Long-Term Debt - Related Party

3 Months Ended

Mar. 31, 2015

Long-term Debt - Related Party

Long-Term Debt - Related Party

7. Long-Term Debt – Related Party

	March 31, 2015		December 31, 2014
Loan from Heineken UK Limited, payable in quarterly installments of $123,800, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to a Sub-License Agreement.	$	866,300	$	1,038,600
Less current maturities		495,000		519,300
	$	371,300	$	519,300

Maturities of debt for succeeding years are as follows:

Nine months ending December 31, 2015	$	371,300
Year ending December 31, 2016	$	495,000

On April 18, 2013, KBEL entered into a Loan Agreement (the “HUK Loan Agreement”) with 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 HUK 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 HUK Loan Agreement.