Long-Term Debt - Related Party

12 Months Ended

Dec. 31, 2014

Long-term Debt - Related Party

Long-Term Debt - Related Party

8. Long-Term Debt – Related Party

	Year ended December 31,
	2014		2013
Loan from Heineken UK Limited, payable in quarterly installments of $129,800, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to the Sub-License Agreement.		1,038,600		1,657,400
		1,038,600		1,657,400
Less current maturities		519,300		552,500
	$	519,300	$	1,104,900

Maturities of debt for succeeding years are as follows:

Year ending December 31, 2015	$	519,300
Year ending December 31, 2016	$	519,300

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 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.