B1509 - VR LONDON'S EXECUTIVE SUMMARY

THE COMPANY The company has grown steadily from a very modest beginning in 1993 and has generated yearly sales as high as $ 1,150,000. The sale includes inventory and equipment. The business has recently been offered for sale at $ 150,000. The business is primarily an electrical and mechanical contractor. They can provide heating, air conditioning plumbing and sheet metal service as required. The business uses a C.A.D. system and can provide this service when required. The business has several contract customers whom they work with regularly. Other work is tendered, and is predominantly sub contract work in the South Western Ontario. The owner is willing to provide a reasonable training period following closing.

WHAT IS FOR SALE: The vendor is offering all of the Assets of the Corporation for sale. This would include Leasehold interests, the use of the name, licences, approvals and the on-going business. The value of the assets offered for sale is estimated by the owner to be as follows:
Equipment $ 98,000
Inventory 16,000
Lease hold improvements 6,000
Total $ 120,000

NOTE: the Corporation currently owns the building however this building will be transferred out of the Corporation before the sale.

METHOD OF SALE:

THIS BUSINESS WILL BE SOLD TO THE PARTY(S) SUBMITTING THE BEST OFFER BY FEBRUARY 14, 2003. The dollar amount offered will be the main consideration in selecting the buyer, however significant consideration will be given to the following;
* The owner prefers to sell the business as an ongoing business.
* A cash asset sale is preferred.
* Continuing occupancy of current space is preferred (see lease).
* Offers with few or no conditions will be given preference over offers with more conditions.
* The owner would like the purchaser to offer employment to current employees.

THE OWNER HEREBY CERTIFIES THAT HE WILL SELECT AND THAT HE SHALL HAVE SOLE AND FULL DISCRETION IN SELECTING THE SUCCESSFUL OFFER ON FEBRUARY 14, 2003.

Closing date should be mid to late March, 2003. If the accepted offer has conditions that are not met before closing runners up will be notified.

FINANCIAL SUMMARY:
* SALES. The business generated apx. $ 750,000 in 2002. Apx. $150,000 of this amount was generated from contracts and related business. The balance is tendered work in South Western Ontario.
* DISCRETIONARY CASH is the amount of money that is generated by a business and is available to the owner to spend at his own "Discretion." It includes owners' wages, any profit the business makes, non-cash expenses (depreciation, etc.), one time or unusual expenses, an owner's personal benefits (personal car expenses, etc.), interest expense on money borrowed for capital additions or for the purchase of the business or any other nonessential expenses.

Net Income $ 72,627
Depreciation 22,773
Owner's Wage 36,125
Long Term Int. 9,449
Rent Adjustment (14,250)
Owner's Auto 3,000
TOTAL $ 133,724

LEASE: The owner of this business also owns the building in which the business, along with another business, is located. A lease would be offered to a new owner. Some of the highlights of the lease would be as follows;
Original Term: 3 Years
Area Leased: 2375 sq. feet
Base Rent: $6.00 per Sq. foot
CAM Charges: Included
% Rent: No
Optional Terms: Two and Three year Terms
Assignable: Yes

PROCEDURE:
1) The Purchaser will sign a confidentiality statement then business name, financial statements and other confidential information will be released.
2) Letter of intent with refundable deposit to be held in VR London Inc. Trust Account.. The vendors agent will prepare documentation without cost to the purchaser.
3) Due diligence by purchaser, verification of financial information, equipment inspection, interview owner, etc.
4) February 14, 2003 offer selection.
5) Closing mid to late March, 2003.

BECAUSE OF TIME CONSTRAINTS WE SUGGEST THAT INTERESTED PARTIES CALL VR LONDON INC. DIRECT AT (519) 673 3197.

VR London recommend that you involve a lawyer familiar with the transfere of business ownership and an accountant in the purchase or sale of any business.

Telephone: (519) 673-3197 • Fax: (519) 673-3199

Email: vrlondon@gtn.net

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