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HomeMy WebLinkAboutCS-43-86x TOWN OF NEWCASTLE REPORT File # le�' Res. #('2'—,,1-9 By -Law # MEETING: General Purpose and Administration Committee DATE: JULY 7, 1986 REPORT #: CS -43 -86 SU&ECT: SKATE SHARPENERS FILE #: RECOMMENDATIONS: it is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: - 1. That report CS -43 -86 be received; and 2. That staff and the Mayor be authorized to enter into an agreement (sample attached) with Universal Skate Sharpeners Ltd. for the installation of a Universal Skate Sharpener in each of the two arenas operated by the Town. BACKGROUND AND COMMENTS: Staff have met with Mr. Murray Hall sales representative for Universal to review a proposal to install a Universal Skate Sharpener in each of our two arenas. Attached please find testimonials from many users along with some background on the Company and a sample lease agreement. Staff have seen the machine in operation in Toronto and Brampton. Brampton has had this machine in all their arenas for several years and have had a breakdown of only one machine once according to their Facilities and Program Services Manager, James McCurry. According to Mr. McCurry this machine has many advantages over their previous pro shop operations: a) no capital or installation cost b) machine is always available for use /when building is open c) no staffing costs d) no maintenance costs depreciation etc. e) good source of revenue ../2 General Purpose and Administration Committee REPORT #CS -43 -86 Y --- 6- . } ,j, Page 2. The machine would be a tremendous advantage to arena patrons especially at the Darlington Arena where skate sharpening facilities are not close by. The machine may compete with some local businesses. It is staff's opinion that Council should endorse the trial of two machines for a minimum two seasons. Respectful" ly submitted, Jan Devantier, R.D.M.R., Director Community Services Department JD :sa 0 Th Universal a 0% oft Skat... Sharpqwl Neff COMPUTER CONTROLLED ri 2 3 MgpE IN ANgpq 1P X A } o c o r " r� ")) *A DIVISION OF'rt,j)()R ENERGY LTD. I IN IT #12, 3135 17NIVERSA L 1)1?1�,F ,\IISSI,SSAI'(;A, ONTARIO IAA 2F6 PHONE, (416) 629-3998 ARE YOU RECEIVING YOUR SHARE OF THE VAST SHARPENING MARKET? UNIVERSAL'S ON- THE -SPOT SHARPENINGS WILL MEAN MORE SHARPENINGS AND MORE REVENUE. i` HEAD OFFICE: Suite #630,10201 Southport Road S.W., Calgary, Alberta T2W 4X9 A Division of Tudor Energy Corporation Ltd, PLANT OFFICE: 3504 - 80 Avenue S.E., Calgary, Alberta T2C 1J3 AUDITOR: Price Waterhouse, 2550 One Palliser Square, Calgary, Alberta BANKERS: Canadian Imperial Bank of Commerce, Calgary, Alberta PRINTED IN CANADA GURRI*NT lviE HOD THE UNIVERSAL Wi -1,Y 1. Capital Outlay From $2,000.00 to $15,000.00 None 2. Your Cost per $2.50 sharpening As much as $1.50 None 3. Operational Time 1 man - 8 hr. shift Up to Three 8 hr. shifts - 24 hrs. 4. Wages 8 hrs. /day = $800.00 /mo. None 5. Bookkeeping As required by law($ ?) None 6. Space One Secured Room 8 sq. ft. 7. Time Ten Minutes /pair Less than a Minute 8. Maintenance Constant Maintenance None 9. Depreciation Annually None 10. Inflation Wages and Equipment None ARE YOU RECEIVING YOUR SHARE OF THE VAST SHARPENING MARKET? UNIVERSAL'S ON- THE -SPOT SHARPENINGS WILL MEAN MORE SHARPENINGS AND MORE REVENUE. i` HEAD OFFICE: Suite #630,10201 Southport Road S.W., Calgary, Alberta T2W 4X9 A Division of Tudor Energy Corporation Ltd, PLANT OFFICE: 3504 - 80 Avenue S.E., Calgary, Alberta T2C 1J3 AUDITOR: Price Waterhouse, 2550 One Palliser Square, Calgary, Alberta BANKERS: Canadian Imperial Bank of Commerce, Calgary, Alberta PRINTED IN CANADA THIS AGREEMENT made the day of , 19 BETWEEN: UNIVERSAL SKATE SHARPENERS LIMITED, ( "Universal "), an Alberta Corporation, 3135 Universal Drive, Mississauga, Ontario, L4X 2E6 OF THE FIRST PART - and - ,( "Licensor "), OF THE SECOND PART _0 Universal manufacturers and distributes a coin operated skate sharpening machine known as the Universal Skate Sharpener (herinafter called the "Machine "). Universal has agreed to install a Machine or Machines on premises of the Licensor and the Licensor has agreed to allow such installation on its premises on the terms and conditions set out in this Agreement. In consideration of the mutual covenants set out in this Agreement the parties agree as follows: 1. The Licensor grants to Universal the exclusive licence and privilege of installing machine (s) at the premises of the Licensor at (the "Premises ") during the term of this Agreement. s - 2 - 2. The term of the licence to Universal shall commence on , 19 and shall continue for a period of year (s) subject to the right of either party to terminate such licence on thirty days written notice given to the other party. If the licence granted under this Agreement has not been terminated by either party at the expiry of the term of this Agreement as provided in this Agreement, this Agreement shall be automatically renewed from year to year upon the same terms and conditions. 