Evergreen

AAA

DEFINITION of 'Evergreen'

A contract provision that automatically renews the length of the agreement after a predetermined period, unless notice for termination is given. Evergreens are often used for long term agreements such as memberships or maintenance contracts.

INVESTOPEDIA EXPLAINS 'Evergreen'

An evergreen is renewed after a short period, which is agreed upon by the parties at the outset of the contract. Let's use a year-long evergreen contract with a monthly renewal as an example. This contract will last one year from the beginning month. After the first month, if no termination notice is given, then contract will extend to last a year from that period and so on. Once termination is given, the contract would live out the rest the year and not be renewed again.

RELATED TERMS
  1. Evergreen Funding

    1. A British term that describes a revolving credit arrangement ...
  2. Evergreen Option

    A type of employee stock option plan in which additional shares ...
  3. Time Horizon

    The length of time over which an investment is made or held before ...
  4. Termination Date

    The day on which a swap contract becomes invalid and no further ...
  5. Copyright Infringement

    The use or production of copyright protected material without ...
  6. ISDA Master Agreement

    A standard agreement used in over-the-counter derivatives transactions.
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. Exploring Advanced Insurance Contract ...
    Home & Auto

    Exploring Advanced Insurance Contract ...

  3. What is an evergreen provision and how ...
    Options & Futures

    What is an evergreen provision and how ...

  4. Easy Ways To Cut Rental Costs
    Options & Futures

    Easy Ways To Cut Rental Costs

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center