                                 CODE OF VIRGINIA

NOTICE OF INTENT TO TERMINATE (§ 59.1-355)

A. Except as provided in subsection D of this section, a supplier shall provide
a dealer at least 120 days&#8217; prior written notice of any intention to
amend, terminate, cancel or not renew any agreement. The notice shall state all
the reasons for the intended amendment, termination, cancellation or nonrenewal.

B. Where such reason or reasons relate to a condition or conditions which may be
rectified by action of the dealer, he shall have seventy-five days in which to
take such action and, within such seventy-five-day period, shall give written
notice to the supplier if and when such action is taken. If such condition or
conditions have been rectified by action of the dealer, then the proposed
amendment, termination, cancellation or nonrenewal shall be void and without
legal effect. However, where the supplier contends that action on the part of
the dealer has not rectified one or more of such conditions, such supplier must
give written notice thereof to the dealer within fifteen days after the dealer
gave notice to the supplier of the action taken.

C. During the 120-day notice period provided for in subsection A the dealer
shall have the right to contract for a transfer of his business to another
person who meets the material and reasonable qualifications and standards
required by the supplier of its dealers. The dealer shall give notice of any
such transfer to the supplier at least forty-five days prior to the expiration
of the 120-day notice period.

D. No notice shall be required and an agreement may be immediately terminated,
amended, canceled or allowed to expire if the reason for the amendment,
termination, cancellation or nonrenewal is:

   1. The bankruptcy or receivership of the dealer;

   2. An assignment for the benefit of the creditors or similar disposition of
   the assets of the business, other than the creation of a security interest in
   the assets of a dealer for the purpose of securing financing in the ordinary
   course of business;

   3. Willful or intentional misrepresentation made by the dealer with the
   express intent to defraud the supplier;

   4. Failure of the dealer to conduct its customary sales and service operations
   during its customary business hours for seven consecutive business days,
   unless such failure has resulted from acts of God, casualties, strikes, or
   other similar circumstances beyond the dealer&#8217;s reasonable control;

   5. Failure to pay any undisputed amount due the supplier continuing for thirty
   days after written notice thereof; or

   6. A final conviction of the dealer of a felony.

HISTORY: 1988, c. 73.