A. In order to stimulate the flow of capital into the development of specific products which have advanced beyond the theoretical stage and are capable of being reduced to practice on a commercial scale, the board may by resolution organize one or more corporations under the provisions of title 10. At least one-half of any voting shares of each such corporation shall be held by the board, or a majority of the directors, trustees or members of the corporation shall be designated or appointed by the board. No member or employee of the board may receive any direct or indirect compensation, other than reimbursement for actual expenses incurred in the performance of his duties, by reason of serving as a member, director or trustee of a corporation organized under this section.

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B. No such corporation may be organized unless the board finds in its organizational resolution that its formation will stimulate and encourage the development of new products within this state in situations in which financial aid would not otherwise be reasonably available from conventional lending sources. In addition to the powers each corporation may have, each corporation may:

1. Enter into product development agreements with persons doing business in this state, on such terms and conditions as are consistent with the research development purposes of the board, to advance financial aid to such persons for the development of specific products, procedures and techniques to be developed and produced in this state and to condition such agreements on contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it.

2. Acquire, lease, purchase, manage, hold and dispose of real and personal property in this state and lease, convey or deal in or enter into contracts with respect to such property on any terms necessary or incidental to carrying out these research and development purposes.

3. Hold patents, copyrights, trademarks or any other evidences of protection or exclusivity as to any products issued under the laws of the United States or any state or nation.

C. Before organizing such a corporation, the board shall develop a procedure for applications for financial aid to be forwarded, together with an application fee prescribed by the board, to the board. The board shall investigate and prepare a report concerning the advisability of approving the proposed financial aid for such person and concerning any other factors deemed relevant. The investigation and report shall include such facts about the person under consideration as his history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects and integrity of management as well as the feasibility of the proposed project to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report and after other action as is deemed appropriate, the board shall approve or deny the application. The board shall promptly notify the applicant of such action. Approval shall be conditioned on payment to the board, within such reasonable time after notification of approval as the board may specify, of a commitment fee prescribed by the board.

D. The board may receive and accept aid or contributions of monies from any source, including gifts or grants from private sources or from any department or agency of the United States or this state, for the purposes of carrying out the provisions of this section.

E. The board may also enter into research and development agreements, royalty agreements, development agreements, licensing agreements and profit sharing agreements concerning the research, development, production, storing or marketing of new products developed or to be developed through university research.