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An exclusive distribution clause prevents the supplier from forming other distribution contracts in a given market or territory. This gives the distributor the exclusive right to sell the products in that region. Exclusivity might be provided contingent on the distributor's performance.

Exclusive distribution agreement Sometimes, the distributor is the only distributor of the supplier's product within a specific geographical area. In other exclusive agreements, the distributor has the sole authority to sell the product to certain customers, meaning no other distributor can sell to those customers.

Minimum quarterly sales to maintain Exclusivity - Distributor must purchase US$50,000.00 per calendar quarter to maintain exclusivity. Failure by Distributor to meet this minimum shall subject Distributor to loss of exclusivity and possible termination of this Agreement.

Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.

By means of an exclusive distribution agreement a supplier agrees to sell its products to only one distributor, or a limited number of them [as per the draft for a new Vertical Block Exemption Regulation (?VBER?)], for resale in a particular territory or to a specific group of customers, or reserves such distribution ...

Exclusive Distribution Strategy Example Only having a few distributors protects brand equity by keeping the right amount of supply and demand in a specific area. An example of exclusive distribution would be if a luxury brand like Apple chose only to offer its newest Apple Watch at Best Buy locations.

Guide to Antitrust Laws. Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.