NOTE

–

LOANS PAYABLE

Loans payable consist of the following:

	September 30 , 2018		December 31, 2017
Loan payable to Global Holdings International, LLC, which bears interest at 15% per annum after defaulting on the maturity date of June 30, 2016. This note is secured by the Company's equipment.	$	9,675,000	$	9,675,000

Mortgage payable to ARG & Pals, Inc., for the original amount of CAD $385,000. The mortgage bears interest at 22% per annum, with an extended maturity date of November 21, 2018.		297,412		306,883

Loan payable to an individual, issued January 17, 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 November 16, 2018.		50,000		-

Loan payable to an individual, issued April 13, 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 November 16, 2018		100,000		-

Total loans payable (all current)	$	10,122,412	$	9,981,883

The

$9,675,000

loan in default is secured by certain equipment valued at approximately

$11,000.

During the

three

-month period ended

September 30, 2018,

18,000

common shares were issued to individuals in connection with the above loans made to CEN. Accordingly,

$11,160

in interest expense and additional paid-in capital was recorded.

such common shares were issued during the

three

-month period ended

September 30, 2017.

During the

nine

-month period ended

September 30, 2018,

interest in the form of

60,400

common shares were issued to individuals in connection with the above loans and related loan extensions made to CEN. Accordingly,

$37,448

in interest expense and additional paid-in capital was recorded.

such common shares were issued during the

nine

-month period ended

September 30, 2017.