3. Universal shall install the Machine(s) on the Premises at Universal's expense in proper working order by , 19 Universal shall provide and pay for the cost of all necessary electrical work for the purposes of installing the Machine(s). 4. The Licensor shall provide all electrical current required for operating the Machine(s) at its expense without charge to Universal. 5. If it should come to the attention of the Licensor that the Machines) should cease to work the Licensor shall notify Universal as soon as possible. The address and telephone number for notification of Universal shall be displayed upon the Machine(s). 6. Upon being notified that the Machine(s) is not working or requires repairs Universal shall service the Machine(s) and make the necessary repairs within a reasonable period of time. Universal shall conduct periodic inspections of the Machine(s) to maintain and service the Machine(s). 7. Universal shall maintain and establish a system for refunds to members of the public who have placed money in the Machine(s) and shall label the Machine(s) to indicate Universal's name, address and telephone number so that members of the public can contact Universal directly to obtain refunds, if required. - 3 - jo (C 8• Universal during the term of this Agreement shall pay, to the Licensor 10% of each month's gross receipts of the Machine(s). Payments by Universal to the Licensor shall be monthly in arrears commencing in the second month of operation of the Machine(s) and thereafter on or before the tenth day of each month next following the month to which the payments relate. 9. Each payment to the Licensor shall be accompanied by a statement of gross revenue of the Machine(s) for the month to which such payment relates and Universal shall annually provide the Licensor with a statement showing the yearly gross revenue of the Machine(s) within ninety days of 10. Universal shall have the unilateral right to set the rates charged for skate sharpening by the Machine(s). 11. During the term of this Agreement the Licensor shall not permit any other automatic skate sharpening machines to be installed on the Premises_. 12. The parties acknowledge that Universal is and remains the owner of the Machine(s) and that nothing in this Agreement shall give any property rights in respect of the Machine(s) to the Licensor. 13. Universal agrees that all risk of loss or damage to the Machine(s) shall be the responsibility of Universal. 14. During the term of this Agreement Universal agrees to indemnify and save harmless the Licensor, its agents and employees from all losses, costs, charges, damages and expenses arising out of any of the obligations and liabilities of Universal under this Agreement and out of the installation, maintenance and operation of the Machine(s) on the Premises except for the acts, omissions or neglect of the Licensor. - 4 - 15. --- Any notice required or permitted to be given by one party to the other party under this Agreement shall be personally delivered or sent by prepaid registered mail to the address set out above and if mailed the notice shall be deemed to be received three business days after the date of mailing. 16. The parties to this Agreement are independent contractors and not parties to any partnership, joint venture or business carried on in common with a view to profit in respect of the matters set out in this Agreement, and neither party shall have the right to bind the other party. This Agreement contains all of the agreement between the parties and may only be amended or varied in writing signed by both parties. 