Code of Maryland Regulations › Title 14 - INDEPENDENT AGENCIES › Subtitle 04 - MARYLAND TECHNOLOGY DEVELOPMENT CORPORATION › Chapter 14.04.01 - Definitions › Section 14.04.01.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as
				otherwise provided in this subtitle, the following terms have the meanings
				indicated.
B. Terms Defined.
(1) "Act" means Economic Development Article,
				Title 10, Subtitle 4, Annotated Code of Maryland, and Title 10, Subtitle 4A,
				Annotated Code of Maryland.
(2)
				'Applicant" means a business that applies for an investment from
				TEDCO.
(3) "Board" means the Board
				of Directors of TEDCO.
(4)
				"Business" means an enterprise for profit, including a partnership, a limited
				partnership, a corporation, or a limited liability company.
(5) "Bylaws " means the bylaws of
				TEDCO.
(6) Capital Investment.
(a) "Capital investment" means an expenditure
				by a business for the purchase, improvement, or maintenance of a long-term
				asset providing value for more than a year to enhance the growth potential of
				the business.
(b) "Capital
				investment" includes land and buildings, construction, improvements, furniture
				and fixtures, machines, computing, vehicles, software development, software,
				branding, intellectual property, patents, product development, copyrights,
				franchise rights, and licenses.
(7) "Chief Executive Officer" means the
				individual who is named as the Chief Executive Officer of TEDCO by the TEDCO
				Board and employed by TEDCO.
(8)
				Debt.
(a) "Debt" means a debt
				security.
(b) "Debt" includes a
				convertible note.
(9)
				"Economic disadvantage" means the impairment of the ability to compete in the
				free enterprise system due to social disadvantage resulting in diminished
				capital and credit opportunities as compared to others in the same or similar
				line of business, as such term is interpreted under
				13 CFR §
											124.104.
(10) "Early-stage business" means a business
				that:
(a) Except for businesses applying for
				investment under COMAR 14.04.03 and .04 or as otherwise provided in COMAR
				14.04.05, commenced operations not more than 7 years before the date on which
				the business submits an application for an investment by TEDCO;
(b) Has received not more than $30,000,000 in
				investment by persons other than TEDCO as of the date that the business submits
				an application for an investment by TEDCO; and
(c) Has no more than 250 employees.
(11) "Employee" means a full-time
				or full-time equivalent W-2 reporting worker of a business.
(12) Equity Financing.
(a) "Equity financing" means the purchase of:
(i) Shares, units, or interests in a
				business; or
(ii) Rights to
				ownership of shares, units, interests, or rights, such as options or warrants,
				in a business.
(b)
				"Equity financing" includes debt financing that is convertible into
				equity.
(13) "Follow-on
				investment" means TEDCO's investment in a business in which TEDCO, at the time
				of the investment, holds debt or equity.
(14) "Founder" means an individual who
				establishes a business by:
(a) Assuming a
				portion of the risk of the business; and
(b) Having the initial rights to a portion of
				the profits of the business.
(15) Intellectual Property.
(a) "Intellectual property" means the
				intangible value developed by human creativity that is protected by the legal
				mechanisms of patents, trademarks, copyrights, service marks, trade secrets,
				mask works, and plant variety protection certificates.
(b) "Intellectual property" includes
				inventions, discoveries, know-how, show-how, processes, unique materials,
				copyrightable works, original data, and other creative or artistic works that
				have commercial value.
(c)
				"Intellectual property" also includes the physical embodiments of intellectual
				effort such as models, machines, devices, designs, apparatus, instrumentation,
				circuits, computer programs and visualizations, biological materials,
				chemicals, other compositions or matter, plants, and records of
				research.
(16)
				"Investment" means equity financing by TEDCO in a qualified business.
(17) "Investment Committee" has the meaning
				stated in §10-401(e) of the Act.
(18) "Investment program" means any TEDCO
				investment program or fund authorized by or under the Act.
(19) "Office of the Attorney General" means
				Office of the Attorney General of Maryland.
(20) "Person " has the meaning stated in
				General Provisions Article, §
										1-114, Annotated
				Code of Maryland.
(21) "Product"
				means an item, process, or service for sale that is developed through or relies
				on technological innovation.
(22)
				"Qualified business" has the meaning stated in §§10-401(g) and
				10-487(a)(4) of the Act, except as otherwise stated in this subtitle.
(23) "Rural area " has the meaning stated in
				State Finance and Procurement Article, §
										2-207,
				Annotated Code of Maryland.
(24)
				"Rural community" has the meaning stated in State Finance and Procurement
				Article, §
										2-207,
				Annotated Code of Maryland.
(25)
				"Social disadvantage " means subject to racial or ethnic prejudice or cultural
				bias within American society because of identity as a member of a group and
				without regard to individual qualities, as such term is interpreted under
				13 CFR §
											124.103.
(26) Technology.
(a) "Technology" means the application of
				science for practical purposes.
(b)
				"Technology" includes products and processes that are, or will be, protectable
				as intellectual property.
(27) "Technology-based business " means a
				business that relies on technology to provide proprietary competitive advantage
				in the market.
(28) TEDCO.
(a) "TEDCO" means Maryland Technology
				Development Corporation established under the Act.
(b) For purposes of an investment program,
				TEDCO includes each entity owned by TEDCO through which investments are made
				under the investment program.
(29) "Workforce " means founders and
				employees of a business when determining:
(a)
				Whether a business is a qualified business; and
(b) The impact or potential impact of an
				investment on the State, a community in the State, or an area or region of the
				State.