Renting or leasing a Top Level Domain Name can be the most affordable way of getting to use the domain for a specified period without having to put out the expense necessary to obtain total rights to the name. There are some guidelines that accompany lease agreements of domain names, i.e.; annual lease fees are paid in advance on an annual basis; domain names are NOT to be used for pornographic, hate, or illegal uses (all lease sites are monitored regularly) if found to be in default of the contractual agreement, the site is Repossessed by the owner and the contract is immediately terminated without refund.

Domain Name Lease Agreement

This is a domain name lease agreement dated ___________ between domain name owner (the Lessor) and domain name renter (the Lessee) for the lease of the domain name ____________________, exclusively for use by Lessee.

THE LESSOR AND THE LESSEE AGREE as follows:

1.0 Lease

1.1 The Lessor shall lease to the Lessee and the Lessee shall take on the lease from the Lessor the domain name _______________ (“the Domain Name”) for the term and at the lease fee and conditions contained in this Lease. Lessor agrees that the use of the domain name is exclusively for Lessee and no other entity.

2.0 Term

2.1 The term of this Lease shall be for a period of ______ year, beginning on __________ and expiring on ____________, unless otherwise extended or “bought out” as provided herein.

3.0 Rental
The Lessee shall pay the annual rental for the Domain Name to the Lessor as follows:

3.1 The rental shall be paid without deduction whatsoever by one annual payment of $_____, or by quarterly payments of $_____.

3.2 In addition to the annual rental fee, Lessor shall grant Lessee {state any additional consideration, such as stock options}.

4.0 Right to Purchase Domain Name

4.1 Lessee shall have the option of purchasing the domain name from Lessor at a mutually agreed upon price before the expiration date.

5.0 Ownership of Domain Name

5.1 The Lessor retains full title to the Domain Name notwithstanding the Lease of the same to the Lessee subject only to the rights of the Lessee as a mere bailee of the Domain Name with the right only to use the Domain Name in accordance with, and under, this Lease.

5.2 The Lessee acknowledges that no representation has been expressed or implied, written or oral, that has granted any other rights to the domain name to the Lessee or its successors, assigns or nominees, except those stated herein.

6.0 Lessee’s Compliance

6.1 The Lessee, in its use of the Domain Name, shall comply with all applicable laws whether state, federal, national or international which apply to the use by the Lessee of the Domain Name.

7.0 Indemnity

7.1 The Lessee shall indemnify and hold harmless the Lessor against all damages, losses or liabilities which may arise with respect to the Domain Name or its use or operation by the Lessee or by any other party.

8.0 Default

8.1 The Lessor and the Lessee agree that each of the following events amounts to a default by the Lessee under this Lease:

(a) If the Lessee fails to pay rent or other money payable under this Lease on the due date for payment.

(b) The lessee fails to perform or observe any of the covenants or provisions of this Lease.

(c) If the Lessee has an action issued against the Lessee’s property under a judgment in any Court.

(d) If the Lessee becomes bankrupt or if the Lessee makes an assignment or composition with the Lessee’s creditors or if the Lessee’s board approves a resolution for the winding up of the Lessee other than for the purposes of reconstruction or amalgamation or if the Lessee becomes subject to the appointment of a receiver.

8.2 In the event default occurs, the Lessor may immediately or at any time thereafter without giving any notice to the Lessee re-take possession of the Domain Name and terminate this agreement but without releasing the Lessee from any liability in respect of any breach or non-observance of any of the provisions contained or implied in this Lease and without prejudice to the Lessor’s right to retain all money paid to the Lessor pursuant to this Lease and the Lessor’s right to claim damages pursuant to Clause 8.3 of this Lease.

8.3 If this Lease is terminated for any reason other than its due fulfillment by the Lessee or other than with the express consent of the Lessor in writing then without prejudice to its other rights at law or in equity the Lessor may at any time demand immediate payment of all of the following:

(a) All arrears of rent and other money then due and payable by the Lessee under the Lease.

(b) The Lessor’s loss on the Lease to be notified by the Lessor to the Lessee.

(c) All costs and expenses incurred by the Lessor enforcing this agreement.

(d) Interest on all money payable under this provision from the date of termination, the date of payment at the rate of 5% per annum at the date of termination.

9.0 Invalidity or Severability

9.1 If there shall be any conflict between any provision of this Lease and any law, regulation or decree affecting this Lease, the provision of this Lease so affected shall be regarded as null and void and shall, where practicable, be curtailed and limited to the extent necessary to bring it within the requirements of such law, regulation or decree but otherwise it shall not render null and void other provisions of this Lease.

10.0 Disclaimer of Warranties. LESSOR EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. WE MAKE NO WARRANTY THAT THE DOMAIN NAME WILL MEET YOUR REQUIREMENTS, OR THAT THE AVAILABILITY OF THE DOMAIN NAME THROUGH A DNS HOST PROVIDER WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR FREE; NOR DOES THE LESSOR MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THE DOMAIN NAME. YOU UNDERSTAND AND AGREE THAT ANY MATERIAL AND/OR DATA DOWNLOADED OR OTHERWISE OBTAINED THROUGH THE USE OF THE DOMAIN NAME IS DONE AT YOUR OWN DISCRETION AND RISK AND THAT YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR COMPUTER SYSTEM OR LOSS OF DATA THAT RESULTS FROM THE DOWNLOAD OF SUCH MATERIAL AND/OR DATA.

11.0 Non-Waiver

11.1 No waiver or failure to act by the Lessor in respect of any breach by the Lessee shall operate as a waiver of another breach.

12.0 Notices

12.1 All notices required to be given by one party to the other under this Lease shall be delivered by hand or sent by express mail to the address of the addressee, or sent by electronic means capable of producing a readable hard copy, including email and facsimile.

12.2 Notices shall be deemed to have been received:

(a) If sent by express mail, two days after delivery with signature verified from recipient.
(b) If delivered by hand, on the day of delivery.
(c) If sent by electronic means, at the time of transmission if transmitted during business hours and, if not during business hours, one hour after commencement of the next working day following the day of transmission.

13.0 Governing Law

13.1 This Lease shall be governed by and construed in accordance with the laws of the State of __________.

14.0 Entire Agreement

14.1 This Agreement is the complete and exclusive agreement between Lessor and Lessee. This Agreement supersedes all prior agreements and understandings, whether established by custom, practice, policy or precedent.

EXECUTED BY LESSOR EXECUTED BY LESSEE

Name: Name:
Signature: Signature:
Date: Date: