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Seed Investment Deal Terms

The Convertible Note Purchase Agreement will vary depending on the size and nature of the investment.

Closing Process

As part of the Closing, the applicant will be asked to provide the following list of documents:

●   A certificate of good standing from the Maryland Department of Assessments and Taxation dated no more than 30 days prior to the Closing Date AND from the State in which the corporation is organized, if other than Maryland;

●    A copy of its Articles of Incorporation & Bylaws (for corporations) or Articles of Organization & Operating Agreement (for LLCs), as applicable;

●    The Board of Directors Resolution authorizing execution of the Convertible Note Purchase Agreement (corporations only);

●    A copy of the company’s most recent financial statements;

●    Other information needed to complete a Convertible Note Purchase Agreement and its Exhibits.

Reporting Requirements

As a condition of accepting an investment from TEDCO, the applicant will be required to submit periodic reports, as follows:

  • Financial Reports.  For as long as TEDCO holds a note or any securities in applicant’s company, the company shall provide TEDCO with quarterly financial statements, which include an Income Statement, Balance Sheet, and Cash Flows Statement.
  •  Annual Economic Development Reports.  Beginning the first April following a Closing and until the last to occur of (i) five years following the Closing, or (ii) until TEDCO no longer holds a note or any securities in company, the company will provide to TEDCO an Annual Economic Development Report.  The report will include State and federal income and payroll tax returns, an employee census reflecting the current number of full-time equivalent employees who are Maryland residents, and such other information which TEDCO may reasonably request from time to time.
  • All reports provided to TEDCO will be held in confidence to the extent reasonably permitted by Title 10, Subtitle 6 of State Government Article of the Annotated Code of Maryland.  Confidential reports should be designated as “Business Proprietary”.