Interest shall accrue on the outstanding principal balance hereof at an annual rate equal to three percent (3%). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted by applicable law. Interest hereunder will be paid to the Holder or its assignee (as defined in Section 4 ) in whose name this Note is registered on the records of the Obligor regarding registration and transfers of Notes (the “ Note Register ”).