Ch. 660                                        1997 LAWS OF MARYLAND

University twice the costs associated with space use and rental
should that entity leave the State of Maryland within five years of
being a tenant in this incubator to pursue expansion, production or
manufacturing relative to the technology which the incubator space
facilitated in development. Reimbursement shall apply only if 40%
or more of the company's employment is transferred outside
Maryland. Full reimbursement will apply to companies that leave
the State of Maryland during the first two years after graduating
from the incubator and shall be applied on a scale which declines
to zero on the fifth anniversary of graduation. Such agreement is in
addition to, not in lieu of, any existing contractual provision
applicable to present users] PROVIDED THAT ALL
ENTREPRENEURS OCCUPYING INCUBATOR SPACE SHALL
AGREE IN WRITING TO REIMBURSE THE INCUBATOR SPONSOR
1.5 TIMES TOE COSTS ASSOCIATED WITH SPACE USE AND
RENTAL OR TO INCREASE THE INCUBATOR SPONSOR'S EQUITY
HOLDING IN THE COMPANY OR THE ROYALTY OBLIGATION BY
50 PERCENT IF AT ANY TIME WITHIN 5 YEARS OF GRADUATION
THE COMPANY VOLUNTARILY RELOCATES MORE THAN 40
PERCENT OF THE COMPANY'S TOTAL EMPLOYMENT OUTSIDE
THE STATE OF MARYLAND. FULL REIMBURSEMENT SHALL
APPLY TO COMPANIES THAT EXCEED THE OUT-OF-STATE
LIMIT WITHIN TWO YEARS OF GRADUATION FROM THE
INCUBATOR, 75 PERCENT IF WITHIN THE THIRD YEAR, 60
PERCENT IF WITHIN THE FOURTH YEAR. AND 25 PERCENT IF
WITHIN THE FIFTH YEAR. PROVIDED. HOWEVER, THAT FOR
EVERY TEN FULL-TIME RESIDENT EMPLOYEES ADDED AND
MAINTAINED IN MARYLAND, THE SUBSIDY REPAYMENT OR
INCREASE IN EQUITY HELD BY THE INCUBATOR SPONSOR OR
INCREASE IN ROYALTY OBLIGATION SHALL BE REDUCED BY 20
PERCENT. THE STATE OF MARYLAND IS VITALLY INTERESTED
IN ATTRACTING AND RETAINING NEW BUSINESSES THROUGH
A NUMBER OF INNOVATIVE PROGRAMS SUCH AS INCUBATOR
SUBSIDIES. THE INTENT IS NOT TO PENALIZE BUT TO PROVIDE
INCENTIVES TO COMPANIES TO REMAIN IN MARYLAND (Prince
George's County)................................................................................              5,602,000

Chapter 310 of the Acts of 1995

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That:

(1) The Board of Public Works may borrow money and incur indebtedness
on behalf of the State of Maryland through a State loan to be known as the Somerset
County - Ward Brothers Homeplace Loan of 1995 in a total principal amount equal to
[the lesser of (i) $50,000 or (ii) the amount of the matching fund provided in accordance
with Section 1(5) below] $0. This loan shall be evidenced by the issuance, sale, and
delivery of State general obligation bonds authorized by a resolution of the Board of

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