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In the video, Simon from the Contract Company discusses a crucial clause that distributors should seek in a distribution agreement: exclusivity. As a distributor, obtaining exclusive rights means being the sole distributor for a supplier's goods in a designated region. This exclusivity is vital because it protects the distributor's investment in marketing the brand or product, ensuring that no other entity, including the supplier, can distribute or sell the goods in that area. Simon emphasizes that securing this clause is essential for distributors to maximize their potential and profitability in the market.