WILLIAM DONALD SCHAEFER, Governor                            Ch. 453

(1)      WITHIN 15 DAYS AFTER THE RECEIPT OF THE NOTICE OF
CANCELLATION OR NONRENEWAL, FILING WITH THE GRANTOR A NOTICE OF
INTENTION TO OPPOSE THE CANCELLATION OR NONRENEWAL; AND

(2)      IMPLEMENTING A PLAN, AS APPROVED BY THE GRANTOR, FOR THE
CORRECTION OF THE DEFICIENCIES DESCRIBED BY THE GRANTOR AS
CONSTITUTING THE REASONS FOR THE CANCELLATION OR NONRENEWAL.

(B)      THE GRANTOR AND DISTRIBUTOR MUST MAKE GOOD FAITH EFFORTS TO
MUTUALLY ADOPT THE PLAN DESCRIBED IN SUBSECTION (A)(2) OF THIS SECTION.

(C)      UNLESS OTHERWISE MUTUALLY AGREED BY THE PARTIES, THE PLAN
DESCRIBED IN SUBSECTION (A)(2) OF THIS SECTION MUST BE IMPLEMENTED WITHIN
60 DAYS OF ITS ACCEPTANCE BY THE GRANTOR.

(D)     A NOTICE OF CANCELLATION OR NONRENEWAL SHALL BE INEFFECTIVE
IF THE DISTRIBUTOR IMPLEMENTS THE PLAN DESCRIBED IN SUBSECTION (A)(2) OF
THIS SECTION.

(E)      A CANCELLATION OR NONRENEWAL SHALL BE EFFECTIVE IMMEDIATELY
UPON THE EXPIRATION OF THE PERIOD PROVIDED IN SUBSECTION (C) OF THIS
SECTION IF THE DISTRIBUTOR FAILS TO IMPLEMENT THE PLAN DESCRIBED IN
SUBSECTION (A)(2) OF THIS SECTION.

(F) NOTHING IN THIS SECTION SHALL PERMIT A DISTRIBUTOR TO ATTEMPT
TO CURE IF THE ONLY REASONS IDENTIFIED BY THE GRANTOR IN THE NOTICE
REQUIRED UNDER § 11-1303(B)(2)(II) OF THIS SUBTITLE ARE REASONS THAT ARE NOT
CURABLE BY THE DISTRIBUTOR INCLUDING A GRANTOR'S DECISION TO ALTER ITS
MARKETING AND DISTRIBUTION PRACTICES IN A WAY THAT ELIMINATES THE NEED
FOR AN INDEPENDENT DISTRIBUTOR AS LONG AS THIS DECISION APPLIES
UNIFORMLY TO ALL SIMILARLY SITUATED DISTRIBUTORS OF THAT
MANUFACTURER'S PRODUCTS.

11-1306.

IF A DISPUTE ARISES BETWEEN THE GRANTOR AND THE DISTRIBUTOR
RELATING TO THE NOTICE OF CANCELLATION OR NONRENEWAL, THE PLAN FOR
THE CORRECTION OF THE DEFICIENCIES DESCRIBED BY THE GRANTOR AS THE
REASONS FOR CANCELLATION OR NONRENEWAL, WHETHER OR NOT THE
DISTRIBUTOR HAS COMPLIED WITH THE PLAN AND CORRECTED THE DEFICIENCIES
DESCRIBED BY THE GRANTOR AS THE REASONS FOR CANCELLATION OR
NONRENEWAL, OR THE PURCHASE PRICE OR FAIR MARKET VALUE OF ANY
MERCHANDISE SUBJECT TO REPURCHASE UNDER § 11-1304 OF THIS SUBTITLE, THE
GRANTOR AND DISTRIBUTOR SHALL SUBMIT THE DISPUTE TO ARBITRATION UNDER
THE MARYLAND UNIFORM ARBITRATION ACT.

SECTION 2. AND BE IT FURTHER ENACTED, That if any provision of this Act
or the application thereof to any person or circumstance is held invalid for any reason in
a court of competent jurisdiction, the invalidity does not affect other provisions or any
other application of this Act which can be given effect without the invalid provision or
application, and for this purpose the provisions of this Act are declared severable.

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