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An exclusivity clause in a contract entails committing to only engage in specific activities with one party, such as being the exclusive water supplier for North American operations for two years. These clauses can be nuanced, like committing to buying all water from a supplier without explicitly saying "exclusive." While not common, exclusivity clauses are crucial in significant business deals and can be lucrative, like being the exclusive distributor or licensee in a specific region for a set time period. It is essential not to breach these clauses in order to uphold the agreed-upon terms of the agreement.
