Section 1 Definitions
Section 1. The following terms as used in this chapter shall have the following meanings, except where the context clearly indicates otherwise:
“Board”, the board of directors of MTDC.
“Corporation” or “MTDC”, the Massachusetts Technology Development Corporation.
“Co-venture”, an investment by the MTDC in qualified securities of an enterprise in which a substantial investment is also being made or has been made by a professional investor to provide seed capital to an enterprise. A guarantee by MTDC of qualified securities provided by a professional investor shall be classified as a co-venture. An investment made by MTDC which is a direct investment may later be classified as a co-venture upon such investment by a professional investor.
“Direct investment”, an investment by the MTDC in qualified securities of an enterprise in which no investment is being or has been made by a professional investor to provide seed capital to the enterprise.
“Enterprise”, a small business, as defined in chapter 23A or 40F, with its principal place of business in Massachusetts and which is or proposes to be engaged in this commonwealth in manufacturing, research and development, or the provision of services involving a significant amount of technology.
“Paid in capital”, all monies received in return for capital stock of the MTDC.
“Primary employment”, work which pays at least one and one-half times the minimum wage as defined in chapter one hundred and fifty-one or as established by federal law, whichever is higher, offers adequate fringe benefits including health insurance, is not seasonal or part-time.
“Professional investor”, any bank, bank holding company, savings institution, trust company, insurance company, investment company registered under the Federal Investment Company Act of 1940, pension or profit-sharing trust or other financial institution or institutional buyer, licensee under the Federal Small Business Investment Act of 1958, or any person, partnership or other entity of whose resources a substantial amount is dedicated to investing in securities or debt instruments and whose net worth exceeds two hundred and fifty thousand dollars.
“Qualified security”, any note, stock, treasury stock bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, preorganization certificate or subscription, transferable share, investment contract, certificate of deposit for a security, certificate of interest or participation in a patent or application therefor, or in royalty or other payments under such a patent or application, or, in general, 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 of the foregoing, specifically including debt of and partnership interest in, as a general or limited partner, any general or limited liability partnership organized under the laws of the commonwealth, and debt of and membership interest in any limited liability company organized under the laws of the commonwealth.
“Seed capital”, financing that is provided for the development, refinement, and commercialization of a product or process and other working capital needs.