Agreement to Compromise Debt

[Your company name]
[Your company address:
Street
City, State, Zip]

Date:
[Name]
[Address:
Street
City, State, Zip]

Dear [Mr./Ms ...],

FOR VALUE RECEIVED, the undersigned, a creditor of _________ (the company), hereby consents to compromise and reduce the indebtedness on the following terms and conditions:
1. The company and the undersigned acknowledge that the current debt due is $______________.
2. The parties agree that the undersigned shall accept $____________ as full payment of the debt, provided the sum herein shall be paid on time in the following manner: ___________________________________,
___________________________________.

3. In the event the company fails to punctually pay the full amount, the undersigned will be given full rights to claim for immediate payment of the total debt due under Paragraph 1 (less payments made).

All benefits of said agreement shall be binding upon the parties, their successors and assigns in its entirety.
Date: _______________________.

Creditor's signature: _______________________.

Company's signature: _______________________.

Sincerely,

[Name],

[Title]

[Signature]