17. Neither party may assign this Agreement or its interest in this Agreement without the written consent of the other party which consent may be arbitrarily withheld. Subject to the foregoing this Agreement shall bind and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns, as the case may be. SIGNED by the parties on the date first above written. UNIVERSAL SKATE SHARPENERS LIMITED Per: (Authorized Signing Officer (Licensor) Per: (Signature) (Name and office of person signing) /, I' j 1*)()[1\1' i ENERGY CORPORATION LTD. #630,10201 SOUTHPORT ROAD S.W. P.O. BOX 8850, STN. "F" CALGARY, ALBERTA, CANADA T2J 5S5 TELEPHONE (403) 255 -3835 PRESS RELEASE TUDOR ENERGY CORPORATION LTD. is pleased to announce that it has signed an agreement with a Saskatchewan company for the lease and placement of Universal Skate Sharpeners in that province. Global Skate Sharpeners Ltd. of Saskatchewan is proposing to sell limited partnerships to raise the necessary financing to lease a minimum of 20 machines and a maximum of 80 machines; delivery to commence October 15, 1985. The terms and conditions of the lease are similar to the Quebec contract signed with Cree Co. This offering will net Tudor a minimum subscription of $1 MM and a maximum subscription of $4 MM. Cree Co has taken delivery of its first 20 machines, with an additional 80 machines to be delivered by September 30, 1985. The original contract has been amended to allow for Cree Co to take delivery of 100 machines prior to September 30, 1985, rather than the original 50. Cree Co has 900 additional machines under option at 100 machines or $5 MM every 4 months. The Company is also pleased to announce that Ted Green, former Assistant Coach of the Edmonton Oilers, will manage the Edmonton office of Universal Skate Sharpeners Ltd. as District Manager. Approximately 70 Company -owned machines will be placed in the Edmonton area prior to the end of September, 1985. There are presently 35 machines in locations in Calgary. Phil Pratt of Burlington, Ontario, former director of Gough Electric and Vallance Brown, has been appointed as the District Manager of the Ontario region. An Ontario office is presently being set up in Mississauga and 30 machines will be delivered to Ontario locations on or before September 30, 1985, to be followed by 470 machines prior to year end, deliveries permitting. Tudor is contemplating selling limited partnerships to expedite the placement of, machines in Ontario. The Company anticipates the placement of 3,000 machines over the next four years. Negotiations for the rest of Canada and selected states in the U.S. are underway at this time. With regard to the Company's oil operations, Tudor has successfully completed its 25th oil well in its Spindle Field property near Denver, Colorado. The well, completed in the Sussex zone, had 63 ft. of net pay and is now on stream. The Company has a 95% working interest in this property. The T.S.E. has neither approved nor disapproved of the contents herein. For further information, please contact Lionel Conn at Tudor's offices at (403) 255 -3835. July 31, 1985 With the energy business in a slump, there was only one thing for Tudor Energy Corp. Ltd. to do: perfect a coin- operat- ed, computer- controlled skate sharpening machine. Actually, the Calgary junior oil and gas company's energy investments have been doing nicely, pulling in $300,000 a )nth of cash flow from oil lls near Denver, Colo. It has $5 million in the bank and no debts. But the skate - sharpening business, which started 11 years ago as a pet project of Tudor president Lionel Conn, is real — so real Conn thinks it may quickly swallow up Tudor's oil interests. Coin - operated skate sharpen- ers about the size of soft -drink machines started rolling off the assembly line at Tudor's first plant here in August. They're destined for ice rinks, Canadian Tire stores, Esso service stations or anywhere a station wagon Load of hockey players might be ected to pass. Conn, a successful real estate entrepreneur with the pent -up energy of a coiled spring, says sales will spread out from Calga- ry to cover the rust of Canada, the United States and overseas. The company is moving cau- tiously, but it's obvious Conn thinks the machines are a gold mine. Costing $4,000 each to build, he estimates each machine will pay for itself in two months. "That's better than oil wells," says Conn. At the end of two years, with three plants expected to be building 240 machines a month, the company could be making :$4.5 million monthly in quarters. Each