DEBT SETTLEMENT AGREEMENT
THIS AGREEMENT is made as of the ____ day of __________________, 20____.
BETWEEN:
______________________, a Company duly incorporated under the laws of _____________ and having its place of of business in the ___________________,
or
______________________, an individual residing in the ______________________, (hereinafter called the "Lender") OF THE FIRST PART, - and -
_______________________, a Company duly incorporated under the laws of ____________ and having its place of business in the _____________________,
or
________________________, an individual residing in the ________________________, (hereinafter called the “Debtor”) OF THE SECOND PART
1.00
RECITALS WHEREAS:
1.01 The Lender and the Debtor (sometimes hereinafter collectively referred to as “the Parties”) are parties to a certain _____________________ (loan agreement or promissory note) made as of the ____ day of ____________, _____ (the “Loan Agreement”) attached hereto as Schedule “A”. 1.02 As of the date hereof, the Debtor is indebted to the Lender for the principal amount owing under the Loan Agreement in the amount of _________________ ($_____________) Dollars plus all accrued and unpaid interest at the rate of _____ (___%) percent being in the amount of ____________ ($_________) Dollars (the “Principal Amount”). 1.03 The Lender and the Debtor hereby desire to cancel the Loan Agreement made between them and to settle and release all outstanding debts, obligations and liabilities with respect thereto, and all accrued and unpaid interest, subject to the terms and conditions of this Debt Settlement Agreement (the “Agreement”).
2
NOW THEREFORE THIS AGREEMENT WITNESSES, that for good and valuable consideration of the mutual covenants and agreements contained herein, the receipt and adequacy of which is hereby acknowledged, the Lender and Debtor hereto covenant and agree as follows: 2.00 ACKNOWLEDGEMENT OF DEBT
2.01 The Lender and Debtor hereby acknowledge and agree that the Debtor is, at the date hereof, indebted to the Lender for the Principal Amount, and that the Principal Amount outstanding to the Lender, constitutes the entire amount of indebtedness owing to the Lender. 3.00 SETTLEMENT AMOUNT
3.01 The Lender hereby agrees to accept from the Debtor, the payment amount of ______________ ($___________) Dollars as full repayment of the Principal Amount outstanding to the Lender at the date hereof, subject to the repayment terms and provisions as follows: (a) the Principal Amount outstanding hereto agreed to by the Lender and the Debtor, is due and payable in full, to the Lender, by way of certified cheque, bank draft or money order on the ____ day of ________________, 20____.; or (b) the Principal Amount outstanding hereto agreed to by the Lender and the Debtor, is due and payable in ________________ (___) consecutive monthly instalments, each in the amount of _______________ ($__________) Dollars, payable on the _____ day in each and every month, to and including the _____ day of __________, 20____, and the balance of the said Principal Amount outstanding shall become due and payable in full to the Lender on the ____ day of ____________, 20____. 3.02 In consideration of payment of the full Principal Amount outstanding to the Lender in accordance with the terms and provisions provided for herein, the Lender hereby agrees to fully