Common use of Replacement Agreement Clause in Contracts

Replacement Agreement. An officer who is performing obligated service under an agreement for a nuclear officer bonus may execute a new agreement to replace the exist- ing agreement if the amount to be paid under the new agreement will be higher than the amount to be paid under the existing agree- ment. The period of the new agreement shall be equal to or exceed the remaining term of the period of the officer’s existing agreement. If a new agreement is executed under this paragraph, the existing agreement shall be cancelled, effective on the day before an anni- versary date of the existing agreement occur- ring after the date on which the amount to be paid under this paragraph is increased.