Article 3

The State aid scheme under Article 1 Section 20 of the MoRaKG shall be adjusted so that the following conditions are met:

• the definition of target enterprises shall be limited to small and medium-sized enterprises (SMEs) as defined in Annex I to the General block exemption Regulation^f1,

• the definition of target enterprises shall exclude companies in difficulties and companies from the shipbuilding, coal and steel industry,

• maximum investment tranches shall not exceed EUR 1,5 million per target SME over each period of twelve months and shall be restricted to seed, start-up and expansion financing,

• Germany shall develop a mechanism to ensure that the measure complies with the cumulation and reporting rules set out in Chapter 6 and point 7.1 of the RC Guidelines,

• the purchase of existing shares (replacement capital) in a target SME shall be excluded,

• there shall be no special requirements with regard to the legal form of the target enterprise.