Okla. Stat. tit. 74, § 74-5085.8

A. Except as otherwise provided by subsections F and G of this

section, the Oklahoma Science and Technology Research and

Development Board shall have the power to solicit proposals from

qualified investor groups for investment of capital in accordance

with the requirements of the Oklahoma Capital Formation Act. The

Board shall establish criteria for selection of persons, firms,

corporations, or other entities deemed qualified to generate capital

for investment in a manner which will result in a significant

potential to create jobs and to diversify and stabilize the economy

of this state. Such criteria shall include the applicant’s level of

experience, quality of management, investment philosophy and

process, historical investment performance, probability of success

in fund raising, the amount and timing of fees to be paid, and such

other investment criteria as may be commonly used in professional

portfolio management as the Board may deem appropriate.

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B. Except as otherwise provided by subsections F and G of this

section, the Board shall have the power to extend a guarantee in the

form of a put option or such other method as selected by the Board.

Guarantees may extend to principal plus interest over the term of

the guarantee at a rate set by Board resolution from time to time.

Guarantees in whatever form negotiated by the Board may be made for

any period of time, but no term shall expire prior to January 1,

1992. The Board may charge a reasonable fee for costs and the fair

compensation of risk associated with its guarantee. The guarantees

extended by the Board shall in no way be an obligation of the state

and may be restricted to specific funds or assets of the Board;

provided, however, proceeds from the sale of any tax credits shall

be sufficient to meet contractual guarantee obligations of the

Board. The Board shall have the right to contract freely to protect

the interests of this state. The Board shall ensure that at least

Two Dollars ($2.00) will be invested in Oklahoma businesses or

projects for every One Dollar ($1.00) of principal guaranteed by the

Board.

C. If the Board purchases any security pursuant to an agreement

with an investor group, the Board shall acquire such securities and

may invest, manage, transfer, or dispose of such securities in

accordance with policies for management of assets adopted by the

Board.

D. Except as otherwise provided by subsections F and G of this

section, the Board shall have the power to make any contract,

execute any document, perform any act, or enter into any financial

or other transaction necessary in order to carry out its mission.

The Board may employ such persons as may be required for the

performance of any function authorized or required by the Oklahoma

Capital Formation Act or necessary for the accomplishment of any

such function. Such persons shall be selected based upon

outstanding knowledge and leadership in the field for which the

person performs services for the Board. In selecting such persons,

the Board shall hire persons who meet standards applicable to

persons responsible for investment of equity and near-equity

securities.

E. In carrying out the mission of the Board as authorized in

the Oklahoma Capital Formation Act, neither the Board nor its

officers, directors, or employees shall be considered to be broker-

dealers, agents, investment advisors, or investment adviser

representatives under Title 71 of the Oklahoma Statutes. The tax

credits issued or transferred pursuant to the Oklahoma Capital

Formation Act and Section 2357.7 of Title 68 of the Oklahoma

Statutes shall not be considered to be securities under Title 71 of

the Oklahoma Statutes.

F. On and after June 8, 2012, except for the investment of

funds required by provisions in a contract executed by the Board or

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its issued or transferred pursuant to the Oklahoma Capital

Formation Act and Section 2357.7 of Title 68 of the Oklahoma

Statutes shall not be considered to be securities under Title 71 of

the Oklahoma Statutes.

F. On and after June 8, 2012, except for the investment of

funds required by provisions in a contract executed by the Board or

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by any subsidiary or affiliate of the Board prior to June 8, 2012,

or executed by an entity that was not a subsidiary or affiliate of

the Board at the time such contract was executed but which became a

subsidiary or affiliate of the Board subsequent to the execution of

such contract, but prior to June 8, 2012, neither the Board nor any

entity which is a subsidiary or affiliate of the Board nor any

entity which is controlled either directly or indirectly by the

Board or which acts under the authority of or pursuant to the

direction of the Board shall:

1. Enter into any contract authorizing or requiring the

investment of any funds obtained by the Board, or commitment binding

the Board to make any investment of any funds obtained by the Board,

or the investment of any funds obtained by a subsidiary, affiliate,

or any entity under the direct or indirect control of the Board, in

any corporation, general partnership, limited partnership, limited

liability company, private equity or hedge fund, or other lawfully

recognized business entity; or

2. Modify any agreement executed prior to June 8, 2012, by the

Board or executed by any subsidiary or affiliate of the Board or

executed by any entity that was not a subsidiary or affiliate of the

Board at the time such contract was executed, but which subsequently

became a subsidiary or affiliate, in any manner that would have the

effect of increasing the amount of any contractual commitment to

make an investment of funds in a general or limited partnership,

corporation, limited liability company, private equity or hedge

fund, or any other lawfully recognized entity.

G. On and after June 8, 2012, except for the use of funds

required by provisions in a contract executed by the Board or by any

subsidiary or affiliate of the Board prior to June 8, 2012, or

executed by an entity that was not a subsidiary or affiliate of the

Board at the time such contract was executed but which became a

subsidiary or affiliate of the Board subsequent to the execution of

such contract, but prior to June 8, 2012, neither the Board nor any

entity which is a subsidiary or affiliate of the Board nor any

entity which is controlled either directly or indirectly by the

Board or which acts under the authority of or pursuant to the

direction of the Board shall:

1. Enter into any contract for the purpose of guaranteeing, in

whole or in part, the repayment of obligations owed by a business

entity, other than a subsidiary of the Board, in connection with a

loan of money from a bank, financial institution, or any other

entity; or

2. Modify any contract described by paragraph 1 of this

subsection executed prior to June 8, 2012, by the Board or executed

by any subsidiary or affiliate of the Board or executed by any

entity that was not a subsidiary or affiliate of the Board at the

time such contract was executed, but which subsequently became a

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subsidiary or affiliate, in a manner that would increase any

existing obligation of the Board or its subsidiary or affiliate or

extend the term of any such contract.