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the interest rate hereon until maturity is the interest rate in <br /> effect on such January 1 or July 1 . If no prepayment of the <br /> principal hereof is made, the final installment of principal will <br /> become due on July 1, 1996 . <br /> If at any time there is a Determination of Taxability (as <br /> defined in the Loan Agreement noted below) , the interest rate <br /> payable hereon from the Date of Taxability (as defined in the <br /> Agreement hereinafter mentioned) shall be a rate per annum equal <br /> to the Prime Rate plus 1% , or the maximum rate allowed by law, <br /> whichever is lower ( the "Alternative Rate of Interest" ) , adjusted <br /> upon each adjustment in the Prime Rate. <br /> If the maximum incremental percentage rate of federal and <br /> North Carolina income tax ( the "NCNB Tax Rate" ) applicable to the <br /> taxable income of the holder of the Bond (as defined in the <br /> Agreement noted below) decreases after the date of the Certifi- <br /> cate of Disbursement, the applicable percentage which is applied <br /> to the Prime Rate in determining the applicable rate of interest <br /> hereon ( the "Tax-Exempt Factor" ) immediately prior to such change <br /> shall be adjusted, effective on the date of such change, to equal <br /> the product of (1) the Tax-Exempt Factor as of the date hereof <br /> multiplied by ( 2) a fraction, (a) the numerator of which is 100% <br /> minus the NCNB Tax Rate as so adjusted and (b) the denominator of <br /> which is 100% minus the NCNB Tax Rate in effect on the Date of <br /> the Certificate of Disbursement . <br /> If the 20% percentage specified by Section 291 (a) ( 3) of the <br /> Internal Revenue Code of 1954, as amended, or any successor pro- <br /> vision therefor, is increased or decreased after the date of the <br /> Certificate of Disbursement, the tax-exempt rate hereon immedia- <br /> tely prior to such change shall be increased or decreased effec- <br /> tive on the date of such change by 4.1 basis points for each one <br /> percent increase or decrease, respectively, in such 20% percen- <br /> tage. <br /> The Authority has entered into a Bond Purchase Agreement, of <br /> even date herewith (the "Bond Purchase Agreement" ) , with NCNB <br /> ( the "Purchaser") and Isotechnologies, Inc. , a North Carolina <br /> corporation (the "Company" ) , providing for the issuance and sale <br /> by the Authority, and the purchase by the Purchaser, of this Bond <br /> upon the terms and conditions therein provided. The Bond is is- <br /> sued pursuant to the Bond Purchase Agreement and the Industrial <br /> and Pollution Control Facilities Financing Act, which, as amended <br /> and codified, appears as Chapter 159C of the General Statutes of <br /> North Carolina, for the purpose of financing the acquisition of <br /> real property, the construction thereon of a building and the <br /> acquisition and installation therein of machinery and equipment <br /> ( the "Project" ) to be used by the Company as a manufacturing <br /> facility. Pursuant to a Loan Agreement of even date herewith <br /> A-2 <br />