Note 4 - Notes Payable

3 Months Ended

Mar. 31, 2016

NOTE 4

– NOTES PAYABLE

The following short-term loans are outstanding:

●

Global Holdings International, LLC

- $9,675,000 which bears interest at 12% per annum. This note matured June 30, 2015 and became due on demand. Subsequently, the maturity date was extended to June 30, 2016.

This loan is secured by the Company’s equipment.

●

Jeff Thomas

- $595,000 which bears interest at 10% per annum. Mr. Thomas is a former director of Creative Edge. This loan is unsecured.

●

Jeff Thomas

- $6,500 which bears interest at 10% per annum. Mr. Thomas is a former director of Creative Edge. This loan is unsecured.

●

Joe Byrne

- $89,436 which bears interest at 12% per annum and is unsecured. This note is due December 31, 2016. Mr. Byrne provides legal services to the Company.

●

Joe

Byrne

- $116,655 which bears interest at 12% per annum and is unsecured. This note is due July 2, 2016. Mr. Byrne provides legal services to the Company. Effective January 1, 2016, both loans from Joe Byrne are secured by the Company’s land at 135 North Rear.

●

Bill Chaaban (President of the Company)

- $113,348 which bears interest at 10% per annum and is unsecured. Mr. Chaaban is President of the Company. This note is due December 31, 2015.

●

Bill

Chaaban (President of the Company)

- $537,767 which bears interest at 12% per annum. This note is due December 31, 2016 and is secured by the assets at 135 North Rear Road.

●

Bill Chaaban (President of the Company)

– several notes aggregating $93,762 which bears interest at 10% per annum. These notes are due December 31, 2016.

●

Bill Chaaban (President of the Company)

– $16,805 which bears interest at 10% per annum. This note is due December 31, 2016.

●

Bill Chaaban (President of the Company)

– several notes aggregating $23,029 which bears interest at 10% per annum. These notes are due December 31, 2016.

There is a long-term loan with a principal balance of $612,000 due to Mr. Chaaban. It bears interest at an annual rate of 12% and is repayable in installments through October 2017. If the Company defaults, Mr. Chaaban has the right to purchase the property at 135 North Rear Road for a price equal to the unpaid principal and interest of the loan.

SUMMARY TABLE OF NOTES PAYABLE

As of March 31, 2016 and 2015

SUMMARY OF NOTES PAYABLE	2016		2015

Loans Payable		9,881,091		9,764,459
Loans Payable – related parties		1,385,747		1,423,676
Long-Term Loans		-		-
Long-Term Loans – related parties		612,000		612,000
Total of All Notes Payable	$	11,878,838	$	11,800,135