The Simple Exclusivity Agreement is a fundamental commercial contract used when one party wishes to grant another party exclusive rights within a specific context or territory in Australia. This document is particularly relevant when businesses seek to establish protected commercial relationships, such as exclusive distribution arrangements, sole agency appointments, or territorial exclusivity rights. The agreement addresses key aspects required under Australian law, including competition law compliance, clear definition of exclusive rights, territorial scope, and duration. The Simple Exclusivity Agreement typically includes provisions for performance standards, termination rights, and protection mechanisms for both parties. It's designed to provide a clear framework for exclusive commercial relationships while ensuring compliance with Australian competition laws and regulations, particularly the Competition and Consumer Act 2010 (Cth).
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1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Sets out the context and purpose of the exclusivity agreement
3. Definitions: Defines key terms used throughout the agreement
4. Grant of Exclusivity: Details the exclusive rights being granted and their scope
5. Term and Duration: Specifies the duration of the exclusivity period and any renewal options
6. Obligations of Grantor: Lists the obligations of the party granting exclusivity
7. Obligations of Grantee: Lists the obligations of the party receiving exclusive rights
8. Territory: Defines the geographic area where the exclusivity applies
9. Termination: Sets out circumstances and procedures for ending the agreement
10. Confidentiality: Protects confidential information exchanged during the relationship
11. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement
1. Minimum Performance Requirements: Used when the exclusivity is conditional on meeting certain performance targets
2. Non-Compete Provisions: Include when additional competitive restrictions are needed beyond the basic exclusivity
3. Sub-contracting Rights: Include when the grantee may need to sub-contract certain obligations
4. Insurance Requirements: Include when specific insurance coverage is required for the exclusive arrangement
5. Intellectual Property Rights: Include when the exclusivity involves use of trademarks, patents, or other IP
6. Change of Control: Include when the agreement should address ownership changes in either party
7. Force Majeure: Include when parties want to address circumstances beyond their control
1. Schedule 1 - Territory Definition: Detailed description or map of the exclusive territory
2. Schedule 2 - Products or Services: Detailed list of products or services covered by the exclusivity
3. Schedule 3 - Performance Metrics: Specific performance targets and measurement criteria
4. Schedule 4 - Fee Schedule: Details of any fees, royalties, or financial arrangements
5. Appendix A - Reporting Template: Standard format for required performance or activity reports
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