(a) Interest on this Promissory Note shall commence accruing on the Issuance Date and shall be computed annually on the basis of a 365-day year for the actual number of days elapsed since the Issuance Date through each Conversion Date (as defined in Section 3(c)(i))(as to the applicable portion of the Full Note Amount then being converted) and through the Maturity Date (as to any portion of the Full Note Amount not previously converted, as applicable) (each, an “Interest Conversion Date” ). Interest shall compound and capitalize on each of the first (1 st ) and second (2 nd ) anniversaries of the Issuance Date and, in each case, shall be added to the Principal amount then-outstanding at such time.