ContractsCounsel Logo

Non-Exclusivity Clause

Get free proposals from vetted lawyers in our marketplace.

GET FREE PROPOSALS
No upfront payment required. Pay only if you hire.
Home Contract Clauses Non-Exclusivity Clause

Jump to Section

Non Exclusivity Clause Defined

Non-exclusivity clauses, also called non-exclusivity agreements, allow service providers or goods producers to buy and sell services under a non-exclusive arrangement. It’s essential to ensure that clause includes non-exclusive agreement language. A non-exclusivity clause should not conflict with non-solicitation agreements.

Non Exclusivity Clause Explained

Many companies utilize non-exclusivity clauses to achieve competitive advantage. For example, a soda manufacturer has a non-exclusivity agreement with restaurants. However, they can require exclusivity from their restaurant customers.

Here is a forum page that discusses non-exclusivity clauses.

Purpose of Non-Exclusivity Clause

The purpose of non-exclusivity clauses is to enhance market reach for a company. Reach increases financial opportunities. However, there are marketing and branding tradeoffs associated with non-exclusivity clauses, including brand diminishment for some situations.

Non Exclusivity Clause Examples

Examples of non-exclusivity clause use include:

  • Example 1: Allow employees to sell directly to customers and competitors
  • Example 2: Giving partners a chance to cross-collaborate with clients
  • Example 3: Soda companies permitting sales at separate locations
  • Example 4: Selling products through dental offices everywhere
  • Example 5: Signing a television deal with permission to work elsewhere

You can see a non-exclusivity clause example on this page.

Non Exclusivity Clause Samples

Sample 1 – Non-Exclusive Distribution Agreement:

Appointment of Nonexclusive Distributor. Subject to the terms and conditions of this Agreement, AOS appoints the Distributor, and the Distributor hereby accepts such appointment, as AOS’S non-exclusive authorized distributor for sale of the Products to the Customers (other than House Account) in the Territory (as these terms are defined in Section 1.8, above).

Reference:

Security Exchange Commission - Edgar Database, EX-10.7 14 dex107.htm NON-EXCLUSIVE DISTRIBUTOR AGREEMENT, Viewed April 6, 2021, < https://www.sec.gov/Archives/edgar/data/1387467/000119312510073586/dex107.htm >.

Sample 2 – Distribution Agreement:

Altera hereby appoints Distributor and Distributor hereby accepts the appointment, as a non-exclusive Distributor of the Products within the Territory. 

Reference:

Security Exchange Commission - Edgar Database, EX-10.33 7 dex1033.htm DISTRIBUTION AGREEMENT, Viewed April 6, 2021, < https://www.sec.gov/Archives/edgar/data/768251/000119312505047783/dex1033.htm >.

Sample 3 – Distribution Agreement:

Except as provided in Section 14 of this Amendment, the Distributor’s distribution rights under the Agreement shall be converted into non-exclusive distribution rights as of the Amendment Effective Date, and such non-exclusive rights shall not derogate in any way from Common Sense’s rights with respect to the Products, including without limitation, the right to market, distribute, promote and sell the Products, directly and/or indirectly, in the Territory.

Reference:

Security Exchange Commission - Edgar Database, EX-10.1 2 dex101.htm FIRST AMENDMENT TO DISTRIBUTION AGREEMENT, Viewed April 6, 2021, < https://www.sec.gov/Archives/edgar/data/1316826/000119312507182891/dex101.htm >.

Sample 4 – Distribution Agreement:

Non-Exclusive Territory: The PRC. SweeGen hereby appoints Ingredion's Chinese affiliate, Ingredion China Limited, as a non-exclusive distributor of the Products in the PRC on the terms and conditions set forth in this Agreement. Ingredion China Limited hereby accepts such appointment, and agrees to be bound by the terms and conditions set forth in this Agreement.

In the PRC, SweeGen may sell (i) directly to customers and (ii) may also sell to one other company organized and based in the PRC, or any successor or assignee thereof, as its sole non-Ingredion distributor in the PRC but shall not directly or indirectly make any sales to any third party (other than Ingredion or Ingredion China Limited) which SweeGen knows or has reason to believe intends to resell or otherwise distribute the Products outside of the PRC. SweeGen shall make such sales under its own trademark(s). Sales of Products to House Accounts in the PRC shall be considered for the purposes of establishing a Transfer Price.

Reference:

Security Exchange Commission - Edgar Database, EX-10.1 2 f10q123116_ex10z1.htm EXHIBIT 10.1 DISTRIBUTION AGREEMENT, Viewed April 6, 2021, < https://www.sec.gov/Archives/edgar/data/1580883/000107878217000196/f10q123116_ex10z1.htm >.

Common Contracts with Non-Exclusivity Clauses

Here are a few common contracts with non-exclusivity clauses:

Teaming Agreement

A non-exclusive teaming agreement allows contractors to act as subcontractors in specific situations.

Partnership Agreement

Non-exclusive partnership agreements give non-exclusive parties the right to partner with others, as necessary.

Distribution Agreement

Non-exclusive distributions allow a producer to distribute goods and services to others, including customers and competitors.

Collaboration Agreement

Non-exclusive collaboration agreements permit parties to collaborate with others on a project.

Sponsorship Agreement

Non-exclusive sponsorship agreements give other sponsors a chance to sponsor the same event regardless of contributions.

Non Exclusivity Clause FAQs

Below, please find the answers to some common non-exclusivity clause FAQs:

What is the difference between exclusive and non-exclusive?

Exclusive agreements limit a party’s ability to work with another, meaning that the exclusive party offers services or products not provided elsewhere. Non-exclusive indicates that the non-exclusive party can work with anyone, including employees, competing products, and customers.

What does a non-exclusive easement mean?

