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Income distribution from a mutual fund to its shareholders can take two forms:A shareholder can elect to be paid directly, which puts the money in their pocket.The shareholder can elect to buy more shares of the fund, which means that they are reinvesting the amount of the dividend in more shares.
Parts of a Distribution AgreementNames and addresses of both parties.Sale terms and conditions.Contract effective dates.Marketing and intellectual property rights.Defects and returns provisions.Severance terms.Returned goods credits and costs.Exclusivity from competing products.More items...
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
Products: The agreement should specify what products, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.
Distribution agreements define the terms and conditions under which a distributor may sell products provided by a supplier. Such an agreement may be for a limited term, and be further restricted by territory and distribution channel.