NOTE

– LOANS PAYABLE – RELATED

PART

IES

Loans payable – related parties consists of the following:

	June 30 , 2018		December 31, 2017
Loan payable to the spouse of Bill Chaaban, President of CEN, bears an interest at 10% per annum. This is an unsecured loan with a maturity date of December 31, 2018.	$	235,590	$	237,423

Loan payable to a former director of Creative, former parent company, bears interest at 10% per annum. This is an unsecured loan with a maturity date of December 31, 2018.		601,500		601,500

Loan payable to R&D Labs Canada, Inc., whose president is Bill Chaaban, also the President of CEN, bearing interest at 8% per annum. This is an unsecured loan with a maturity date of October 2, 2019. R&D Labs Canada is a company owned by Bill Chaaban’s spouse.		300,000		300,000

Loan payable to the spouse of Joseph Byrne, CEO of CEN, issued January 12, 2018 with a 30-day maturity, bearing share interest of 4,000 common shares per 30-day period. This is an unsecured loan with an extended maturity date of August 16, 2018.		100,000		-

Loan payable to Alex Tarrabain, a Director of CEN, issued January 17, 2018 with a 30-day maturity, bearing share interest of 3,000 common shares per 30-day period. This is an unsecured loan with an extended maturity date of August 16, 2018.		75,000		-

Loan payable to Joseph Byrne, CEO of CEN, issued January 24, 2018 with a 30-day maturity, bearing share interest of 2,000 common shares per 30-day period. This is an unsecured loan with an extended maturity date of August 16, 2018.		50,000		-

Total loans payable – related parties		1,362,090		1,138,923

Less current portion		1,062,090		838,923

Loans payable – related parties, less current portion	$	300,000	$	300,000

March 2018,

Bill Chaaban, President of CEN, fully assigned and transferred all rights, title, and interests in his loans and related accrued interest due from CEN to his spouse.

Attributable related party accrued interest was

$303,541

and

$248,100,

as of

June 30, 2018

and

December 31, 2017,

respectively. Interest expense attributable to related party loans was

$43,367

and

$20,992

for the

three

-months ended

June 30, 2018

and

2017,

respectively, and was

$86,409

and

$41,677

for the

six

-months ended

June 30, 2018

and

2017,

respectively.

During the

three

-month period ended

June 30, 2018

interest in the form of

27,000

common shares were issued to related parties for loans and related loan extensions made to CEN. Accordingly,

$16,740

in related party interest expense, as included above, and additional paid-in capital was recorded.

such common shares were issued during the

three

-month period ended

June 30, 2017.

During the

six

-month period ended

June 30, 2018,

54,000

common shares were issued to related parties for loans made to CEN. Accordingly,

$33,480

in related party interest expense, as included above, and additional paid-in capital was recorded.

such common shares were issued during the

six

-month period ended

June 30, 2017.