mhchine should generate S20,tNN) a year in gross revenues, say` Conn, basing the estimate ot? earnings of conventional skate sharpeners He clinches the argument with a fistful of letters from hockey's great and near great mr iicina the mnvhinF as revolu- tionary after field tests which included a trial in the dressing room of the National Hockey League's Edmonton Oilers. Some people are interested in installing machines or buying local franchises. Charles Shulz, creator of the Peanuts comic strip, wants three for his Califor- nia arena, and hockey guru Howie Meeker wrote asking about franchise sales plans for Vancouver Island. Imperial Oil Ltd., after test- ing a machine at a Calgary ser- vice station, has ordered 25 more for a large -scale market test in Calgary. If it's successful, the sharpeners, wearing Esso colors, may be installed through- out Canada and, under Imperi- al's parent, Exxon Corp., in the United States. Such are the dazzling pros -' pects for something as mundane as skate sharpening, which Conn explains with a short course in the logistics of the business. He says hockey players, or often their mothers, can wait from a couple of hours to a couple of days to have skates sharpened. Store owners hand the job to an employee or arena caretakers do it on top of other duties. Tudor's universal sharpener replaces the manual grinder, cutting sharpening time for a pair of skates to less than a minute from 10 minutes. It doesn't take a skilled employee — any child with a handful of quarters can do it by popping the skate in a little door in the machine and waiting. And do it better, says Conn. The computerized machine removes human inconsistency, allowing a perfect result every time and straightening the blade simultaneously with powerful hydraulic clamps. Skate blades will last longer, too, because the machine removes less metal than manual grinders. Conn says the convenience will encourage skaters to sharp- en their blades more often while store owners and rink managers won't be saddled with the chore of maintaining a sharpening service. ,Some operators have been willing to forgo commissions, viewing the machines as a %vay of drawing customers. One store manager wrote he wanted his order for a machine filled quick- ly, while there was still a market to unload his manual sharpener. Conn sank $4 million of his own money into developing the sharpener over the years. He hasn't paid himself back yet, despite Tudor's successful $5.3- million private share placement last spring. He'll receive a 12- per -cent royalty on sharpening revenues. The company is considering a version of the machine which would sharpen ski edges and wax skis at the same time. Tf the sharpener fulfils its promise, Conn says Tudor Ener- gy -has ther ideas, some "pretty crazy," none of them to do with oil. Ile figures there's room (or 25.000 machines in the Czm;idi;ot market. "I'll be- vn oltl 11-11 h\ the time we fuiiah thk,sc - Production will rrrxle a Canadian mini - industry tier parts such as electonic circuit boards. being produced in Vancouver, and the 100.000 grinding stones needed each year. The market is virtually limit- less, Conn says. There are 800,- 000 people playing some form of organized hockey in Quebec alone who may wish to sharpen their skates at least twice a month at an average $2.50 a time. The machine also has a setting for figure skates. Conn rattles off more num- bers: there are 12,000 arenas in North America, 400,000 sporting goods stores and 50,000 shopping malls. Coin- operated skate sharpener has potential for great returns Tuesday, September 17, 1985 Saskatoon, Saskatchewan Star - Phoenix By Len Roberts of the Star - Phoenix It's taken 12 years and $4 mil- lion of his own money but Lionel Conn is finally grinding it out in the skate - sharpening business. He has developed an automatic, coin - operated machine capable of sharpening all kinds of skates. All a customer has to do is press a button and the machine does the rest in 20 to 30 seconds per skate. Conn, 46, is the president of Tu- dor Energy Corp. in Calgary, an oil company with a wholly -owned subsidiary called Universal Skate Sharpener which began manufac- turing the computer - controlled machines earlier this year. He brought his machine to Saskatoon last week. "I was a rich man before I started making it and now 1 have to work like hell to get my money back," he