Sources of Distribution Clause Samples
The 'Sources of Distribution' clause defines where and how products or services may be distributed under the agreement. It typically outlines the authorized channels, such as direct sales, third-party distributors, or online platforms, and may specify geographic regions or customer segments. By clearly delineating the permitted sources and methods of distribution, this clause helps prevent unauthorized sales, ensures compliance with territorial restrictions, and protects the interests of both parties in managing market presence and brand integrity.
Sources of Distribution. Unless provided otherwise in separate administrative provisions adopted by the Plan Administrator, in applying the distribution provisions under this Article 8, distributions will be made on a pro rata basis from all Accounts from which a distribution is permitted under this Article. Alternatively, the Plan Administrator may permit Participants to direct the Plan Administrator as to which Account the distribution is to be made. Regardless of a Participant’s direction as to the source of any distribution, the tax effect of such a distribution will be governed by Code §457 and the regulations there under. Nothing in this Article precludes the Plan from making a distribution in the form of property, or other in-kind distribution.