product that households will continue to use  for many generations. It has become an  exclusive supplier to some of the world’s largest  retailers through their unparalleled  commitment to quality, innovation and  customer service. Alaris is proud to be  associated with such an outstanding  enterprise.”  Solowave Design Inc. |  SOLOWAVE  is a manufacturer of residential, ready-to- assemble wooden play centers. Solowave’s products are  sold under the brand names Big Backyard and Cedar  Summit Premium Playsets. Based in Ontario, Solowave  has operations in the United States and Asia, and sells  globally in North America, Europe, Australia and the  UAE. Solowave was founded in 2004 and employs  approximately 135 employees worldwide, and up to 260  during peak season. Through new product development, quality and innovation, Solowave has  established itself as the leading manufacturer of wooden  play centers in the United States. ASSET CLASS: Sporting Goods, Children’s Active Play  TOTAL ALARIS CAPITAL INJECTED: $32,500,000  PARTNERSHIP HIGHLIGHTS: GLYPH<g131> Since inception, the company has tripled in size over  the past five years and has identified significant growth  opportunities through international sales expansion  and entry into new markets. GLYPH<g131> Solowave sells its play sets to major retail dealers such as  Toys R Us, Costco, Target, Rona, and Canadian Tire.  Solowave is currently the exclusive supplier of wooden  play centers for Toys R Us United States and Toys R Us  Canada as well as for Costco U.S., Canada, U.K. and  Mexico.  GLYPH<g131> Focused expansion into new markets and channels, and  growth from the acquisition of new customers will  result in a reduction of the existing customer  concentration.  GLYPH<g131> Current annual royalty payment to Alaris is $4.96  million. The annual royalty payment reset is based on  change in “same customer net sales” over the immediate  previous fiscal years audited sales revenue. This metric  has an annual collar of +/- 6%.  GLYPH<g131> Fiscal year end is October 31$^{st}$.  SOLOWAVE EXECUTIVE TEAM  Richard Boyer  Chief Executive Officer  & Founder  Mat Wolf  Vice President of Finance  Head Office:  Mount Forest, Ontario  www.bigbackyard.com  www.cedarsummitplay.com  10  2011 Annual Report  Alaris Royalty Corp. S SteveKing,ChiefExecutiveOfficer  Alaris Royalty Corp. 