An automatic contract extension. Vested agreements often create an Evergreen Contract where the supplier earns a contract extension at the end of each year. For example, at the end of year one the supplier can earn a 6th year. At the end of year two the supplier can earn a 7th year. This in essence creates an Evergreen Contract with a rolling five-year contract duration that highly motivates the supplier to keep making investments in order to earn the contract extension.
An automatic contract extension. Vested agreements often create an Evergreen Contract where the supplier earns a contract extension at the end of each year. For example, at the end of year one the supplier can earn a 6th year. At the end of year two the supplier can earn a 7th year. This in essence creates an Evergreen Contract with a rolling five-year contract duration that highly motivates the supplier to keep making investments in order to earn the contract extension.