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An exclusivity clause is a contractual agreement ensuring that one party will only engage in certain actions with another party for a specified duration. For example, a clause may state that one entity is the exclusive supplier of water for North American operations for two years. However, exclusivity clauses can also be implied, such as a commitment to buy all water from that supplier without explicitly using the term "exclusive." Though not very common, these clauses can arise in significant business agreements, often involving substantial financial stakes, such as exclusive distribution or licensing arrangements in specific regions. Violation of exclusivity clauses can lead to serious consequences.