WILLIAM DONALD SCHAEFER, Governor

Ch. 535

13-235.

(a)  In this section the following words have the meanings
indicated.

(b)   "Enterprise" means a business entity, including a sole
proprietorship, a partnership, a limited partnership, a
corporation, or a joint venture proposing to carry on a business
within the State and meeting the requirements of § 13-231 of this
subtitle.

(c)   "Equity participation financing" means any financial
assistance provided under the Program including investment or
guaranty of investment in an enterprise.

(D) "EXISTING BUSINESS" MEANS A BUSINESS WHOSE BOARD OF
DIRECTORS OR OWNERS APPROVE THE SALE OF THE BUSINESS TO AN
ENTERPRISE RECEIVING EQUITY PARTICIPATION FINANCING.

[(d)](E) "Franchise" means a contract or agreement and has
the meaning used in Article 56, § 345 of the Annotated Code.
"Franchise" includes only those franchise offerings that are
registered or exempt under the Maryland Franchise Investment Law,
Article 56, §§ 345 through 365D, of the Annotated Code.

[(e)](F) "Program" means the Equity Participation
Investment Program in the Maryland Small Business Development
Financing Authority.

[(f)](G) "Qualified security" means:

(1)  Any note, bond, debenture, or other evidence of
indebtedness;

(2)  Any stock or other form of equity participation;

(3)  Any certificate of interest or participation in a
profit sharing agreement;

(4)  Any investment contract;

(5)  Any certificate of deposit for a security;

(6)  Any certificate of interest [of] OR participation
in a patent or patent application or in royalty or other payments
under a patent or patent application; or

(7)  Any interest or instrument commonly known as a
"security" or any certificate for, receipt for, guarantee of, or
option, warrant, or right to subscribe to or purchase any
qualified security.

13-236.

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