7 - LONG TERM DEBT
Company assumed an unsecured promissory note agreement with an individual lender in the amount of $128,500 at an annual interest
rate of 24%, due upon the mutual agreement of the parties. The loan was transferred into Wodka from a related entity as a deemed
distribution. The Company borrowed an additional $55,000 from this individual lender under the same terms. The additional proceeds
were used to fund operations. The balance of this loan was $183,500 as of March 31, 2012 and December 31, 2011. The loan is personally
guaranteed by a related party.
January 1, 2012, the Company engaged this individual lender to provide business advisory services in exchange for 100,000 shares
of common stock.