Termination Payment Options Sample Clauses
The Termination Payment Options clause defines the methods and terms by which payments are to be made if a contract is ended before its natural expiration. Typically, this clause outlines whether payments will be made as a lump sum, in installments, or based on specific calculations such as work completed or costs incurred up to the termination date. Its core practical function is to provide clarity and predictability for both parties regarding financial obligations upon early termination, thereby reducing disputes and ensuring a fair resolution.
Termination Payment Options. MassMutual will disburse all assets held under this Agreement in accordance with Effective Communication of one of the following payment options from the Investor, provided that in the event of the termination of the Agreement pursuant to Section 3.01A(3) payment will be made under the Book Value Installment Payment Option in [eleven] equal annual installments. In the event no option is elected within [thirty-one] days of the Partial Termination Date or the Termination Date, the Book Value Installment Payment Option will be deemed to have been elected by the Investor.