WHEREAS, The Act has proved useful since its enactment in helping to
resolve the differences between distributors and grantors and has served important
State interests and public purposes;

WHEREAS,—The Act requires repurchase of a distributor's inventory by the
grantor under certain circumstances but does not require payment of related
shipping, packing, and other expenses, which leaves the distributor with unnecessary
costs that cannot be recouped; and

WHEREAS, The Act does not clearly delineate that arbitration proceedings be
held in Maryland unless the parties mutually agree otherwise even though actions in
Maryland courts are clearly permitted; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

11-1304.

(a) Except as provided in subsection [(c)] (D) 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,

(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; and

(iii) With respect to special tools, accessories, display equipment;
and other similar items, the purchase price paid by the distributor, less depreciation;
or an amount agreed upon by the parties.

(B) IN ADDITION TO ANY REPURCHASE AMOUNT DUE THE DISTRIBUTOR
UNDER THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION, THE GRANTOR SHALL
PAY ALL SHIPPING, PACKING, RESTOCKING, HANDLING, AND OTHER COSTS RELATED
TO THE REPURCHASE TRANSACTION.

[(b)](C) 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.