Evergreen

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Evergreen

A contract that rolls over after each agreed (short-term) period until cancelled by one party.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Evergreen

Describing a long-term contract that is renewed automatically after a short-term period unless it is terminated. For example, an evergreen contract may last five years with an option to terminate at the end of one year. Unless one party or the other terminates the contract by the end of the first year, it is renewed for an additional five years after the end of the first five years.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
So legal counsel needs to look through that document and make sure that if there is an evergreen clause, that it's been detected and identified and all parties put on notice of it," Wahner advises.
Some executives have been successful in negotiating evergreen clauses, which cause the agreements on an annual basis to automatically roll over for another full term.
Additionally, because many letters of credit contain the evergreen clause and thus automatically renew, there is also no annual paperwork burden.
In 2016, the Texas 4th Court of Appeals granted the city's request to mediate the lawsuit for police, leading to a five-year CBA that includes employee contributions for healthcare, a reduction in the evergreen clause to eight years from 10 years and a 17% pay increase from fiscal years 2017-2021.
His negotiations with selectmen broke down over an evergreen clause in his contract.