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In the video, Simon from the Contract Company discusses a key clause that every distributor should seek in a distribution agreement: exclusivity. As a distributor, having exclusivity means you are granted the sole rights to distribute a supplier's goods in a specific region. This is crucial because if you invest time and money into marketing the brand or product, you want assurance that you are the only distributor in that area. Exclusivity ensures that no other distributor, including the supplier, can compete with you, allowing you to maximize your efforts and potential profits.