<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".02" citation="COMAR 24.05.17.02" title_num="24" subtitle_num="05" chapter_num="17" heading="Equity Investment Terms.">
  <paragraph num="A.">
    <text>The proceeds of the equity investment may be used for the purposes approved by the Director, which include, but are not limited to:</text>
    <paragraph num="(1)">
      <text>Working capital;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Salaries;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Marketing materials;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Acquisition of inventory, equipment, or real property;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Construction;</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Renovation;</text>
    </paragraph>
    <paragraph num="(7)">
      <text>Leasehold improvements; or</text>
    </paragraph>
    <paragraph num="(8)">
      <text>Research and development.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>The amount of an equity investment shall be in a range of $20,000 to $100,000 per enterprise, unless a greater amount is authorized by the Secretary.</text>
  </paragraph>
  <paragraph num="C.">
    <text>The Department may not acquire an ownership interest exceeding 25 percent of any enterprise.</text>
  </paragraph>
  <paragraph num="D.">
    <text>The terms of an equity investment approved by the Director shall be set forth in a funding agreement.</text>
  </paragraph>
  <paragraph num="E.">
    <text>At the Director's discretion, a funding agreement may consist of:</text>
    <paragraph num="(1)">
      <text>An investment agreement;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>A limited partnership agreement;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A preferred stock purchase agreement; or</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Other documents the Program may require.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>The Department shall divest itself of any enterprise in which an equity investment is made within 15 years after the Department's investment.</text>
  </paragraph>
</regulation>