Quetico |  “The specialized wholesale and inventory  management services Quetico provides, as well as  the robust customers it provides these services to,  have made it a recession resistant business. This  has been proven by consistency and profitability  Quetico has displayed over the past 17 years, and  especially since 2007. These were the major  factors that drove our decision to partner with  them.”.  S SteveKing,ChiefExecutiveOfficer  Alaris Royalty Corp.  QUETICO  Founded in 1994, Quetico has created a  highly specialized and proprietary wholesale and  inventory management niche within the logistics  industry. Quetico is based in Chino, California.  Quetico provides specialized wholesale, inventory  management and third party logistics services of  consumer products to big box retailers and brand name  manufacturers in North America and abroad. Quetico  operates approximately 400,000 square feet of  warehouse space and employs approximately 400  people at its peak output. Customers of Quetico are  primarily multi-national, financially stable, industry  leading companies.  Tom Fenchel, Co-Chief Executive Officer  Nick Agakanian Co-Chief Executive Officer  Alan Mazursky  Chief Financial Officer  Head Office:  Chino, CA  www.queticollc.com  $ 26,900,000 USD  ASSET CLASS: TOTAL ALARIS CAPITAL INJECTED: PARTNERSHIP HIGHLIGHTS: QUETICO EXECUTIVE TEAM:  Inventory Management  8  2011 Annual Report  Alaris Royalty Corp. GLYPH<g131> Quetico has created service offerings that are unique to  the industry along with a “one stop shop” approach to  servicing their customers, allowing the company to gain  a large share of the traditional service market. GLYPH<g131> Quetico’s founding partners have over 50 years of  combined experience in their industry and have long- standing relationships with the complete management  team in various multi-national big box retailers and  brands. GLYPH<g131> Customers of Quetico are multi-national, financially  stable, industry leading companies.  GLYPH<g131> Current first year distribution to Alaris is $4.25M with  the annual reset based on the percent change in gross  profit over the immediately previous fiscal year’s  audited gross profit. Alaris’ royalty from Quetico has a  ceiling of +10% and a floor of -20% per year.  GLYPH<g131> Quetico’s fiscal year end is December 31. 