Long-Term Debt - Related Party

3 Months Ended

Mar. 31, 2014

Long-Term Debt - Related Party

Long-Term Debt - Related Party

7. Long-Term Debt – Related Party

	March 31, 2014		December 31, 2013
Loan from Heineken UK Limited, payable in quarterly installments of $137,900, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to the Sub-License Agreement.	$	1,528,500	$	1,657,400
		1,528,500		1,657,400
Less current maturities		555,800		552,500
	$	972,700	$	1,104,900

F-11

Maturities of debt for succeeding years are as follows:

Nine months ended December 31, 2014	$	416,900
Year ended December 31, 2015	$	555,800
Year ended December 31, 2016	$	555,800

On April 18, 2013, KBEL entered into a Loan Agreement (the “Loan Agreement”) with HUK pursuant to which HUK provided KBEL with a secured term loan of £1,000,000 ($1,667,500) on October 9, 2013 to be repaid in twelve quarterly installment of £83,333.33 ($137,900) 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.