NOTE PAYABLE - RELATED PARTY

9 Months Ended

Sep. 30, 2013

10.

NOTE PAYABLE – RELATED PARTY

The Company has an outstanding note payable due to a related party of $5,303,683 at September 30, 2013 and $7,303,683 as of December 31, 2012. In May 2013, the Company paid down $2,000,000 of principal and extended the due date to May 15, 2020 and the interest rate was reduced to 5% per annum. Interest on the note is payable monthly with the principal due as a balloon payment at maturity.

The following table details the maturity of the notes payable for CUI Global, Inc. as of September 30, 2013:

		2013			2014			2015			2016			2017			2018			Thereafter
Note payable maturities:		$	-		$	-		$	-		$	-		$	-		$	-		$	5,303,683

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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