NOTE

–

LOANS PAYABLE

Loans payable consist of the following at

December 31:

	2020		2019
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 was previously secured by equipment that the Company disposed of on August 1, 2020.	$	75,000	$	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, is unsecured, and matured on November 21, 2018.		302,379		296,411

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 which matures on March 16, 2021.		50,000		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 which matures on March 16, 2021.		100,000		100,000

Total loans payable (all current)	$	527,379	$	10,121,411

During

2020,

$9,600,000

plus

$11,579,043

in associated accrued interest payable to Global Holdings International, LLC (“GHI”) was derecognized. The note matured on

June 30, 2016

and the Company was in default. As at

time since the default on the loan did GHI, its principal, agent or its attorneys reach out via mail, e-mail, text or phone to demand payment on the loan. The Company reached out numerous times and never received a response or demand for payment or notice of default on the loan. CEN's last attempt occurred in

November 2020.

The note, related interest and venue for the agreement are governed by Ontario Law and according to the Ontario Limitations Act (Limitations Act,

2002,

S.O.

2002,

24,

Sched. B) the statute of limitations is

years from the date of default under the note. The date of default was

June 30, 2016,

which is over the

-year Statute of Limitation (SOL) period, and therefore the lender is outside of the SOL and cannot bring an action in Court against the Company for the debt. As a result of the legal finding, and having exhausted all reasonable efforts to contact GHI, the Company exercised its legal rights to derecognize the principal and interest obligations related to the related note with GHI which in accordance with ASC

405

(b), is when CEN is judicially released from its obligations under the note.

During both

2020

and

2019,

72,000

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

2020

and

2019,

$63,720

and

$67,500

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