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A concession agreement is a negotiated contract that allows a company to do business with specific requirements. It can refer to a contract between a foreign company and a government, giving the company the right to operate in the country. It can also grant exclusive rights to do business in a specific area in exchange for negotiated terms. The agreement typically involves incentives from the government, such as tax breaks or relaxed restrictions. If the government is less enthusiastic, the company may need to make concessions.