NOTE

– LOANS PAYABLE

Loans payable consist of the following at:

	March 31, 2019		December 31, 2018
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 in default to ARG & Pals, Inc., for the original amount of CAD $385,000. The mortgage bears interest at 22% per annum, and matured on November 21, 2018.		288,095		282,205

Loan payable in default 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 which matured on April 16, 2019.		50,000		50,000

Loan payable in default 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 which matured on April 16, 2019.		100,000		100,000

Total loans payable (all current)	$	10,113,095	$	10,107,205

We are in default of

$9,675,000

of debt that is secured by certain equipment that we value at approximately

$9,000.

The remainder of our debt that is in default is

not

secured.

During the

three

-month periods ended

March 31, 2019

and

2018,

18,000

and

16,400

common shares were issued to individuals for loans made to CEN, respectively. Accordingly, during the

three

-month periods ended

March 31, 2019

and

2018,

$18,180

and

$10,168

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