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In this video, Simon from the Contract Company emphasizes the importance of having an exclusivity clause in a distribution agreement. As a distributor, once you are granted the rights to distribute goods from a supplier, securing exclusivity is crucial. This clause ensures that you are the sole distributor in your designated region, preventing the supplier from allowing other distributors to sell the same products. Exclusivity is vital for justifying the time and financial investment in marketing the brand or product, as it guarantees that your efforts will not be undermined by competitors in the same territory.