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"Net Proceeds" means the face amount of the Series 2005 Bonds, plus accrued interest and premium, if any, less original issue discount, if any. "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and use as a member of the general public . The City agrees that, so long as the Series 2005 Bonds are outstanding, it will comply with the regulations of the United States Treasury pertaining to "output facilities" (presently §1 . 141-2 and following) . Without limiting the generality of the foregoing, the City has not, subsequent to September 19, 2002 , and the City will not, except upon receiving an opinion of counsel of national reputation with regard to the exemption from income tax of interest on state and local government obligations ( "Bond Counsel" ) to the effect that the exemption of interest on the Series 2005 Bonds will not be adversely affected thereby, (a) enter into any contract for the providing of water or (b) enter into any amendment of any contract (regardless of when originally entered into) for the providing of water. (c) The Series 2005 Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 4W265 of the Code . The City represents and covenants that it does not expect that the aggregate principal amount of its qualified tax-exempt obligations (excluding "private activity bonds" within the meaning of Section 141 of the Code which are not "qualified 501 (c) (3) bonds" within the meaning of Section 145 of the Code) , including those of its subordinate entities, to be issued in the current calendar year will exceed $10 , 000, 000 . (d) The City covenants that the City will either (1) comply with the provisions of regulations issued under the Code with regard to the eighteen-month expenditure schedule for proceeds of the Series 2005 Bonds (together with any earnings thereon) (the "Proceeds" ) or (2) comply with the regulations with regard to computation of rebate owed to the United States and the making of rebate payments, as advised in writing by Bond Counsel . In order to comply with the eighteen-month expenditure schedule, the City shall expend proceeds within the following periods (commencing with the date of issuance of the Series 2005 Bonds) : (x) at least 15% of proceeds within six months; (y) at least 60% of proceeds within twelve months; (z) 100% of proceeds within eighteen months . (e) The City covenants that it will take no action which (w would cause the Series 2005 Bonds to be "federally guaranteed" within the meaning of Section 149 (b) of the Code; specifically, (A) 10