NOTE

– CONVERTIBLE NOTES - RELATED PARTY

Convertible notes - related party consists of the following at

December 31:

	2018		2017
Convertible note due to the spouse of Bill Chaaban, President of CEN, which bears an interest at 12% per annum. This note is convertible to 867,576 common shares with a maturity date of August 17, 2020.	$	1,388,122	$	1,388,122

Convertible notes in default due to Harold Aubrey de Lavenu, a Director of CEN, bearing interest at 5% per annum. This note is convertible to 548,980 common shares with maturity dates of March 31, 2019.		878,368		1,050,000

Convertible note in default due to Alex Tarrabain, a Director of CEN, bearing interest at 5% per annum. This note is convertible to 30,000 common shares with a maturity date of March 31, 2019.		48,000		48,000

Convertible notes due to Joseph Byrne, CEO of CEN, bearing interest at 12% per annum. This note is convertible to 140,120 common shares with a maturity date of August 17, 2020		224,191		224,191

Total convertible notes payable - related party		2,538,681		2,710,313
Less current portion		926,368		2,210,313

Convertible notes payable - related party, less current portion	$	1,612,313	$	500,000

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

$588,854

and

$344,801

as of

December 31, 2018

and

2017,

respectively. Interest expense attributable to related party convertible notes was

$246,568

and

$246,247

2018

and

2017,

respectively.

These notes

may

be converted at the option of the note holder at any time after registration of CEN’s common stock upon written notice by the note holder. These notes are convertible into a total of

1,586,676

common shares.

As of

April 15, 2019,

we are currently in default of

$926,368

of convertible notes payable, which are convertible into

578,980

shares of common stock.