during the Evaluation Period. Licensee shall not: (a) reproduce the Evaluation Materials except as necessary for evaluation; (b) modify, create derivative works, disassemble, reverse engineer or otherwise attempt to derive source code except to the extent expressly permitted by applicable law; (c) sublicense, rent, lease, distribute, or transfer the Evaluation Materials to any third party; or (d) remove or obscure any proprietary notices.

Payment Terms

Licensee shall pay Licensor the evaluation fee, if any, as follows.

Term and Termination

The Evaluation Period commences on Start Date: and expires on End Date: unless earlier terminated as provided below.

Either party may terminate this Agreement on material breach by the other party if the breaching party fails to cure the breach within Notice Period: after written notice. Licensor may immediately terminate for unauthorized use or distribution of the Evaluation Materials. Upon termination, Licensee shall cease all use of the Evaluation Materials and return or certify destruction of all copies and derivatives.

Confidentiality

The Evaluation Materials and all information exchanged under this Agreement shall be deemed Confidential Information. Licensee shall: (a) hold Confidential Information in strict confidence using at least the same degree of care it uses to protect its own confidential information, but no less than a reasonable degree of care; (b) use Confidential Information solely for the Permitted Use; and (c) not disclose Confidential Information to any third party except to employees, contractors or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those herein. Confidential Information does not include information that: (i) is or becomes generally available to the public through no breach of this Agreement by Licensee; (ii) is rightfully received from a third party without restriction; (iii) is independently developed by Licensee without reference to Confidential Information; or (iv) is required to be disclosed by law or court order, provided Licensee provides prompt notice to Licensor where permitted and assists Licensor in seeking appropriate protective measures.

Intellectual Property; No Transfer

All right, title and interest in and to the Evaluation Materials and any improvements or derivatives remain exclusively with Licensor. Except for the limited license expressly granted herein, no rights, title, interest, or licenses are transferred or granted by implication, estoppel or otherwise.

Representations; Disclaimer

Licensor represents that it has the right to grant the license set forth herein. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE EVALUATION MATERIALS ARE PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, AND LICENSOR DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

Limitation of Liability

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. LICENSOR'S AGGREGATE LIABILITY FOR DIRECT DAMAGES ARISING FROM THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES ACTUALLY PAID BY LICENSEE TO LICENSOR UNDER THIS AGREEMENT.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for any disputes arising under this Agreement.

Entire Agreement; Amendment

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral or written agreements and understandings. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

Miscellaneous

Neither party may assign this Agreement without the prior written consent of the other, except that Licensor may assign to an affiliate or in connection with a merger or sale of substantially all of its assets relating to the Evaluation Materials. The failure to enforce any provision shall not constitute a waiver. If any provision is held unenforceable, the remainder shall remain in full force and effect.

Acceptance

The parties acknowledge that execution of this Agreement evidences Licensee's acceptance of the terms and conditions herein. The parties have executed this Agreement through their duly authorized representatives.

LICENSOR

Printed Name:

By:

Date:

LICENSEE

Printed Name:

By:

Date:

Enter text✕

What an Evaluation License Agreement Is and When It Applies

An Evaluation License Agreement is a written contract that grants a prospective licensee temporary, limited rights to use software or other intellectual property for testing and assessment. It defines the permitted scope of use, duration of the evaluation period, confidentiality obligations, ownership retention, permitted number of users or devices, restrictions on redistribution, and any support or reporting requirements during the trial. The agreement typically includes liability limitations, warranty disclaimers, and termination conditions that apply if the evaluator breaches restrictions or continues use after expiration.

Why a Clear Evaluation License Agreement Matters

Using an Evaluation License Agreement clarifies trial rights, reduces legal uncertainty, and preserves the licensor’s ownership while allowing technical assessment. It protects confidential information and sets clear end-of-trial conditions to prevent inadvertent continued use or unauthorized distribution.

Why a Clear Evaluation License Agreement Matters

Who Typically Prepares and Signs These Agreements

Typical users include in-house legal teams, product managers, procurement officers, and third-party evaluators conducting technical trials.

  • Software vendors licensing beta or trial builds to prospective customers for feature evaluation and compatibility testing.
  • Enterprise procurement teams validating vendor solutions before purchase and negotiating commercial license terms.
  • IT departments assessing integrations, performance, and security under nonproduction conditions prior to deployment.

These roles use the agreement to balance access for meaningful evaluation with protections for intellectual property and confidential data.

Step-by-Step: Preparing and Executing the Agreement

Follow these sequential steps to prepare, execute, and close an Evaluation License Agreement correctly and securely.

