No Acceleration; Separate Payments Clause Samples
The "No Acceleration; Separate Payments" clause establishes that payment obligations under the agreement cannot be accelerated, meaning that payments must be made according to the original schedule rather than becoming immediately due upon a triggering event. In practice, this means that if a default or other specified event occurs, the payee cannot demand the full outstanding balance at once, and each payment remains due on its regular due date. This clause ensures predictability in payment timing and protects the payer from sudden, large financial demands, thereby managing risk and supporting financial planning for both parties.
No Acceleration; Separate Payments. No 409A Payment payable under this Agreement shall be subject to acceleration or to any change in the specified time or method of payment, except as otherwise provided under this Agreement and consistent with Code Section 409A. If under this Agreement, a 409A Payment is to be paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment.