LEASE-TO-OWN CONTRACT

Updated on November 10, 2023
The below is an updated template of our Lease-to-Own contract for you to review prior to executing.

Lease-to-Own Dedicated Server Agreement

Section 1: Introduction

1.1 Parties

This Lease-to-Own Agreement ("Agreement") is entered into as of [Insert Date] by and between Crunchbits LLC, herein referred to as the "Lessor," with its principal place of business located at 1309 Coffeen Ave, Ste 4204, Sheridan, WY 82801, and [Customer Full Name or Company Name], herein referred to as the "Lessee," with a mailing address of [Lessee's Address].

1.2 Purpose

This Agreement outlines the terms and conditions under which the Lessor agrees to lease to the Lessee, and the Lessee agrees to lease from the Lessor, certain dedicated server hardware, more fully described in Section 2, on a lease-to-own basis.

1.3 Acknowledgment

By entering into this Agreement, both parties acknowledge and agree to the terms and conditions outlined herein.

Section 2: Description of the Service

2.1 Server Specifications

The dedicated server(s) subject to this Agreement shall have the following specifications: [Insert Server Specifications]. The Lessor warrants that the server(s) will be in good working condition upon delivery to the Lessee.

2.2 Additional Services

In addition to the lease of the dedicated server(s), the following services will be provided by the Lessor:

None.

2.3 Server Deployment

The Lessor shall deliver and deploy the dedicated server(s) at their Liberty Lake, WA data center. The expected deployment date is within 5 business days of a paid order.

2.4 Acceptance Testing

Upon deployment, the Lessee shall have 72 hours to conduct acceptance testing.

Section 3: Lease Term

3.1 Lease Duration

This lease shall commence on [Insert Start Date] and shall continue for [Insert Lease Duration], ending on [Insert End Date].

3.2 Renewal Option

Upon expiration of the Lease Term, the Lessee has the option to renew colocation services under new terms to be agreed upon. Notice for renewal must be given at least 15 days before Lease End Date.

3.3 Early Termination

Either party may terminate this Agreement under the conditions specified in Section 8.

3.4 Ownership Transfer

Upon completion of the Lease Term and fulfillment of all payment obligations, ownership of the server(s) transfers to the Lessee.

Section 4: Payment Terms

4.1 Payment Schedule and Amounts

The Lessee agrees to pay a total of [Insert Total Amount], in [Insert Payment Frequency] installments of [Insert Amount per Installment], starting on [Insert First Payment Date].

4.2 Payment Method

Payments shall be made by [Insert Payment Method].

4.3 Late Payments

Late payments incur a fee of $0. Continued failure to pay may result in lease termination as per Section 8.

4.4 Security Deposit

A deposit of $0 and a successfully completed first contractual payment is required upon signing.

4.5 Lease-to-Own Credit

A portion of each payment, the balance after deducting $70 for colocation services, will be credited towards the purchase price.

Section 5: Use of the Server

5.1 Permitted Use

The server(s) shall be used only for lawful purposes.

5.2 Prohibited Use

The server(s) shall not be used for illegal activities.

5.3 Compliance with Laws

The Lessee agrees to comply with all applicable laws in the State of Washington and United States.

5.4 Modifications and Alterations

Any modifications require prior written approval from the Lessor while the lease is active.

5.5 Reporting Misuse

Unauthorized use must be reported to the Lessor immediately.

Section 6: Maintenance and Repairs

6.1.1 Lessor’s Responsibilities

Crunchbits LLC will be responsible for maintaining the physical integrity and proper functioning of the leased dedicated server hardware during the length of the initial lease-to-own term. This includes, but is not limited to, the repair or replacement of any defective components due to hardware failures or normal wear and tear. Specific hardware components covered include the central processing unit (CPU), data drives, memory modules, power supplies, and network interface cards. This service is included at no additional cost to the Lessee for a term of 12 months from the initial contracting date. After 12 months, hardware replacement costs (parts and labor) are the responsibility of the Lessee.

6.1.2 Response Time

In the event of hardware failure, the Lessor shall respond within 24 hours of receiving a written notification from the Lessee. The Lessor will make reasonable efforts to repair or replace the faulty hardware component as quickly as possible to minimize downtime.

