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Professional Use Agreement Document

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PROFESSIONAL USE AGREEMENT

This Professional Use Agreement (the "Agreement") is entered into as of by and between Provider Name: , Provider Entity Type: and Recipient Name: , Recipient Entity Type: (each a "Party" and collectively the "Parties").

RECITALS

WHEREAS, Provider develops, owns or controls certain proprietary professional materials, services, methodologies, facilities, and related documentation and support described as the "Materials" to be used for professional services or demonstration purposes; and

WHEREAS, Recipient desires to obtain from Provider a limited right to use the Materials for the Permitted Uses defined herein, and Provider is willing to grant such rights subject to the terms and conditions of this Agreement; and

WHEREAS, the Parties intend by this Agreement to set forth the terms governing Recipient's use of the Materials and to allocate the Parties' respective rights and obligations.

NOW, THEREFORE

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means all non-public information disclosed by a Party that is designated confidential or that, by its nature, should reasonably be understood to be confidential, including business plans, pricing, trade secrets, Materials, formulas, and client lists; provided, Confidential Information does not include information that (a) is or becomes generally known without breach of this Agreement, (b) is rightfully received from a third party without restriction, or (c) is independently developed without use of the other Party's Confidential Information.

1.2 "Materials" means the professional materials, technical documentation, samples, equipment, software, data, training materials, and other tangible or intangible items supplied by Provider to Recipient for the Permitted Uses.

1.3 "Permitted Use" means Recipient's use of the Materials solely for the professional purposes described in Section 2 and any use specifically authorized in writing by Provider.

2. GRANT OF RIGHTS

2.1 License Grant. Subject to the terms and conditions of this Agreement, Provider hereby grants to Recipient a limited, non-exclusive, non-transferable, non-sublicensable license to use the Materials solely for the Permitted Use: .

2.2 Scope and Territory. The license is restricted to the territory specified: and may not be used for any other purpose without Provider's prior written consent.

3. RESTRICTIONS

Recipient shall not: (a) copy, modify, create derivative works of, decompile, disassemble, or reverse engineer the Materials except as expressly permitted in writing; (b) distribute, sublicense, lease, lend, or transfer the Materials to any third party; or (c) use the Materials to provide services to third parties except as expressly authorized. Recipient shall implement reasonable security measures to prevent unauthorized access or use.

4. FEES AND PAYMENT

4.1 Fees. In consideration for the rights granted herein, Recipient shall pay Provider fees in the amounts and on the schedule set forth below. Fee Amount: . Payment Terms: .

4.2 Late Payment. Any unpaid amount shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by applicable law. Recipient shall also reimburse Provider for reasonable collection costs.

5. TERM AND TERMINATION

5.1 Term. The term of this Agreement commences on the Effective Date and shall continue for a period of months unless earlier terminated in accordance with this Section.

5.2 Termination for Cause. Either Party may terminate this Agreement upon thirty (30) days' written notice if the other Party materially breaches any provision and fails to cure within the notice period. Termination will be without prejudice to any rights or remedies accrued prior to termination.

5.3 Effect of Termination. Upon termination, Recipient shall immediately cease all use of the Materials, return or destroy all Confidential Information and Materials in its possession, and certify in writing that it has complied with these obligations.

6. CONFIDENTIALITY

Each Party shall protect the other Party's Confidential Information with at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care. Confidential Information shall be used solely for performance under this Agreement. Disclosure is permitted only to those employees, contractors, or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those herein.

7. INTELLECTUAL PROPERTY

7.1 Ownership. Except for the limited license expressly granted, Provider retains all right, title and interest in and to the Materials and all intellectual property rights therein. Recipient acquires no ownership interest by virtue of this Agreement.

7.2 Feedback. Any suggestions, enhancements, or feedback provided by Recipient relating to the Materials shall be deemed Provider's Confidential Information and Provider shall have a royalty-free, perpetual, worldwide license to utilize such feedback.

