LEASE-TO-OWN CONTRACTUpdated on November 10, 2023
Lease-to-Own Dedicated Server Agreement
Section 1: Introduction
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].
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.
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:
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.
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.
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.
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
Disputes should first be attempted to resolve through negotiation.
If unresolved, mediation is the next step.
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.
Amendments must be in writing and signed by both parties.
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.
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:
[Customer Full Name or Company Name]