Evergreen Repurchase Agreement

When a policyholder deducts auto or household insurance, the insurer usually extends the policy for an additional year, unless the insured person gives otherwise. If the terms of the policy change during the new term, the provider will inform the insured. Evergreen contracts are used for a variety of purposes, including lease, sales contracts, and service contracts. Some employee stock option plans offer an Evergreen option in which additional shares are automatically included each year in the plan. These plans are used to attract and retain quality employees who are incentivized to expand the business. Evergreen options are renewed annually and remain active unless the Board of Directors decides to terminate them.