6.1.3 Exclusions

Maintenance and repairs do not cover damages or malfunctions resulting from the Lessee's misuse, unauthorized alterations, or negligence. Such instances will be the responsibility of the Lessee, as outlined in Section 6.2.

6.1.4 Software and Configuration

The maintenance responsibilities of the Lessor are limited to hardware components only. Software installation, updates, configuration, and maintenance are the responsibility of the Lessee, unless otherwise agreed upon in writing.

6.1.5 Quality Guarantee

All repairs or replacements will be carried out to a standard that ensures the server hardware remains in good working condition and is consistent with the specifications agreed upon in Section 2.1 of this Agreement.

6.2 Lessee’s Responsibilities

The Lessee is responsible for proper use and reporting issues.

6.3 Repair Process

The Lessee shall notify the Lessor immediately in case of malfunction.

6.4 Damage or Loss

The Lessee is responsible for damages due to negligence.

Section 7: Liability and Risk

7.1 Limitation of Lessor’s Liability

The Lessor is not liable for indirect damages such as data loss or profit loss.

7.2 Data Loss

The Lessee is responsible for backing up their data.

7.3 Risk of Loss or Damage

Risk passes to the Lessee upon delivery.

7.4 Indemnification

The Lessee will indemnify the Lessor against claims related to the server's use.

7.5 Force Majeure

Neither party is liable for failure due to uncontrollable events.

Section 8: Termination of Lease

8.1 Early Termination by Lessee

The Lessee may terminate early with notice and is liable only for payments accrued to date.

8.2 Termination for Non-Payment

The Lessor may terminate for non-payment with notice.

8.3 Termination for Breach

Either party may terminate if the other breaches the Agreement and fails to cure the breach.

8.4 Consequences of Early Termination

Upon early termination, the Lessee forfeits ownership rights and must return the server(s).

8.5 Post-Termination Obligations

Termination does not relieve the Lessee of accrued obligations.

Section 9: Confidentiality

9.1 Confidential Information

Both parties may access each other's confidential information.

9.2 Non-Disclosure

Confidential information must not be disclosed to third parties.

9.3 Duration of Confidentiality Obligations

Confidentiality obligations last for 12 months after Agreement termination.

Section 10: Dispute Resolution

10.1 Negotiation

Disputes should first be attempted to resolve through negotiation.

10.2 Mediation

If unresolved, mediation is the next step.

10.3 Arbitration/Litigation

Unresolved disputes may go to arbitration or litigation.

10.4 Governing Law

This Agreement is governed by the laws of Wyoming, USA.

Section 11: Miscellaneous

11.1 Entire Agreement

This document constitutes the entire agreement between the parties.

11.2 Amendment

Amendments must be in writing and signed by both parties.

11.3 Severability

Invalid provisions do not affect the rest of the Agreement.

Section 12: Flexibility and Adaptation to Unforeseen Circumstances

12.1 Adaptation to Unforeseen Circumstances

In the event of unforeseen circumstances or situations that are not explicitly addressed in this Agreement, Crunchbits LLC reserves the right to take reasonable and necessary actions to ensure the continuation of services, maintenance of equipment, and fulfillment of the Agreement's objectives.

12.2 Consultation and Notification

In exercising this right, Crunchbits LLC agrees to consult with [Customer Full Name or Company Name] to the extent possible and provide timely notification of any actions taken.

12.3 Limitations

Any actions taken under this clause will be in line with the overall spirit of the Agreement and will not unreasonably prejudice the rights or obligations of the Lessee.

12.4 Review and Adjustment

Actions taken under this clause will be subject to review and, if necessary, adjustment, to ensure fairness and effectiveness in addressing the unforeseen circumstance.

Section 13: Signatures

This Agreement is executed as of the date first above written:

Crunchbits LLC

By: _________________________

Name: _________________________

Title: _________________________

Date: ________________________

[Customer Full Name or Company Name]

By: _________________________

Name: _________________________

Title: _________________________

Date: ________________________

For any questions regarding our Lease-to-own offerings, please do not hesitate to contact us
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