said at his demonstra- tion. Universal will lease the ma- chines for 20 years to prospective investors with $50,000 to put up front. Conn said he decided that other people could nun around the country collectigg the money from them. He suggests that lessees will charge a competitive rate to do a pair of skates. He advertises the machine — similar in size and shape to a. re- frigerator — as easy enough for children to use and good enough for the pros. He took it to the training camp of the Edmonton Oilers last season and, he said, the majority of the players have bought shares in the company and are promoting the product. He said Phil Esposito and Bobby Orr are other famous hockey player seeking to lease the machines for use in the United States. His involvement began in 19'1 P Photo by John Kenney after "some people brought me a machine funny - looking machine that didn't work." But the idea hooked him. Lionel Conn (1) and Russ Prosko examine skate sharpened by coin- operated "We went to Statistics Canad" and found out there were RM,OU organized hockey players in Qu, bee. I thought that if they shar;, ened their skates once a week fir- $2, Quebec alone would bring is $64 million a year and that's worthwhile goal. I started to go t., work on it and whatever it way going to cost, it was going to cost. That was my whole premise." Included in the string of snag-_ he had to solve was the problem o° how to sharpen a bent blade. "It cost me $2 million to figure out. We had to scrap the whol�- machine and start again." Conn sold out to the company he controls, Tudor Energy. and not , gets a big chunk of royalty a- each machine is leased. Since th_ purchase, Tudor has sunk an ad- ditional $2'.,� million, into the prn- ject by building a plant in Calgary and stocking it with staff and in- ventory. However, that plant is onir cu pable of producing four ma %n� a day so a new locati:in is in tht planning which will permit pro duction to rise to 10 a day. Conn says he has enough orders to keep working into the 21st century. Already 85 machines are opera- ting in Alberta and 50 in Quebec. Fifty more are set to begin col- lecting quarters next week in the Toronto area The 50 machines in Quebec are part of a $50- rr,illton package deal that will eventu:.liy put 1,000 machines there. David Demyen, of Global Skate Sharpeners Ltd of Saskata�n, ha-, the rights to the Sask.atr hcwan territory and once he gets the okay from the Saskatch ,,� an Securities Commission. he'll gin to sell shares to prvspec —ive clients. he sacs the ra b "overwhelming lip roar -i-� t have 80 machines operating u Saskatchewan by the end of .h. year: 16 are ticketed for location. in Saskatoon. .t Mike Fiala, Calgary Herald Lionel Conn with profit maker ..&Sft C .k ! T i � gets edge on market By Don Martin (Herald staff writer) It costs $2.50 in quarters to operate, $4,000 to manufacture and, under the terms of a contract signed by a Calgary manufacturer, sells for a cool $50,000. "It's the biggest net profit deal I've ever heard of," declares Lionel Conn, president of Tudor Energy Corp. Ltd., the company behind the dream contract inked on the weekend. The product attracting all the profit is an automatic skate sharpening device, an electronic box that has young hockey players armed with quarters flocking to local Canadian Tire outlets for a pre- game skate blade tune- up. While only 10 machines currently exist, the investment arm of the James Bay Cree Indian band in Quebec, was impressed enough to sign a $50- mi1lion option to buy 1,000 sharpeners at $50,000 apiece from Tudor subsidiary Universal Skate Sharpeners Ltd. of Calgary. That compares with a manufacturing cost of $4,000 per machine — a net prof- it that sent Tudor stock soaring to $4.55 Monday after being suspended at $3.90 pending release of the contract details, Conn said Monday. But what's good for Tudor balance sheets will also be good for the Quebec company, Cree Regional Economic En- terprises Inc., Conn insists. "We've been getting our money back net every 10 weeks with these," Conn said during an interview at the three - month -old southeast Calgary manufac- turing plant. See MACHINE, Page A2 Mac-Wine sharpens profits (Continued) "We've never showed it to anybody that didn't want to come and work for us," in- cluding former hockey superstar Bobby Orr, Conn said. The Calgary businessman wasn't even sure