Long-Term Debt - Related Party

12 Months Ended

Dec. 31, 2013

Long-Term Debt - Related Party

Long-Term Debt - Related Party

7. Long-Term Debt – Related Party

	Year ended December 31,
	2013		2012
Loan from Heineken UK Limited, payable in quarterly installments of $138,100, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to the Sub-License Agreement.		1,657,400		-
		1,657,400		-
Less current maturities		552,500		-
	$	1,104,900	$	-

Maturities of debt for succeeding years are as follows:

Year ended December 31, 2014	$	552,500
Year ended December 31, 2015	$	552,500
Year ended December 31, 2016	$	552,400

On April 18, 2013, KBEL entered into a Loan Agreement (the “Loan Agreement”) with Heineken UK Limited (“HUK”) pursuant to which HUK provided KBEL with a secured term loan of £1,000,000 on October 9, 2013 to be repaid in twelve quarterly installment of £83,333.33 each, commencing from January 9, 2014 along with interest at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an Event of Default, as defined in the Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-License Agreement as described and defined in the Loan Agreement.