Interest shall accrue to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of (i) 12.75% per annum (the “Cash Interest”), calculated on the basis of a 360-day year, which shall accrue daily commencing on the Original Issue Date and be paid monthly until payment in full of the outstanding principal (or conversion to the extent applicable), together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made plus (ii) 3% per annum payable in kind (the “PIK Interest”), compounded annually by capitalizing such PIK interest annually, calculated on the basis of a 360-day year and shall accrue annually commencing on the Original Issue Date until payment in full of the outstanding principal (or conversion to the extent applicable), together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Unless otherwise specifically set forth herein, references in this Note to “interest” refer to Cash Interest and PIK Interest.