he wanted to sell the machine — devel- oped through an 11 -year, $4- million research and development effort — because it made such lucrative returns for the company. The Cree band contacted him to sell 100 units and after hearing Conn's demand for $50,000 plus royalties, promptly called back to boost its order to 1,000 machines. Albert Diamond, president of Cree Co., said the band is "always looking for interest- ing investments" for the "substantial amount" of money the band received under the $225 - million James Bay land claims agreement. "We've mostly invested in bonds, stocks and the money market, but we want to di- versify and invest in business," Diamond said in an interview from Val- d'Or Monday. "We've seen this machine in action and it By opting to take up to 1,000 machines, it gives the band the flexibility to expand throughout Quebec if there is a public de- mand for the service, he said. "We said 1,000 because it's a nice, round number. We really don't know how many we need," Diamond said. "If we find we only need 700, that's all we'll take." But the band's failure to exercise its pur- chase option is the least of Conn's worries. "I've got 50 people trying to buy machines from the company" for the lucrative and untapped Ontario market, he said. "We'll have to licence manufacturers there because there's no way we could meet the demand." Canadian Tire wants to buy hundreds of machines, Imperial Oil is considering the installation of the sharpeners throughout its service station network and Japanese busi- nessmen are expressing interest in marketing the device, Conn said. "We're a company with no debt, $4- mil- lion in the bank and a very bright. future," Conn declares. "And I've gut other ideas I rinn't want tri nnhlir•iia hnt thev're a5 vood EDMONTON OILERS Member of the National Hockey League Mr. Lionel Conn Universal Skate Sharpener Suite 630 10201 Southport Road SW PO Box 8850 Station F Calgary, Alberta T2J 5S5 Dear Mr. Conn: Upon hearing of the Universal Skate Sharpening machine I was a little skeptical. Probably moreso than clot of other people, being an extreme traditionalist when it comes to hockey equipment. Over the past two to three seasons I don't think I've been able to find a happy medium in the hollow of my sharpening. Neither have I found any consistency with the outer and inner edges being "level ". Might I add that this is no fault of our trainer, Barrie Stafford, whom I give full marks as being a tremendous trainer. One of my biggest arguments against the "flat sharpener" or the "swing arm sharpener" is that there are too many elements that can go wrong. This the trainer can't control, simply because no person can hold a skate with constant, even pressure when sharpening. This is why I have been sold on the Universal skate sharpening machine. The first time I tried the machine was the first day of the 1983 Edmonton Oilers training camp. Much to my surprise, I found a very stable edge and all four edges seemed to be perfectly equal. I don't see any reason why this product will not become an extreme success worldwide. Yours very trul M Mes er FUIlu . NORTHLANDS COLISEUM EDMONTON, ALBERTA T513 4M9 (403)474 -8561 • TICKETING (403)471 -2191 (0) �r EDMONTON OILERS Member of the National Hockey League Mr. Lionel Conn Universal Skate Sharpener Suite 630 10201 Southport Road SW PO Box 8850 Station F Calgary, Alberta T2J 5S5 Dear Mr. Conn: I started my hockey career by playing in second division in Sweden. My dad was the skate sharpener for that team and he taught me everything about skate sharpening. At age 19, I moved to Gothenburg, where I played in the top division for five years. During those years I also played for the Swedish National team, where I helped with sharpening skates in both teams. In 1975, I signed as a professional hockey player for the Winnipeg Jets. I played there for eight years. Most of the time I sharpen my own skates and I also helped other players with their skates. I can remember one year the trainer in Winnipeg was asked to leave and we still had 15 games left in the season. At that point I was the one who took care of all of the skate sharpening. Now I'm playing hockey for the Edmonton Oilers. This is where I got introduced to computerized skate sharpening. I have tried it out witli my own skates and it's the best sharpening I have ever had in my entire hockey career. It's