8. INDEMNIFICATION; LIMITATION OF LIABILITY

8.1 Indemnification by Recipient. Recipient shall indemnify, defend, and hold harmless Provider and its officers, directors, agents and employees from and against any third-party claims arising out of Recipient's breach of this Agreement, misuse of the Materials, or negligence.

8.2 Limitation of Liability. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR A BREACH OF CONFIDENTIALITY OR INDEMNIFICATION OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE FEES PAID BY RECIPIENT TO PROVIDER IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

9. INSURANCE

Recipient shall maintain, at its own expense, commercial general liability and professional liability insurance with limits reasonably sufficient to cover its obligations hereunder. Upon request, Recipient shall provide certificates of insurance evidencing such coverage.

10. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a Party may designate by written notice to the other Party. Notice shall be deemed given upon personal delivery, on the date of confirmed delivery by courier, or three (3) business days after deposit in the mail.

11. AMENDMENTS; WAIVER

No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties. No waiver by either Party of any breach shall constitute a waiver of any other breach or of the same breach at a later time.

12. 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. ENTIRE AGREEMENT; SEVERABILITY

This Agreement (including any exhibits or attachments expressly incorporated hereto) constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior agreements and understandings. If any provision is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

14. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures transmitted by electronic means (including scanned or facsimile) shall be deemed binding for all purposes.

ADDITIONAL TERMS

Provider Printed Name:

By:

Date:

Recipient Printed Name:

By:

Date:

Enter text✕

What the Professional Use Agreement Document Is

The Professional Use Agreement Document is a written contract that defines the relationship between a service provider and a client for professional services. It typically sets scope of work, deliverables, timelines, fees and payment terms, confidentiality and IP ownership, liability limits, and termination rights. The document may include administrative elements such as invoicing cycles, insurance requirements, and dispute resolution. It is commonly executed by signature (handwritten or electronic) and should be readable, enforceable under applicable state law, and retained according to regulatory retention rules relevant to the industry.

Why a Professional Use Agreement Matters

A clear Professional Use Agreement reduces ambiguity, allocates risk, and documents expectations between parties. It creates enforceable obligations when properly executed under ESIGN (15 U.S.C. §7001) or state UETA rules, supports compliance reviews, and preserves remedies if disputes arise.

Why a Professional Use Agreement Matters

Typical Parties and Roles

The agreement serves both operational and legal purposes across clients, vendors, and in-house teams, streamlining execution and audits.

  • Independent professionals and contractors who need written terms to define scope, deliverables, and payment schedules for client engagements.
  • Small business and corporate procurement or legal teams that standardize vendor relationships and manage compliance with internal policies.
  • Clients and project managers who require a documented basis for approvals, change orders, and acceptance criteria during service delivery.

Core Clauses to Include in Every Professional Use Agreement

A concise set of core clauses makes the agreement actionable and reduces later disputes. Include terms that clearly describe obligations, compensation, limits on liability, and how conflicts will be resolved.

Scope of Services

Precisely define tasks, deliverables, milestones, and acceptance criteria so performance expectations and boundaries are unambiguous for both parties.

Compensation

Set rates, invoicing intervals, payment methods, late fees, and reimbursement rules. Specify whether expenses require prior approval and how taxes will be handled.

Term and Termination

State the contract term, renewal provisions, and termination rights including cure periods, termination for convenience, and post-termination obligations.

Confidentiality

Define confidential information, permitted disclosures, duration of confidentiality, and exceptions such as required disclosures to regulators or counsel.

Liability and Indemnity

Limit liability where appropriate, allocate indemnity responsibilities, and specify any caps, exclusions, or insurance requirements that apply.

Governing Law

Specify the controlling state law and dispute resolution process (court venue, arbitration, or multi-step dispute escalation).

Step-by-Step: Filling and Executing the Agreement

Follow a simple sequence to prepare, review, and execute the agreement so signatures are valid and records complete.

