Evergreen Agreements are essential for businesses seeking to establish long-term service relationships without the need for periodic contract renewals. These agreements, governed by U.S. law, are particularly valuable for recurring services, maintenance contracts, and subscription-based business models. They provide stability while maintaining flexibility through carefully crafted termination and modification provisions. The contract type includes automatic renewal mechanisms, price adjustment provisions, and specific notice requirements to comply with various state laws regarding auto-renewal terms.
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1. Parties: Identification and details of all contracting parties
2. Background/Recitals: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Services/Scope: Core obligations and services covered by the agreement
5. Term and Renewal: Duration and automatic renewal provisions
6. Payment Terms: Pricing, payment schedule, and billing procedures
7. Termination: Conditions and procedures for ending the agreement
8. Governing Law: Applicable jurisdiction and dispute resolution
1. Service Levels: Performance metrics and standards - include when specific performance metrics need to be measured
2. Data Protection: Privacy and data handling requirements - include when personal or sensitive data is processed
3. Intellectual Property: IP ownership and licensing terms - include when IP is created or licensed under the agreement
4. Insurance: Required insurance coverage - include when services involve significant risk or liability
5. Compliance: Regulatory and industry-specific requirements - include when operating in regulated industries
1. Service Description Schedule: Detailed description of services to be provided
2. Pricing Schedule: Detailed pricing structure and rate cards
3. Service Level Agreement: Detailed performance metrics and remedies
4. Data Processing Agreement: Detailed data protection obligations and procedures
5. Change Control Procedure: Process for implementing changes to services or terms
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