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The term "Empowerment Zone Business" includes any trades or businesses which would <br />qualify as an Empowerment Zone Business if such trades or businesses were separately <br />incorporated. A trade or business may be treated as separately incorporated if allocations of <br />income and activities attributable to the business conducted within the Qualified Empowerment <br />Zone are made using a reasonable allocation method and if that trade or business has evidence of <br />those allocations sufficient to establish compliance with the definition of Empowerment Zone <br />Business. Whether an allocation method is reasonable will depend upon the facts and <br />circumstances, and will not be considered reasonable unless the allocation method is applied <br />consistently by the trade or business and is consistent with the purposes of Section 1394 of the <br />Code. <br />For purposes of the definition of the term "Empowerment Zone'Business";"if (A,) a <br />business entity or proprietorship uses real property located within the Qualified Empowerment <br />Zone, (B) the business entity or proprietorship also uses real property located outside the <br />Qualified Empowerment Zone, (C) the amount of real property within the Qualified <br />Empowerment Zone is substantial compared to the real property located outside the Qualified <br />Empowerment Zone and (D) the real property described in (B) is contiguous to part or all of the <br />real property described in (A), then all the services performed by employees, all business <br />activities, all tangible property and all intangible property of the business entity or proprietorship <br />that occur in or is located on the real property described in (A) and (B) shall be treated as <br />occurring or situated in the Qualified Empowerment Zone. <br />"Empowerment Zone Business Restrictions" means the restrictions set forth in Section 4 <br />of this Compliance Agreement. <br />"Empowerment Zone Facility" means any Qualified Zone Property the Principal User of <br />which is an Empowerment Zone Business and any land which is functionally related and <br />subordinate to such Qualified Zone Property. <br />"Federally Guaranteed" means, unless otherwise excepted under Section 149(b) of the <br />Code, (a) the payment of principal and interest with respect to the Bonds is guaranteed (in whole <br />or in part) by the United States (or any agency or instrumentality thereof), (b) 5% or more of the <br />Proceeds is (i) to be used in making loans, the payment of principal or interest with respect to <br />which are to be guaranteed (in whole or in part) by the United States (or any agency or <br />instrumentality thereof or (ii) to be invested (directly or indirectly) in federally insured deposits <br />or accounts or (c) the payment of principal or interest on the Bonds is otherwise indirectly <br />guaranteed (in whole or in part) by the United States (or any agency or instrumentality thereof). <br />"Initial .Testing Date" means the date that is selected by the Issuer on the Date of <br />Issuance that is either (a) the Primary Initial Testing Date or (b) an Alternative Initial Testing <br />Date. <br />"Issue Price" means for the Bonds the amount of $5,000,000. <br />"Minimum Compliance Period" means a continuous period of 3 years after the Initial <br />Testing Date. <br />06A514.05 14 <br />