Linden has an agreement with Best Products Ltd. (BP), the appliance company from which they purchase their entire inventory. In this agreement, Linden must pay BP 10% of pre-tax income each year for the right of exclusive distribution of the BE product line.

If the exclusive right is an intangible asset, and not an expense , how we can capitalize it every year? As the company needs to pay every year 10% of the income. If it is an intangible asset we need to amortize but we don't know the useful life of it. Please advise if the "excusive right" is an operating expense or intengible asset?