the best idea I have ever seen! Aours trul , W' y Lindstrom Dear Lionel EDMONTON OILERS Member of the National Hockey league r U I would like to extend my thanks for your hospitality during our recent visit to Calgary. I really enjoyed seeing the Sharp Manufacturing Automatic Skate Sharpener, and just wanted to let you know that I think you have a real winner on your hands. Coming from a family of hockey players, I can appreciate the difficulties encountered by my parents when it came to ensuring our hockey skates were always sharp. Not only was there an expense involved, but there was definitely a substantial amount of inconvenience due to the lack of skate sharpening facilities. There is no question that the time has come for a skate sharpening device which is not only reliable, but also economical, and your machine should revolutionize the skate sharpening industry. All the best, and good luck with all your endeavors. Yours truly Wa ne Gretzky ��� •nn ���.� ♦ � r�� -�-r♦ inn �. �n • �rv�� .n. nr'n1 � TII�VfY I�II� I.M1 .'�♦ n�I�. i 1`• MADISON SQUARE GARDEN CENTER FOUR PENNSYLVANIA PLAZA, NEW YORK, N. Y. 10001/(212) 563 -8000 Mr. Lionel Conn 401 10333 Southport Road S.W. Calgary, Alberta T2W 3X6 Dear Lionel: Many thanks for taking time out to visit with me last Saturday. I was thoroughly impressed with your skate sharpening machine and envision this to have a great impact on the marketplace. Please send me•your Prospectus when it is ready. When you get the necessary information together on the various markets•in the United States, especially in the state of Minnesota, please advise me in as much that I am interested in looking into the possibility of purchasing a franchise. All. correspondence should be sent to the following address: HB /mas 5423 Carlson Road Shoreview, Minnesota 55112 Looking forward to your reply. Sincerely, Herb Brooks (6) Mr. Lionel Conn, President, The Tudor Group, Box 8850, Station "F ", Calgary, Alberta T2J 5S5 Dear Lionel, �v 66 charles st east, loronto, ontario m4y It 1 • (4161968 -29: 4 Thank you -or your time and .courtesy during my stopover in Calgary. Dinner was great and it was nice to see "Greenie" again. As you are aware, I was a bit apprehensive about your skate sharpening machine, but, after your tour and explanation in Calgary, I am now convinced that you have a mechanism that would do all that you said it would. The finished product is as good as any commercial sharpening I have seen and the technology of the machine appears very sound to me. In conclusion, would you please keep me in mind when you are distributing franchises. Sincerely, Robert G. Orr \ KGO:slb ASSOCIATE STORES- mAGASIt1S ASSOVES rM' • •r CALGARY, ALTA. T2J 3K9 skate Sharpeners Ltd., 630 -10201 6outhport Goad S.W. Calgary, Alberta T2J 5S5 Attention: Mr. Lionel Conn Uear Mr. Conn, I would like to thank you for being so good as to taKe time to show Alan Keeler, our General `tanager, and myself your skate sharpenin3 machine. -fter further iiscussions with my Staff we feel the future of the equipment is almost unlimited 'and we definitely want to place an order for nachines for our store, and I am sure other Canadian :ire stores will be interested. Skate sharpening is a thirty thousand dollar plus business with our store at present, and it must be recognized we are using a very inferior machine in the Uupliskate System, both from the ease of operation to the finished job. In our discussion you expressed interest versus figure skates. I have looked it up on :0 to 1 ratio i.e. 5% of all skates sharpened Lionel we are -.cry interested, and would have one of your first machines so we can get looks like a real money maker. on the ratio of hockey skates our computer and there is a would be the figure skate type. lice your assurance to let us in cn the ground floor of what Once again, thank you and the best of luck. Yours truly, / President Canadian Tire rtssoc 6tore Tempo EntelrpriSeS LOCATED AT A PARTNERSHIP Of Metropolitan Ice Skating Schools ltd. i Brae Nyland Power Skatlnp School, lid. Phone (416) 497 -4616 June 27, 1984 919/ Skate Sharpeners Ltd. #630, 10201 Southport Road S.W. Calgary, Alberta T2J 5S5 Attention: Mr. Lionel Conn, President Dear Mr. Conn: 5p) As General Manager of Centre Ice Arena, I had the opportunity some months ago to attend your showing at the Westin Hotel in Toronto. At that time I found your new