  • 01
    Prepare the Draft: Assemble exhibits, define scope, and set payment terms before circulation.
  • 02
    Complete Required Fields: Populate names, dates, fees, and governing law; double-check for consistency.
  • 03
    Review and Approve: Have legal or procurement review for risk allocation and compliance.
  • 04
    Sign and Store: Execute via handwritten or compliant eSignature and retain the final executed copy.

Configuring an Online Execution Workflow

When digitizing the agreement, configure authentication, signing order, and template reuse to reduce errors and support auditability.

Setting | Value Authentication method | Signing order, templates, exports
Authentication Method Email, SMS code, or stronger ID verification for high-risk agreements
Signing Order Specify sequential or parallel signing to enforce approval flow
Conditional Fields Use conditional visibility for optional clauses to avoid unnecessary entries
Template Reuse Save as template to standardize language and speed future executions

Where to Send, File, and Route the Document

Identify the correct recipients and storage destinations to ensure compliance and traceability throughout the agreement lifecycle.

  • Primary Recipient: Send to the authorized signatory listed in corporate records
  • Legal / Procurement: Route a copy to legal or procurement for contract management
  • Accounting: Provide final to accounts payable for invoice processing
  • Record Storage: Archive in document management system with version control

Digital Signing and Distribution Considerations

Proper platform configuration preserves evidentiary detail: signed PDF, audit trail, signer metadata, and secure storage.

  • File Formats: PDF or DOCX preferred for preservation
  • Integrations: Connect to CRM, ERP, or cloud storage
  • Authentication: Enable SMS or knowledge-based options for stronger identity

Common Timelines and Notice Periods to Track

Key dates and notice periods affect payment, renewal, and dispute timelines; define them expressly in the agreement.

Effective and Execution Date:

Agreement effective on the execution date signed by all parties

Payment Due Date:

Standard Net 30 or negotiated term for invoice payment

Renewal Notice Period:

Specify 30–90 days depending on auto-renewal terms

Cure Period for Breach:

Typical 10–30 days to remedy material breaches

Dispute Notice Requirement:

Require written notice within specified days to preserve remedies

Key Processing Stages from Draft to Archive

Track milestones from initial draft to archival so obligations are met and records are complete.

01

Drafting and Review

Internal and legal review of terms and exhibits prior to circulation

02

Approval and Sign-off

Obtain signatory approvals and any board or procurement sign-off

03

Execution

All parties sign; capture signed PDF and audit trail

04

Archival

Store final documents in secure repository with retention tags

Common Mistakes When Preparing This Agreement

  • Vague scope language that omits deliverables or acceptance criteria, leading to disputes over completion and payment.
  • Using inconsistent party names (abbreviations or DBAs) across documents, which can create identity and enforceability problems.
  • Failing to specify payment terms or invoices results in delayed payment, confusion over currency, and collection challenges.
  • Skipping review by procurement or legal and omitting required clauses such as indemnities, insurance, or data protection clauses.

Liability and Legal Risks to Watch

Unenforceable Terms: Improper execution may void contractual provisions
Tax Withholding: Missing Form W-9 triggers backup withholding
I-9 Penalties: Incorrect employment forms may incur fines
HIPAA Exposure: Improper handling of PHI can lead to sanctions
Late Payment Costs: Accrued interest and collection fees may apply
Dispute Costs: Litigation or arbitration expenses can be significant

Security and Compliance Facts to Include

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA: BAA required for protected health information
ESIGN / UETA: Supports legal enforceability of electronic signatures
Audit Trail: Timestamps, IP, and action logs retained
Access Controls: Role-based access and authentication options

Comparison: Typical eSignature Vendor Pricing and Features

Basic plan and feature differences among popular eSignature providers; signNow is listed first per comparison order requirements.

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 Yes, 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Practical Answers

Answers to common legal and execution questions about Professional Use Agreement Documents, electronic signing, and recordkeeping.


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