The Simple Exclusivity Agreement is a fundamental commercial contract used in Hong Kong business relationships where one party wishes to grant another party exclusive rights in a specific context. This document is particularly valuable for businesses establishing exclusive distribution arrangements, territorial rights, or service provision relationships. The agreement, governed by Hong Kong law, typically includes essential provisions covering the scope of exclusivity, duration, territorial limitations, and parties' obligations while ensuring compliance with Hong Kong's Competition Ordinance and other relevant regulations. The Simple Exclusivity Agreement serves as a crucial tool for businesses looking to protect their commercial interests while establishing clear parameters for exclusive business relationships in the Hong Kong market.
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1. Parties: Identification of the parties entering into the agreement, including their full legal names, registration numbers (if companies), and registered addresses
2. Background: Context of the agreement and the relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Exclusivity: Clear statement of the exclusive rights being granted and their scope
5. Term and Duration: Period of the exclusivity arrangement, including start date and duration
6. Territorial Scope: Geographic area where the exclusivity applies
7. Obligations of the Parties: Key responsibilities and commitments of each party under the agreement
8. Payment Terms: Any fees, royalties, or other financial considerations for the exclusivity
9. Termination: Circumstances under which the agreement can be terminated and the process for termination
10. Confidentiality: Provisions regarding the protection of confidential information exchanged
11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes
12. Entire Agreement: Standard boilerplate confirming this document represents the entire agreement between the parties
1. Minimum Performance Requirements: Used when the exclusivity is conditional on meeting certain performance targets or minimum purchase requirements
2. Sub-contracting Rights: Include when either party may need to sub-contract their obligations
3. Insurance Requirements: Include when specific insurance coverage is required for the exclusive arrangement
4. Force Majeure: Include when parties want specific provisions for handling unforeseen circumstances
5. Non-Competition: Additional restrictions on competitive activities, if required
6. Assignment Rights: Include when transfer of rights needs to be specifically addressed
7. Audit Rights: Include when one party needs the right to audit the other's compliance
8. Change of Control: Include when the agreement should address changes in ownership of either party
1. Schedule 1 - Product or Service Specification: Detailed description of the products or services covered by the exclusivity
2. Schedule 2 - Territory Definition: Detailed description or map of the territorial scope, if complex
3. Schedule 3 - Performance Metrics: Detailed performance requirements and measurement criteria, if applicable
4. Schedule 4 - Fee Schedule: Detailed breakdown of any fees, royalties, or payment structures
5. Schedule 5 - Approved Sub-contractors: List of pre-approved sub-contractors, if applicable
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