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An exclusivity clause is a contractual commitment to engage exclusively with one party for specific activities. For instance, a company might designate a supplier as the exclusive provider of water for its North American operations for two years. Alternatively, a clause may state that all water purchases in North America will be made from one supplier, still creating exclusivity without explicitly using the term. While exclusivity clauses are not very common, they appear in significant business transactions and can hold substantial financial value. Examples include exclusive distribution or licensing agreements in designated regions for specified durations. It is crucial to adhere to these clauses to avoid violations.
