1993 LAWS OF MARYLAND

(7) AFFIRMATIVE BAD FAITH, DISHONEST, FRAUDULENT, OR ILLEGAL ACTS
BY THE DISTRIBUTOR.

(E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A
WRITTEN CONTRACT FOR A SPECIFIED TERM THE NOTICE AND CURE PROVISIONS OF
THIS SUBTITLE DO NOT APPLY TO A TERMINATION OF A DISTRIBUTORSHIP AT THE
NATURAL EXPIRATION OF THE SPECIFIED TERM OF A WRITTEN CONTRACT THAT DOES
NOT CONTEMPLATE RENEWAL OPTIONS EXERCISABLE BY EITHER PARTY SHALL
CONSTITUTE SATISFACTORY NOTICE UNDER THIS SECTION.

11-1304.

(A)     EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, ON
CANCELLATION OR NONRENEWAL OF AN AGREEMENT BY A GRANTOR FOR ANY
REASON, INCLUDING A DISTRIBUTOR'S FAILURE TO CURE UNDER § 11-1305 OF THIS
SUBTITLE, THE GRANTOR SHALL; HAVE THE RIGHT TO, AND MUST AT THE OPTION
OF THE DISTRIBUTOR, REPURCHASE ALL MERCHANDISE SOLD BY THE GRANTOR TO
THE DISTRIBUTOR. AND THE DISTRIBUTOR MUST SELL THE MERCHANDISE TO THE
GRANTOR. AT A PRICE EQUAL TO:

(1)      AN AMOUNT AGREED ON BY THE PARTIES; OR

(2)       (I) WITH RESPECT TO MERCHANDISE THAT IS STILL IN ITS
ORIGINAL CONDITION, IS PART OF THE GRANTOR'S CURRENT PRODUCT LINE, AND
WAS SHIPPED WITHIN 6 MONTHS OF THE CANCELLATION OR NONRENEWAL, THE
PURCHASE PRICE PAID BY THE DISTRIBUTOR; AND

(II) WITH RESPECT TO ALL OTHER MERCHANDISE, INCLUDING
SAMPLES, DISPLAY MODELS, AND DAMAGED MERCHANDISE, THE WHOLESALE FAIR
MARKET VALUE OF THE MERCHANDISE LESS DEPRECIATION, OR THE PURCHASE
PRICE PAID BY THE DISTRIBUTOR, WHICHEVER IS LESS.

(B)      THE REPURCHASE REQUIREMENTS UNDER SUBSECTION (A) OF THIS
SECTION SHALL BE COMPLETED WITHIN 30 DAYS AFTER THE EFFECTIVE DATE OF
CANCELLATION OR NONRENEWAL, UNLESS THE PARTIES AGREE OTHERWISE.

(C)      THE REPURCHASE REQUIREMENTS DISTRIBUTOR'S OPTION TO

REPURCHASE UNDER SUBSECTION (A) OF THIS SECTION DO DOES NOT APPLY IF THE
REASON FOR CANCELLATION OR NONRENEWAL INCLUDES ANY OF THE REASONS
LISTED IN § 11-1303(D) OF THIS SUBTITLE.

(D)     REPURCHASE OF INVENTORY UNDER THIS SECTION IS NOT SUBJECT TO
THE BULK TRANSFERS PROVISIONS OF TITLE 6 OF THIS ARTICLE.

11-1305.

(A) IF THE GRANTOR IDENTIFIED DEFICIENCIES ON THE PART OF THE
DISTRIBUTOR IN THE NOTICE UNDER § 11-1303(B)(2)(II) OF THIS SUBTITLE AND IF A
DISTRIBUTOR OPPOSES THE CANCELLATION OR NONRENEWAL OF AN AGREEMENT,
THE DISTRIBUTOR SHALL BE PERMITTED TO ATTEMPT TO RESOLVE ITS
DIFFERENCES WITH THE GRANTOR BY:

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Ch. 453