of this section and files the agreement referred to in subsection (h), (C) the sum of— (i) the adjusted value of the qualified family-owned business interests described in paragraph (2), plus (ii) the amount of the gifts of such interests determined under paragraph (3), exceeds 50 percent of the adjusted gross estate, and (D) during the 8-year period ending on the date of the decedent’s death there have been periods aggregating 5 years or more during which— (i) such interests were owned by the decedent or a member of the decedent’s family, and (ii) there was material participation (within the meaning of section 2032A(e)(6)) by the decedent or a member of the decedent’s family in the operation of the business to which such interests relate. (2) Includible qualified family-owned business interests The qualified family-owned business interests described in this paragraph are the interests which— (A) are included in determining the value of the gross estate, and (B) are acquired by any qualified heir from, or passed to any qualified heir from, the decedent (within the meaning of section 2032A(e)(9)). (3) Includible gifts of interests The amount of the gifts of qualified family-owned business interests determined under this paragraph is the sum of— (A) the amount of such gifts from the decedent to members of the decedent’s family taken into account under section 2001(b)(1)(B), plus (B) the amount of such gifts otherwise excluded under section 2503(b), to the extent such interests are continuously held by members of such family (other than the decedent’s spouse) between the date of the gift and the date of the decedent’s death. (c) Adjusted gross estate For purposes of this section, the term adjusted gross estate means the value of the gross estate— (1) reduced by any amount deductible under paragraph (3) or (4) of section 2053(a), and (2) increased by the excess of— (A) the sum of— (i) the amount of gifts determined under subsection (b)(3), plus (ii) the amount (if more than de minimis) of other transfers from the