Public Works and issued, sold, and delivered in accordance with §§ 8-117 through 8-124
of the State Finance and Procurement Article and Article 31, § 22 of the Code.

Chapter 125 of the Acts of 1996

PARRIS N. GLENDENING, Governor

Ch. 660

Section 1(3)
38.01.00

DEPARTMENT OF BUSINESS AND
ECONOMIC DEVELOPMENT

(B) Technology Enterprise Center. Provide a grant to the Maryland
Economic Development Corporation to assist in the purchase of
property for use as the Technology Enterprise Center of the
University of Maryland Baltimore County[, provided that all
entrepreneurs occupying incubator space shall agree in writing to
reimburse the University 1-1/2 times the costs associated with
space use and rental or to increase the University's equity holding
in the company by 1-1/2 times if at any time within five 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 three years, 60 percent if within
four years, and 25 percent if within five years. Provided, however,
that for each year that an incubator graduate adds at least ten
full-time Maryland resident employees, it shall offset for one year
of subsidy repayment or increase in equity held by the University.
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 incentive to companies to remain in Maryland.],
PROVIDED THAT ALL ENTREPRENEURS OCCUPYING
INCUBATOR SPACE SHALL AGREE IN WRITING TO REIMBURSE
THE INCUBATOR SPONSOR 1.5 TIMES THE 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.

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