Transfer of property to trustee for benefit of creditors.

This agreement made at _________, on _________[date], by _________ of _________, referred to as debtor, and _________ of _________, referred to as trustee, and the several creditors of debtor who shall accede in writing to this agreement, called creditors, as follows:

Debtor, being heavily indebted and unable to pay his [her] debts promptly and fully, for the considerations appearing in this agreement, sells, assigns, conveys and sets over to trustee all and singular the stock of merchandise, being all the merchandise of every nature, kind and description pertaining to and being in or about the business and store building now operated by debtor, more commonly known as _________[location], together with all debtor's fixtures in and about the building and pertaining to the business, and including the goodwill of the business. All accounts and bills receivable, and all credits of any kind pertaining to the business and belonging to debtor are given to trustee on the trust and subject to the provisions and agreements set out below, all of which provisions are of the essence of this agreement.

Debtor shall sign all reasonable and necessary written instruments and do all similar things that trustee may deem necessary or advisable to fully carry out the purposes for which this agreement is made.

Trustee shall take possession of the business, property, accounts and bills receivable, and credits conveyed on trust; collect and compel payment of all credits; sell and convert into money the business and all property of debtor; and shall take possession of all moneys that come into his [her] hands under and by virtue of this agreement on trust.

Trustee shall pay and retain out of moneys all costs, charges and expenses of or incidental to the negotiations, preparation and execution of this agreement, and of the carrying of the agreement into effect.

Trustee shall pay, divide and distribute the residue of the moneys ratably among the creditors in discharge of their debts, by installments, and at such times as trustee may deem necessary in carrying out his [her] duties.

Trustee may in his [her] discretion carry on the business which debtor has carried on with the view of a gradual winding up, instead of immediately selling the business. For this purpose trustee may employ one or more persons to assist him [her], including debtor, if he [she] deems it advisable, and may pay these persons out of the trust moneys such wages as shall seem right to trustee. For this purpose, trustee may from time to time at the expense of the trust estate procure such stock in trade, materials and articles as he [she] shall deem fit for the purpose of carrying on the business, but the carrying on of the business or the winding up of the business by trustee shall not cause or create any future or additional liability as against debtor. Trustee shall apply the net receipts of carrying on the business in like manner as provided above in reference to the trust money.

The fees of trustee shall be the same as those of a trustee in bankruptcy under similar circumstances.

Creditors shall accept their distributive share under this agreement as paid to them by trustee in full and complete satisfaction of each of their several demands of every kind and nature against debtor.

In the event that all creditors, save and except not more than $_____ in amount, do not accede in writing to this agreement within _________ days from this date, then if debtor in writing notifies trustee, trustee shall immediately reconvey the property to debtor; but if all creditors, save and except not more than $_____ in amount, shall within _________ days from this date execute and deliver to debtor a written release of debtor from any and all liability of every kind and nature for and on account of any and all demands creditors now have against debtor, then debtor may not rescind this agreement in whole or in part but this agreement and conveyance shall be absolute.

Creditors assenting to this agreement shall be entitled to receive dividends under this agreement in respect to all debts due to them respectively which would have been provable in bankruptcy, and on the amounts for which they would have been so provable.