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In this video tutorial, Simon from the Contract Company discusses the essential clause that every distributor seeks in a distribution agreement: exclusivity. He explains that when a distributor is supplied goods from a supplier, they want to secure exclusive rights to distribute those goods in their designated region. This exclusivity allows the distributor to invest time and resources into marketing the brand or product with the assurance that they will be the sole distributor in that area, preventing the supplier from granting similar rights to others. Ultimately, exclusivity is crucial for distributors to protect their investment and ensure market control.