Non-exclusive easements allow numerous parties to utilize an easement. It also means that other parties can receive permission to use the same one in the future. Examples of non-exclusive easements include country road access.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.
Meet some lawyers on our platform

Sara S.

124 projects on CC
CC verified
View Profile

Laura B.

7 projects on CC
CC verified
View Profile

Daniel K.

9 projects on CC
CC verified
View Profile

Tabetha H.

33 projects on CC
CC verified
View Profile

Meet some of our Lawyers

Nichole M. on ContractsCounsel
View Nichole
Member Since:
March 19, 2024

Nichole M.

Solo Practitioner
Free Consultation
Midlothian, Texas
1 Yr Experience
Licensed in MN, TX
UNIVERSITY OF DENVER STURM COLLEGE OF LAW

Ms. Melton-Mitchell is a seasoned executive that has obtained a law degree and is practicing law as a second career. She has spent over 25 years in the health care industry and is well versed in health law, contract law, financial law, trusts and estates, M&A and other types of transactional law. She maintains evening and weekend hours to allow clients flexibility in connecting with her around their schedule.

Robert A. on ContractsCounsel
View Robert
Member Since:
March 20, 2024

Robert A.

Attorney at Law
Free Consultation
Wisconsin
12 Yrs Experience
Licensed in WI
Marquette University Law School

Robert McMillan Arthur is a collaborative attorney and mediator practicing across Wisconsin, with offices in the Metro Milwaukee area and Northeastern Wisconsin. He is a general practitioner, concentrating in Small Business Law, Entertainment Law, Intellectual Property Law, Nonprofit Law, Divorce and Family Law. Robert’s business law practice focuses on the needs of small, closely-held businesses and startups. As a veteran of a family owned business, Robert applies his extensive experience to advise his clients in a broad spectrum of legal issues, including contracts, licensing, trademark, copyright, employment, and business formation. With multidisciplinary qualifications and experiences, Robert chose his career in law to help people caught up in difficult situations in their personal or professional lives. His core principle of law practice is based on empowering and informing clients, advocating for their interests when appropriate, and guiding them in difficult problem solving.

Charles D. on ContractsCounsel
View Charles
Member Since:
March 29, 2024

Charles D.

Construction/Real Estate Attorney
Free Consultation
Corydon, Indiana
13 Yrs Experience
Licensed in IN
Robert H. McKinney School of Law

I have practiced civil law for 13 years and have concentrated my practice serving the construction and real estate industries.

Steve H. on ContractsCounsel
View Steve
Member Since:
April 8, 2024

Steve H.

Managing Member
Free Consultation
Los Angeles
23 Yrs Experience
Licensed in CA
UC Hastings Collegue of the Law

Steve has 20+ years of IP and litigation experience, including 10+ years of experience at two of the most prestigious large U.S. law firms, Greenberg Traurig LLP, (AMLAW 10) and Sheppard Mullin LLP (AMLAW 100). Steve has been a licensed U.S. Patent and Trademark Office registered attorney and litigator since 2002. Steve’s extensive experience and interpersonal skills have given him the skills that allow him to provide his clients with the very best quality and service. Steve has successfully represented clients achieve their goals in a variety of IP, patent, trademark and trade secret disputes. He has successfully obtained many hundreds, if not over a thousand, valid and enforceable U.S. and international patents and trademarks applications for his clients over the years. As a result, he has strong, longstanding relationships with many of the Examiners at the USPTO and works with an international team of foreign associates to secure foreign rights and litigate abroad whenever needed. Many of Steve’s clients have been a client of Partners Law Group for 5+ years. More than a few have been clients for 15+ years. Steve prides himself on providing accurate results and efficiency-driven advice on complicated IP, litigation, and real estate matters in a clear and concise way; helping his clients make the best decisions possible when dealing with complex and sensitive legal matters. Steve has successfully negotiated hundreds of complicated licensing and pre-litigation IP, patent, trademark, business, real estate cases and matters for various clients large and small. Steve’s IP practice focuses on all aspects of intellectual property and covers various technical disciplines. He has extensive experience in medical devices, pharmaceuticals, internet or business methods and processes, broadband and 5G technologies, data acquisition, migration, monitoring and protection, piracy, nutritional supplements, sports and nutrition products, herbal products, pharmaceuticals, orthodontics, and surgical procedures and devices, health-related products to computer hardware and software, music, and mobile device applications, hardware and software, business methods, industrial machinery, mechanical devices to other technologies he understands and believes he can help the client achieve his or her goals.

Eugene S. on ContractsCounsel
View Eugene
Member Since:
April 17, 2024

Eugene S.

Attoney
Free Consultation
Dublin, Ohio
18 Yrs Experience
Licensed in OH
University of Dayton

I have experience with the protection and monetization of intellectual property, negotiating license agreements that have earned several hundred thousand dollars in revenue, and I have negotiated multiple multi-million dollar agreements. Additionally, I have worked with various client to incorporate intellectual property strategies into their underlying business plans. I have been working remotely for over seven years and I have a home office dedicated to my work. I am available to travel to clients on an as needed basis. I enjoy working with clients in this manner because the costs are reduced, and I have the freedom to travel to my clients as needed.

Kelly C. on ContractsCounsel
View Kelly
Member Since:
April 11, 2024

Kelly C.

Attorney at Law
Free Consultation
Cleveland, OH
5 Yrs Experience
Licensed in OH
WMU Thomas M Cooley Law School

Hello! I'm an attorney who practices mainly landlord/tenant law (eviction, both plaintiff and defendant side); and criminal law (misdemeanor). I also work as appearance counsel to fill in at hearing when conflicts arise for other lawyers.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review
CONTRACT lawyers by city

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Find lawyers and attorneys by city