MANAGEMENT AGREEMENT

9 Months Ended

Sep. 30, 2019

MANAGEMENT AGREEMENT

NOTE 5 - MANAGEMENT AGREEMENT

On April 13, 2015, ERC entered into a mining and management agreement with an unrelated entity, to operate a coal mining and processing facility in Jasonville, Indiana. Under the management agreement, net funds advanced for the nine-month period ended September 30, 2019 and 2018 are $92,085 and $99,582, respectively and the amounts repaid totaled $92,085 and $127,957, respectively. During the nine-month period ended September 30, 2019 and 2018, fees paid under the agreement amounted $340,915 and $313,114, respectively which has been recorded in other income. The mining and management agreement was terminated on September 20, 2019.