NWMH National Waste Management Holdings Inc (CE)

Item 1.01. Entry into a Material Definitive Agreement

On February 28, 2017 (the “Closing Date”), pursuant to Bills of Sale, Burts Refuse LLC, a New York Limited Liability Company (the “Seller”), sold its tangible and intangible assets (except for the Seller’s cash and accounts receivable), to our wholly owned subsidiary, Waste Recovery Enterprises, LLC, a New York limited liability company (the “Buyer”). The total purchase price of $420,000 (the “Purchase Price”) represents: (a) $150,000 cash on the Closing Date; and (b) a five year, 6% Buyer financed note (the “Note”) for $270,000 with monthly payments of $5,220 until the Purchase Price is paid in full. The Note is collateralized by vehicles, containers and dumpsters owned by the Buyer. The Note is secured with a purchase money security agreement and UCC-1 filing on the equipment. The Note is subject to a 5 year non-compete by the Seller to not compete within a 100-mile radius of 930 Co Road 11, West Davenport, New York, which address is near our office in Sidney, New York. The Purchase Price allocation is estimated as follows: (a) equipment of $225,000; (b) customer list of $75,000; (c) non-compete agreement of $10,000; and (d) goodwill of $110,000. The foregoing transaction expands our operations by adding garbage haulers, adding both residential and commercial customers to our routes and expanding our roll-off operations.