  • 01
    Prepare Draft: Identify parties, scope, evaluation period, and confidentiality obligations.
  • 02
    Clarify Rights: Define permitted use, IP ownership, and return or deletion of materials.
  • 03
    Sign & Authenticate: Collect signatures with audit trail and agreed authentication method.
  • 04
    Closeout: Confirm expiry actions, destroy copies, or convert to commercial license.

Configure Online Workflow Before Sending

Configure your online workflow to reflect the agreement's execution order, required fields, and authentication settings before sending for signature.

Field Configuration
Signing Order Sequential signers; licensor signs last
Authentication Email link or SMS code; KBA optional
Conditional Fields Expose post-acceptance obligations when option selected
Retention Store signed PDF and audit trail for required period

Platform and Security Requirements to Check

Ensure the signing platform supports required authentication, audit trails, and secure storage consistent with the agreement's terms and compliance obligations.

  • File Types: PDF, DOCX accepted
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: AES-256 at rest, TLS 1.2/1.3

Typical eSignature Workflow for an Evaluation License

A standard eSignature workflow for evaluation licensing follows upload, placement of fields, signer authentication, and completion with audit trail.

  • Upload Document: Upload finalized draft to signing platform
  • Place Fields: Add signature, date, and initial fields
  • Notify Signers: Send email or link with clear instructions
  • Capture Audit Trail: Collect timestamps, IP, and completion certificate

Essential Clauses to Include in the Agreement

Key clauses and mechanisms to include in an Evaluation License Agreement protect rights, limit liability, and set clear operational and security responsibilities during the evaluation.

License Grant

State limited, nonexclusive, nontransferable license scope, permitted uses, user counts, and device limits. Tie the grant explicitly to the evaluation period and revoke rights automatically on expiration.

Confidentiality

Define confidential categories, use restrictions, obligations for storage and return or destruction, permitted disclosures, and remedies for breach. Include duration tied to business secrecy standards.

Ownership and IP

Affirm that all IP remains with the licensor; evaluation does not convey ownership. Specify feedback ownership and any license to incorporate evaluator suggestions.

Restrictions

Prohibit reverse engineering, redistribution, benchmarking, sub-licensing, and use in production. Include technical controls and reporting obligations for suspected misuse.

Warranties and Disclaimers

Limit warranties to the extent permitted, disclaim consequential damages, and identify any limited operational warranty during the evaluation period.

Termination and Remedies

Describe events of breach, cure periods, immediate termination for confidentiality or misuse, and post-termination obligations including return, deletion, and certification.

Security and Compliance Items to Note

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest
Access Controls: Role-based access and SSO/SAML support
Audit Trail: Complete timestamps, IP, and action logs
HIPAA: Available with signed BAA for PHI handling
21 CFR Part 11: Supports electronic records and signatures
Certifications: SOC 2 Type II, ISO 27001, PCI DSS

Penalties and Risks from Poorly Drafted or Executed Agreements

Unauthorized Use: Breach of license; potential injunction
Confidentiality Breach: Damages, termination, reputational harm
Tax/Payment Risk: Incorrect payer info triggers withholding
Regulatory Exposure: HIPAA fines for PHI disclosure
Contract Voidance: Ambiguous terms can jeopardize enforceability
Audit Failures: Missing records can impair compliance

Common Preparation Errors to Avoid

  • Vague scope descriptions that omit user counts or permitted environments lead to disputes about what constitutes acceptable evaluation use.
  • Failure to set precise start and end dates creates ambiguity about post-trial obligations and copyright exposure.
  • Not specifying authentication or accepting weak signer verification increases risk of unauthorized execution and non-attribution.
  • Omitting return, deletion, and certification steps for evaluation copies leads to lingering use beyond the trial period.

Key Dates and Deadlines to Record

Time-sensitive dates in the agreement determine rights to use, renewal options, and required actions at trial close.

Effective Date:

Enter as MM/DD/YYYY; marks when rights begin.

Evaluation End Date:

Exact date after which access must end.

Renewal Notice:

Specify days before end to request extension.

Cure Period:

Number of days allowed to cure a breach.

Return Certification:

Deadline to certify deletion or return of materials.

Lifecycle Milestones from Draft to Closeout

Key milestones show the contract lifecycle from drafting through post-trial close and possible conversion to a commercial license.

01

Draft Approval

Internal review and redline completion before sending.

02

Execution

All parties sign and authentication is recorded.

03

Evaluation Period

Active testing phase; monitor compliance and usage.

04

Closeout Actions

Return, delete, or upgrade to commercial license; confirm certificates.

Pricing and Feature Snapshot for eSignature Vendors

Compare baseline pricing and commonly required capabilities across eSignature vendors when executing an Evaluation License Agreement to inform procurement decisions.

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, no credit card No No Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Practical Answers

Answers to common questions about completing, signing, and enforcing an Evaluation License Agreement, including eSignature and compliance considerations.


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