I'm aware. What's not clear is whether applies to the individual components of an organization (i.e. its employees) or just the organization as a whole. I want to think the answer is that intra-organizational distribution still counts as distribution (and therefore cannot be restricted), but usually it's considered acceptable to use a modified version of (A)GPL'd software internally (i.e. not used outside the organization) without it counting as "distribution", so things are kind of fuzzy without explicit terms in that regard.

Such are the side-effects of treating organizations as singular entities :)