WILLIAM DONALD SCHAEFER, Governor

(II) 1. OWN SECURITIES REPRESENTING MORE THAN
25 PERCENT OF THE VOTING STOCK OF ANY ENTERPRISE ACQUIRING AN
EXISTING BUSINESS; OR

2. OWN AN INTEREST GREATER THAN 25
PERCENT IN ANY ENTERPRISE ACQUIRING AN EXISTING BUSINESS.

(2)  The amount of the Authority's equity
participation financing [for any franchise shall not] MAY NOT:

(I)  [exceed] EXCEED $100,000 [and shall] FOR
ANY FRANCHISE AND MAY not exceed 45 percent of the total initial
investment in the franchise; OR

(II)  EXCEED $500,000 FOR ANY ENTERPRISE
ACQUIRING AN EXISTING BUSINESS AND MAY NOT EXCEED 25 PERCENT OF
THE TOTAL INVESTMENT IN THE ENTERPRISE ACQUIRING AN EXISTING
BUSINESS.

(3)  The total amount of equity participation
financing disbursed [shall] MAY not exceed $3,000,000 for a
calendar year.

(4)  The Authority shall find that there is a
reasonable probability that the Authority will recover its
initial investment and an adequate return on investment, and the
Authority's investment shall be recoverable within 5 years of the
equity participation financing IN A FRANCHISE AND WITHIN 7 YEARS
OF THE EQUITY PARTICIPATION FINANCING IN AN ENTERPRISE ACQUIRING
AN EXISTING BUSINESS.

(5)  The    Authority's recovery shall be the greater of
the current value of   the percentage of the equity investment in
the enterprise or     the amount of the initial investment in the
enterprise.

(6)  The value of the business entity at the time of
recovery shall be the average of 3 independent appraisals of the
value.

(c) The liability of the State of Maryland and of the
Authority in providing equity participation financing shall be
limited to its investments under the Program.

(D) WHEN APPLYING TO THE AUTHORITY TO ACQUIRE AN EXISTING
BUSINESS, AN ENTERPRISE SHALL HAVE THE FOLLOWING MINIMUM
QUALIFICATIONS:

(1) THE ENTERPRISE OR ITS PRINCIPALS SHALL HAVE A
MINIMUM NET WORTH OF AT LEAST $75,000 PLEDGED AS SECURITY; AND

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