skate sharpening machine a very interesting prospect. Centre Ice is a facility which operates 2 ice surfaces year round, the Arena has been in operation since 1972 and continues to offer services to the Toronto Public. Mainly, we cater to the adult population as we operate an Industrial Hockey League as well as rent our ice to the many company hockey teams and leagues in the area. Yearly, our traffic would be estimated at 500,000 people using the I services of our arena. In the past we have offered a skate sharpening service, unfortunately, we have not been totally satisfied with the quality of work particularly due to the unskilled part -time help. I would be interested in receiving any further information regarding sight installations, terms, etc. Looking forward to hearing from you in the near future, I /am Yours very truly, TEMPO ENTERPRJ SES �4 Chris Hawley V General Manager CH /nmc 3550 Victoria Park Ave., Willowdale, Ontario M2H 2N5-- - - - - -- - f(Ih(hV'l'll • (;rr.rrrliato ul ( ;,ur,Itht 'I'nwcr. 181 1)r) iv( r :siIv ,'l vi APi/I 3 A I'hfitit /•1161 lMH- 1):10;1 To Itr.x (ifi- 211/670 %IONTRI,, V. • (;.I.) I)oicootcst'v Ifrnr/erard t•l /csI, / /:1/f IS Phrrrrr- of!) 1-11 1171 -0004 (.:1). ; /IYY • 1.11o, 140 -4111 r1 vi" lrIIv .S. W_ T21' 3N`3 1'1 tnnu 140:1) 2.14 -W 104 AnalysA choice - F NANC I AL TIMES OF CAtoADA Tudor turns October 29, 1985 to hockey for new growth By Hugh G.W. Wilmer A computerized, coin-operated skate sharpen- er the size of a soft -drink vending machine could be about to make a successful junior resource company into an emerging growth stock with na- tional apeal. Tudor Energy Corp. Ltd., a Calgary -based ju- nior M and gas producer listed on the Toronto Stock Exchange, is debt -free, has $4 million in cash (excluding $1.3 million from B warrants ex- piring Nov. 4, 1985), and revenues from oil and gas properties in CAlorado and Alberta. Analysts, their colleagues and their clients may own the securities recommended In the Analyst's Choice column. The company has a very successful oil and gas business which will continue to generate sub- stantial cash flow. Some of that cash will be di- rected towards the future development of its new skate sharpening division. In May, 1984, the com- pany acquired 100`io of the outstanding shares of Universal Skate Sharpeners Ltd. and Sharp De- sign and Manufacturing Ltd., from Tudor Devel- opments Ltd., for the nominal amount of $1. In exchange, the company will pay a 12.5% interest in the pre -tax profits of Universal to Tudor De- velopments. This new subsidiary could ultimately contrib- ute significant profits, and, with a superior prod- uct closely allied to Canada's national sport, hockey, has nationwide appeal. The founders of Universal have spent 11 years and $4 million de- veloping the Universal Skate Sharpener. Similar in dimension to a soft drink vending machine, it is coin -operated by the customer, computer -con- trolled and machine tooled to give a perfect grind every time. Tudor has patented its machines in Canada, the U.S., and the European Economic Commu- nity countries, filling a perceived need for a fast, convenient, inexpensive, customer - operated skate- sharpening process. The company plans to manufacture and dis- tribute sufficient skate sharpening machines to secure the Canadian market. The company re- cently bought a three -acre industrial property in Calgary with a 40,000- square -foot modern plant. The new plant will have the capacity to produce 300 machines a month, and should be in opera- tion by the end of the year. Universal. Skate Sharpeners provides two sources of revenue. The first comes from the company -owned machines and the second from machines which are sold outright. For example, the company announced late last year the Cree Company of Quebtc would pur- chase 100 machines for 1155 million before Sept. 30, 1985, with an option to purchase an additional 900 machines at $W,000 a machine during a three - year period. To date, $5 million has been re- ceived, of which $4 million is applicable to the current fiscal year. With demand from hockey clubs, ice rinks, Ca- nadian Tire stores, Esso service stations and similar retail outlets, the market p . gr bly will acknowledge Tudor as an emer, owth stock, and rate it accordingly. Hugh G.W. Wllnw to a vice - president dire-, - for wtth Dean Witter Reynolds (Canada) In To- ronto.