ARTICLE 3

General Definitions

1. For the purposes of this Agreement, unless the context otherwise requires:

a) (i) the term "Turkey" means the territory of the Republic of Turkey, as well as the continental shelf over which Turkey has, in accordance with international law, sovereign rights to explore and exploit its natural resources; (ii) the term "United States" means the United States of America, but does not include Puerto Rico, Virgin Islands, Guam or any other United States possession or territory. When used in a geographic sense it means the states thereof, the District of Columbia, and the internal waters and territorial sea of the United States, established in accordance with international law; it also includes the seas, seabed and subsoil adjacent to the territorial sea in which the United States has or exercises sovereign rights or jurisdiction in accordance with international law; b) the terms "a Contracting State" and "the other Contracting State" mean Turkey or the United States as the context requires;

c) the term "person" includes an individual, a company, and any other body of persons; d) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

e) a company has its "place of incorporation":

(i) in Turkey, if its legal head office is registered in Turkey under the Turkish Code of Commerce; or

(ii) in the United States, if it is organized, created, or incorporated under the laws of the United States or any political subdivision thereof; f) the term "national" means:

(i) in relation to Turkey, any individual possessing Turkish nationality in accordance with the Turkish Nationality Code; and any legal person, partnership, or association deriving its status as such from the law in force in Turkey;

(ii) in relation to the United States, any individual who is a citizen of the United States; and any company, association, or other entity deriving its status as such from the laws of the United States or any political subdivision thereof; g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

h) the term "competent authority" means:

(i) in the case of Turkey, the Minister of Finance or his authorized representatives;

(ii) in the case of the United States, the Secretary of the Treasury or his delegate; i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except where such transport is solely between places in the other Contracting State.

2. As regards the application of this Agreement by a Contracting State any term not defined therein shall, unless the context otherwise requires, or the competent authorities agree to a common meaning pursuant to the provisions of Article 25 (Mutual Agreement Procedure), have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies.