NY S01315

Small brewers with annual volume under 300,000 barrels and whose sales to a wholesaler are 3% or less of that wholesaler's total annual brand sales may terminate agreements without good cause.

Terminating brewers must pay the beer wholesaler the fair market value of distribution rights lost or diminished, or a good faith estimate if the parties cannot agree.

Beer wholesalers may dispute the payment amount within 45 days by submitting the matter to binding arbitration before a three-arbitrator panel under American Arbitration Association commercial rules.

The arbitration panel determines if payment meets fair market value requirements and can order payment of any difference plus interest; arbitration costs are split equally between parties unless the brewer's estimate was not made in good faith.

"Annual volume" includes barrels brewed under the brewery's trademarks worldwide, plus barrels brewed by controlled entities, excluding contract brewing for other brewers, measured over the 12-month period preceding termination notice.