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In the video, Simon discusses a crucial clause that distributors should prioritize in a distribution agreement: exclusivity. He explains that exclusivity grants the distributor the sole rights to market and sell products in a designated region, ensuring they are the only entity distributing those goods. This is particularly important for distributors who invest time and resources in promoting a brand or product, as it protects their efforts from competition within that market. In summary, the key takeaway is that distributors should seek exclusivity to secure their position as the sole distributor in their assigned territory.