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Agreement to Compromise Debt
FOR VALUE RECEIVED, the undersigned being a creditor of (Company), hereby enters into an agreement to compromise and reduce the indebtedness due the undersigned on the following terms and conditions:
(describe in detail)
01. The Company and the undersigned acknowledge that the present debt due is $__________.
02. The parties agree that the undersigned shall accept the sum of $__________ as full and total payment on said debt and in complete discharge of all monies presently due, provided the sum herein shall be punctually paid in the manner following:
03. In the event the Company fails to punctually pay the reduced amount, the undersigned creditor shall have full rights to prosecute it claim for the total debt due under paragraph 1 (less payments made).
04. Severability. Should any Court hold that any portion of this agreement is invalid, the remainder shall be in full force and effect, and the invalid portion shall be struck from the agreement or modified as the Court shall order.
05. Representations. Neither party has made any representations nor promises, other than those contained in this agreement or in some further writing signed by the party making the representation or promise.
06. Modifications. A modification or waiver of any of the provisions of this agreement shall be effective only if made in writing and executed with the same formality as this agreement. Failure of either party to insist upon strict performance of any of the provisions of this agreement shall not be construed as a waiver of any subsequent default of the same or similar nature.
07. No Harassment. Both parties agree not to molest, harass, interfere with, or impose any restraint upon the other, except as set out in this agreement.
08. Amendment of Agreement. While this agreement remains in effect the parties agree to settle any disputes which arise under it through resort to mediation before a professional mediator. Both parties are to pay half of the fee's unless it is clear to the mediator that one of the parties is requesting mediation only to incur costs the other party cannot reasonably be expected to pay. If mediation fails than the dispute is to go before a single arbitrator. The arbiter need not be a lawyer or professional adjudicator, but may be a person with professional experience and training in family and/or rebets community property law applicable in the state of ________.
9. Termination of Agreement. This agreement may be terminated at any time by the parties written agreement. We agree that from time to time an amendment of this agreement may be desirable and we therefore agree that said amendment may be accomplished by written amendment only.
10. Assignment. This Agreement is of a personal nature and may not be assigned.
11. Binding. This agreement shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal representatives.
12. Governing Law. The parties hereby expressly acknowledge and agree that this Agreement is entered into in the State of [State] and, to the extent permitted by law, this Agreement shall be construed, and enforced in accordance with the laws of the State of [State].
Signed under seal this ________ day of ________, 20 __.