The pact was initialed as a guarantee against misuse of power, a charge that the interim government has used against ousted President Jose Manuel Zelaya to deny him return to power. Zelaya is holed up in the Brazilian Embassy since sneaking back into Honduras in September and has the support of two other presidential candidates, who refused to join the pact.

Signed amid much publicity at a television station, the pact was seen by analysts as an effort to ease the crisis over the June 28 ouster of Zelaya and takeover by Roberto Micheletti, the de facto president.

The coup plunged Honduras into an international crisis, leading to suspension of economic aid from the United States and European Union and diplomatic isolation for Honduran officials.

The scheduled election is seen as a way out of the crisis, but mediators have warned the outcome will be worthless if Zelaya is not reinstated in time to preside over the vote.

The pact is the latest of compromises put forward to extricate both sides from a stalemate that has defied mediation by Costa Rican President Oscar Arias, the Organization of American States, various individuals of influence and finally a U.S. diplomatic team.

The OAS and U.S. negotiators have been pushing for agreement on establishing a "unity and reconciliation" government to ensure elections take place in a legitimate environment and without any influence of Micheletti's interim regime.

Micheletti's group argues Zelaya's ouster was constitutional because of his alleged misuse of power and an attempt to change the constitution to extend his presidential tenure. Zelaya's supporters say his plans for a referendum on the constitution were well-intentioned, a claim that is disputed by critics.

Added to the complex negotiations has been the rise of an influential lobby in Washington that opposes Zelaya's return to office, however temporary, on grounds of his anti-American posture while president. Zelaya's term expires in January.

Analysts said the fact that two of the presidential candidates abstained from signing the pact meant last week's compromise solution still faced hurdles. The OAS and the U.S. State Department were instrumental in securing agreement on the agreement's draft.

The four candidates who signed the pact are Porfirio Lobo from the conservative National Party, Elvin Santos from the right-wing Liberal Party, Christian Democrat Felicito Avila and Social Democrat Bernard Martinez from the Innovation group. Opinion polls suggest Lobo has a comfortable lead over the other candidates in his bid for the presidency.

Left-wingers Cesar Ham from the Democratic Unification and independent Carlos H. Reyes abstained, arguing their support for the pact remains conditional on Zelaya's reinstatement.

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